Gujarat High Court

Lump-sum compensation is awardable in lieu of reinstatement where part-time employment is established for a significant duration.

GUNVANTBHAI MOHANBHAI ZAGHADIYA vs SARDAR SAROVAR NARMADA NIGAM LTD.

Gujarat High CourtJUDGMENT: April 30, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The appellant (workman) approached the Labour Court alleging unlawful termination in 2012 after working for the respondent-Corporation since 1998

Source reference: para. 1

The Labour Court rejected the reference on the grounds that the workman failed to establish his case, a decision subsequently upheld by a Single Judge in a writ petition

Source reference: para. 2

The appellant challenged these orders via the present Letters Patent Appeal, producing documents obtained through RTI—including a certificate from the respondent—which confirmed he had been engaged and paid wages as a part-time employee from 1998 to 2004

Source reference: para. 3-5

The respondent contended that as a part-time worker whose services ended over 20 years ago, he was entitled to neither reinstatement nor regularization

Source reference: para. 7
02

Issues

1. Whether a workman engaged on a part-time basis for a significant duration (six years) is entitled to any relief/compensation upon termination, even if reinstatement or regularization is not feasible due to the nature of employment and lapse of time.

Source reference: para. 8-9
03

Law Applied

The court applied the principle of equitable relief in industrial disputes, where a lump-sum compensation may be awarded in lieu of reinstatement or regularization

Source reference: para. 8-9

It emphasized the duty of management to treat workers in a "fair manner" when work is not merely casual, as evidenced by continuous engagement over several years

Source reference: para. 9

The court exercised its discretionary jurisdiction to provide a "quietus" to long-standing litigation involving a workman from a marginalized economic background (sweeper)

Source reference: para. 9-10
04

Reasoning

The court observed that while the Labour Court did not have the benefit of the RTI documents, those records clearly established that the appellant served the Corporation for six years (1998–2004)

Source reference: para. 6, 8

Although the management argued the employment was part-time, the court reasoned that six years of continuous service indicates the work was not of a "casual" nature

Source reference: para. 9

Given the significant passage of time (retrenchment occurred approximately 22 years prior) and the nature of the role as a part-time sweeper, the court determined that reinstatement was impractical

Source reference: para. 7-8

However, it concluded that the appellant's long-standing service necessitated a fair financial settlement rather than a total dismissal of his claims

Source reference: para. 9
05

Holding

The High Court set aside the total rejection of the workman's claims and held that the appellant is entitled to financial compensation in lieu of all other reliefs

The court ordered the respondent-Corporation to pay a lump-sum compensation of ₹75,000/- to the appellant

Source reference: para. 9

The Writ Appeal was disposed of accordingly

Source reference: para. 11
Gujarat High Court

Original Court PDF

GUNVANTBHAI MOHANBHAI ZAGHADIYAvsSARDAR SAROVAR NARMADA NIGAM LTD.

Gujarat High Court · April 30, 2026

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