Gujarat High Court

Non-compliance with reinstatement orders renders recovery proceedings under Section 33(C)(2) of the Industrial Disputes Act sustainable.

SHREE UKHLADA DUDH UTPADAL SAHAKARI MANDALI LTD. vs CHAMABHAI NARSHIBHAI CHAUDHARY

Gujarat High CourtJUDGMENT: June 25, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The petitioner (employer) removed the respondent (workman) from service in 2002 following allegations of misappropriating ₹3,43,115 and the registration of an FIR.

Source reference: para 4.1

The Labour Court, Surat, passed an ex-parte award on 05.04.2007 in favor of the workman.

Source reference: para 4.1

The petitioner’s subsequent restoration applications and appeals (SCA No. 4673/2016 and LPA No. 728/2019) were either dismissed or withdrawn with liberty to take disciplinary action.

Source reference: para 4.1

Despite this liberty, the petitioner failed to initiate new disciplinary proceedings.

Source reference: para 6

The workman filed Recovery Application (C-2) No. 261 of 2021 under Section 33(C)(2) of the Industrial Disputes Act, which the Labour Court partly allowed on 20.02.2026, directing the petitioner to pay ₹5,37,000 with 6% interest.

Source reference: para 4.1

The petitioner challenged this recovery order via the present writ petition.

Source reference: para 1
02

Issues

Whether the recovery order passed by the Labour Court under Section 33(C)(2) was perverse or arbitrary given the pending criminal proceedings against the workman.

Source reference: para 5/6

Whether the petitioner can stall the execution of a recovery award on the grounds of intended future disciplinary action.

Source reference: para 6
03

Law Applied

Articles 226 and 227 of the Constitution of India regarding the High Court's supervisory jurisdiction over subordinate courts.

Source reference: para 1

Section 33(C)(2) of the Industrial Disputes Act, 1947, which provides a summary and execution-oriented remedy for a workman to recover money due from an employer.

Source reference: para 6

The principle that a long legal battle should result in the realization of legitimate rights and that mere pending criminal proceedings do not automatically stay labor law entitlements unless specific disciplinary action is concluded.

Source reference: para 6
04

Reasoning

The Court observed that the petitioner had failed to comply with the original 2007 reinstatement order for nearly two decades.

Source reference: para 6

Although the Letters Patent Bench had granted the petitioner liberty in 2019 to initiate fresh disciplinary action, the petitioner failed to do so.

Source reference: para 6

The Court rejected the petitioner's argument that the recovery proceedings should be stayed pending the outcome of the criminal trial (FIR No. 111 of 2003), noting that the workman had not received the "fruits of the orders" passed in his favor after a prolonged legal struggle.

Source reference: para 6

The Court found that Section 33(C) is essentially a summary and execution remedy, and since the petitioner could not demonstrate that the Labour Court's order was perverse or lacked jurisdiction, there was no ground for interference under writ jurisdiction.

Source reference: para 6
05

Holding

The High Court dismissed the petition, holding that the petitioner cannot indefinitely stall proceedings or deprive a workman of legitimate rights granted by the Labour Court.

The Court affirmed the order dated 20.02.2026 passed by the Labour Court (SD) No. 4, Surat, in Recovery Application No. 261 of 2021.

Source reference: para 4.1

The rule was discharged, and no costs were ordered.

Source reference: para 6
Gujarat High Court

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SHREE UKHLADA DUDH UTPADAL SAHAKARI MANDALI LTD.vsCHAMABHAI NARSHIBHAI CHAUDHARY

Gujarat High Court · June 25, 2026

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