Gujarat High Court

Non-compliance with Section 25F mandatory requirements renders termination illegal, necessitating reinstatement despite engagement in gainful activities.

DIRECTORATE OF PENSION AND PROVIDENT FUND vs JASUBHAI R VALODARA

Gujarat High CourtJUDGMENT: June 16, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The respondent-workman was employed as a part-time cleaner/sweeper since May 1, 1988

Source reference: p. 2

Following brain surgery in 2002, the workman attempted to resume duties but was orally informed his services were no longer required

Source reference: p. 5/7

The employer contended the workman stopped coming voluntarily

Source reference: p. 4

After a failed representation and conciliation proceedings in 2012, the workman filed a reference in 2013

Source reference: p. 3

The Labour Court, Ahmedabad, in Reference (LCA) No. 113 of 2013 (dated 26.07.2022), ordered reinstatement with continuity of service but without back wages

Source reference: p. 3

The employer challenged the reinstatement, while the workman filed a cross-petition seeking back wages

Source reference: p. 1/3
02

Issues

1. Whether the reference was barred by inordinate delay or limitation given the cessation of work occurred in 2002

Source reference: p. 8/9

2. Whether the termination of the workman was in violation of Section 25F of the Industrial Disputes Act

Source reference: p. 10/11

3. Whether the workman is entitled to full back wages upon a finding of illegal termination

Source reference: p. 11/12
03

Law Applied

Section 25B of the Industrial Disputes Act, 1947, defining "continuous service" as completing 240 days in the preceding 12 months

Source reference: p. 5/10

Section 25F, which mandates a one-month notice period or wages in lieu of notice and retrenchment compensation for qualifying workmen

Source reference: p. 5/11

the principle that such relief is not automatic; the workman must prove a lack of gainful employment during the period of termination

Source reference: p. 11/12
04

Reasoning

The Court rejected the employer's plea of limitation, noting the workman was pursuing representations and conciliation until 2012; thus, the 2013 reference was within a reasonable time

Source reference: p. 8/9

The Court found that the workman’s claim of continuous service from 1988 to 2002 was not effectively challenged in cross-examination

Source reference: p. 10

Since the employer possessed but withheld best evidence (attendance and salary registers), a presumption was drawn in favor of the workman completing 240 days

Source reference: p. 6/10

The failure to provide notice under Section 25F rendered the termination illegal

Source reference: p. 11

Regarding back wages, the Court noted the workman admitted in his deposition to earning Rs. 2,000/month from private house cleaning, establishing gainful activity that dis-entitled him to back wages

Source reference: p. 12
05

Holding

The High Court dismissed both petitions and upheld the Labour Court’s award

It held that the reinstatement was justified due to a clear breach of Section 25F, but affirmed the denial of back wages because the workman failed the "no gainful employment" test

Source reference: p. 11/12

Interim relief was vacated, and Rule was discharged

Source reference: p. 12
Gujarat High Court

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DIRECTORATE OF PENSION AND PROVIDENT FUNDvsJASUBHAI R VALODARA

Gujarat High Court · June 16, 2026

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