Gujarat High Court

### Smallness of Amount Justifies Dismissal of Petition Without Adjudication on Merits of Compensation Award

KISHORE VADILAL PVT. LTD. vs KRUPASHANKAR JAGDAMBA PRASAD TOVARI

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

Facts

The petitioner-employer, a business engaged in drilling accessories, challenged the orders dated 26.09.2013 and 17.10.2014 passed by the Labour Court, Ahmedabad

Source reference: p. 1

The respondent-workman, formerly a Turner and Shopper, filed a reference (LCA No. 1343 of 2008) alleging illegal termination.

Source reference: p. 2

During the proceedings, the workman filed a Purshis (Exhibit-27) stating he did not seek reinstatement as he had secured employment with another company, Precious Fab Fast Pvt. Ltd.

Source reference: p. 2

The petitioner contended that the workman left voluntarily and, being gainfully employed elsewhere, was not entitled to back wages or compensation.

Source reference: p. 3

Despite these contentions, the Labour Court awarded the workman ₹50,000/- in compensation.

Source reference: p. 3
02

Issues

1. Whether the Labour Court erred in awarding compensation of ₹50,000/- despite the workman's admission of gainful employment and waiver of reinstatement.

Source reference: p. 3

2. Whether the High Court should interfere with the lower court's award given the specific quantum of the amount involved.

Source reference: p. 3-4
03

Law Applied

The Court applied the principle of judicial discretion regarding the "smallness of amount" in writ jurisdiction under Article 226/227 of the Constitution of India.

Source reference: no citation

It also recognized the settled law that gainful employment during the interregnum period generally precludes the awarding of back wages, while maintaining the court's prerogative to dismiss petitions without deciding on merits when the financial stakes are negligible.

Source reference: summarized from para. 3 5
04

Reasoning

The Court evaluated the petitioner's argument that the Labour Court ignored Exhibit-27 (the Purshis regarding new employment) and the fact that the workman was not terminated but left voluntarily.

Source reference: p. 2-3

The High Court declined to adjudicate on these specific legal merits. Instead, it focused on the "smallness of amount," noting that the total compensation awarded was only ₹50,000/-.

Source reference: p. 4

The Court reasoned that such a nominal amount did not warrant a full-scale merit-based review or the expenditure of further judicial resources, choosing instead to keep all legal grounds open for future cases while leaving the specific award undisturbed.

Source reference: p. 4
05

Holding

The Court dismissed the petition and discharged the Rule, vacating all previous interim stays.

The Court clarified that this judgment does not constitute a legal precedent as it was delivered based on the specific facts and the small financial quantum involved. The petitioner was directed to deposit the ₹50,000/- compensation for the respondent-workman within six weeks from the date of the judgment.

Source reference: p. 4
Gujarat High Court

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KISHORE VADILAL PVT. LTD.vsKRUPASHANKAR JAGDAMBA PRASAD TOVARI

Gujarat High Court · June 30, 2026

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