SAMEER L. NAIK AND 20 ORS., REP. BY KADAMBA KAMGAR UNION (THROUGH ITS PRESIDENT) v. KADAMBA TRANSPORT CORPORATION LTD.,
Termination of Apprentices - High Court Enhances Compensation for Non-Compliance with Section 25 of the Industrial Disputes Act, but Denies Reinstatement.
Court: Bombay High Court
Citation: 2025:BHC-GOA:2528
Decision Date: 17-12-2025
List of Laws
Industrial Disputes Act; Apprentices Act; Labour Law
- Facts: Twenty-one workmen, represented by Kadamba Kamgar Union, challenged an award dated 10.02.2012 (Reference No.IT/17/2008) that denied them reinstatement with continuity of service and full back wages. The workmen were appointed as "Apprentices" and paid a stipend. Their services were terminated after approximately two years. The Tribunal initially awarded compensation of Rs. 60,000/-.
- Procedural Posture: The workmen filed a writ petition in the High Court of Bombay at Goa challenging the Tribunal's award.
- Issue: Whether the Tribunal erred in denying reinstatement with full back wages to the workmen whose services were terminated, and whether the compensation awarded by the Tribunal was adequate.
- Holding: The High Court partly allowed the petition, modifying the Tribunal's award by increasing the compensation to Rs. 1,00,000/- per workman, along with 9% interest per annum from 10.02.2012 until actual payment. The Court upheld the Tribunal's finding that the termination was illegal due to non-compliance with Section 25 of the Industrial Disputes Act, but declined to order reinstatement.
- Reasoning: The Court considered that the workmen were designated as Apprentices and paid a stipend, and their service duration was only two years. While the employer defaulted in complying with Section 25 of the Industrial Disputes Act, directing reinstatement at this point was not appropriate. The Court found the initial compensation of Rs. 60,000/- inadequate considering the period between termination (20.01.2005) and the date the termination was held illegal (10.02.2012), approximately seven years. Therefore, the compensation was increased to Rs. 1,00,000/- to provide adequate relief in lieu of reinstatement.
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