Workmen Challenging Their Alleged Termination Can Be Directed To Deposit Ex-Gratia Compensation Until Final Disposal: Gujarat High Court

The Gujarat High Court has held that where the disengagement of workmen by an employer is under dispute, the former claiming illegal termination and the latter asserting voluntary resignation arrangement, the Labour Court may direct deposit of ex-gratia amount in the interim.Justice Biren Vaishnav thus upheld a Labour Court's decision directing the workmen to deposit the ex-gratia amount until final disposal of the dispute between the parties.The Bench was hearing a petition whereby the workmen had challenged their purported termination from the Respondent-employer. The Respondent, per contra, submitted that it is not termination that was the result of the end of an employer-employee relationship between the parties, but a voluntary resignation pursuant to which an amount of compensation / ex-gratia payment was accepted by the workmen.It was claimed that the workmen cannot now turn around and challenge the end of such engagement by referring to it as termination.It was argued that the Labour Court had rightly ordered deposit of compensation until finality is reached with regard to the disputed question of fact."While deciding the issue therefore whether it was in fact termination or acceptance of voluntary disengagement on resignation, the stand of the Labour Court in balancing the equities pending the reference by directing the workmen to deposit the amount cannot be said to be a stand prejudicial to workmen."Finding merit in this submission, the High Court upheld the Labour Court's decision. It observed,"In facts of the case whether the termination was as a result of voluntary resignation given by the workmen or "retrenchment" is an issue which needs to be adjudicated by the Labour Court and when pursuant to the directions issued by this Court on remand and the Labour Court pending the issue of final decision directed the workmen to deposit the amount, no fault can be found with the orders passed by the Labour Court and the Labour Court obviously while considering the order of deposit when moulding the final relief in favour of either of the parties."The Single Judge Bench reasoned that even though the Petitioners are correct that the order of the Division Bench cited by the Respondent pertained to voluntary retirement, the Labour Court was yet to adjudicate whether 'retrenchment' was voluntary or not. Case No.: C/SCA/21086/2019 Case Title: RAJA LAXMAN CHOPADA v/s ADITAYA BIRALA NOVA LIMITEDCitation: 2022 LiveLaw (Guj) 306 Click Here To Read/Download Order

Workmen Challenging Their Alleged Termination Can Be Directed To Deposit Ex-Gratia Compensation Until Final Disposal: Gujarat High Court

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