In Brief
A daily-wage peon-cum-driver's services were terminated by the Panchayat Department without following statutory procedures. The Labour Court found the termination violated the Industrial Disputes Act and awarded reinstatement with 40% back wages. The Supreme Court held that while the termination was illegal, reinstatement was not automatic. Applying the law from Bharat Sanchar Nigam Limited v. Bhurumal, the Court awarded Rs. 2,50,000 as lump sum monetary compensation instead of reinstatement, considering the daily-wage nature of employment, lengthy time gap (25 years), and absence of unfair labour practice. The appeals were partly allowed and the Labour Court's award was modified accordingly.
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