In Brief
The Supreme Court overturned a High Court judgment that ordered reinstatement of a workman with back wages. The workman's employment was terminated in 1985; the Labour Court found it illegal and awarded him lump sum compensation in lieu of reinstatement, which he accepted. Years later, when the employer regularized the services of another employee already working, the workman claimed reemployment under Section 25(H) of the Industrial Disputes Act, 1947. The Court held that since he had accepted compensation in full settlement, his claim was extinguished. Furthermore, Section 25(H) applies only to fresh recruitment of new employees to fill vacancies, not to regularization of existing employees. The appeal was allowed and the Labour Court's original award was restored.
The lawyer headnote and full judgment text are available to registered users.