In a strongly worded judgment on August 7, the Bombay High Court set aside a 2019 Industrial Tribunal award and directed the reinstatement of 53 contract workers — aayas (women attendants), ward boys, and sweepers — at the Chhatrapati Shivaji Maharaj Hospital in Kalwa. The Court held that their termination in 1995 was illegal and without due process, ruling that the earlier denial of reinstatement on grounds of delay was “not warranted in law”.
The judgment, delivered by Justice Milind N. Jadhav, came in a set of cross-writ petitions filed by the workers’ union, Sarva Shramik Sangh, and the Thane Municipal Corporation.
Justice Jadhav observed: “Taking an overall view of the peculiar facts and circumstances of the present case, it is seen that merely because the Reference remained pending before the Industrial Tribunal for almost 14 years, the learned Tribunal has held that much water has flown below the pool and therefore considering this situation lumpsum compensation is awarded. In my opinion, such a conclusion is not warranted in law.”
The judge added: “I am of the opinion that once the Industrial Tribunal has come to the definite conclusion while answering Issue Nos. 1, 2, 4 and 5 then as a sequitur of the said conclusion, Issue No. 3 ought to have been answered accordingly, rather by awarding relief of meagre lumpsum compensation in terms of money to each worker it has not done justice to the cause. This is because pendency of the Reference before the Industrial Tribunal cannot be held against the workmen. Delay in the legal system cannot be held against granting of appropriate relief to the workmen.”
The court noted that had the Reference been decided within a year of filing, the Tribunal would “in all probability” have awarded reinstatement with continuity of service and back wages “on the strength of overwhelming evidence.”
It further held that delay in adjudicating the Reference could not defeat the legitimate claims of the workmen. Once the Tribunal had conclusively found that the workers were employees of the Corporation – deployed in the hospital, marking attendance with regular employees, and supervised by Corporation-appointed staff – and that their termination was illegal, the logical outcome should have been reinstatement. Awarding token compensation of ₹1 lakh each, solely on the ground that the matter had remained pending for 14 years, was a “flawed conclusion” that undermined findings of illegality and the established employer-employee relationship, the Court said.
“I am of the clear opinion that justice should not only be done but also seen to be done. The conclusion in the present case has been arrived at only because of the delay in deciding the Reference and nothing else. There is no other reason whatsoever to preclude the Court from deviating from granting appropriate relief,” the order stated.
The Court directed: “All workmen whose names are appended to the ULP Complaint by the Union are directed to be reinstated forthwith and shall join services in the Hospital in any event within a period of one (1) week from today.”
The workmen will not be entitled to back wages or continuity in service, but will be eligible for retirement benefits in accordance with law. The joining of workers is to be confirmed and verified by the Dean of the Rajiv Gandhi Medical College and Chhatrapati Shivaji Maharaj Hospital, Kalwa.
The union must provide details of workers who have either retired or died in the interim to the Thane Municipal Corporation. After scrutiny, such workmen or their legal heirs will receive ₹2 lakh each as compensation, subject to documentation. “The order of payment of lumpsum compensation of ₹1 lakh stands deleted and substituted by the above order and directions,” the Court said.
The workers were earlier denied reinstatement by the Industrial Tribunal in Thane, which had acknowledged them as employees of the Corporation and found their termination illegal, but granted only ₹1 lakh each as compensation.
The Tribunal had cited the 14-year pendency of the case to deny reinstatement. However, the High Court disagreed, noting that the Corporation had failed to produce any credible contract or licence under the Contract Labour (Regulation & Abolition) Act, 1970, proving the involvement of a contractor.
Evidence from ward registers and attendance sheets showed the workers performed duties “of the same cadre as that of regular permanent employees” and were “routinely monitored by the Nurses, Matrons, Mukadams and Supervisors of the Hospital.” A Corporation witness even admitted during cross-examination that he was unaware of the contractor’s identity, undermining the Thane Municipal Corporation’s case.
“The workmen completed more than 240 days continuous service in employment of the Hospital/Corporation and there is no dispute on this aspect,” the Court noted, rejecting the Tribunal’s reasoning.
The order has been stayed for four weeks to allow the Thane Municipal Corporation to appeal before a higher court.
Published – August 08, 2025 09:47 pm IST
