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Workmen service Discontinuation Illegal Without Section 6E/6N Compliance: SC

Case Law Details

TaxGuru Citation
2025 taxguru.in 1088
Case Name
Shripal & Anr. Vs Nagar Nigam (Supreme Court of India)
Date of Judgement/Order
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Shripal & Anr. Vs Nagar Nigam (Supreme Court of India)

Supreme Court held that the discontinuation of the Appellant Workmen’s services, effected without compliance with Section 6E and Section 6N of the U.P. Industrial Disputes Act, 1947, is illegal. Thus, all the orders terminating the services are quashed.

Facts- These appeals, one filed by certain workmen (the Appellant Workmen) and the other by the employer department i.e., Ghaziabad Nagar Nigam (the Respondent Employer), arise out of a common final judgment and order dated 01.03.2019, passed by the High Court of Judicature at Allahabad in Writ Petition No. 13381 of 2012 and connected matters.

By the impugned judgment, the High Court considered the legality of two conflicting sets of awards passed by the Labour Court, Ghaziabad—one set allowing reinstatement of some workmen with partial back wages, and another set denying relief altogether to other similarly placed workmen.

Conclusion- Held that the Employer’s discontinuation of the Appellant Workmen stands in violation of the most basic labour law principles. Once it is established that their services were terminated without adhering to Sections 6E and 6N of the U.P. Industrial Disputes Act, 1947, and that they were engaged in essential, perennial duties, these workers cannot be relegated to perpetual uncertainty. While concerns of municipal budget and compliance with recruitment rules merit consideration, such concerns do not absolve the Employer of statutory obligations or negate equitable entitlements. Indeed, bureaucratic limitations cannot trump the legitimate rights of workmen who have served continuously in de facto regular roles for an extended period. Thus, the impugned order of the High Court, to the extent they confine the Appellant Workmen to future daily-wage engagement without continuity or meaningful back wages, is hereby set aside.

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