Dispute over workers’ termination and subsequent compensation. The appellant, U.P. Power Corporation Ltd., challenged a High Court decision that upheld an order for them to pay two respondents, former daily wage workers, significant compensation for a period they claimed continued service. The Supreme Court reversed the lower court’s decision, finding that the workers’ age at the time of their initial engagement and the duration of service presumed they would have already reached retirement age, thus negating their claim for continued salary during the disputed period. The court concluded that the High Court erred in confirming the payment direction, thereby setting aside the previous judgments.
Uttar Pradesh Industrial Disputes Act, 1947, Section 6H (1) – Industrial Dispute – Discontinuance of service – Age of petitioners – Grievance of the respondents was that despite the Award dated 07.12.1995 passed by the Labour Court they were not taken back into service but were paid ₹7,05,662/- each on 03.05.2016 – This payment was ostensibly for the period up to 31.12.2014 – Their prayer in the application was that they should be paid for the period 01.01.2015 to 31.05.2018 in compliance with the Award dated 07.12.1995 – This prayer was accepted by the Deputy Labour Commissioner, by order dated 05.04.2021, and she directed the appellant to pay each of them ₹6,53,302/- for that period.
Assailing the said order, the appellant approached the High Court by way of Writ and the High Court did not agree with the appellant that the respondents were not entitled to be paid salary for the period in question and dismissed the writ petition – Two respondents were engaged in service by the appellant in 1971 and 1973 – There is no material on record to indicate what their ages were at that time – Presuming that they would have been majors, i.e., at least 18 years old, when they were engaged in the service of the appellant, a State instrumentality – If that be so, they would attain the age of 60 years in 2013 and 2015 respectively –
In any event, they would have rendered about 40 years’ service by 2013 – This aspect of the matter was completely ignored by the High Court – Accepting their claim would mean that they were aged about 8 years and 10 years respectively when they entered the service of the appellant, which is quite unbelievable – Held that the Deputy Labour Commissioner erred in directing payment of salary to the respondents for the period 01.01.2015 to 31.05.2018 – Impugned judgment and order passed by the High Court and the order passed by the Deputy Labour Commissioner liable to be set aside.
(Para 7 to 11)
U.P.Power Corporation Ltd V. Satya Ram
Supreme Court: 2025 INSC 339: (DoJ 05-03-2025)