Madhya Pradesh HC Upholds Workman's Retrenchment By Krishi Upaj Mandi Samiti Noting Compliance Of Section 25F Industrial Disputes Act

The Gwalior bench of Madhya Pradesh High Court, in a case regarding labour laws, set aside a Labour Court order which had directed the reinstatement of a workman with 50% back wages, after noting that the retrenchment of the workman by the concerned organisation was done following the due process of law. In doing so the court observed that the petitioner–Krishi Upaj Mandi Samiti, had followed the mandate of Section 25F of the Industrial Disputes Act–which lists the various conditions precedent for retrenchment of workmen–which retrenching the respondent workman. A single judge bench of Justice Anand Pathak in its order observed, "Cumulatively, it appears that the compliance of Section 25F of the Act was made and the labour Court earlier vide award dated 26-07-2010 given liberty to the petitioners for retrenchment and therefore, petitioners retrenched the workman by following due process of law. The court stated that if wages for the period of one month notice is given and retrenchment compensation is also provided then there is no requirement to give notice to the government under Section 25F. “Cumulatively, it appears that the compliance of Section 25F of the Act was made and the labour Court earlier vide award dated 26-07- 2010 given liberty to the petitioners for retrenchment and therefore, petitioners retrenched the workman by following due process of law.