The Bombay High Court partly allowed a writ petition filed by the workers’ union and dismissed the Thane Municipal Corporation’s cross-petition. The Court upheld the finding that 53 hospital workers were direct employees of the Corporation and had been illegally terminated, but modified the Industrial Tribunal’s award by replacing lump-sum compensation with reinstatement, subject to certain conditions.
The case arose from the termination of sweepers, aayas, and ward boys employed at Chhatrapati Shivaji Maharaj Hospital, Kalwa, run by the Thane Municipal Corporation (TMC), in early 1995. The workers’ union claimed that although wages were routed through an alleged contractor, M/s Khankal Enterprises, the workers were actually appointed and supervised directly by the hospital, worked alongside permanent staff, and were integrated into the hospital’s day-to-day operations. They sought reinstatement with full back wages and continuity of service. The TMC maintained that the workers were contract labour and had no employment relationship with the Corporation.
The dispute went before the Industrial Tribunal which, after examining oral and documentary evidence, held that the union had proved the workers were employees of TMC and that their termination was illegal. It also found that the Corporation failed to prove a genuine contractor relationship or produce any valid contract or licence under the Contract Labour (Regulation & Abolition) Act. However, citing the 14-year pendency of the case and changes over time, it denied reinstatement and instead awarded each worker Rs. 1 lakh as compensation.
The Bench comprising Justice Milind N. Jadhav, hearing cross-petitions from both sides, affirmed the Tribunal’s core factual findings that the workers were employees of the Corporation, their termination was illegal, and the contractor arrangement was a sham with no valid licence. The Court held that once these findings were reached, reinstatement was a consequential relief that should have been granted. Delay in the legal process, he emphasised, could not be used to deprive workers of their rightful remedies, and “justice should not only be done, but be seen to be done”.
Accordingly, the High Court ordered that all surviving workers who have not yet reached superannuation be reinstated within one week, without back wages or continuity of service but with eligibility for retirement and statutory benefits. For those deceased or who have crossed the age of superannuation, the Court directed payment of Rs. 2 lakhs to each or their legal heirs after verification. The Industrial Tribunal’s earlier compensation award of Rs. 1 lakh was set aside to this extent, and the rest of the award was confirmed. A four-week stay of the judgment was granted to enable the Corporation to appeal.
Appearances:
Advocates for Petitioner in Writ Petition No. 2644 of 2020 and Respondent No. 1 in Writ Petition No.10432 of 2023: Ms. Jane Cox, Advocate i/by Ms. Karishma Rao a/w. Mr. Vinayak Suthar and Mr. Pranav Pawar
Advocates for Petitioners – Thane Municipal Corporation in Writ Petition No.10432 of 2023 and Respondents in Writ Petition No.2644 of 2020: Mr. R.S. Apte, Senior Advocate i/by Mr. Ajit Pitale and Mr. Siddharth Pitale