GANPATBHAI CHHAGANBHAI PARMAR C/O GUJARAT ENGINEERING AND GEN KAMDAR UNION vs NUTON ENG AND CHEMICLES LTD

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In this case Honble High Court of Gujarat has held that; 14.

In background of such facts and circumstances, when the learned Labour Court took up the Recovery Application No.17 of 2005 for adjudication, it was required to adjudicate the applicant's claim in light of the findings recorded by the learned Industrial Tribunal in the award dated 08.11.2001 in Reference No.48 of 1996 and the final direction given by the learned Tribunal in the said award.

The learned Labour Court could not have gone beyond the findings recorded and direction given by the learned Tribunal.

Tribunal.

The learned Labour Court also could not have arrived at different conclusion regarding applicable pay scale for the post of Slum Superintendent and could not have arrived at independent different conclusion, which can be, ordinarily, arrived at after adjudication of claim and rights in light of evidence.

Therefore, the contention of the municipality that the learned Labour 6 REC-33-(C-1) No.30/2023.

Court should independently consider the issue and should decide the issue about the applicable pay scale to the post of Slum Superintendent, afresh, could not have been accepted and allowed by the learned Labour Court.

It would, otherwise, amount to adjudication of the rights and obligations.

Ghanchi Abdulrazak Mohmad Limadia Versus Prakashbhai J.Joshipura,2015 (0) AIJEL-HC 234667, In this case Honble High Court of Gujarat has held that; 46.

From above mentioned facts, it has emerged that the respondent claimed interest for the first time in Recovery Application No.18 of 2002 and the learned Labour Court accepted the demand and granted the workman's request for the first time vide order dated 1.1.2004 in the award passed in Recovery Application No.18 of 2002.

In this view of the matter, the respondent would contend that the obligation to pay interest would not arise before 1.1.2004 and in the alternative, he would contend that at the most starting point for calculating interest should be settled when the recovery certificate was issued, i.e.

24.3.2000.

47.

When the said submissions by learned senior counsel for the petitioner are considered in light of the facts of the case and more particularly when the aforesaid alternative contention is considered in light of the facts of the case, then technically the contention seems to be attractive as well as sound.

48.

However, the Court cannot overlook the fact that issuance of recovery certificate was only an action to facilitate execution of the order dated 18.5.1998 and 7 REC-33-(C-1) No.30/2023. o.30/2023. that, therefore, entitlement of any right cannot be based on the date when step in direction for execution of the decree is taken.

The Court would also not ignore the fact that until 31.3.2003, the respondent was deprived of his hard earned salary from September 1991 onwards.

49.

In such circumstances, the respondent would claim that interest should be payable from the date when the amount in question became due and payable.

50.

Ordinarily, the Court would accept the submission.

However, in present case, it is noticed that the respondent workman initiated steps for recovery of the amount after almost 5 years, i.e. in 1996 and even at that stage, the respondent did not claim interest.

The claim was raised belatedly - after ordinary period of limitation - but recourse would be taken to the contention that Section 33-C does not prescribe period of limitation.

51.

It is also pertinent that even after adjudication of the claim, the learned Labour Court did not grant interest to pay the principal amount with interest.

52.

In this background, an important fact which emerges is that actual determination and crystalisation of the exact amount payable to the respondent is done on 18.5.1998 when the order - decree came to be passed.

53.

Having regard to the fact that the claim and/or wages of the workman and even more important, the determination and crystalisation of the claim is done on 18.5.1998 the Court is of the view that the interest of justice would be served if the workman's right to claim and receive interest is acknowledged with effect from 18.5.1998, 8 REC-33-(C-1) No.30/2023. (i.e. the date of decree) and the petitioner is directed to pay amount of Rs.2,72,348/- with interest at the rate determined by the learned Labour Court, i.e.

9%, by calculating the interest @ 9% with effect from 18.5.1998 instead of September 1991 and pay the said amount of Rs.2,72,348/- with interest @ 9% to be calculated from 18.5.1998.

54. .1998.

54.

Consequently, the impugned order dated 25.6.2004 is required to be quashed and modified to the aforesaid effect and extent.

55.

Therefore, the said order dated 25.6.2004 is hereby set aside and modified and it is directed that the respondent shall be paid sum of Rs.2,72,348/- with interest @ 9% to be calculated from 18.5.1998.

56.

If the petitioner has deposited any amount in excess of the amount which would be payable on aforesaid basis, then such excess amount shall be returned to the petitioner and the principal amount of Rs.2,72,348/- with interest @ 9% to be calculated w.e.f. from 18.05.1998 shall be paid first to the respondent and balance amount to be returned to the respondent.

57.

The the order dated 25.6.2004 is, accordingly, set aside and modified.

The order dated 1.1.2004 also stands modified to the effect and extent that interest will be calculated and paid @ 9% from 18.5.1998 instead of September 1991 as directed by the learned Labour Court vide order dated 1.1.2004.

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