“Supreme Court Upholds Award for Reinstatement of Workers in Food Corporation of India Case”

07 May 2024 8:19 AM

By: Admin

In a significant judgment, the Supreme Court of India upheld the Award issued by the Tribunal, stating, “the action of the management of Food Corporation of India (FCI) in retrenching 21 casual workers without notice or compensation was not justified” (Para 4). The Court further held that the workers are entitled to “reinstatement and regularization in service as vacancies in Class IV posts were available” (Para 4).

The case, which arose from an industrial dispute, saw the Tribunal passing an Award directing FCI to reinstate the workers and regularize their services in Class-IV posts. The Tribunal also ordered FCI to pay the workers 75% of their back wages. The judgment stated, “the management of FCI voluntarily chose to implement the Award in its totality” (Para 12).

Aggrieved by the Tribunal’s decision, FCI management filed a writ petition before the Jharkhand High Court. However, the High Court dismissed the petition and upheld the Award. The judgment noted, “the learned Judge affirmed the finding of the Tribunal” (Para 6).

In the subsequent appeal before the Supreme Court, the Court held that the management cannot raise the issue of reinstatement and back wages, as it was not challenged before the Division Bench. The judgment stated, “the grounds raised by the management in its appeal before the Division Bench related mostly to the aspect of regularization of the services” (Para 9).

The Supreme Court emphasized the principle of approbate and reprobate, stating, “a party to a proceeding cannot be permitted to challenge the same but thereafter abide by it out of its own free will” (Para 15). The Court observed that FCI voluntarily implemented the Award and absorbed the workers in regular service, noting, “the management of FCI, be it for whatever reason, chose to acquiesce with and accept the Award in its entirety” (Para 15).

Consequently, the Supreme Court allowed the appeal filed by the Executive Staff Union of FCI, restoring the Tribunal’s Award and the High Court’s order. The judgment stated, “the appeal filed by the management of FCI raising these issues is, therefore, liable to be dismissed on that short ground” (Para 9).

This landmark judgment by the Supreme Court serves as a significant victory for the workers, reaffirming their right to reinstatement and regularization. It underscores the importance of compliance with legal obligations and the consequences of voluntary implementation of awards. The decision sets a precedent for the sanctity of implemented awards and upholds the rights of workers in industrial disputes.

Date of Decision: July 3, 2023

Their Workmen through the Joint Secretary (Welfare), Food Corporation of India Executive Staff Union. vs Employer in relation to the Management of the Food Corporation of India & Anr.