Failure Of Management To Prove Credibility Of Resignation Letter, Termination Of Illiterate Worklady Declared Invalid: Punjab And Haryana High Court

Since the management failed to present any witnesses to support the authenticity of the resignation and acceptance documents, it was directed to either reinstate the work lady or pay Rs. 3 Lakh lumpsum compensation.

Brief Facts:

M/s Creative Edge Men's Wear Pvt. Ltd. (“Management”) terminated the service of a Worklady. The Labour Court, Panipat ruled in favour of the Worklady stating that her termination by the Management violated Section 25-F of the Industrial Disputes Act of 1947, holding it illegal and arbitrary. The Labour Court ordered her reinstatement with continuity of service and 50% back wages. Feeling aggrieved, the Management approached the Punjab and Haryana High Court (“High Court”) and filed a writ petition challenging the order.

The Management argued that the Worklady voluntarily resigned on 07.04.2008 and received full and final dues of Rs. 6,191/- on 30.07.2009. In response, the Worklady argued that she was appointed as an Operator on 30.07.2007 with a monthly salary of Rs. 4,100/-. She claimed that on 01.08.2009, she was informed by the Security Guard that she had been retrenched without notice or compensation.

Observations by the High Court:

The High Court noted that the Management contended that the Worklady, due to personal reasons, submitted her resignation on 30.07.2009, which was purportedly accepted on the same day. However, upon closer inspection of the resignation letter, the High Court noted that it became evident that while it appeared to be written by someone proficient in Hindi, the Worklady affixed her thumb impression, indicating that she was potentially illiterate. Moreover, the witness provided by the Management could not verify the handwriting on the resignation letter and admitted that the acceptance document lacked additional signatures.

The High Court found the Management's conduct lacking in credibility as no witnesses were produced to support the authenticity of the resignation and acceptance. Given the Worklady's presumed illiteracy, the High Court held that it was improbable that she comprehended the contents of the documents in question. Throughout the proceedings, the Worklady consistently denied submitting any resignation letter.

Consequently, the High Court upheld the Labour Court's decision, declaring the Worklady's termination as violative of Section 25-F of the ID Act and thus illegal. However, recognizing the circumstances, an alternate option was provided to the Management. It was given the choice to either reinstate the Worklady or pay a lump sum compensation of Rs. 3,00,000/- within three months.

Case Title: M/S Creative Edge Men's Wear Pvt. Ltd. vs The Presiding Officer Industrial Tribunal-Cumlabour Court and Anr.

Case Number: CWP-17499-2018

Advocate for the Petitioner: Ms. Suverna Mutneja

Advocate for the Respondent: Mr. Ram Pal Verma

Click Here To Read/Download Order