Mithila Dugdh Utpadak Sahkari Sangh … vs The State Of Bihar on 16 July, 2026

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    Patna High Court – Orders

    Mithila Dugdh Utpadak Sahkari Sangh … vs The State Of Bihar on 16 July, 2026

    Author: A. Abhishek Reddy

    Bench: A. Abhishek Reddy

                          IN THE HIGH COURT OF JUDICATURE AT PATNA
                                    Civil Writ Jurisdiction Case No.10686 of 2013
                      ======================================================
                      Mithila Dugdh Utpadak Sahkari Sangh Ltd. Industrial Area, P.O.-Harpur
                      Alowth, District- Samastipur through its' Managing Director
    
                                                                                     ... ... Petitioner/s
                                                            Versus
                1.    The State Of Bihar.
                2.    The Secretary, Department Of Labour, Employment Nd Training, Govt. Of
                      Bihar, Patna
                3.    Abul Hayat Son Of Late Shekh Bihari Hassan Resident Of Village -
                      Muradpur Bangra, P.O. Kubauli Ram, District - Samastipur
    
                                                                ... ... Respondent/s
                      ======================================================
                      Appearance :
                      For the Petitioner/s   :         Mr. Rajesh Prasad Choudhary, Adv.
                      For the Respondent/s   :         Mr. S.Raza Ahmad
                      ======================================================
                      CORAM: HONOURABLE MR. JUSTICE A. ABHISHEK REDDY
                                            ORAL ORDER
    
    66   16-07-2026

    Heard the learned counsel for both the parties

    The present writ petition has been filed for the

    SPONSORED

    following relief(s):-

    “That, this is an application for
    issuance of an appropriate writ/writs, order/orders,
    direction / directions for setting aside the order
    awarddated18/10/2012 passed in Reference Case
    No.1 of 1998 by Sri Rajesh Kumar III the Presiding
    Officer, Labour Court, Begusarai, whereby and
    where under the petitioner/management has been
    directed to reinstate the respondent no.3 with 25%
    of the consequential monetary benefits. The
    petitioner further prays for any other relief/reliefs
    for which the petitioner management may be found
    entitled too.”

    3. The factual matrix of the instant case reveal that

    Respondent No. 3 has commenced work as a daily wage typist
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    on 12.11.1987. The learned counsel for petitioner-management

    contends that the respondent No. 3 was an employee of the Baso

    Kubauli Mahila Dugdh Utpadak Sahyog Samiti Limited, from

    where he was sent on deputation to the Samastipur Dairy

    pursuant to are solution dated 10.06.1988. In order to regularize

    the services of 18 such deputed secretaries, the management

    constituted an expert team comprising of Managing Director

    V.K. Srivastava and NDDB Member Dr. G.P. Vijay and

    scheduled the interviews for 11.04.1990. That out of the 18

    candidates, only three candidates appeared that the Respondent

    No. 3, representing an unorganized union, boycotted the

    interview process and, assaulted the management and the

    interview board members. That the respondent No. 3 forcibly

    extorted signatures on an agreement demanding automatic

    regularization, prompting the registration of an FIR (Tajpur P.S.

    Case No. 74 of 1990, later proceeding as G.R. Case No.

    475/90). That the respondent No. 3 was subsequently acquitted

    in the said criminal case by giving benefit of doubt. In the wake

    of the violent events, that took place on the date of interview,

    the Board of Directors convened an emergent meeting and

    resolved to cancel the extorted agreement. The deputation of the

    respondent No. 3 were terminated on 12.04.1990 via Letter No.
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    50D/55/907, repatriating respondent No. 3 to his parent society.

    That the responent No. 3 had approached the Labour Court

    earlier and a “No Dispute” award was passed by the Labour

    Court, Muzaffarpur (Ref. Case No. 16/1989) and the Industrial

    Tribunal, Patna (Ref. Case No. 3/1991). Thereafter, the State

    Government referred the present dispute on 27.03.1998. The

    Labour Court, Begusarai, vide the impugned Award dated

    18.10.2012, concluded that the termination was illegal solely on

    the ground of non-compliance of Section 25F of the Industrial

    Disputes Act, 1947. The Labour Court came to the said

    conclusion citing a lack of evidentiary proof regarding the

    payment of one month’s advance salary in lieu of notice.

    4. Assailing the impugned Award, the learned counsel

    for the petitioner- management strenuously urged that

    Respondent No. 3 was never directly employed by the petitioner

    but was a daily wager engaged by a distinct Mahila Samiti,

    making the direction for reinstatement inherently flawed. It is

    contended that the termination of deputation was a direct

    consequence of the gross indiscipline and physical violence

    exhibited on 11.04.1990. That the Labour Court’s finding

    regarding the violation of Section 25F of the ID Act is factually

    incorrect, as the ledger extracts and Cheque No. 2399 dated
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    29.05.1990 unequivocally demonstrate that one month’s advance

    salary and deputation allowance were indeed paid in compliance

    of 25F of the ID Act. That there was no employer/ employee

    between the petitioner and the respondent No. 3. That the

    respondent No. 3 had earlier approached the Labour Court

    which had passed a no dispute award, therefore, the second

    reference is impermissible under law.

    5. Furthermore, during the pendency of this writ,

    statutory wages under Section 17-B of the ID Act were dutifully

    paid until August 2022, at which point the respondent attained

    the age of superannuation (Date of Birth: 15.08.1962), thereby

    extinguishing any continuing liability. To bolster these

    submissions, heavy reliance was placed on the judgments of the

    Hon’ble Supreme Court in Jagbir Singh v. Haryana State

    Agriculture Marketing Board & Anr., (2009) 15 SCC 327 and

    U.P. State Brassware Corporation Ltd. v. Uday Narayan

    Pandey, (2006) 1 SCC 479, asserting that industrial courts must

    not mechanically apply the cold letter of the statute. That even if

    Section 25F was violated, automatic reinstatement with back

    wages for a daily wager is not the rule; rather, adequate

    monetary compensation is the sole appropriate relief. Learned

    counsel has therefore, prayed this Hon’ble Court for allowing
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    the present CWJC and for setting aside the award of the Labour

    Court dated 18.10.2012.

    6. Per contra, the learned counsel representing

    Respondent No. 3 has vehemently defended the Labour Court’s

    Award. Learned counsel has stated that the respondent No. 3

    was directly appointed against a permanent vacancy by the

    Manager of the Milk Union and had rendered continuous

    service of more than 240 days, a fact substantiated by the

    testimony of AW-2 (Tej Narayan Choudhary) confirming that

    the aforementioned Mahila Samiti only employs females. In

    support of his case, reliance is placed on Director, Fisheries

    Terminal Department v. Bhikubhai Meghajibhai Chavda,

    (2010) 1 SCC 47, to assert that once the workman deposed he

    had worked for 240 days continuously, the burden of proof

    shifted entirely to the management, which failed to adduce any

    evidence or produced the muster rolls to disprove his continuous

    service. It is argued that the termination of the respondent No. 3

    was a vindictive measure designed to break the employees’

    union of which the respondent was an executive member. That

    the management’s abrupt dismissal of the respondent No. 3 on

    allegations of gross misconduct without ever conducting a

    mandatory domestic departmental enquiry stands in stark
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    violation of the principles of natural justice. The respondent

    points out that the management’s allegations of assault falls flat

    given the fact that the respondent No. 3 was honourably

    acquitted in the criminal case (G.R. Case No. 475/90). That the

    management has utterly failed to adduce any evidentiary proof

    before the Labour Court that the mandatory Section25F

    payment was actually tendered. Relying on the Constitution

    Bench judgment of the Hon’ble Supreme Court in Syed Yakoob

    v. K.S. Radhakrishnan, AIR 1964 SC 477, the learned counsel

    for respondent submitted that a writ of certiorari is purely

    supervisory and the Hon’ble High Court cannot act as an

    appellate court to re-appreciate findings of fact recorded by the

    Labour Court.

    7. Further reliance is placed on Hindustan Tin Works

    Pvt. Ltd. v. Employees of M/s Hindustan Tin Works, (1979) 2

    SCC 80 to assert that once an unfair labour practice is

    established and termination is held to be illegal, reinstatement

    with full back wages remains the normal and inevitable rule.

    8. During the pendency of this writ, this Court

    directed the payment of Section 17-B wages vide an order

    dated24.08.2015, which the management paid until August

    2022.

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    9. This Court after giving a thoughtful consideration

    to the rival submissions made by the counsels is of the opinion

    that the judicial system, as a cohesive framework, is designed to

    deliver justice grounded in the sound application of legal

    principles. The fulcrum of the Labour Court’s decision rests on

    the premise that Section 25F of the ID Act was violated due to

    the non-payment of one month’s salary in lieu of notice.

    However, this conclusion of the Labour Court is erroneous and

    contrary to the record, a bare perusal of the supplementary

    affidavit and the annexed wage ledgers leaves no modicum of

    doubt that the petitioner- management had explicitly disbursed

    the said one month delay vide Cheque No. 2399 dated

    29.05.1990 in compliance of the Section 25F.

    10. Though, the respondent No. 3, has heavily relied

    on Syed Yakoob v. K.S. Radhakrishnan, AIR 1964 SC 477,

    contending that a writ court exercising certiorari jurisdiction

    cannot re appreciate evidence or disturb the findings of fact, the

    same is misplaced in the present context. It is a settled canon of

    law, as elucidated by the Hon’ble Supreme Court in General

    Manager, Electrical Rengali Hydro Electric Project, Orissa v.

    Giridhari Sahu, (2019) 10 SCC 695, that if a tribunal arrives at

    a finding of fact by ignoring vital, incontrovertible documentary
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    evidence that goes to the very root of statutory compliance, it

    commits an error of law apparent on the face of the record. Such

    a glaring omission by the Labour Court renders the finding

    patently perverse and fully amenable to correction under Article

    226 of the Constitution of India. Therefore, the restrictive

    principles of Syed Yakoob do not afford an absolute shield to

    the respondent in the face of demonstrable factual perversity.

    11. Furthermore, the reliance placed by the

    Respondent No. 3 on Hindustan Tin Works Pvt. Ltd. v.

    Employees of M/s Hindustan Tin Works, (1979) 2SCC 80, for

    demanding automatic reinstatement is entirely distinguishable.

    That judgment primarily dealt with the retrenchment of regular,

    permanent employees. In the instant case, the respondent was

    admittedly a daily wager who had worked for a brief period of

    less than three years before his termination in 1990. The law in

    this regard has significantly evolved. As cogently laid down by

    the Hon’ble Supreme Court in BSNL v. Bhurumal, (2014) 7

    SCC 177, the mechanical application of reinstatement with back

    wages for daily wagers whose termination is found to be in

    violation of Section 25F is wholly unjustified; the proper relief

    is an award of lump-sum compensation. This view was firmly

    reiterated in Assistant Engineer, Rajasthan Development
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    Corporation v. Gitam Singh, (2013) 5 SCC 136, establishing

    that the relief of reinstatement for a daily wager after a hiatus

    spanning several decades is legally unsustainable. The Labour

    Court, thus, erred in adopting an inflexible approach by ordering

    reinstatement 22 years after the cessation of a brief, daily-wage

    engagement.

    12. Insofar as the respondent’s reliance on Dena Bank

    v. Ghanshyam, (2001) 5 SCC 169 and Dilip Mani Dubey v.

    SIEL Limited, (2019) 4 SCC 534, is concerned, the said

    judgment explicitly clarifies that while wages paid under

    Section 17-B of the ID Act are in the nature of a non-refundable

    subsistence allowance, the payment of such interim relief does

    not preclude the Hon’ble High Court from adjudicating the

    legality of the underlying Award. The disbursement of 17-B

    wages during the pendency of the writ petition does not cure the

    inherent perversity of the Labour Court’s Award, nor does it

    grant an indefeasible right to physical reinstatement. This court

    is in respectful agreement with the principles of Dena Bank

    (supra) only to the extent that the wages already disbursed tot he

    respondent up to his superannuation in August 2022 shall not be

    recovered.

    13. Finally, this court must advert to the payment of
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    wages under Section17-B of the ID Act. The record indicates

    that the petitioner-management complied with this Court’s

    interim orders and disbursed the statutory maintenance

    allowance up to August 2022. As Respondent No. 3reached his

    age of superannuation (60 years) in August 2022, the

    management was well within its statutory rights to cease further

    payments. As observed in K.V. Anil Mithra v. Sree

    Sankaracharya University of Sanskrit, (2022) 17 SCC 505,

    statutory benefits or claims tied to an active service lifespan

    cannot be extended beyond the date of superannuation. The

    passage of time and the attainment of superannuation render the

    relief of physical reinstatement both a legal and practical

    impossibility.

    14. The reliance on Director, Fisheries Terminal

    Department v. Bhikubhai Meghajibhai Chavda, (2010) 1 SCC

    47, regarding the burden of proof for establishing 240 days of

    continuous service, is well-taken as a general proposition of law

    but provides no succor to the respondent in the present factual

    matrix. The petitioner-management’s primary defense was not

    merely a denial of the 240 days of service, but rather that the

    mandatory pre-conditions of retrenchment under Section

    25Fwere, in fact, affirmatively complied with through the
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    payment of advance salary via Cheque No. 2399. When

    incontrovertible documentary evidence proves compliance with

    Section 25F, the shifting of the evidentiary burden regarding the

    completion of 240 days becomes a moot academic point

    15. However, addressing the management’s potential

    claim for recovery of these paid wages, we find merit in the

    respondent’s reliance on DenaBank v. Ghanshyam, (2001) 5

    SCC 169 and Dilip Mani Dubey v. SIEL Limited, (2019) 4

    SCC 534. The law is no longer res integrathat proceedings under

    Section 17-B are independent in nature. As held in Dilip Mani

    Dubey, even if the Hon’ble High Court eventually upholds the

    termination order and quashes the Labour Court’s award, the

    employer has no right to recover the amount already paid under

    Section17-B, as it is in the nature of a non-refundable

    subsistence allowance. Thus, while the relief of physical

    reinstatement is a legal and practical impossibility, the wages

    disbursed to the respondent as interim relief remain legally non-

    recoverable.

    16. In light of the aforesaid discussion, this Court find

    that the impugned Award passed by the Labour Court suffers

    from patent illegality and jurisdictional overreach. The Labour

    Court not only failed to appreciate the factual matrix regarding
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    the compliance of Section 25F of the ID Act but also erred in

    law by ordering the reinstatement of a daily wage employee

    after an inordinate delay, contrary to the settled jurisprudence of

    the Hon’ble Supreme Court. Consequently, the writ petition is

    allowed. The impugned Award dated 18.10.2012 passed by the

    Presiding Officer, Labour Court, Begusarai, in Reference Case

    No. 1 of 1998, is hereby quashed and set aside.

    17. This court further clarify that the wages already

    paid to Respondent No. 3 under Section 17-B of the ID Act

    during the pendency of this litigation cannot be recovered by the

    petitioner-management, and the claims of the respondent-

    workman stand finally extinguished.

    18. Registry is directed to return the Lower Court

    Record of Reference Case No. 01 of 1998 from the Presiding

    Officer, Labour Court, Begusarai.

    19. The present CWJC stands allowed to the extent

    indicated.

    20. Pending interlocutory applications, if any, also

    stand disposed of.

    (A. Abhishek Reddy, J)
    Ayush/-

    U



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