The Rajasthan High Court has dismissed a writ petition filed by the Sarpanch, Gram Panchayat Thatad, District Kota, challenging an award dated 09.11.2021 passed by the Labour Court whereby the respondent-workman was ordered to be reinstated with continuity of service and back wages. The High Court also upheld the subsequent order dated 30.07.2025 rejecting the Gram Panchayat’s application to set aside the ex-parte award. Justice Munnuri Laxman, while hearing S.B. Civil Writ Petition No. 20114/2025, observed that even if the initial engagement of the daily wage worker was irregular, the termination could not be sustained without following the mandatory procedure prescribed under Section 25-F of the Industrial Disputes Act, 1947.

The Gram Panchayat had contended that the respondent-workman was engaged as a daily wager by the erstwhile Sarpanch without any authority and that his appointment was illegal. It was argued that such irregular appointment entitled the Panchayat to terminate his services under the Rajasthan (Regulation of Appointments to Public Services and Rationalisation of Staff) Act, 1999. The Panchayat relied upon Section 9 of the 1999 Act, which bars regularisation of daily wage employees and provides that their services are liable to be terminated at any time with due notice. The provision, however, also mandates payment of retrenchment compensation in cases falling within the scope of Section 25-F of the Industrial Disputes Act.

The High Court noted that the Labour Court had categorically recorded that the petitioner had failed to comply with the mandatory requirements of Section 25-F of the Industrial Disputes Act. The workman was admittedly covered under the said provision. The Court held that once the provisions of Section 25-F are attracted, the employer is bound to issue one month’s notice or pay wages in lieu thereof and also pay retrenchment compensation. Since the petitioner had not followed this procedure, the termination was rendered illegal and the Labour Court’s award directing reinstatement could not be faulted on merits.

The writ petition was accordingly dismissed at the admission stage itself. The High Court made it clear that the findings of the Labour Court regarding non-compliance with the statutory safeguards under the Industrial Disputes Act were unassailable.

Case Title: Sarpanch, Gram Panchayat Thatad, District Kota v. Shri Banshi Lal
S.B. Civil Writ Petition No. 20114/2025
Date of Order: 15 April 2026

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