Authority: High Court at Calcutta

Order Date: 07.10.2026

Case Overview

  • Parties: Hindustan Motors Limited (petitioner) vs State of West Bengal & Ors. (respondents); workman Avash Munshi (respondent No.3).
  • Writ Applications: WPA 13184 of 2024 and WPA 24741 of 2024 challenging an award dated 10.04.2023 passed by the Third Industrial Tribunal, Kolkata and a publication order dated 02.05.2023.
  • Background: Hindustan Motors manufactured cars since 1957 but ceased operations in May 2014 due to scarcity of funds, resulting in lay‑offs of all employees.
  • Disciplinary History: Avash Munshi received two charge‑sheets (5 Oct 2006 and 1 Jun 2007) for misconduct. Two enquiry proceedings were held; enquiry reports dated 24 Jul 2008 and 21 Aug 2008 found him guilty. He was terminated by letter dated 22 Oct 2008.
  • Prior Tribunal Approval: Termination was approved by the 5th Industrial Tribunal on 11 May 2015 under Section 33(2)(b) of the Industrial Disputes Act.
  • Subsequent Proceedings: Munshi raised an industrial dispute on 10 Jun 2015; conciliation failed. He filed an application under Section 10(1)(b)(d) in 2017. Hindustan Motors could not appear due to severe financial crisis.
  • Award of 10 Apr 2023: The Third Industrial Tribunal ordered reinstatement of Munshi and back wages equal to 50 % of his last drawn gross salary (Rs 5,700 per month) from 22 Oct 2008 until reinstatement.
  • Petitioner’s Arguments: The application was barred by limitation; the enquiry complied with natural justice; termination had prior tribunal approval. Relied on State Bank of Patiala & Ors. vs. S.K. Sharma (1996 3 SCC 364) and Muir Mills Unit of NTC (U.P) Ltd. vs. Swayam Prakash Srivastave (2007 1 SCC 491).
  • Respondents’ Arguments: The award was lawful; relied on Dharampal (Dead) Through Lrs. Vs. National Engineering Industries Ltd. (2001 10 SCC 40) and other precedents.
  • State Counsel: Filed an Action Taken Report for implementation of the award dated 19 Sep 2023; matter before Labour Department.

Final Outcome

  • The Court found the Tribunal’s decision was based solely on the unchallenged testimony of the employee without any reasoning, constituting an abuse of process and a gross miscarriage of justice.
  • The impugned award dated 10 Apr 2023 and the publication order dated 02 May 2023 are set aside.
  • WPA 13184 of 2024 and WPA 24741 of 2024 are allowed; any connected applications are disposed of.
  • Parties may obtain a photostat certified copy of the judgment on priority upon compliance with formalities.

Topics: Industrial Dispute, Labour Law