No Reinstatement When Employee Accepts Termination Without Protest

Case Details: Ceasefire Industries Ltd. vs. Anuj Kumar Poddar - [2025] 181 taxmann.com 114 (HC-Jharkhand)

Judiciary and Counsel Details

Deepak Roshan, J.
Mrs Shilpi Sandil Gadodia & Anish Lall, Advs. for the Petitioner.
Gautam Rakesh, Adv for the Respondent.

Facts of the Case

In the instant case, the petitioner company engaged in manufacturing and sale of fire extinguishers had employed respondent No. 1 as Sales Executive. The company recorded deteriorating performance, failure to achieve sales targets, and complaints of misbehaviour, and issued warnings.

On 11.02.2016, it issued a letter discharging him from service stating reasons and indicating full and final settlement upon handing over. The Respondent No. 1 completed handover and company computed full and final settlement and paid one month’s basic salary and other admissible dues.

The Respondent No. 1 filed a petition under Section 26(2) of the Bihar Shops & Establishments Act alleging victimisation and termination on charges of misconduct without any disciplinary enquiry and sought reinstatement with full back wages.

The Labour Court set aside the termination and directed reinstatement with half back wages. Thereafter, an appeal was made before the High Court.

High Court Held

The High Court held that since Respondent No. 1 accepted order of termination from service and further requested for and accepted payment of full and final settlement amount in his favour, especially in absence of any protest letter on record on behalf of Respondent No. 1, the Labour Court was not justified in setting aside termination of services of Respondent No. 1 and directing the management to reinstate Respondent No. 1 in service with half backwages.

List of Cases Reviewed

Order of Labour Court, Ranchi Bihar Shops & Establishment Case No.09/2016, dated 28.06.2019 (para 51) set aside
Nar Singh Lal v. Union of India (2000) 3 SCC 588 (para 49) distinguished