Timken India Limited has informed stock exchanges about an order passed by the Gujarat High Court at Ahmedabad in the matter of Antifriction Bearings Corporation Limited (amalgamated with Timken India) versus Anil Ambalal Modi. The High Court has upheld a Labour Court order regarding the termination of Mr. Modi's employment in 1995.
The Labour Court in 2005 ruled that the termination of Mr. Modi, an Account Clerk, was illegal and not preceded by any inquiry. The court awarded reinstatement with back wages to the extent of 65 per cent, noting that the management's evidence did not substantiate claims that Mr. Modi had instigated workers at the factory.
The Gujarat High Court examined the evidence and dismissed appeals from both the management and the workman, affirming the Labour Court's findings. The High Court observed that since both the Labour Court and the learned Single Judge had concluded there was no evidence to substantiate the instigation claims, the award of reinstatement could not be faulted.
The High Court directed Timken India to pay regular wages to Mr. Modi from January 2005 until he attained the age of superannuation. The wages must reflect the salary that Account Clerks were being paid, including all increments and enhancements. Timken India is entitled to deduct wages already paid under Section 17(B) of the Industrial Disputes Act.
Timken India stated that the financial impact of the order is being determined and that it is likely to file an appeal. The due amount must be computed and paid within six weeks from receipt of the order.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.