High Court Upholds Labour Court Ruling in Bearings Corporation Employee Dispute, Directing Timken India Ltd to Pay Wages
The case of Antifriction Bearings Corporation Limited (amalgamated with Timken India Ltd) versus Anil Ambalal Modi has seen a significant development as the Hon'ble High Court of Gujarat at Ahmedabad upheld the previous findings regarding the employee’s termination. The court directed the company to pay regular wages to Mr. Modi from January 2005 until he attained superannuation.The dispute originated when the management terminated Mr. Modi in November 1995 without conducting an inquiry. As conciliation proved unsuccessful, the matter was referred to the Labour Court.
The High Court's judgment, delivered on June 17, 2026, affirmed that the termination of services by the management was illegal. The court determined that there was insufficient evidence to substantiate the management’s claim that Mr. Modi had instigated other workers to go on a slow, noting that the worker was an Account Clerk.
The Labour Court and the Learned Single Judge both concluded that the award of reinstatement granted earlier could not be found faulted.
Key Findings and Financial Directives
The court mandated that the management pay regular wages corresponding to those paid to Accounts Clerks in the establishment from January 2005 until the date Mr. Modi attained superannuation. The judgment also stated that the management is entitled to deduct any amounts previously paid to Mr. Modi, including 17(B) wages and payments made since September 2016.The court awarded back wages at a rate of 65%, rather than 100%. This decision was based on the finding that the workman's father owned a shop, which was identified as the primary source of income for the family, suggesting that the worker would have been gainfully employed to some extent.
| Detail | Finding / Action Directed by High Court |
|---|---|
| Termination Status | Illegal (Lack of inquiry) |
| Back Wages Awarded | 65% of wages owed |
| Reinstatement Directive | Directed to pay regular wages from January 2005 until superannuation |
| Management Obligation | Payment of salary equivalent to Accounts Clerks, subject to agreed deductions |
Company’s Response and Financial Impact
The company confirmed the receipt of the court order on June 22, 2026. The organization is currently in the process of determining the complete financial impact of this ruling, which is anticipated to take time. Furthermore, the company indicated that it is likely to file an appeal against the present Order.TIMKEN Stock Price Movement
Today, shares of Timken India Limited rallied strongly, gaining 2.52% to settle at ₹3782.2 after marking a significant close. The stock achieved its 52-week HIGH as it concluded trading today on a volume of 404,069 shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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