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Haryana Coop makes employee work 7 years without pay: ‘Blatant exploitation’, says High Court

Court orders salary arrears with 6 per cent interest, imposes Rs 2 lakh exemplary costs on CONFED

4 min readChandigarhMay 1, 2026 07:36 PM IST

Punjab and Haryana High Court, CONFED Haryana

Justice Harpreet Singh Brar ruled that denying wages constitutes "forced labour," ordering a state cooperative to pay seven years of back pay plus ₹2 lakh in exemplary damages. (File Photo)

The Punjab and Haryana High Court has pulled up Haryana State Federation of Consumer Co-operative Wholesale Stores Limited (CONFED) for making an employee work for nearly seven years without salary, terming it “blatant exploitation” and holding that non-payment of wages amounts to a violation of fundamental rights.

Allowing a writ petition filed by Duni Chand, Justice Harpreet Singh Brar directed CONFED to compute and release salary arrears for the period from October 1989 to July 3, 1996, along with interest at 6 per cent per annum from the due date till actual payment. The court also imposed exemplary costs of Rs 2 lakh on the Federation for what it described as a “flagrant violation” of the petitioner’s rights.

Duni Chand had approached the high court seeking release of unpaid salary after serving as a salesman. He was appointed in 1979 by CONFED and was later posted to the Central Co-operative Consumer Store at Mandi Dabwali in 1983. His salary stopped from September 1989, and he was relieved from service in July 1996 without any termination order.

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Rejecting CONFED’s stand that Duni Chand was an employee of the Dabwali store, which later went into liquidation, and not of the Federation, the court held that records clearly established an employer-employee relationship with CONFED throughout his service.

“It is incomprehensible to this Court as to when the petitioner was appointed by the CONFED, when he was posted to Store at Sirsa and later at Mandi Dabwali by the CONFED, how does the respondent-Federation can come to the conclusion that the petitioner was not an employee of CONFED,” Justice Brar observed.

The court ruled that the employee’s posting to Dabwali was “merely in the nature of a deputation” and did not alter his relationship with CONFED as the principal employer.

Relying on the amended Staff Service Rules and Supreme Court precedent on deputation, the bench said CONFED continued to retain “overarching control and authority” over staffing at such stores and could not “approbate and reprobate” by denying its status as employer while invoking rules that affirmed its control.

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“The amendment cannot be used as a shield by the principal employer to avoid its statutory and constitutional liabilities,” the court said.

On the constitutional question, the court held that denial of wages strikes at the core of the right to life and dignity under Article 21.

“The respondent-Federation, on one hand, has continued to avail the services of the petitioner, while on the other, has denied him his rightful salary. Such conduct amounts to blatant exploitation and effectively deprives the petitioner of his right to livelihood,” the judgment said.

The bench further held that non-payment of wages directly attracted Article 23, which prohibits forced labour.

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“Depriving a person of wages for work duly performed is impermissible within the constitutional framework. Non-payment of wages directly attracts the prohibition under Article 23 of the Constitution of India, as it effectively amounts to forced labour,” it ruled.

Justice Brar also expressed anguish over the petitioner being forced into repeated litigation despite earlier favourable orders. The court noted that Duni Chand had moved the high court in 1991, initiated contempt proceedings in 1999 after non-compliance, filed another writ petition in 2006, and still had to return to court in the present case.

“The repeated disregard for the orders of this Court, coupled with the sheer administrative apathy and scant regard for the plight of a common man… shocks the judicial conscience,” the bench observed.

Appearing in the matter were advocate S.K. Tada for the petitioner, Additional Advocate General Piyush Khanna for Haryana, and advocate Vikrant Pamboo for respondents No. 2 to 4.

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The court has directed that the entire exercise be completed preferably within three months of receipt of the certified copy of the order.

Manraj Grewal Sharma

Manraj Grewal Sharma is a senior journalist and the Resident Editor of The Indian Express in Chandigarh, where she leads the newspaper’s coverage of north India’s most politically and institutionally significant regions. From Punjab and Haryana to Himachal Pradesh and the Union Territory of Chandigarh, she oversees reporting at the intersection of governance, law, politics and society. She also reports on the diaspora, especially in Canada and the US. With a career spanning journalism across several countries, academia and international development, Manraj brings a rare depth of perspective to regional reporting. She is widely regarded as a leading chronicler of Punjab’s contemporary history and socio-political evolution, particularly its long shadow of militancy, federal tensions and identity politics. Her book, Dreams after Darkness, remains a definitive account of the militancy years and their enduring aftermath. Professional Background & Expertise A gold medalist in mass communication and a post-graduate in English literature, Manraj has a multifaceted career spanning journalism, academia, and international development. She was also awarded a fellowship by National Foundation of India and did several in-depth pieces on Manipur. Internationally, she has reported from Israel, US, UK, Myanmar, and Mauritius Her key focus areas include: Regional Politics, History, Agriculture, Diaspora, and Security. Of late, she has started focusing on Legal & Judicial Affairs: Much of her recent work involves reporting on high-stakes cases in the Punjab and Haryana High Court, ranging from environmental policy to civil rights. International Consulting: She previously served as a consulting editor for the Asia Pacific Adaptation Network and a publishing consultant for the Asian Development Bank (ADB) in Manila. Academia: For five years, she was the managing editor of Gender, Technology and Development, a peer-reviewed international journal at the Asian Institute of Technology, Bangkok. Recent Notable Articles (Late 2025) Her recent reportage focuses heavily on judicial interventions and regional governance: 1. Environment & Governance "‘NGT can’t test legality of policy’: HC hears challenge to Punjab’s ‘Green Habitat’ plan" (Dec 22, 2025): Covering a critical legal battle over whether the National Green Tribunal has the authority to strike down a state policy regularizing farmhouses on delisted forest land. "High court pulls up Punjab poll panel over audio clip probe" (Dec 10, 2025): Reporting on judicial concerns regarding the transparency and fairness of local body elections. 2. Legal Rights & Social Welfare "HC issues notice to Punjab, Haryana over delay in building old age homes" (Dec 22, 2025): Reporting on a contempt petition against top officials for failing to establish government-run homes for the elderly as promised in 2019. "Victims can appeal acquittals in sessions court without seeking special leave" (Dec 19, 2025): Highlighting a significant procedural shift in criminal law following a Supreme Court ruling. "HC upholds benefits for Punjab FCI officer acquitted in 20-year-old bribery case" (Dec 19, 2025): A report on the concept of "honourable acquittal" and its impact on employee benefits. 3. Human Rights & Identity "As Punjab denies parole to MP Amritpal Singh, HC asks it to submit ‘foundational material’" (Dec 1, 2025): Covering the legal proceedings regarding the radical preacher and sitting MP's request to attend Parliament. "Protecting life paramount: HC backs Muslim woman in live-in after verbal divorce" (Nov 6, 2025): Analyzing judicial protections for personal liberty in the context of traditional practices. Signature Beats Manraj is recognized for her ability to decode complex judicial rulings and relate them to the everyday lives of citizens. Whether it is a 30-year-old land battle in Fazilka or the political implications of Kangana Ranaut’s candidacy in Mandi, her writing provides deep historical and regional context. Contact @grewal_sharma on X manrajgrewalsharma on Instagram ... Read More

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Punjab and Haryana High Court

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