Kerala HC vs. COCHIN SHIPYARD CASE : MCQ DISPUTE

Buddy and I are having a major fight over this Labour Law question. In the Kerala HC vs. Cochin Shipyard case (2015), there was a dispute over the issue of 'continuous service'. Our question is: Who gets the benefit of continuous service? The workman who has been on leave for 3 months or the employer who terminated him 1 month after the leave.

Argument 1 (me): Continuous service is not broken if the workman has been on leave for less than 2 months. So, in this case, the workman who was on leave for 3 months breaks his continuous service. (Ref: Art 3(22) Industrial Disputes Act)

Argument 2 (buddy): Continuous service is broken if the termination happens due to a valid reason, not just the duration of leave.