Maharashtra State Road Transport Corporation vs Mahadeo Krishna Naik

Held: Corporation indulged in the misadventure of suggestio falsi and suppressio veri – Before the Labour Court, the Corporation established that inquiry conducted against the respondent, was fair, and the conclusion was arrived at upon due consideration of the materials on record – Having regard to the clear and specific stand taken before the MACT in its written statement, the Corporation did make a false representation before the Labour Court amounting to suggestio falsi – Having not disclosed before the Labour Court the outcome of the proceedings before the MACT, the Corporation also guilty of suppresio veri – Relevance of the MACT judgment and its probative value cannot be gainsaid – In industrial adjudication, principles of natural justice have to be complied with – Corporation has been far from fair in its dealings with the respondent – Corporation did not deliberately refer to the award of the MACT at two different tiers, and thereby actively suppressed relevant material from court of law – Contradictory nature of the stances taken by Corporation, reeks of the Corporation trying to approbate and reprobate on the same issue – Corporation’s non-disclosure is suppression of such high magnitude, akin to a clear fraud on court – Written statement of the Corporation and its award are documents of immense significance which were sufficient to tilt the balance in favour of the respondent – Objection of the Corporation to the Single Judge receiving such document as evidence in course of exercise of review jurisdiction without any substance and merits outright rejection – As regards payment of back wages, the respondent admitted that he was engaged on a daily wage basis, and because his service was terminated, he could not find a permanent employment elsewhere – No material on record to disbelieve him – Also clear that the Corporation succeeded in getting rid of the respondent by indulging in the misadventure of suppressio veri and suggestio falsi – Thus, in the interest of justice the order of the Single Judge awarding 100% back wages modified and respondent awarded 75% of the back wages from the date of his termination till the date of his superannuation – Also entitled to full terminal benefits, along with interest @ 6% p.a. [Paras 24-29, 30-33, 35, 36, 43-49] Service law – Termination of service – Payment of back wages, when:

Held: Ordering back wages to be paid to a dismissed employee, upon his dismissal being set aside by a court of law, is not an automatic relief – Grant of full or partial back wages has to be preceded by a fact-finding exercise by the industrial adjudicator/court to ascertain whether in the interregnum the employee was gainfully employed – If the employee admits of any gainful employment and gives particulars of the employment together with details of the emoluments received, or, if the employee asserts by pleading that he was not gainfully employed but the employer pleads and proves otherwise to the satisfaction of the court, the quantum of back wages ought to be awarded on reinstatement is really in the realm of discretion of the court – While grant of full back wages is the normal rule, an exceptional case with sufficient proof has to be set up by the employer to escape the burden of bearing back wages. [Paras 43, 44]

Maxims – Suggestio falsi and suppresio veri – Meaning of: Held: Phrases suggestio falsi and suppresio veri embody concepts of unethical conduct of a party having serious consequences in various fields including law – Suggestio falsi is a false representation or a misleading suggestion while suppresio veri connotes suppression of the truth; an indirect lie, whether by words, conduct, or artifice – It is a type of fraud. [Paras 23, 24]