Service Law – Payment of back wages – AppellantCorporation dismissed workman from the service on the ground of dereliction of duties – Labour Court directed reinstatement of the workman in service with award of full back wages – High Court upheld the award passed by the Labour Court – On appeal, held: The Courts below completely failed to see that the back wages could not be awarded by the Court as of right to the workman consequent upon setting aside of his dismissal/termination order – The Court is required to consider several factors which have been discussed elaborately in the various judgments of the Supreme Court and then record a finding as to whether it is a fit case for award of the back wages and, if so, to what extent – In the instant case, neither the Labour Court nor the High Court kept in consideration the principles of law – Similarly, no party to the proceedings pleaded or adduced any evidence to prove the material facts required for award of the back wages enabling the Court to award the back wages – Direction of the Courts below caused prejudice to the appellant – In the interest of justice, the respondents (LRs of the deceased workman) awarded 50% of the total back wages – Constitution of India – Art.142.
Partly allowing the appeal, the Court
HELD: Whether the Courts below, namely, the High Court and the Labour Court were justified in awarding full back wages to the deceased workman (now represented by his legal representatives - the respondents herein) after setting aside his dismissal order holding it to be bad in law and, in consequence, directing his reinstatement in service of the appellant. PHOOL CHAND (D) THR. LRS.
1. A workman has no right to claim back wages from his employer as of right only because the Court has set aside his dismissal order in his favour and directed his reinstatement in service. [Para 11] [452-D]
2. It is necessary for the workman in such cases to plead and prove with the aid of evidence that after his dismissal from the service, he was not gainfully employed anywhere and had no earning to maintain himself or/and his family. The employer is also entitled to prove it otherwise against the employee, namely, that the employee was gainfully employed during the relevant period and hence not entitled to claim any back wages. Initial burden is, however, on the employee. [Para 12] [452-E-F]
3. In some cases, the Court may decline to award the back wages in its entirety whereas in some cases, it may award partial amount depending upon the facts of each case by exercising its judicial discretion in the light of the facts and evidence. [Para 13] [452-F-G]
M.P. State Electricity Board v. Jarina Bee(Smt.) (2003) 6 SCC 141 : [2003] 1 Suppl. SCR 535 ; G.M. Haryana Roadways v. Rudhan Singh (2005) 5 SCC 591 : [2005] 1 Suppl. SCR 569 ; U.P. State Brassware Corporation v. Uday Narain Pandey
(2006) 1 SCC 479 : [2005] 5 Suppl. SCR 609 ; J. K. Synthetics Ltd. v. K.P. Agrawal & Anr. (2007) 2 SCC 433 : [2007] 2 SCR 60 ; Metropolitan Transport Corporation v. V. Venkatesan, (2009) 9 SCC 601 : [2009] 12 SCR 583 ; Jagbir Singh v. Haryana State Agriculture Marketing Board & Anr. (2009) 15 SCC
327 : [2009] 10 SCR 908 ; Deepali Gundu Surwase v. Kranti Junior Adhyapak Mahavidyalaya(D.Ed.) & Ors. (2013) 10 SCC 324 : [2013] 9 SCR 1 - referred to.
4. In the instant case, neither the Labour Court nor the High Court kept in consideration the principles of law. Similarly, no party to the proceedings either pleaded or adduced any evidence to prove the material facts required for award of the back wages enabling the Court to award the back wages. [Para 15] [453-C-D]
5. The Labour Court in one line simply directed the appellant (employer) to pay full back wages for a long period to the deceased workman while directing his reinstatement in service. Therefore, direction of the Courts below awarding full back wages to the workman, has caused prejudice to the appellant (employer). [Paras 16 and 17] [453-D-E]
6. However, having regard to all facts and circumstances of the case such as period and money spent in litigation by the workman and on his death by his legal representatives coupled with the fact that the workman has since expired, it is just and proper and in the interest of justice to award to the respondents (legal representatives of Late Phool Chand) 50% of the total back wages. [Para 18] [453-F]
As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
This page is for informational and research purposes only and does not constitute legal advice. Consult a qualified advocate for advice specific to your situation.