Summary
The Supreme Court reduced an award of full back wages to 50%. Reinstatement following substitution of a lesser punishment did not automatically entitle the workman to back wages. The courts below had granted thirteen years’ full wages without the necessary pleadings, evidence or reasoned consideration of relevant factors. Because the workman had died after prolonged litigation, the Court used Article 142 to award half the back wages to his legal representatives. The employer was directed to verify, calculate and pay the amount within three months.
Issues
- Whether reinstatement automatically justified an award of full back wages.
- What relief was appropriate where neither side had adduced evidence on the necessary back-wage facts.
Provisions considered
- Article 142(1), Constitution of IndiaThe Court used its complete-justice power to award 50% back wages in view of the prolonged litigation and the workman’s death, despite the evidentiary deficiencies in the original full award. (¶ 18–19)
Held
- The charge of absence was proved, but the Labour Court substituted forfeiture of four annual increments without cumulative effect for removal and ordered reinstatement with full back wages. The issue before the Supreme Court concerned the back-wage award. (¶ 3–10)
- Back wages did not follow as of right from setting aside dismissal and reinstating a workman. The employee bore the initial burden to plead and prove lack of gainful employment and earnings after dismissal; the employer could establish contrary facts. The extent of relief required judicial discretion informed by the relevant evidence and factors. (¶ 11–14)
- Neither side had pleaded or proved the material facts, and the Labour Court had granted full wages for a long period in one line. The High Court had not corrected that failure. The full award could not be sustained. (¶ 15–17)
- Considering the prolonged litigation, expenditure and the workman’s death, the Court awarded 50% of total back wages to his legal representatives under Article 142. The appeal was partly allowed and the employer directed to verify, work out and pay the amount within three months. (¶ 18–21)
Result
Appeal partly allowed; full back wages reduced to 50% under Article 142, payable to the workman’s legal representatives after verification within three months.