Summary
The Court awarded Rs 80 lakh in back wages to a finance officer whose reinstatement had been ordered after an unjustified termination. Denial merely because he had not worked during the exclusion was unsustainable. Back wages depended on the facts, including the grounds of termination and actual intervening earnings. The officer admitted some accountancy income, while the employer lacked a worthwhile basis for dismissal. The Court fixed a consolidated amount without deciding the separate pending claim to notional promotion.
Issues
- Whether absence from work following an unjustified termination justified complete denial of back wages.
- What relief was appropriate given admitted intervening income and conflicting wage calculations.
Provisions considered
- Section 106, Indian Evidence Act, 1872The Court considered authorities on proof of intervening gainful employment, but resolved relief on the admitted earnings and overall facts rather than imposing an absolute evidentiary rule. (¶ 8-11)
Held
- Entitlement to back wages and their extent depend on the circumstances, including the charges, the actual reason for termination and intervening gainful employment. Where termination lacks a lawful basis or is actuated by malice, restoration should appropriately address the lost employment benefits. (¶ 10)
- The High Court’s sole reason that the appellant had not worked did not justify denying all back wages after reinstatement. At the same time, his admitted accountancy earnings meant that he could not be treated as wholly without income during the period. (¶¶ 5, 11)
- There was hardly any worthwhile basis for termination on the record. Considering that circumstance alongside the admitted earnings and competing computations, the Court fixed Rs 80 lakh as total back wages for the entire period the termination operated. (¶ 11-13)
- The pending dispute concerning notional promotion was not decided, and the parties’ competing calculations were not adopted as a general formula. The employer was to pay the consolidated amount within six weeks. (¶ 12-13)
Result
Appeal partly allowed; denial of back wages modified and employer directed to pay Rs 80 lakh within six weeks, without costs. Separate pending notional-promotion litigation left undecided.