Faridan vs State Of U.P
- SCC(2010) 1 SCC 497
Ratio decidendi
The rule this decision rests on
Where an employee has been illegally terminated and ordered reinstated with full back wages, the court may award compensation in addition to reinstatement and back wages to provide reparation for the loss and hardship suffered, and such compensation should be assessed at a reasonable level relative to prevailing economic conditions rather than at a nominal or inadequate amount.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Faridan ... Appellant
Versus
State of U.P. ...Respondent
ORDER
TARUN CHATTERJEE, J.
1. Leave granted.
2. This appeal is directed against the Judgment and order dated
th 15 of May, 2007 passed by a learned Judge of the High
Court of Allahabad in Civil Misc. Writ Petition No. 17592 of 2
2001, whereby the High Court had disposed of the writ
petition by setting aside the award passed by the Labour
Court, Gorakhpur but directed that in spite of reinstatement of
the appellant with full back wages, the respondents/State of
UP shall pay to Faridan (appellant herein) an amount of
Rs.50,000/- in addition to any amount, which may be paid by
it under the impugned award. The High Court further ordered
that the aforesaid amount of Rs.50,000/- however shall be
paid within three months from that date, failing which an
interest of 1% per annum shall be payable on the said amount
since after three months till actual payment.
3. This order of the learned Single Judge was challenged by
way of a Special Leave Petition, which came up for admission
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th on 4 of February, 2008 and this Court passed the following
order :-
"Respondent No. 2 is deleted from the array of parties at the risk of the petitioner.
Issue notice to respondent No. 1 limited to the question as to whether compensation awarded by the High Court in lieu of service to the extent of Rs.50,000/- be increased to Rs.2 lakhs."
4. After service of notice, the matter came up for final hearing
before us on the aforesaid limited issue as to whether the
compensation awarded by the High Court in lieu of service to
the respondent No. 2 could be increased from Rs.50,000/- to
Rs.2 lakhs. On this aspect, we have heard the learned
counsel for the parties. Considering the entire materials on
record including the order of the High Court as well as the
award of reinstatement passed by the Labour Court,
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Gorakhpur and without interfering with the order of the High
Court, we are of the view that the compensation awarded by
the High Court was too meager in the present day affairs and
the same may be enhanced to Rs.2 lakhs, to be paid to
Faridan, the appellant herein.
5. Accordingly, the impugned order of the High Court is modified
only to the extent that instead of Rs.50,000/-, the
compensation shall be payable to the appellant a sum of Rs.2
lakhs only. The other directions made by the High Court in
the impugned order shall remain in force. However, the
payment of Rs.2 lakhs shall be made within two months from
the date of supply of a copy of this order to the respondent.
Appeal is thus disposed of.
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.....................J. [Tarun Chatterjee]
... ....................J. [R. M. Lodha] New Delhi. November 09, 2009
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