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Faridan vs State Of U.P

Supreme Court9 November 2009R. M. Lodha · Tarun Chatterjee

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

NONREPORTABLE
IN THE SUPREME COURT OF INDIACIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO.7487 OF 2009(Arising out of S.L.P. (C) 14775 of 2007)

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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