Manager,K.V.S.S.Mandawar & Anr vs Mukesh Kumar Sharma
- SCC(2010) 12 SCC 487
Ratio decidendi
The rule this decision rests on
The court's reasoning rests on the following rules of law: 1. Where a workman's service is terminated without enquiry and without assigning reasons, reinstatement is the appropriate remedy; however, the court retains discretion to modify the incident of reinstatement — specifically the award of full back-wages — by reference to the circumstances of the case. 2. In determining the quantum of back-wages payable on reinstatement, the court may take into account whether the workman was gainfully re-employed during the period of unemployment and the financial capacity of the employer to meet the claim, and on the basis of such considerations may award less than full back-wages, even where termination was wrongful. 3. Where the employer's financial soundness is in issue and there is dispute as to the employee's interim re-employment during the period out of service, the court may restrict back-wages to a proportion of full wages (here, 50%) rather than awarding the full amount ordered by the Labour Court.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Manager, K.V.S.S. Mandawar & Anr. ...Appellant(s)
Versus
Mukesh Kumar Sharma ...Respondent(s)
J U D G M E N T
K. S. RADHAKRISHNAN, J.
Leave granted.
2. Notice was issued on the special leave petition on the limited question of award of full back-wages on reinstatement. Labour Court, Bharatpur vide its award dated 3.4.1996 ordered reinstatement with full back wages when the service of the respondent was terminated without enquiry and without assigning any reasons. The writ petition filed by the appellant was dismissed on 11.5.1999 which was ultimately affirmed by the Division Bench of the High Court of Rajasthan vide its judgment dated 4.3.2008. The said order is challenged in this appeal. Respondent workman then filed an application under Section 33(C )(2) of the Industrial Disputes Act 1947 before the Labour Court Bharatpur as LCC 1/2005 for computation of monetary benefits. The Labour Court passed an order dated 3.9.2008 awarding a total amount of Rs.5,16,032.01 towards back wages. Though the respondent - 2 - was reinstated in service on 9.6.2005, there is serious dispute between the parties as to whether, the respondent was gainfully re-employed during the period he was out of service. Further it was also stated that the appellant Co- operative Society is not financially sound to meet the claim of full back wages.
3. Considering the entire facts and circumstances of the case and after hearing counsel on either side we feel it would be appropriate to restrict the back-wages to 50% for the period 18.1.1990 (date of termination) to the date of reinstatement. The appellant Society is directed to pay the amount as ordered within a period of three months from today.
The appeal is allowed in part accordingly.
......................J.
(R.V. Raveendran)
......................J.
(K.S. Radhakrishnan)
New Delhi March 25, 2010
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