P. Karuppaiah (D) Through Lrs. vs General Manager, Thiriuvalluvar Transport Corporation Ltd.
- Neutral2017 INSC 1035
- SCR[2017] 10 SCR 557
Ratio decidendi
The rule this decision rests on
When an employee's dismissal is set aside by court order directing reinstatement, the employee does not become entitled to claim back wages as of right unless the reinstatement order itself expressly directs payment of back wages and other benefits. An employee seeking to claim back wages must prove by evidence that from the date of dismissal until the date of rejoining, the employee was not gainfully employed anywhere; the employer has the corresponding right to adduce evidence that the employee was gainfully employed during the relevant period and is therefore not entitled to back wages. Where no evidence of unemployment during the relevant period is brought on record before the court, and where the question of back wages is raised in writ petition rather than before an Industrial or Labour Tribunal where parties could adduce evidence, the court may decline to award back wages in the exercise of its discretion. The principle of "No work-No pay" may be applied in appropriate cases, and back wages may be awarded in full, in part, or declined entirely, depending on the facts of each case and subject to the discretion of the court.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
P. Karupaiah (D) Thr.Lrs. ….Appellant(s)
VERSUS
The General Manager Thruuvalluvar Transport Corporation Ltd. …Respondent(s)
JUDGMENT
Abhay Manohar Sapre, J.
1. This appeal is filed by the employee against the
final judgment and order dated 07.12.2006 passed
by the High Court of Judicature at Madras in W.A.
No. 1848 of 2000 whereby the Division Bench of the
High Court dismissed the appeal filed by the
appellant herein and upheld the judgment dated Signature Not Verified Digitally signed by ASHA SUNDRIYAL Date: 2017.11.03 03.08.2000 of the Single Judge in W.P. No. 10314 17:13:42 IST Reason:
of 1996 by which the appellant was denied the back
1 wages for the period from 21.07.1994 to
31.08.1999.
2. Facts of the case lie in a narrow compass so
also the controversy involved in the appeal as would
be clear from the narration of relevant facts
hereinbelow.
3. The only question involved in the appeal filed
by an employee against his employer is whether the
appellant is entitled to claim back wages for the
period in question, i.e., 21.07.1994 to 31.08.1999?
4. The learned Single Judge and Division Bench
of the High Court declined to award any back wages
to the appellant for the period in question and
dismissed the appellant's writ petition and intra
court appeal.
5. The appellant was working as a Driver in the
employment of the respondent. The respondent
dismissed the appellant from service because he
was found involved in one murder case and was
prosecuted for the said offence.
2
6. The Session Court had convicted him but later
he was acquitted by the High Court. After the
acquittal by the High Court, the appellant made a
request to the respondent for his reinstatement.
The respondent allowed the request made by the
appellant and reinstated him in service but declined
to pay him any back wages for the aforementioned
period.
7. The appellant, felt aggrieved by the decision of
the respondent in not paying him any back wages
for the period in question, filed writ petition in the
High Court and prayed for grant of the relief of back
wages.
8. The learned Single Judge declined to grant
any relief of back wages to the appellant and
dismissed his writ petition. The Division Bench, in
an appeal filed by the appellant against the
dismissal of his writ petition, upheld the order of
the learned Single Judge and dismissed his appeal
3 giving rise to filing of this appeal by way of special
leave by the employee to this Court.
9. Having heard the learned counsel for the
parties and on perusal of the record of the case, we
find no merit in the appeal.
10. The law on the question of award of back
wages has taken some shift. It is now ruled in cases
that when the dismissal/removal order is set
aside/withdrawn by the Courts or otherwise, as the
case may be, directing employee’s reinstatement in
service, the employee does not become entitled to
claim back wages as of right unless the order of
reinstatement itself in express terms directs
payment of back wages and other benefits. (See
M.P. State Electricity Board vs. Jarina Bee(Smt.),
(2003) 6 SCC 141)
11. Indeed, the employee in order to claim the
relief of back wages along with the relief of
reinstatement is required to prove with the aid of
evidence that from the date of his dismissal order
4 till the date of his rejoining, he was not gainfully
employed anywhere. The employer too has a right to
adduce evidence to show otherwise that an
employee concerned was gainfully employed during
the relevant period and hence not entitled to claim
any relief of back wages.
12. On proving such facts to the satisfaction of the
Court, the back wages are accordingly awarded
either in full or part or may even be declined as the
case may be while passing the order of
reinstatement. The Courts have also applied in
appropriate cases the principle of "No work-No pay"
while declining to award back wages and confining
the relief only to the extent of grant of reinstatement
along with grant of some consequential reliefs by
awarding some benefits notionally, if any, in
exercise of discretionary powers depending upon the
facts of each case.
13. Having seen the record of the case, we are
satisfied that there was no evidence brought on
5 record by the appellant (employee) in his writ
petition to claim the back wages for the period in
question either in full or part. Moreover, we find
that the issue in question was raised in writ petition
and not before the Industrial or Labour Tribunal
where parties could adduce evidence on such
question. (See proviso to Section 17-B of the
Industrial Disputes Act, 1947).
14. Be that as it may, the writ Court and the
appellate Court yet examined the question in its
writ jurisdiction and finding no merit therein
declined to award any back wages. This Court does
not find any good ground to interfere in the
discretion exercised by the two Courts below and
accordingly uphold the orders impugned herein
calling no interference.
15. Indeed, the appellant should feel satisfied that
he was able to secure reinstatement in service
despite his involvement in a murder case. The
appellant should be content with what he has got.
6
16. In view of foregoing discussion, the appeal fails
and is accordingly dismissed.
………...................................J. [R.K. AGRAWAL]
…...……..................................J. [ABHAY MANOHAR SAPRE] New Delhi;
October 12, 2017
7
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