An employee so reinstated would have to prove that he was not gainfully employed during the relevant period in order to claim back wages, the Court said.
The Supreme Court on Wednesday reiterated that an order to reinstate an employee back to service does not mean that the reinstated employee would also be automatically entitled to back wages [Ramesh Chand vs Management of Delhi Transport Corporation].
A bench of Justices Abhay S Oka and Rajesh Bindal stated that such relief would be dependent on the facts of each case.
An employee so reinstated would have to prove that he was not gainfully employed during the relevant period in order to claim back wages, the Court explained.
“The law is very well-settled. Even if Court passes an order of reinstatement in service, an order of payment of back wages is not automatic. It all depends on the facts and circumstances of each case,” the Court said.
The Court was dealing with an appeal by a retired bus conductor.
He was terminated from service by the Delhi Transport Corporation in 1996 for allegedly not issuing tickets to two passengers despite collecting ₹4 for the same in 1992.
In 2009, he was reinstated by a Labour Court. However, the Labour Court also ruled that he was not entitled to be paid back wages for the time when he was not working for the Delhi Transport Corporation.
The Delhi High Court also upheld the Labour Court ruling. Aggrieved, the bus conductor moved an appeal before the Supreme Court in 2016. He retired from service in 2020.
The Supreme Court granted him partial relief after noting that the appellant could not find alternative employment for about a year after his termination in 1996.
Taking note of his current and past salary, the Court modified the Labour Court award to include back wages of ₹3 lakh.
The same would attract an annual interest of 9 per cent from 2009, if it is not paid within two months, the Court added.
Advocates P George Giri and Jasmine Kurian Giri appeared for the appellant. Advocate Monika Gusain appeared for the respondent.
Judgement : click here
Page Source : Bar and Bench
