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Supreme Court of India

P. KARUPAIAH (D) THRversusTHE GENERAL MANAGER THRUUVALLUVAR TRANSPORT CORPORATION LTD.

Citation
2017 INSC 1035
Decided
12 October 2017
Disposal
Dismissed

Holding

An employee reinstated after a dismissal order is set aside is not entitled to back wages unless the reinstatement order expressly provides for such payment and the employee proves he was not gainfully employed during the dismissal period.

Summary

P. Karupiah, a driver employed by the General Manager Thiruvalluvar Transport Corporation Ltd., was dismissed after being convicted in a murder case, but was later acquitted by the High Court and reinstated. The employer refused to pay back wages for the period of dismissal, prompting the employee to file a writ petition seeking back wages, which was dismissed by the High Court. On appeal, the Supreme Court held that an employee reinstated after a dismissal order is set aside is not automatically entitled to back wages; the employee must prove that he was not gainfully employed during the dismissal period, and the employer may present contrary evidence. Since no evidence was produced by the employee to establish his unemployment, the Court upheld the lower courts' refusal to award back wages. Consequently, the appeal was dismissed, leaving the employee with reinstatement but no back wages.

Issues considered

  • Whether an employee reinstated after a dismissal order is set aside is entitled to back wages as a matter of right.
  • What burden of proof applies to the employee seeking back wages for the period of dismissal.

Legislation cited

Subjects

back wagesreinstatementindustrial disputes actno work no paylabor lawdismissalacquittal

Judgment

                       [2017] 10 S.C.R. 557


                 P. KARUPf,\IAH (D) THR: ~RS.
                                v.
THE GENERAL MANAGER THRUUVALLUVAR TRANSPORT
              CORPORATION LTD.
                  (Civil Appeal No. 4 ~60 of2008)                    B
                       OCTOBER 12, 2017
  [R. K. AGRAWAL AND ABHAY MANOHAR SAPRE, JJ.]
       Service frrnY - Claim of back wages - When not justified -
Appellant working as driver with respondent-Corporation was C
dismissed from the service because of his involvement in a murder
case - Conviction by Sessions Court, however, later acquitted by
High Court - Appellant was reinstated after the acquittal but was
declined back wages for the period in question ~ Writ petition by
appellant for grant of back wages, dismissed - Order upheld by ,.
Division Bench - On appeal, held: In order to Claim the relief of D
back wages along with the relief of reinstatement, the employee is
required to prove that from the date of his dismissal order till the·
date of his rejoining, he was not gainfully employed anywhere -
However, in the present case· there was no such evidence. brought
on record by the appellant in his writ petition to claim the back E
wages, ·in full or part, for the period in question - Orders impugned
call for no interference - Labour Law - Industrial Disputes Act,
1947 - Proviso to s.17-!1.
      Service law - Award of back wages - Principle of "No work-
No pay" - Change in law - Held: The law on the question of award
                                                                      F
of back wages has taken some shift - Now, in cases where the
dismissal/removal order is set aside/withdrawn by the Courts,
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.                                                   G
     Dismissing the appeal, the Court
                                          ' award of back wages
    . HELD: 1.1 The law on the question of                      .        ,
has taken some shift. It is now ruled in cases that when the
dismissal/removal order is set aside/withdrawn by the Courts or
                                                                     H
                               557

                                          J
558             SUPREME COURT REPORTS                  [2017) IO S.C.R.


A     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 on.less the order of reinstatement
      itself in express terms directs payment of back wages and other
      benefits. [Para 10] [560-D-E]
B           1.2 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 till
      the date of his rejoining, he was not gainfully employed anywhere.
      The em,ployer too has a right to adduce evidence to show
      otherwise-that an employee concerned was gainfully employed
 c    during the relevant period and hence not entitled to claim any
      relief of back wages. [Para 11] [560-F-G]
         1.3 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
 D 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,
 E in exercise of discretionary powers depending upon the facts of
   each case. [Para 12] [560-G-H; 561-A]
           2. In the present case, no evidence was brought on 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,
 F it is found 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. Yet, the wrjt Collrt and
     the appellate Court examined the question in its writ jurisdiction
     and finding no merit therein declined to award any back wages.
     There is no ground to interfere in the discretion exercised by
 G the two Courts below and accordingly the orders impugned call
     for no interference and are upheld. 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. [Paras 13-15] (561-B-D)
 H
    J?. KARUPAIAH (D) THR. LRS. v. G M. THRUlNALLUVAR                          559
                      TRANSPORT CORP. LTD.

       MP State Electricity Board v. Jarina Bee (Smt.) (2003)                  A
       6 SCC 141: [2003] 1 Suppl. SCR 535 - referred to.
                         Case Law Reference
       [2003J 1 Suppl. SCR 535            , referred to      Para 10
     CIVIL APPELLATE JURISDICTION: Civll Appeal No. 4160                       B
of 2008
 " From the Judgment and Order dated 07.12.2006 oftheHigh Court~
of Judicaturs at Madras in W. A. No. 1848 pf 2000.
      Brij Bhushan, Adv. for the Appellant.
      T. R. B. Sivakumar, T. Harish Kumar, Advs. for the Respondent.
                                                                               c
      The Judgment of the Court was delivered by
       ABHAY MANOHAR SAPRE, J. 1. This appeal is filed by the
cmploycG against the final judgment and order dated 07 .12 .2006 passed
by the High Court of Judicature at Madras in W.A. No. 1848 of2000 D
whereby the Division Bench of the High Court dismissed the appeal
filed by the appellant herein and upheld the judgment dated 03.08.2000 ·
of the Single Judge in W. P. No. 10314l>f1996 by which the appellant
was denied the back 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     E.
involved iit the appeal as would be clear from the narration ofrelevant
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., 21.07.1994to31.08.1999?                F
      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 G
because he was found involved in one.murder case and was prosecuted
for the said offence.                                          · ·"
      6. The Session Court had convicted him butlater he was acquitted
by the High Court. After the acquittal by the High Court, the appellant
                                                                               H
560             SUPREME COURT REPORTS                           [2017] 10 S.C.R.


A     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
B     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,
c     upheld the order of the learned Single Judge and dismissed his appeal
      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.
D           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
      docs not become entitled to claim back wages as of right unless the
 E    order of reinstatement itself in express terms directs payment of back
      wages and other benefits. (See 1\1. P. State Electricity Board vs.
      Jarina Bee (Smt.), (2003) 6 SCC 141)
             11. Indeed, the employee in order to claim the rclicfofback wages
      ?long with the relief ofreinstatement is required to prove with the aid of
      evidence that from the date of his dismissal order till the date of his
 F
      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
 G
      back wages arc accordingly awarded either in full or part or may even
      be declined as the ease may be while passing the order of reinstatement.
      The Courts have also applied in appropriate eases 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
 H    some consequential reliefs"by awarding some benefits notionally, if any,
  P. KARUPAIAH (D) THR. LRS. v. G. M. THRUUVALLUVAR                           561
  TRANSPORT CORP. LTD. [ABHAY MANOHAR SAPRE, J.]


case.
       13. Having seen the record of the case, we arc satisfied that there
was no evidence brought on 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 B
writ petition and not before the lrtdustrial 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 Com1 yet
examined the question in its writ jurisdiction and finding no merit therein   c
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 h~ was able to
secure reinstatement in service despite his involvement in a murder case. D
The appellant should:becontent with what.he has got.
      16. In view of foregoing discussion, the appeal fails and is
accordingly dismissed.

                                                                              E
Divya Pandey                                              Appeal dismissed.


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