High CourtDivision BenchAppeal dismissed

P. Karupaiah (D) through LRs v. The General Manager Thruuvalluvar Transport Corporation Ltd.

Case / Petition Number:4160-B of 2008
Neutral Citation:[2017] 10 S.C.R. 557

Case Details & Bench

Court
High Court
Hon'ble Judges
  • R. K. Agrawal
  • Abhay Manohar Sapre
Judgment Date
2017-10-12
Court Decision / Holding
Appeal dismissed. The Supreme Court upheld the impugned orders and found no interference with the lower courts’ discretion, noting that back wages are not payable as a matter of right unless the reinstatement order expressly directs payment of back wages.
Final Disposition
Appeal dismissed

Parties to the Case

Appellants / Petitioners

  • P. Karupaiah (D) through LRs

Respondents

  • The General Manager Thruuvalluvar Transport Corporation Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • Brij Bhushan

Counsels for Respondents

  • • T. R. B. Sivakumar
  • • T. Harish Kumar

Case Synopsis & Summary

This case concerns back wages after reinstatement following dismissal for alleged involvement in a murder. The appellant, P. Karupaiah (through his legal representatives), was employed as a driver by the General Manager, Thruuvalluvar Transport Corporation Ltd. He was dismissed on account of his alleged involvement in a murder case and was initially convicted by a Sessions Court but later acquitted by the High Court. After acquittal, the appellant was reinstated, but the employer declined to pay back wages for the period from 21 July 1994 to 31 August 1999. The learned Single Judge and the Division Bench of the High Court declined to grant back wages, and the writ petition was dismissed by the High Court. The Supreme Court held that the law on back wages has evolved: in cases where a dismissal/removal order is set aside or withdrawn and reinstatement is directed, back wages are not a right unless the reinstatement order expressly directs payment of back wages and other benefits. The employee must prove, with evidence, that from the date of dismissal to the date of rejoining he was not gainfully employed; the employer may contest this by showing gainful employment. If proven, back wages may be awarded in full, part, or denied, as circumstances require. In this case, no such evidence was produced, and the writ petition involved the issue in writ jurisdiction. Consequently, the appeal was dismissed. The Court upheld the decisions below, noting the appellant did obtain reinstatement notwithstanding the criminal charge.

Provisions of Law Cited

Industrial Disputes Act, 1947Proviso to Section 17B, Industrial Disputes Act, 1947

Legal Doctrines & Maxims

  • No work-No pay

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contended for the grant of back wages along with reinstatement, arguing that he was dismissed for involvement in a murder case and later acquitted, with reinstatement granted but without back wages. He maintained that back wages should be payable for the period of dismissal, especially since reinstatement followed acquittal and there was no evidence that he was gainfully employed elsewhere during that period.

Contentions of Respondents

The respondents argued that back wages are not automatic upon reinstatement; the employee must demonstrate non-employment during the relevant period, and the employer may present evidence of gainful employment to deny back wages. They also emphasized that, unless the reinstatement order expressly directs payment of back wages, relief should not include back wages; discretionary relief may be confined to reinstatement and consequential benefits.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
MP State Electricity Board v. Jarina Bee (Smt.)(2003) 6 SCC 141; [2003] 1 Suppl. SCR 535PositiveCited to support the proposition that back wages are not automatically payable on reinstatement unless expressly directed in the reinstatement order; illustrates the shift in law.

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Extracted Judgment Text

Exact text extracted from official judgment records.

# [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 workNo pay"_ - _Change in law_ - _Held: The law on the question of award 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._ F G ## Dismissing the appeal, the Court ' . HELD: 1.1 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 . , 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 TRANSPORT CORP. LTD. 559 # _MP State Electricity Board v. Jarina Bee (Smt.)_ (2003) 6 SCC 141: [2003] 1 Suppl. SCR 535 - referred to. A 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 involved iit the appeal as would be clear from the narration ofrelevant facts hereinbelow. E. 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? 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. · ·" F G 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 [2017] 10 S.C.R. SUPREME COURT REPORTS - 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 E F 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 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 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, 561 P. KARUPAIAH (D) THR. LRS. v. G. M. THRUUVALLUVAR 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 writ petition and not before the lrtdustrial or Labour Tribunal where parties could adduce evidence on such question. (See **proviso to Section 17B of the Industrial Disputes Act, 1947).** · B 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. The appellant should:becontent with what.he has got. D 16. In view of foregoing discussion, the appeal fails and is accordingly dismissed. Divya Pandey Appeal dismissed. E