In Brief
A watchman appointed in 1992 was illegally terminated in 2002 without notice or procedure under the Industrial Disputes Act. The Labour Court and High Court found the termination illegal, with evidence showing younger employees were retained. The Division Bench substituted reinstatement with ₹1 lakh compensation. The Supreme Court held that where termination is found illegal and the employer prolonged litigation, reinstatement is the normal remedy. The Court set aside the compensation order and directed reinstatement with back wages for two years (2020–2022), restoring the lower courts' findings and preventing punishment of the wrongfully terminated workman.
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