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Supreme Court of India 2018-09-20 partly_allowed

Management of Regional Chief Engineer P.H.E.D. Ranchi vs Their Workmen Rep. by District Secretary

Bench: 2 — Abhay Manohar Sapre

In Brief

The Supreme Court examined whether courts below properly awarded full back wages to 37 workmen whose dismissal by Jharkhand's Public Health and Engineering Department was set aside. The Court held that back wages are not an automatic right upon reinstatement. A workman must prove he had no gainful employment after dismissal; the employer may prove otherwise. Since no evidence on these material facts was adduced, the courts erred in awarding full back wages. Applying constitutional discretion under Article 142, the Court modified the award to 50% back wages, emphasizing that judicial discretion based on facts and circumstances governs back wage awards, not automatic entitlement.

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Labour Law Industrial Disputes Back Wages Wrongful Dismissal Reinstatement Constitutional Discretion

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