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Supreme Court of India 2018-10-03 partly_allowed

PSEB (Now Punjab State Power Supply Corporation Ltd.) & Ors vs Kulwant Singh

Bench: 2 — Banumathi

In Brief

The respondent, a daily-wager helper employed in 1997–1998, was terminated in violation of Section 25-F of the Industrial Disputes Act, 1947. All three lower forums (Industrial Tribunal, Single Judge, and High Court Division Bench) awarded reinstatement with continuity of service and 40% back-wages. The Supreme Court upheld reinstatement but partly allowed the appeal by reducing the back-wages entitlement. Given the 13-year gap between termination (1998) and reinstatement (2015), the Court held that full back-wages would impose a disproportionate financial burden on the Corporation. Instead of 40% back-wages, it awarded a lump-sum settlement of ₹1,50,000, finding this more appropriate in the peculiar circumstances.

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Labour Law Industrial Disputes Reinstatement Back-wages Section 25-F

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