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Supreme Court of India 2018-09-20 partly_allowed

Rajasthan State Road Transport Corporation, Jaipur vs Shri Phool Chand(Dead) Through L.Rs

Bench: 2 — Abhay Manohar Sapre

In Brief

A state transport corporation dismissed a driver for chronic absence. A Labour Court set aside the dismissal but awarded full back wages for 13 years and reinstatement. The Supreme Court held that back wages are not automatically awardable upon reinstatement; the workman must prove he had no gainful employment during dismissal. Since no such evidence was adduced, the Court reduced the award to 50% back wages using Article 142 powers to do substantial justice, considering the deceased workman's death and litigation expenses. The judgment reaffirmed settled principles that courts must apply judicial discretion based on specific facts in each back wages case.

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Labour Law Back Wages Dismissal Reinstatement Judicial Discretion

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