Case Note & Summary
The appeal arose from an order of the High Court of Judicature at Allahabad, which directed the appellant, Dena Bank, to pay regular salary to the respondent, a former driver, following his termination in August 1990. The respondent claimed to be a workman under the Industrial Disputes Act, 1947, and raised an industrial dispute regarding his retrenchment. The Labour Court ruled in favor of the respondent, ordering reinstatement with back wages. The appellant challenged this award in the High Court, which ordered the payment of regular salary effective from December 6, 1996. The appellant contended that under Section 17-B of the Act, the respondent was only entitled to the last drawn wages, while the respondent argued that the High Court had the authority to grant regular wages. The Supreme Court analyzed the provisions of Section 17-B, which mandates payment of full wages last drawn during the pendency of proceedings, and clarified that the High Court could issue orders beyond this provision based on the merits of the case. The court upheld the High Court's order, stating that the respondent was entitled to his salary as per the conditions set by the High Court, and clarified that any excess payment could be recovered if the appellant succeeded in the writ petition. The appeal was allowed with modifications to the order, and no costs were awarded.
Headnote
A) Labour Law - Reinstatement and Wages - Payment of Regular Salary - Industrial Disputes Act, 1947, Section 17-B - The High Court directed the appellant to pay regular salary to the respondent upon reinstatement, which was challenged by the appellant. The court held that the High Court's order was valid as it did not contravene Section 17-B, which only mandates payment of last drawn wages during the pendency of proceedings (Paras 1-5).
Issue of Consideration
Whether the High Court's order directing payment of regular salary to the respondent is sustainable under Section 17-B of the Industrial Disputes Act, 1947.
Final Decision
The Supreme Court upheld the High Court's order for payment of regular salary to the respondent, clarifying that the order was valid and did not contravene Section 17-B. The appeal was allowed with modifications, allowing the appellant to recover any excess payment if successful in the writ petition.
Law Points
- Industrial Disputes Act
- 1947
- Section 17-B
- reinstatement
- wages last drawn
- interim orders
- High Court powers
