Supreme Court Dismisses Appeal Regarding Back Wages for Reinstated Employee — Upholds High Court's Order. Citing the binding circular, the court confirmed the employee's entitlement to back wages from dismissal to acquittal.

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Case Note & Summary

The dispute arose between Jaipur Vidyut Vitran Nigam Ltd. and Nathu Ram regarding the payment of back wages after the respondent was reinstated following his acquittal from criminal charges. Nathu Ram was initially appointed as a casual laborer and later regularized. He was suspended in 1979 after being convicted of bribery, leading to his termination in 1982. After his acquittal in 1997, he was reinstated but sought back wages for the period of dismissal. The High Court ordered the Corporation to pay back wages, which led to the appeal by the Corporation. The Supreme Court examined the relevant circulars and regulations, concluding that the respondent was entitled to back wages as the circular mandated that the period of dismissal should be treated as duty for pay purposes. The court found no merit in the Corporation's arguments against the High Court's ruling and dismissed the appeal, affirming the entitlement to back wages as per the established regulations.

Headnote

A) Employment Law - Back Wages - Entitlement to Back Wages Post-Acquittal - Rajasthan State Electricity Board Employees Service Regulations, 1964, Regulation 41 - The court held that the respondent was entitled to back wages from the date of dismissal to the date of acquittal based on the binding circular of the erstwhile Board, which stipulated that such periods should be treated as duty for pay purposes. The court affirmed the High Court's decision to grant back wages as per the circular's provisions (Paras 10-12).

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Issue of Consideration

Whether the respondent was entitled to back wages for the period of dismissal until acquittal.

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Final Decision

The Supreme Court dismissed the appeal, affirming the High Court's order for the Corporation to pay back wages from the date of dismissal to the date of acquittal, based on the binding circular of the erstwhile Rajasthan State Electricity Board.

Law Points

  • Back wages
  • reinstatement
  • suspension allowances
  • acquittal
  • employee service regulations
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Case Details

2009 LawText (SC) (11) 54

Civil Appeal No. 7721 of 2009

2009-11-23

Tarun Chatterjee, R.M. Lodha

Jaipur Vidyut Vitran Nigam Ltd.

Nathu Ram

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Nature of Litigation

Dispute over entitlement to back wages following reinstatement after acquittal.

Remedy Sought

Nathu Ram sought payment of back wages for the period of dismissal until acquittal.

Filing Reason

The respondent filed a writ petition after being reinstated, claiming back wages and other benefits.

Previous Decisions

The High Court had ordered the Corporation to pay back wages, which was affirmed by the Supreme Court.

Issues

Entitlement to back wages for the period of dismissal until acquittal Validity of the circular regarding payment of wages during suspension

Submissions/Arguments

The Corporation argued that the writ petition was filed after a long delay and that the respondent was not entitled to remuneration for the period of dismissal. The respondent contended that the circular mandated payment of back wages for the period of dismissal.

Ratio Decidendi

The court held that the circular issued by the Rajasthan State Electricity Board was binding and mandated that the period of dismissal should be treated as duty for pay purposes, thus entitling the respondent to back wages.

Judgment Excerpts

The period between the date of dismissal etc. and the date on which he resumes duty should be dealt with under Regulation No.41 of Rajasthan State Electricity Board Employees Service Regulation. It is clear that the case of the respondent was fully covered by the Circular of the erstwhile Board dated 3 rd of September, 1975.

Procedural History

The respondent filed a writ petition in the High Court after reinstatement, which was partly allowed by a Single Judge. The Corporation appealed to a Division Bench, which affirmed the Single Judge's order, leading to the present appeal in the Supreme Court.

Acts & Sections

  • Rajasthan State Electricity Board Employees Service Regulations: Regulation 41
  • Anti Corruption Act: Section 5(1)(d), Section 5(2)
  • Indian Penal Code: Section 161
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