Case Note & Summary
The dispute arose from the removal of the respondent, a conductor with A.P.S.R.T.C., for alleged misconduct related to ticket sales. After being removed on 8.9.1987, the respondent applied for a new position and was reappointed without disclosing his previous removal. Following a departmental inquiry, he was again removed on 27.4.1992. The respondent challenged this removal in the Labour Court, which upheld the disciplinary action but deemed the punishment harsh and disproportionate, allowing reinstatement without full back wages. The respondent later filed a writ petition, which was granted by a single judge of the High Court, leading to an appeal by the appellant. The appellant argued that the Labour Court's discretion regarding back wages should not have been interfered with. The respondent contended that the removal was invalid, warranting full back wages. The Supreme Court analyzed the Labour Court's findings, emphasizing that while the removal was not declared illegal, the punishment was deemed excessive. The Court noted that the respondent had secured alternative employment and had already received partial back wages. Ultimately, the Supreme Court set aside the High Court's judgment, allowing the appeal and confirming that the amount already paid would not be recovered, with no order as to costs.
Headnote
A) Employment Law - Back Wages - Entitlement to Back Wages - Industrial Disputes Act, 1947, Section 11A - The Labour Court found the removal of the respondent to be harsh and disproportionate but did not declare it illegal. The High Court's decision to grant full back wages was held to be erroneous as the respondent had obtained alternative employment, and the Labour Court's discretion was not arbitrarily exercised. Held that the High Court misdirected itself in law (Paras 8-18).
Issue of Consideration
Whether the High Court erred in granting full back wages to the respondent despite the Labour Court's findings.
Final Decision
The Supreme Court set aside the High Court's judgment, allowing the appeal and confirming that the amount of Rs. 83,954/- already paid by way of back wages may not be recovered from the respondent, with no order as to costs.
Law Points
- Industrial Disputes
- Back Wages
- Disciplinary Proceedings
- Misconduct
- Reinstatement
- Judicial Review



