Case Note & Summary
The dispute arose between the Andhra Pradesh State Road Transport Corporation and its employee, a Conductor, who was found guilty of unauthorized absence from duty on two occasions. Following a disciplinary inquiry, the employee was removed from service. He raised a dispute under the Industrial Disputes Act, 1947, which led to a Labour Court ruling that reinstated him with continuity of service but denied backwages. The employee subsequently filed a writ petition in the High Court, which directed the Corporation to consider periodical increments that would have been earned during his absence. The Corporation appealed this decision, arguing that the employee should not receive increments for the unauthorized absence. The Supreme Court analyzed the relevant regulations and circulars, concluding that reinstatement with continuity of service does not automatically entitle the employee to increments for the period of absence unless explicitly stated. The court emphasized that allowing increments in such cases would reward misconduct. Ultimately, the Supreme Court set aside the High Court's judgment, ruling in favor of the Corporation and denying the employee's claim for increments during his unauthorized absence.
Headnote
A) Employment Law - Unauthorized Absence - Increment Entitlement - Industrial Disputes Act, 1947 - The court held that an employee found guilty of unauthorized absence cannot claim increments for the period of absence unless specifically directed. The absence of a specific order to count the period for increments means that the employee is not entitled to such benefits despite reinstatement with continuity of service. (Paras 20-24).
Issue of Consideration
Whether an employee reinstated after being found guilty of unauthorized absence is entitled to increments for the period of absence.
Final Decision
The Supreme Court allowed the appeal, set aside the High Court's judgment, and ruled that the employee was not entitled to increments for the period of unauthorized absence.
Law Points
- unauthorized absence
- disciplinary inquiry
- reinstatement
- continuity of service
- increments
- Industrial Disputes Act
- 1947


