Bombay High Court Allows Back Wages for Employee in Faulty Enquiry Case. Employer Directed to Pay Full Back Wages from Termination to Reinstatement Despite Option for De Novo Enquiry.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Accused
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Case Note & Summary

The petitioner, Manohar Pandit Marathe, was an employee of Sharda Vidya Prasarak Mandal. He was terminated from service on 20/01/2009. He challenged the termination by filing an appeal before the School Tribunal, Jalna, being Appeal No. JAL/11/2009. The School Tribunal, by its judgment and order dated 20/09/2013, found that the enquiry conducted against the petitioner was in violation of Rules 36 and 37 of the Maharashtra Employees of Private Schools (Conditions of Service) Regulation Rules (M.E.P.S. Rules). Consequently, the Tribunal quashed and set aside the enquiry. In the operative part of the order, the Tribunal granted the employer the liberty to either give up the de novo enquiry and grant all reliefs to the petitioner or to conduct a de novo enquiry. The employer was directed to first reinstate the petitioner and then, if opting for de novo enquiry, place him under suspension. The petitioner was reinstated on 18/11/2012 and immediately suspended on the same date. The petitioner's grievance was that he was not paid back wages from the date of termination (20/01/2009) till the date of reinstatement (18/11/2012). He argued that the employer should not be allowed to take advantage of its own wrong in conducting a faulty enquiry. Alternatively, he submitted that the suspension should be relegated back to the date of first dismissal and suspension allowance be paid till 18/11/2012. The court considered the submissions and relied on the Supreme Court judgment in Vidya Dhar Pande v. Vidyut Grih Siksha Samiti (2002) 9 SCC 396, which held that when an enquiry is set aside and the employer is given an opportunity to conduct a de novo enquiry, the employee is entitled to full back wages from the date of termination till the date of reinstatement. The court allowed the writ petition, directing the employer to pay full back wages to the petitioner from 20/01/2009 to 18/11/2012 within four weeks. The court also directed that if the employer opts to conduct a de novo enquiry, the petitioner shall be deemed to be under suspension from 18/11/2012 and shall be paid subsistence allowance as per rules.

Headnote

A) Service Law - Back Wages - Faulty Enquiry - De Novo Enquiry - Petitioner was terminated on 20/01/2009; School Tribunal quashed enquiry for non-compliance with Rules 36 and 37 of M.E.P.S. Rules and granted employer option to conduct de novo enquiry after reinstatement - Petitioner sought back wages from termination to reinstatement - Held that employer cannot take advantage of its own wrong and must pay full back wages for the period between termination and reinstatement (Paras 2-6).

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Issue of Consideration

Whether the petitioner is entitled to back wages from the date of termination (20/01/2009) till the date of reinstatement (18/11/2012) when the termination was set aside due to a faulty enquiry and the employer was given the option to conduct a de novo enquiry.

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Final Decision

The writ petition is allowed. The respondent employer is directed to pay full back wages to the petitioner from 20/01/2009 to 18/11/2012 within four weeks. If the employer opts to conduct a de novo enquiry, the petitioner shall be deemed to be under suspension from 18/11/2012 and shall be paid subsistence allowance as per rules.

Law Points

  • Back wages
  • de novo enquiry
  • reinstatement
  • suspension
  • employer's wrong
  • M.E.P.S. Rules
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Case Details

2014 LawText (BOM) (04) 20

Writ Petition No.9310 of 2013 with Civil Application No.2010 of 2014

2014-04-01

Ravindra V. Ghuge

Mr. S.P. Brahme for petitioner, Mr. A.N. Kakade for respondent Nos. 1 and 2

Manohar Pandit Marathe

President, Sharda Vidya Prasarak Mandal, and others

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Nature of Litigation

Writ petition challenging the School Tribunal's order regarding back wages after termination was set aside due to faulty enquiry.

Remedy Sought

Petitioner sought back wages from termination (20/01/2009) to reinstatement (18/11/2012) or alternatively, suspension allowance from termination to reinstatement.

Filing Reason

Petitioner was terminated on 20/01/2009; School Tribunal quashed enquiry but did not grant back wages; petitioner sought back wages for the period between termination and reinstatement.

Previous Decisions

School Tribunal, by judgment dated 20/09/2013, quashed the enquiry for non-compliance with Rules 36 and 37 of M.E.P.S. Rules and granted employer option to conduct de novo enquiry after reinstatement.

Issues

Whether the petitioner is entitled to back wages from the date of termination (20/01/2009) till the date of reinstatement (18/11/2012) when the termination was set aside due to a faulty enquiry and the employer was given the option to conduct a de novo enquiry.

Submissions/Arguments

Petitioner argued that employer cannot take advantage of its own wrong and must pay back wages from termination to reinstatement. Alternatively, petitioner submitted that suspension be relegated back to date of first dismissal and suspension allowance be paid till 18/11/2012. Respondent employer opposed the claim for back wages.

Ratio Decidendi

When an enquiry is set aside due to employer's fault and employer is given opportunity to conduct de novo enquiry, the employee is entitled to full back wages from the date of termination till the date of reinstatement, as the employer cannot take advantage of its own wrong.

Judgment Excerpts

Grievance of the petitioner, therefore, is that from the date of termination i.e. 20/01/2009, till the date of reinstatement and suspension, back wages need to be paid since the respondent employer cannot be granted an opportunity to take advantage of its own wrong. The petitioner has placed reliance upon the judgment of the Hon'ble Supreme Court in the case of Vidya Dhar Pande v. Vidyut Grih Siksha Samiti, (2002) 9 SCC 396.

Procedural History

Petitioner was terminated on 20/01/2009. He filed appeal before School Tribunal, Jalna (Appeal No. JAL/11/2009). Tribunal quashed enquiry on 20/09/2013, granting employer option to conduct de novo enquiry after reinstatement. Petitioner was reinstated on 18/11/2012 and immediately suspended. Petitioner filed writ petition seeking back wages from termination to reinstatement.

Acts & Sections

  • Maharashtra Employees of Private Schools (Conditions of Service) Regulation Rules: Rules 36, 37
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