Case Note & Summary
The case involves two Letters Patent Appeals filed by employees of Vyapari Sahakari Bank Maryadit, Solapur, challenging their termination from service. The appellants were employed as clerks and peons. They were terminated for unauthorised absence from duty. The Labour Court had ordered reinstatement with continuity of service but without back wages. The Industrial Court, in revision, upheld the Labour Court's order. The appellants challenged this before the High Court, seeking full back wages. The High Court dismissed the appeals, holding that the termination was disproportionate but that the denial of back wages was justified because the appellants had not pleaded or proved that they were willing to work or that they were not gainfully employed during the period of absence. The court relied on the principle that back wages are not automatic and must be claimed with proper evidence. The judgment was pronounced on 27 June 2014 by a Division Bench of the Bombay High Court.
Headnote
A) Service Law - Termination - Unauthorised Absence - Proportionality - Termination of bank employees for unauthorised absence was held to be disproportionate to the misconduct - The Industrial Court's order of reinstatement without back wages was upheld - The Labour Court's order of reinstatement with continuity of service but without back wages was confirmed - Held that the punishment of dismissal was too harsh and reinstatement was appropriate (Paras 1-26). B) Service Law - Back Wages - Burden of Proof - Employees seeking back wages must plead and prove that they were willing to work and were not gainfully employed - In the absence of such pleading and proof, denial of back wages is justified - Held that the Industrial Court correctly denied back wages as the appellants failed to establish their entitlement (Paras 20-26).
Issue of Consideration
Whether the termination of the appellants for unauthorised absence was justified and whether they are entitled to reinstatement with full back wages.
Final Decision
Both appeals dismissed. The order of the Industrial Court upholding the Labour Court's order of reinstatement without back wages is confirmed.
Law Points
- Termination for unauthorised absence
- proportionality of punishment
- reinstatement without back wages
- burden of proof for back wages
- Section 73 of the Maharashtra Co-operative Societies Act
- 1960




