Case Note & Summary
The appellant, B. Narappa @ Nagendra, joined Pragati Grameena Bank as a Junior Clerk. On 17.01.1986, he was served with a chargesheet and subsequently dismissed from service after a disciplinary inquiry. He raised an industrial dispute which was referred to the Central Government Industrial Tribunal. The Tribunal, by its award dated 06.02.2008, ordered his reinstatement with continuity of service and back wages. The Bank challenged the award before the High Court in W.P. No.60640/2012. The learned Single Judge, by order dated 03.02.2016, modified the Tribunal's award and directed that the appellant would be entitled to a lumpsum compensation of Rs.6,00,000/- in lieu of reinstatement and continuity of service. Aggrieved by the quantum of compensation, the appellant filed the present writ appeal under Section 4 of the Karnataka High Court Act, 1961. The Division Bench heard the appeal. The appellant's counsel argued that the compensation was inadequate given his 16 years of service and the bank's conduct in delaying the proceedings. The Bank's counsel supported the Single Judge's order. The Division Bench, after considering the facts and circumstances, held that the lumpsum compensation of Rs.6,00,000/- was not just and fair. The court noted that the appellant had served for about 16 years and the bank had prolonged the litigation. Accordingly, the court enhanced the compensation to Rs.10,00,000/-. The appeal was allowed in part, and the Bank was directed to pay the enhanced compensation within eight weeks.
Headnote
A) Service Law - Compensation in lieu of Reinstatement - Adequacy of Lumpsum Compensation - Industrial Disputes Act, 1947 - The appellant, a Junior Clerk dismissed in 1986, was awarded reinstatement with continuity by the Industrial Tribunal; the Single Judge substituted lumpsum compensation of Rs.6,00,000/-. The Division Bench held that considering the appellant's 16 years of service and the bank's conduct, the compensation was inadequate and enhanced it to Rs.10,00,000/-. Held that the lumpsum compensation should be just and fair, taking into account the length of service and the circumstances of dismissal (Paras 1-5).
Issue of Consideration
Whether the lumpsum compensation of Rs.6,00,000/- awarded by the learned Single Judge in lieu of reinstatement and continuity of service is adequate, or whether it should be enhanced.
Final Decision
Appeal allowed in part. The lumpsum compensation is enhanced from Rs.6,00,000/- to Rs.10,00,000/-. The respondent Bank is directed to pay the enhanced compensation within eight weeks.
Law Points
- Compensation in lieu of reinstatement
- lumpsum compensation
- Industrial Tribunal award
- modification by High Court
- Section 4 of Karnataka High Court Act
- 1961
