DIVISIONAL CONTROLLER, G.S.R.T.C. versus KADARBHAI J. SUTHAR

Citation: [2007] 2 S.C.R. 550 · Decided: 13-02-2007 · Supreme Court of India · Bench: ARIJIT PASAYAT · Disposal: Appeal(s) allowed

Judgment (excerpt)

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A 
DIVISIONAL CONTROLLER, G.S.R.T.C. 
.,.... 
v. 
KADARBHAI J. SUTHAR 
FEBRUARY 13, 2007 
B 
. [DR. ARIJIT PASAYA T AND S.H. KAPADIA, JJ.] 
Labour Laws: 
) .. 
c 
Termination-On account of misconduct-Labour Court held that since 
workman was acquitted in criminal case, he is entitled to reinstatement 
without back wages-High Court ordered 75% of full back wages-On 
appeal, held Labour Court had taken note of previous acts of misconduct 
while denying the back wages-Hence, direction of payment of back wages 
is not correct. 
D 
Disciplinary proceedings-Termination on account of misconduct-
Acquittal in criminal case-Held, would not nullijj; the decision taken in the 
departmental proceedings.· 
'I 
E 
Back wages-Entitlement to full back wages, when termination not 
found lawful-Held, there is no automatic entitlement to full back wages. 
Respondent-workman was driver in the appellant-Corporation. He 
caused an accident resulting in death of 8 years old child. He was acquitted 
in the criminal case. A claim petition claiming compensation was filed under 
F the Motor Vehicles Act, 1988 and the Corporation paid Rs. 45000/- to the 
claimants. Departmental proceedings were initiated against the workman, he 
was found guilty and was dismissed from service. He raised industrial dispute. 
The Labour Court held that since the workman was acquitted in the criminal 
case, a contrary view in the departmental proceedings was not permissible. 
G 
Accordingly, reinstatement was directed without back wages. 
Immediately thereafter respondent-workman was reinstated and the 
Award of the Labour Court was not challenged by the Corporation. 
-
"}.. 
After sometime, workman filed writ petition before the High Court 
H questioning correctness of the refusal of back wages. Single Judge allowed 
the writ petition and directed payment of full back wages. On appeal, Division 
550 
1 • 
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DIVISIONAL CONTROLLER, G.S.R.T.C. 1·. KADARBHAI .I. SUTHAR 
551 
--{ 
Bench reduced back wages to 75% instead of full back wages. 
A' 
In appeal to this Court, the appellant contended that the view taken by 
the Labour Court about the effect of acquittal is clearly contrary to law; that 
the respondent was earlier also responsible for several acts of misconduct 
and the Labour Court while deciding on the question of entitlement of back 
B 
wages had taken note of this aspect and that neither the Single Judge nor the 
Division Bench took note of it; and the conclusion that whenever reinstatement 
is directed, payment of back wages is the natural corollary is contrary to law. 
i< 
Allowing the appeal, the Court 
HELD : 1. The orders of both the Single Judge and the Division Bench c 
of the High Court suffer from several infirmities. First and foremost, mere 
acquittal in a criminal case does not have the effect of nullifying the decision 
> 
taken in the departmental proceedings. They operate in different areas of 
considerations. (Para 5) (553-D) 
D 
Noida Entrepreneurs'Association v. Noida and Ors., WP(C) No. 150 of 
1997 with WP(C) 529of1998 decided by Supreme Court on 15.1.2007; 
4 
Hindustan Tin Works Pvt. ltd, v. The Employees of Hindustan Tin Works Pvt 
' 
f 
Ltd and Ors., (1979) 2 SCC 80 and PG/ of Medical Education and Research, 
Chandigarh v. Raj Kumar, (2001) 2 SCC 54, referred to. 
E 
2. When fixing the back wages several factors need to be noted. It is a 
well settled law that on the finding that termination was not lawful, there is 
no automatic entitlement to full back wages. (Para 6) (553-E) 
3 Additionally, the Labour Court had taken note of the previous acts of 
F 
misconduct by the workman while denying the back wages. That aspect was 
completely lost sight of. Merely because the Corporation did not challenge 
the order of reinstatement that does not lead to a conclusion that it accepted 
any illegality in the departmental proceedings. As a matter of fact, the Labour 
Court clearly noted that the workman admitted the legality and propriety of 
the inquiry held against him. In the aforesaid circumstances, the inevitable G 
conclusion is that the direction for payment of back wages cannot be sustained . 
... 
(Para 8) (554-E-G) 
x 
CIVIL APPELLATE JURISDICTION: Civil Appeal No, 3212 of2002. 
From the Judgment and Final Order dated 27.9.2001 of the High Court H 
of Gujarat at Ahmedabad in L.P.A. No. 883/2000. 
552 
SUPREME COURT REPORTS [2007] 2 S.C.R. 
A 
Ramesh P. Bhatt, Mahima C. Shroff, Mukesh Kumar and Chirag M. '· 
Shroff for the Appell

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