M.P. STATE ELECTRICITY BOARD versus SMT. JARINA BEE

Citation: [2003] SUPP. 1 S.C.R. 535 · Decided: 15-07-2003 · Supreme Court of India · Bench: DORAISWAMY RAJU · Disposal: Appeal(s) allowed

Judgment (excerpt)

M.P. STATE ELECTRICITY BOARD 
A 
v. 
SMT. JARINA BEE 
JULY 15, 2003 
[DORAISWAMY RAJU ANDARIJITPASAYAT,JJ.] 
B 
labour laws: 
Dismissal of Employee-Allegation of theft-Dismissal set aside by 
labour Court with direction to reinstate-Industrial Court and High Court C 
holding him entitled to full back wages-In the meantime death of employee 
rendering the order of reinstatement infructuous-On appeal-Held, award 
of full back wages is not the natural consequence when an order of dismissal 
is set aside-However, in the facts of the case payment of Rs. 85,000 towards 
back wages would meet the ends of justice. 
D 
Husband of respondent was employed with the appellant-Board. His 
services were terminated on the allegation of theft The removal was challenged 
before labour court who held that since departmental enquiry was not 
conducted in accordance with the principles of natural justice the dismissal 
was bad. Direction was given for his reinstatement and Board was granted E 
opportunity to prove his misconduct. Both the Board and the employee 
preferred appeals before Industrial Court, which allowed the appeal of employee 
holding that when an order of dismissal was set aside, entitlement for full 
back wages was automatic. During pendency of the case before Industrial 
Court, the employee died .and hence direction for his reinstatement became F 
infructuous. On challenge of the order of Industrial Court, High Court held 
that when a charge was not established at all and the order of removal was set 
aside, award of back wages was the natural consequence. Hence the present 
appeal. 
Allowing the appeal, the Court 
HELD: l. High Court committed an error in holding that the award of 
full back wages was the natural consequence when an order of dismbsal is 
set aside. 1537-DI 
535 
G 
H 
536 
SUPREME COURT REPORTS [2003) SUPP. I S.C.R. 
A 
P.G.l. of Medical Education and Research, Chandigarh v. Raj Kumar, 
B 
JT (2001) I SC 336; Hindustan Motors ltd v. Tapan Kumar Bhattacharya 
and Anr., (2002) AIR SCW 3008 and Indian Railway Construction Co. ltd. 
v. Ajay Kumar, JT (2003) SC 295, relied on. 
2. Considering the background of the case and the fact that the order 
of dismissal was found to be defective as the principles of natural justice were 
not properly followed, and an opportunity was granted to the Board to proceed 
C in accordance with law, and the fact that the employee has expired in the 
meantime, payment of Rs. 85,000 towards back wages would meet the ends of 
justice. (538-C-DI 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 460 I of2003. 
D 
From the Judgment and Order dated 8.10.2002 of the Madhya Pradesh 
High Court in W.P. No. 2350 of2002. 
Satish K. Agnihotri, for the Appellant. 
B.S. Banthia for the Respondent. 
E 
The Judgment of the Court was delivered by 
ARIJIT PASAYAT, J. Leave granted. 
The primal issue involved in this appeal is whether award of full back 
wages is the natural consequence when an order of dismissal is set aside. The 
F High Court of Madhya Pradesh at Jabalpur held it to be so, and that is why 
the Madhya Pradesh State Electricity Board (hereinafter referred to as 'the 
Board') filed this appeal. 
Factual background which is almost undisputed is as follows :-
G 
One Habib Khan (hereinafter referred to as the 'employee'). husband of 
respondent Smt. Jarina Bee, was employed as a Line Attendant, Grade-II in 
the Board. On the allegation that he was responsible for theft of large quantity 
of aluminum wire, criminal case was lodged and departmental proceedings 
were initiated. In the departmental inquiry he was found guilty and was 
H removed from service on 20.1.1996. Such removal was challenged by him 
before the Labour Court-I, Bhopal. The said Court held that since departmental 
inquiry was not conducted in accordance with the principles of natural justice, 
the dismissal was bad. Direction was given for reinstatement of employee by 
M.P. STATE ELECTRICITY BOARD v . .I ARIN A BEE [PASA Y AT . .I.] 
537 
granting opportunity to the Board to prove his misconduct. While directing A 
reinstatement, it was held that he was not entitled to any back wages. Both 
the Board and the employee preferred appeals before the Industrial Court, 
Bench at Bhopal. By order dated 11.2.2002, the Industrial Court allowed the 
appeal filed by the employee, while dismissing the one filed by the Board. It 
was held that when an order of dismissal was set aside, entitlement for full B 
back wages was automa

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