MAHARASHTRA STATE ROAD TRANSPORT CORPORATION versus MAHADEO KRISHNA NAIK

Citation: [2025] 3 S.C.R. 100 · Decided: 13-02-2025 · Supreme Court of India · Bench: DIPANKAR DATTA · Disposal: Disposed off

cites 8 · see the full citation network in Lexace

Judgment (excerpt)

[2025] 3 S.C.R. 100 : 2025 INSC 218
Maharashtra State Road Transport Corporation 
v. 
Mahadeo Krishna Naik
(Civil Appeal No. 13834 of 2024)
14 February 2025
[Dipankar Datta* and Sandeep Mehta, JJ.]
Issue for Consideration
Whether the appellant-Corporation is guilty of suggestio falsi by not 
disclosing what it had pleaded before the MACT and suppresio veri 
by suppressing the award; whether the High Court was justified in 
exercising review jurisdiction; and whether the respondent is entitled 
to back wages for the period for which he remained out of service. 
Headnotes†
Service law – Removal from service – Suggestio falsi and 
suppresio veri – Relevance of proceedings of the MACT in 
proceedings before the labour court – Respondent working as 
bus driver with the appellant-Corporation – Lorry coming from 
the opposite direction collided with a bus of the Corporation, 
driven by respondent, resulting in a fatal accident – Disciplinary 
action against respondent and was dismissed from service – 
Dismissal upheld by the Labour court – Writ petition by the 
respondent – Dismissed by the High Court – During pendency, 
proceedings for compensation initiated by victims of the 
accident before the MACT wherein Corporation took a contrary 
stand that the lorry driver was responsible for the accident 
and the tribunal awarded compensation – On basis thereof, the 
respondent applied for review before the High Court – Review 
proceeding allowed and directed payment of back wages to 
the respondent – Correctness:
Held: Corporation indulged in the misadventure of suggestio falsi 
and suppressio veri – Before the Labour Court, the Corporation 
established that inquiry conducted against the respondent, was fair, 
and the conclusion was arrived at upon due consideration of the 
materials on record – Having regard to the clear and specific stand 
* Author
[2025] 3 S.C.R. 
101
Maharashtra State Road Transport Corporation v. 
Mahadeo Krishna Naik
taken before the MACT in its written statement, the Corporation did 
make a false representation before the Labour Court amounting 
to suggestio falsi – Having not disclosed before the Labour 
Court the outcome of the proceedings before the MACT, the 
Corporation also guilty of suppresio veri – Relevance of the MACT 
judgment and its probative value cannot be gainsaid – In industrial 
adjudication, principles of natural justice have to be complied 
with – Corporation has been far from fair in its dealings with the 
respondent – Corporation did not deliberately refer to the award of 
the MACT at two different tiers, and thereby actively suppressed 
relevant material from court of law – Contradictory nature of the 
stances taken by Corporation, reeks of the Corporation trying 
to approbate and reprobate on the same issue – Corporation’s 
non-disclosure is suppression of such high magnitude, akin to a 
clear fraud on court – Written statement of the Corporation and 
its award are documents of immense significance which were 
sufficient to tilt the balance in favour of the respondent – Objection 
of the Corporation to the Single Judge receiving such document 
as evidence in course of exercise of review jurisdiction without 
any substance and merits outright rejection – As regards payment 
of back wages, the respondent admitted that he was engaged on 
a daily wage basis, and because his service was terminated, he 
could not find a permanent employment elsewhere – No material 
on record to disbelieve him – Also clear that the Corporation 
succeeded in getting rid of the respondent by indulging in the 
misadventure of suppressio veri and suggestio falsi – Thus, in 
the interest of justice the order of the Single Judge awarding 
100% back wages modified and respondent awarded 75% of the 
back wages from the date of his termination till the date of his 
superannuation – Also entitled to full terminal benefits, along with 
interest @ 6% p.a. [Paras 24-29, 30-33, 35, 36, 43-49]
Service law – Termination of service – Payment of back 
wages, when: 
Held: Ordering back wages to be paid to a dismissed employee, 
upon his dismissal being set aside by a court of law, is not an 
automatic relief – Grant of full or partial back wages has to be 
preceded by a fact-finding exercise by the industrial adjudicator/
court to ascertain whether in the interregnum the employee 
was gainfully employed – If the employee admits of any gainful 
employment and gives particulars of the employment together with 
102
[2025] 3 

Excerpt shown. Read the full judgment & AI analysis in Lexace.