High Court Jharkhand High Court

Bhubneshwar Singh vs Employers In Relation To The on 17 March, 2010

Jharkhand High Court
Bhubneshwar Singh vs Employers In Relation To The on 17 March, 2010
       IN THE HIGH COURT OF JHARKHAND AT RANCHI
                                 W.P. (L) No. 3246 of 2001
      Bhubaneshwar Mallick.....................                                            Petitioner
                                         Versus
      1. Employer in relation to the Management of Central Coal Fields Limited, 
         Ranchi
      2. The Presiding Officer, Central Government Industrial Tribunal (No. 2), 
         Dhanbad.....................                                           Respondents
                                    ......

Coram: The Hon’ble Mr. Justice Amareshwar Sahay
……

For the petitioner : Mr. Rajiv Ranjan, Advocate
For the Respondents : Mr. Ananda Sen, Advocate. 

……

                                             O R D E R
      C.A.V. on 06/11/2009                                      Delivered on 17/03/2010


20/ 17.03.2010      Heard the parties.

2. The   petitioner,   i.e.   the   concerned   workman   has   filed   this   writ 

petition   challenging   that   portion   of   the   award   of   the   Central   Government 

Industrial Tribunal, Dhanbad, dated 15th  May 2001, whereby, the Industrial 

Tribunal   after   holding   the   dismissal   of   the   concerned   workman   to   be   not 

justified and directed for his reinstatement but did not allow the privilege of 

back   wages.  In  other  words  the  refusal of  the  Industrial  Tribunal to award 

back wages in under challenge in this writ application. 

3. In view of the limited question involved in this writ application, it 

is not necessary to state in detail the facts of the case. Suffice is to say that 

the   petitioner,   who   was   dismissed   from   the   employment   of   the   Central 

Coalfields Limited after domestic enquiry, has been ordered to be reinstated in 

service   by the Industrial Tribunal, holding that the petitioner was not found 

guilty of misconduct and, consequently, his order of termination was set aside.

4. The   learned  counsel   appearing   for   the   petitioner   submitted   that 

the Tribunal has not assigned any reason for refusal to award back wages to 

the petitioner. According to him, if the termination of a workman is held to be 
illegal and consequently such termination from service is set aside then in that 

case the award of back wages is consequential and it has to be made therefore, 

the Industrial Tribunal ought to have awarded consequential relief of full back 

wages to the petitioner. In support of such submissions, the learned counsel 

for the petitioner relied on the decisions of the Supreme Court in the cases of 

“Manorma   Verma   (Smt)­versus­   State   of   Bihar   &   Others,   reported   in  

(1994) Supp (3), SCC, 671”, “Union of India & Others­versus­ Ramchander  

& Another, reported in  (2005) 9 SCC 365”, “General Manager, Haryana  

Roadways­versus­   Rudhan   Singh,   reported   in     (2005)5   SCC   591, 

“Allahabad Jal Sansthan­verus­ Daya shankar Rai & Another, reported  

in   (2005)   5   SCC   124”,   “U.P.SRTC   Ltd.­versus­   Sarada   Prasad   Misra   &  

Another,   reported   in   (2006)   4   SCC   733”   and   in   the   case   of   “Mahendra  

Harizan­versus­State   of   Jharkhand   &   Others,   reported   in     2006   (2)  

JLJR, 591”.

5. On the other hand, Mr. Ananda Sen, learned counsel appearing for 

the   respondents   CCL   submitted   that   the   condition   prevalent   for   awarding 

compensation is that the workman has to prove first that he was not gainfully 

employed anywhere during the period he was out of service and this burden of 

proof is on the concerned workman. If the workman does not prove the said 

fact   by   cogent   evidence   then   no   back   wages   can   be   allowed.   He   further 

submitted that before awarding back wages the Tribunal has to come to the 

conclusion that the workman was unemployed during the period he was out of 

service. Therefore, the findings in this regard is must whereas in the present 

case neither the petitioner adduced any evidence before the Tribunal to the 

effect   that   he   was   not   employed   gainfully   during   the   period   he   was   out   of 

service nor there is any finding of the Tribunal in that regard and, therefore, 

the petitioner’s claim for back wages cannot be allowed.  

6. I have gone through the decisions cited by the respective parties 

and   after   going   through   the   said   decisions   it   appears   to  me   that   no   doubt 

earlier the view of the Supreme Court was that once the termination is found 

to be illegal, consequential order for grant of back wages was must except for 

the reasons justifying a departure from normal order, as was held in the case 

of “Manorma Verma (Smt)­versus­ State of Bihar & Others, reported in  

(1994)   Supp   (3),   SCC,   671″.   But,   subsequently,   in   the   case   of   ”  General  

Manager,   Haryana   Roadways­versus­   Rudhan   Singh,   reported   in  

(2005)5   SCC   591″,  the   Supreme   Court   has   held   that   there   is   no   rule   of 

thumb   that   in   every   case   where   Industrial   Tribunal   gives   finding   that 

termination of service was bad, entire back wages should be awarded. Order 

for payment of back wages should not be passed in mechanical manner but a 

host of factors have to be considered.

Same view was taken by the Supreme Court in the case of “Muir  

Mills   Unit   of   NTC   (U.P.)   Ltd.­   versus­   Swayam   Prakash   Srivastava   &  

Another, reported in (2007) 1 SCC 491”, wherein it was held that payment 

of full back wages is not a natural consequence of setting aside an order of 

termination of  services.

In   the   case   of   “J.K.Synthetics   Ltd.­versus­   K.P.   Agrawal   &  

Another,   reported   in   (2007)   2   SCC   433”,   the   Supreme   Court   held   as 

follows:­

“The   manner   in   which   “back   wages”   is   viewed,   has 
undergone a significant change in the last two decades. 
They   are   no   longer   considered   to   be   an   automatic   or 
natural   consequence   of   reinstatement.   There   has   also 
been a noticeable shift in placing the burden of proof in 
regard to back wages. There is also a misconception that 
whenever   reinstatement   is   directed,   “continuity   of 
service” and “consequential benefits” should follow, as a 
matter   of   course.   The   disastrous   effect   of   granting 
several   promotions   as   a   “consequential   benefit”   to   a 
person who has not worked for 10 to 15 years and who 
does   not   have   the   benefit   of   necessary   experience   for 
discharging   the   higher   duties   and   functions   of 
promotional   posts,   is   seldom   visualised   while   granting 
consequential   benefits   automatically.   Whenever   courts 
or   tribunals   direct   reinstatement,   they   should   apply 
their   judicial   mind   to   the   facts   and   circumstances   to 
decide   whether   “continuity   of   service”   and/or 
“consequential benefits” should also be directed.

Even if the court finds it necessary to award back 
wages, the question will be whether back wages should 
be   awarded   fully   or   only   partially   (and   if   so   the 
percentage).   That   depends   upon   the   facts   and 
circumstances of each case. Any income received by the 
employee   during   the   relevant   period   on   account   of 
alternative employment or business is a relevant factor 
to   be   taken   note   of   while   awarding   back   wages. 

Therefore, it is necessary for the employee to plead that 
he   was   not   gainfully   employed   from   the   date   of   his 
termination.   While   an   employee   cannot   be   asked   to 
proved   the   negative,   he   has  to   at  least   assert  on   oath 
that he was neither employed nor engaged in any gainful 
business   or   venture   and   that   he   did   not   have   any 
income. Then the burden will shift to the employer. But 
there   is,   however,   no   obligation   on   the   terminated 
employee   to   search   for   or   secure   alternative 
employment.”

7. In view  of the aforesaid decisions  of the Supreme Court  noticed 

above, there is no doubt in my mind that awarding back wages full or part 

depends on the facts and circumstances of the each case. There is no hard 

and   fast   rule   that   only   because   the   termination   is   set   aside   holding   to   be 
illegal, the award of full back wages as consequential benefit is must.

 It is for the workman to plead first in his pleading that he was not 

gainfully employed any where during the period he was out of service and  if 

such statements on behalf of the workman is made then the onus to rebut the 

said plea of the workman shifts on the employer..

8.   In   the   present   case,   from   the   pleadings   of   the   concerned 

workman,  i.e.  the  petitioner  before  the  Industrial Tribunal,  which  has  been 

annexed  with this writ petition, I do not find that the petitioner  has stated 

anything that he was not gainfully employed at any place during the period he 

was   out   of   service.   Even   otherwise   from   the   side   of   the   Management   also 

nothing has been brought on record that the workman was gainfully employed 

somewhere.   From   the   impugned   award   of   the   Industrial   Tribunal   also   it 

appears   that   he   has   also   not   assigned   any   reason   for   not   awarding   back 

wages.

9. Considering the above facts as well as the fact that the concerned 

workman has now retired from service in June 2009 during the pendency of 

this writ petition and he was reinstated in service in 2005­2006, in my view, 

for  the  ends   of  justice,   the petitioner  should   be  awarded  25  %  of  the  back 

wages for the period he was out of service, i.e. from the date of his termination 

till the date of his reinstatement in service. Accordingly, the respondents are 

directed to pay 25% of the back wages to the petitioner within a period of one 

month from today.

With   the   above   modification   in   the   impugned   order,   the   writ 

petition stands disposed of but without any cost.

        (Amareshwar Sahay, J)

Mukund/­