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Labour & Industrial LawSupreme Court of India

Dharamraj Nivrutti Kasture v. Chief Executive Officer and Another

Civil Appeal · 2019 INSC 848Decided 31 Jul 2019
Civil Appeal No. 5978 of 2019
Justice R. Banumathi · Justice A.S. Bopanna

Background

The appellant was engaged as a daily-wage peon by a Zilla Parishad in 1983 and his services were terminated after about five years. He won an order of reinstatement with continuity of service from the Labour Court and Industrial Tribunal, but the Bombay High Court set this aside, holding his original appointment itself was irregular (without proper public recruitment process) and that reinstatement could not be ordered on that basis, though the High Court did award him Rs. 50,000 in compensation in lieu of reinstatement.

Decision Breakdown

The Supreme Court agreed with the High Court that reinstatement was not appropriate, noting the appellant had already been out of service for more than three decades and had earlier received 75% of his last-drawn wages for about 12 years under an interim court order without doing any work. However, considering the overall facts, the Court enhanced the compensation awarded from Rs. 50,000 to Rs. 1,50,000, directing that the balance of Rs. 1,00,000 (after accounting for the Rs. 50,000 already paid) be paid within eight weeks, thereby partly allowing the appeal only on the quantum of compensation.

Lesson Learnt

Courts may decline to order reinstatement after decades of litigation delay even where the original termination was found improper, instead preferring to enhance monetary compensation as a practical substitute, so workers should be aware that very long-pending disputes often end in compensation rather than returning to the job.

Dharamraj Nivrutti Kasture v. Chief Executive Officer and Another – Legal Case Shots | LegalAware