Deepak Kumar & Ors. v. Principal Secretary Home, Govt. of U.P. Lucknow (U.P.) & Ors.
Background
The appellants were police constables in Uttar Pradesh, recruited in 2005-06 and terminated from service in September 2007. A Single Judge of the Allahabad High Court held their termination illegal, a decision upheld by the Division Bench, and the constables were reinstated in May 2009. A later dispute arose over whether they were owed full backwages (salary) for the entire gap period between termination and reinstatement; when the High Court declined, in contempt proceedings, to order full backwages, the constables appealed to the Supreme Court.
Decision Breakdown
The Supreme Court noted the State of U.P. had, on its own, decided to take all the terminated constables back into service without further inquiry into the allegations against them (rather than weeding out any "tainted" candidates as it had been permitted to do), and had acted within three months of the final High Court order: conduct the Court treated as the State already having shown the appellants "sufficient grace." The Court therefore revisited its own earlier tentative view (from an August 2017 order) that some backwages might be due, and instead held that full backwages were not warranted. As a final resolution, the Court directed that each constable who had pursued the case up to August 2017 be paid Rs. 35,000 as litigation expenses in full and final settlement (with 18% interest if not paid by 20 December 2017), and clarified that the constables would be treated as being in "continuous service" for all purposes except Assured Career Progression (ACP) benefits. The Court expressly limited this resolution to the specific facts of this case, so it would not become a precedent for other similarly-reinstated employees.
Lesson Learnt
In long-running service disputes, courts can and do craft case-specific equitable settlements (such as a fixed litigation-cost payment instead of full backwages) rather than mechanically applying a general rule, and such settlements are often expressly confined to the particular litigants before the court, so they should not be assumed to automatically extend to others in a similar situation.