Delhi Transport Corporation (D.T.C.) vs. Prem Singh & Ors.
Background
The respondent, a DTC bus conductor since 1979, was terminated in 1988 after being accused of selling and possessing bogus bus tickets, though he was later acquitted in the related criminal case in 1995 on benefit of doubt. The Labour Court found the internal disciplinary enquiry against him invalid (the key witness had merely adopted a pre-written report rather than being properly examined), and when DTC then tried, very late, after both sides had already closed their evidence, to introduce a new plea seeking a chance to prove the misconduct afresh, the Labour Court refused and ordered his reinstatement with full back wages in 2002.
Decision Breakdown
The High Court agreed the Labour Court should ideally have allowed DTC an opportunity to prove the misconduct on merits once the enquiry was found defective, since that opportunity should not be permanently foreclosed by a procedural lapse. However, given that the incident was from 1987, the worker had since crossed retirement age, and the case had already dragged on for nearly four decades, the Court held that sending the case back for fresh evidence would serve no purpose. Instead, it modified the reinstatement order into a one-time lump-sum payment of Rs. 4,00,000 to the worker, balancing the delay and the worker's roughly 8-9 years of prior service.
Lesson Learnt
Courts will not mechanically enforce reinstatement or fresh trial orders when a labour dispute has dragged on for decades and the worker has already crossed retirement age: in such extreme-delay cases, a reasonable lump-sum compensation is used to finally close the matter instead.