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Divisional Controller, Maharashtra State Road Transport Corporation vs Kalawati Pandurang Fulzele

Civil Appeal · 2022 INSC 125Decided 31 Jan 2022
Civil Appeal No. 463 of 2022

Background

The respondent was engaged as a sweeper by the Maharashtra State Road Transport Corporation (MSRTC) on a contractual basis at a fixed monthly honorarium of Rs. 500, after her husband, also employed by MSRTC, went blind and the family fell into financial hardship. She worked for about four years before her services were terminated in 1994. She challenged the termination, and the Labour Court, and later a Single Judge and Division Bench of the Bombay High Court, all held the termination illegal and ordered her reinstatement with back wages.

Decision Breakdown

The Supreme Court agreed that the termination was improper but found reinstatement with back wages disproportionate given that her appointment was purely contractual, at a modest fixed honorarium, and for only about four years. Instead of reinstatement, the Court modified the relief and directed MSRTC to pay her a lump-sum compensation of Rs. 3,00,000 in lieu of reinstatement and back wages, to be paid within four weeks.

Lesson Learnt

Even where a termination is found to be illegal, courts have discretion to award monetary compensation instead of reinstatement when the employment was short-term, contractual, and on a modest salary: reinstatement is not an automatic remedy in every wrongful termination case.

Official source (sci.gov.in)View Judgment (PDF)

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