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M.D., Orissa S.H.W. Cooperative Society Ltd. v. Satyanarayan Pattnaik and Another

Civil Appeal · Neutral citation not assigned (Civil Appeal Nos. 1967-68 of 2014)Decided 11 Feb 2014
Civil Appeal Nos. 1967-68 of 2014
Justice Anil R. Dave · Justice Dipak Misra

Background

An employee applied under his employer's voluntary retirement scheme and then sought to withdraw before the final decision was communicated. The employer refused withdrawal and retired him. The High Court ordered reinstatement with full back wages, prompting the employer's appeal.

Decision Breakdown

The Supreme Court partly allowed the appeals on the particular facts while keeping the question of law open. It maintained reinstatement and required the employer to take the employee back within two weeks. However, it reduced back wages to twenty percent for the period between cessation of duties and reinstatement. The order therefore changed the financial remedy without announcing a general rule governing every withdrawal of voluntary retirement.

Lesson Learnt

Reinstatement and back pay are separate parts of a remedy, and return to service does not necessarily bring full wages for the intervening period. This brief order expressly left the broader legal question undecided.

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

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