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Prem Narain v. M/S Swadeshi Cotton Mills, Juhi

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 1403 of 2016)Decided 15 Feb 2016
Civil Appeal No. 1403 of 2016
Justice Kurian Joseph · Justice Rohinton Fali Nariman

Background

The appellant was terminated from service by the respondent mill management on 31.10.1991. The Labour Court, Kanpur, set aside the termination through an award published on 04.10.1997, by which time the appellant had already reached the age of superannuation (01.07.1997). The Management did not challenge the reinstatement part of the award at all: its only grievance before the High Court was over liability to pay backwages.

Decision Breakdown

The High Court had gone further than the Management's own objection and set aside the entire award (including reinstatement) solely because the appellant had already superannuated by the time the award was published. The Supreme Court held this was an incorrect approach: since the Management never disputed the reinstatement finding and only objected to backwages, the High Court should have confined itself to adjusting the backwages issue, not scrapping the award altogether. The Court directed that the appellant be paid 50% backwages from the date of termination till the date of superannuation, be deemed to have continued in service until 01.07.1997 for all other service benefits, and that all dues be computed and paid within three months, with 18% interest on any delayed payment.

Lesson Learnt

An appellate court cannot grant relief beyond the scope of the grievance actually raised by the party appealing: if only one part of an award (here, backwages) is challenged, the rest of the award (reinstatement) must stand undisturbed.

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

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