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Ramesh Chand vs. Management of Delhi Transport Corporation

Civil Appeal · 2023 INSC 601Decided 5 Jul 2023
Civil Appeal No. 4208 of 2023
Abhay S. Oka · Rajesh Bindal

Background

The appellant was a bus conductor employed by Delhi Transport Corporation who was dismissed in 1996 after being accused of collecting fares from two passengers without issuing tickets. The Labour Court found the enquiry against him illegal and, after fresh evidence, held the charge unproven, ordering his reinstatement, but denied him back wages (pay for the period he was out of work) because it felt he had not proved he remained unemployed during that period. Both the High Court's single judge and division bench upheld the denial of back wages, leading to this appeal.

Decision Breakdown

The Supreme Court reiterated that while an employee bears the initial burden of showing he was not gainfully employed after dismissal, this is a "negative burden" that can be satisfied by his own sworn statement if the employer produces nothing to contradict it. Here, the appellant's original statement of claim (filed 13 months after termination) asserted he was unemployed and jobless, and he was cross-examined on this without the employer producing any evidence of an alternate income source. However, the Court noted he had complicated things by first filing then withdrawing an affidavit reasserting unemployment, and it was implausible he stayed jobless for the entire 13-year period until reinstatement. Balancing these factors, instead of granting full back wages for the whole period, the Court awarded a lump sum of Rs. 3 lakhs, with interest if not paid within two months.

Lesson Learnt

In back-wages disputes, an employee doesn't need to produce elaborate proof of unemployment (a clear, unrebutted statement on oath can suffice) but courts will still scrutinize the full conduct of the case (including any wavering statements) and may award a reasonable lump sum instead of full back wages when the picture is mixed.

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

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