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Salim Ali Centre for Ornithology and Natural History vs Mathew K. Sebastian

SLP(C) · 2022 INSC 387Decided 4 Apr 2022
SLP(C) No. 5218 of 2022
M.R. Shah · B.V. Nagarathna

Background

Dr. Mathew K. Sebastian was dismissed from service in 1996. A Single Judge of the Madras High Court quashed the dismissal and ordered his reinstatement in 2002, but denied back wages for the period between dismissal and reinstatement. The management appealed against reinstatement, and reinstatement was stayed during the appeal, so the employee remained out of work from 2002 to 2007 (after which he took other employment) even though he had legally "won." He was finally reinstated only in 2010 once the management's appeal was dismissed. He then sought back wages just for the 2002-2007 period he was unemployed, which the High Court granted with 9% interest.

Decision Breakdown

The Supreme Court dismissed the management's special leave petition and upheld the back wages award. It reasoned that the employee lost this specific period of employment solely because the management itself had obtained a stay against his reinstatement, not through any fault of his own, so the "no work no pay" principle did not apply. On the evidentiary point, the Court held that once an employee asserts on oath that he was not gainfully employed during the relevant period, he has discharged his initial burden and cannot be asked to "prove a negative"; the onus then shifts to the employer to prove he was in fact gainfully employed elsewhere, which the management failed to do here.

Lesson Learnt

An employer who obtains a stay against an employee's reinstatement and then loses the appeal cannot avoid paying back wages for that stayed period by demanding the employee "prove" he had no other income: the employee only needs to assert this on oath, after which the burden shifts to the employer.

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

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