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Saryug Singh (Dead) Thr. Lrs. v. National Seeds Corporation and Anr.

Civil Appeal · Neutral citation not assigned (Civil Appeal Nos. 5103-5104 of 2017)Decided 10 Apr 2017
Civil Appeal Nos. 5103-5104 of 2017
Justice Kurian Joseph · Justice R. Banumathi

Background

A deceased employee's legal heirs challenged a High Court order which had computed his entitlement following termination of service at a lump sum of Rs. 50,000, whereas the Labour Court and a Single Judge had earlier held he was entitled to back wages for a 23-year period. The Supreme Court found the termination had followed a newspaper advertisement calling on the employee to report for duty, failing which he would be terminated, and that there was no case that he had reported for duty and been refused, making this a case of voluntary relinquishment of service rather than wrongful termination.

Decision Breakdown

The Court agreed with the High Court that the deceased employee was not entitled to back wages for the entire 23-year period, since his absence amounted to voluntary relinquishment rather than illegal termination. However, taking into account that the employee had since died and his widow and children were before the Court, it directed the employer (National Seeds Corporation) to pay a further Rs. 1,00,000 in full and final settlement of all claims, payable to the widow within six weeks, with 12% annual interest from the date of the employee's death if delayed, and personal liability on the responsible officer for any such delay.

Lesson Learnt

Even where a legal claim for extended back wages fails on the merits (here, because the absence was voluntary, not a wrongful dismissal), courts may still direct a modest final compensatory payment on equitable grounds where the claimant has died and dependents are left pursuing the matter.

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

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