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Shobha Ram Raturi v. Haryana Vidyut Prasaran Nigam Ltd.

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 11325 of 2011)Decided 9 Dec 2015
Civil Appeal No. 11325 of 2011
Justice J.S. Khehar · Justice Rohinton Fali Nariman

Background

The employer retired the appellant on 31 December 2002, although he would otherwise have retired on 31 December 2005. The High Court quashed the retirement order and treated him as in continuous service, but denied him back wages for the intervening period under the "no work, no pay" principle. The High Court's refusal of wages was challenged in the Supreme Court.

Decision Breakdown

The Court held that once the retirement order was set aside, the employee was entitled to all consequential benefits. The employer had prevented him from working between 2003 and 2005, so it could not rely on the "no work, no pay" principle to deny him wages for that period. The High Court's denial of wages was set aside. The employer was directed to pay the wages within three months and to recalculate and release retiral benefits within a further three months. The appeal was allowed in those terms.

Lesson Learnt

An employer that wrongly removes a worker from service cannot later refuse pay for the period it kept him out, citing that he did not work. Wrongfully terminated or retired employees are generally entitled to back wages and recalculated retirement benefits.

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

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