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Shyamali Chatterejee v. Municipal Corporation, Bhilai

Civil Appeal · 2018 INSC 512Decided 14 May 2018
Civil Appeal Nos. 5148-5149 of 2018
Justice Kurian Joseph · Justice Mohan M. Shantanagoudar

Background

The appellant had worked for about 15 years as a daily-wage employee of the Municipal Corporation, Bhilai, before being terminated, which she contended was illegal. The Labour Court awarded her a one-time compensation of Rs. 5,00,000 in lieu of reinstatement, but the High Court reduced this amount to Rs. 2,00,000 on appeal, prompting her to approach the Supreme Court.

Decision Breakdown

Granting leave, the Supreme Court looked at the overall facts, in particular her long 15 years of daily-wage service, and found the High Court's reduced figure inadequate. It directed the Municipal Corporation to pay an additional Rs. 1,50,000 (bringing the effective compensation above the High Court's figure) with 6% annual interest running from the date of termination, within two months. It also clarified that if the High Court-ordered amount had not already been paid, it must still be released, though without interest since the Corporation had already tendered it. The appeals were disposed of with no order as to costs.

Lesson Learnt

Even where a High Court has already reduced a compensation award, the Supreme Court can revisit the adequacy of that figure in light of the worker's length of service and the overall equities: a long-serving daily-wage worker denied reinstatement is not necessarily stuck with a reduced appellate figure.

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

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