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State of Uttarakhand v. Raj Kumar

Civil Appeal · 2019 INSC 28Decided 7 Jan 2019
Civil Appeal Nos. 124-125 of 2019
Justice Abhay Manohar Sapre · Justice Indu Malhotra

Background

The respondent worked as a daily-wage Beldar in the State PWD for about a year (1986-87) before his services were allegedly terminated without following due process. Nearly 25 years later, he approached the Labour Court, which awarded him Rs.30,000 compensation in lieu of reinstatement. The High Court instead modified this to order his reinstatement without back wages, prompting the State to appeal to the Supreme Court.

Decision Breakdown

The Supreme Court relied on its earlier rulings in Bharat Sanchar Nigam Ltd. vs Bhurumal and a related 2018 decision, holding that automatic reinstatement with back wages is not the default remedy for illegally terminated daily-wage workers, especially where the worker has no right to regularisation or to continue even as a daily wager. Given the 25-year delay in raising the dispute and the daily-wage nature of the job, the Court found monetary compensation more appropriate than reinstatement. It set aside the High Court's reinstatement order and instead enhanced the compensation from Rs.30,000 to Rs.1,00,000, to be paid within three months.

Lesson Learnt

For daily-wage (not permanent) government workers whose termination is found procedurally illegal, courts generally award monetary compensation rather than automatic reinstatement with back wages, particularly where there has been a long delay in challenging the termination.

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

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