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2009 Supreme(SC) 1416

SUPREME COURT OF INDIA
THE HONOURABLE MR. JUSTICE TARUN CHATTERJEE & THE HONOURABLE MR. JUSTICE R.M. LODHA
Metropolitan Transport Corporation
Versus
V. Venkatesan
CIVIL APPEAL NO.5167 OF 2009 (Arising out of SLP) No.17185 of 2008)
Date of Judgment : 07-08-2009

Advocates appeared:
For the Appellant:Mohan Parasaran, ASG, T. Harish Kumar, Prasanth P., V. Vasudevan, Advocates. For the Respondent:K.V. Viswanathan, Sr. Advocate, P.V. Yogeswaran, Advocates.

IMPORTANT POINT
Self employment is also gainful employment.

Headnote:(a) Labour law – Dismissal – Reinstatement and back wages – Gainful employment – Self employment is also gainful employment. (Para 12)

       (2007) 10 SCC 765 – Relied upon

       (b) Labour law – Reinstatement and back wages – Respondent terminated for misconduct of unauthorised absence – Industrial Tribunal awarding reinstatement and full back wages – Respondent enrolled as an advocate in the interregnum – Appellant contesting full back wages – Till recently on dismissal order being set aside being unjustified reinstatement of the workman with full back wages was the rule – Change in legal approach – Relief of reinstatement with back-wages is now not automatic – Instantly respondent enrolled as advocate in the interregnum – Thus gainfully employed – Held, not entitled to full back wages. (Para 13, 14)

       (2006)1 SCC 479; (2007) 2 SCC 433; (2005) 5 SCC 591; (2005) 5 SCC 124; (2005) 2 SCC 363; (2005) 5 SCC 591; 1984 (Supp) SCC 378; JT 2009 (9) SC 396 – Relied upon

       

       Facts of the case:

       The question arising in this appeal is whether the respondent is entitled to claim full back wages for the period from December 12, 1996, the date on which he was removed from service till the date of his reinstatement on June 15, 2004 although he was enrolled as an advocate on December 12, 2000 and thereby gainfully employed?

       Finding of the Court:

       Back wages of Rs. 4 crores instead of Rs. 6,54,766 will meet the ends of justice.

       Result:

       Appeal disposed of.

JUDGMENT :-

R.M. Lodha, J.

Leave granted.

2. The question that falls for determination in this appeal by special leave is: is the respondent entitled to claim full back wages for the period from December 12, 1996 the date on which he was removed from service till the date of his reinstatement on June 15, 2004 although he was enrolled as an advocate on December 12, 2000 and thereby gainfully employed?

3. Facts are these, briefly put. V. Venkatesan, respondent, was initially employed as conductor on May 7, 1980 by Pallavan Transport Corporation. On formation of Metropolitan Transport Corporation (for short, "Corporation"), the appellant, became its employee. The respondent was promoted as Junior Assistant and subsequently as an Assistant by the Corporation. The respondent seems to have acquired Law degree and he was selected for the post of Superintendent (Legal) as trainee. But during the training period his performance was not found satisfactory and he was reverted back to the post of Assistant. On January 31, 1995, the respondent was transferred to Poonamallee Depot but he did not join his duties there and remained absent for about three months without any prior sanction of leave or intimation. The case of the Corporation is that on March 28, 1995, a memo of charge was issued to the respondent to which he filed his written response but as his reply was not found satisfactory and a domestic inquiry was instituted to inquire into his misconduct. The respondent did not attend the domestic inquiry despite repeated letters and notices including a notice published in local newspaper. Ultimately, by an order dated December 12, 1986, the Corporation removed the respondent from its service.

4. The respondent filed a complaint before the Industrial Tribunal, Chennai under Section 33(2)(b) of the Industrial Disputes Act, 1947 (for short, "ID Act") alleging the contravention of the provisions of Section 33A of the ID Act in removing him from service although the Industrial Dispute No. 62/82 concerning the entire transport workers was pending before the Industrial Tribunal, Chennai. The complaint was opposed by the Corporation on diverse pleas. The Industrial Tribunal by its order dated July 11, 2003 held the order of removal void and inoperative as the Corporation did not apply for approval. The Industrial Tribunal also declared that the complainant is deemed to have continued in service and he was entitled to all benefits available. The Corporation challenged the order dated July 11, 2003 passed by the Industrial Tribunal before the High Court. By an interim order, initially, the High Court granted stay of the order dated July 11, 2003 subject to the Corporation depositing the entire backwages as awarded by Industrial Tribunal and compliance of the provisions of Section 17B of the ID Act. The Corporation instead of paying last drawn wages to the respondent, reinstated him on June 15, 2004 without prejudice to the pending writ petition. The said writ petition came to be dismissed on August 30, 2006 and, thus, the order dated July 11, 2003 passed by the Industrial Tribunal attained finality.

5. Since the backwages for the period from December 12, 1996 until June 15, 2004 was not paid by the Corporation, the respondent approached the concerned Labour Court under Section 33C(2) of the ID Act claiming a sum of Rs. 8,08,698/- as the sum due and payable by the Corporation. The Corporation contested the application under Section 33C(2). After hearing the parties, the Labour Court allowed the claim of the respondent to the extent of Rs. 6,54,766/- towards full back wages vide its order dated December 22, 2006. The Corporation challenged the said order by filing a writ petition before the Madras High Court; the principal ground being that having been enrolled as an advocate on December 12, 2000, the respondent was gainfully employed and not entitled to back wages. The respondent also filed a writ petition before the High Court seeking enforcement




























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