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2025 Supreme(Kar) 474

IN THE HIGH COURT OF KARNATAKA AT BENGALURU 
ANANT RAMANATH HEGDE, J.
Sri D.Manikya S/O.Late Doriswamy – Appellant 
Versus
The Management Of Indian Institute Of Management – Respondent 
WRIT PETITION NO.19969 OF 2016 (L-ID) 
Decided on : 24-06-2025 

Advocate Appeared:
For the Appellant :SRI SAMARTH S.MURTHY FOR SRI MUNISWAMY GOWDA S.G., ADVOCATES
For the Respondent:SRI PRADEEP S.SAWKAR, ADVOCATE

An employee reinstated after dismissal is entitled to back wages from the award date until reinstatement, excluding previously paid amounts, despite prior judgments denying back wages under the 'no work no pay' principle.

Headnote:(A) Industrial Disputes Act, 1947 - Section 33C(2) - Application for back wages - Rejection of employee's claim for Rs.49,25,122/- by Labour Court based on previous judgments denying back wages - Employee reinstated but back wages denied under 'no work no pay' principle - Writ Petition allowed-in-part, order set aside, and remitted for fresh adjudication (Paras 2, 3, 24, 30).

(B) Reinstatement - Employee entitled to back wages from the date of award to date of reinstatement, excluding amounts already paid for interim relief (Paras 27, 28).

(C) Clarification - Division Bench clarified that back wages were denied during the pendency of disciplinary proceedings (Paras 16, 19, 21).

Facts of the case:
The petitioner sought back wages after reinstatement following a disciplinary penalty set aside by the Labour Court, which was later challenged and clarified by the Division Bench.

Findings of Court:
The court found the Labour Court erred in interpreting the earlier orders and ruled in favor of remitting the matter for re-evaluation of back wages entitlement.

Issues: Whether the Labour Court erred in denying back wages, and what the implications of the Division Bench’s earlier rulings were.

Ratio Decidendi: The interpretation of earlier orders affects the entitlements; back wages should be calculated for the period between reinstatement and dismissal, subject to any interim payments already made.

Result: Writ Petition allowed-in-part.

Table of Content
1. claim filed under section 33c of the act. (Para 1 , 2)
2. arguments on entitlement to back wages. (Para 3 , 12 , 15 , 16)
3. court analysis on misunderstanding of prior orders. (Para 4 , 19 , 20 , 22)
4. determination of back wages entitlement. (Para 21 , 27 , 28)
5. final order remitting to labour court. (Para 29 , 30)

ORDER :

(ANANT RAMANATH HEGDE, J.)

In terms of the impugned order dated 05.03.2016, Application No.29/2015 filed under Section 33C (2) of the Industrial Disputes Act, 1947 (for short 'the Act, 1947') before the Presiding Officer, II Additional Labour Court, Bengaluru (for short 'Labour Court'), came to be rejected.

2. The petitioner, who is the employee claimed Rs.49,25,122/- with 12% interest from the due date till the date of payment.

3. The respondent-Management opposed the said application on the premise that the Division Bench of this Court in W.A.No.379/2010 connected with W.A.No.2457/ 2010 has held that the petitioner-employee is not entitled to back wages. The application under Section 33C (2) of the Act, 1947, is essentially filed claiming back wages and it is denied by the Division Bench of this Court and prayed for dismissal of the application.

4. The Labour Court, after considering the materials on record and evidence led by the parties, rejected the claim for payment of Rs.49,25,122/- under Section 33C (2) of the Act, 1947. Aggrieved by the said order, the petitioner- employee is before this Court.

5. Learned counsel for the petitioner by taking through the facts of the case, would submit that earlier, the petitioner had approached the Labour Court challenging the order of termination from services in I.D. No.98/1993. The Labour Court in terms of the award dated 29.09.2005, has allowed the said I.D. No.98/1993 in part and the order of penalty of dismissal dated 20.08.1993 imposed by the respondent was set-aside and directed the petitioner to be reinstated to his original post together with continuity of service and all other consequential benefits, and back wages to be adjusted as per the order dated 05.05.1995 (Interim Order).

6. The aforesaid said award was assailed before this Court in W.P.No.13097/2006 by the respondent- Management. The petitioner has also assailed the said award to the extent of rejection of 25% back-wages in W.P.No.10409/2008. The writ petitions came to be rejected by a common order dated 16.11.2009.

7. Aggrieved by the said orders, two writ appeals were filed namely, W.A.No.379/2010 by the Management assailing the order of the learned Single Judge in W.P.No.13097/2006 and W.A.No.2457/2010 by the employee assailing the order of the learned Single Judge in W.P.No.10409/2008.

8. W.A.No.379/2010 was allowed in part and W.A.No.2457/2010 was dismissed. The operative portion of the order in the writ appeals reads as under:

"1. W.A.No.2457/2010 is dismissed.

2. W.A.No.379/2010 is partly allowed imposing punishment of with holding of two increments cumulatively."

9. It appears that the respondent-Management entertained doubt about the implications of the order passed in the Writ Appeals. Hence, an application was filed in I.A.No.1/2013 seeking clarification of the final order dated 23.11.2010. The Division Bench of this Court on 13.03.2013 passed an order on the said application seeking clarification of the order dated 23.11.2010, which reads as under:

"ORDER ON IA No.1/2013 This application is filed for clarification of the order dated 23.11.2010. By the said order, this Court partly allowed the writ appeal filed by the Management and punishment of withholding two increments cumulatively was imposed. It was made clear in the order that the workman is not entitled to back wages on the principle of no work no pay. Therefore, all that the workman is entitled to is reinstatement and all consequential benefits excluding back wages subject to withholding two increments cumulatively. Ordered accordingly."

10. This Court, on the previous hearing date directed the Registry to place the copy

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