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IN THE HIGH COURT OF DELHI
Gaurang Kanth, J.
Delhi Transport Corporation - Appellant
Versus
Suraj Mal - Respondent
W.P.(C) 13141 of 2009
Decided On : 04-11-2022




The principle of 'No Work No Pay' does not apply if an employee is wrongfully terminated and prevented from working, entitling them to reinstatement and potentially full back wages.

Headnote:(A) Industrial Disputes Act, 1947 - Section 11A - Dismissal of employee - Challenge to Labour Court's award granting reinstatement with 50% back wages - Labour Court found that dismissal was unjustified and contrary to natural justice (Paras 10, 19) - Principle of `No Work No Pay' not applicable when employee was wrongfully terminated and prevented from work (Paras 20, 21).

(B) Reinstatement - The law typically entitles an employee to reinstatement with full back wages unless proven otherwise; discretion can be exercised based on circumstances (Para 19).

Facts of the case:
The respondent, a driver, was dismissed after an accident while operating a corporation bus, was reinstated by the Labour Court following the finding of an improper inquiry.

Findings of Court:
Labour Court found the management failed to justify dismissal; 50% back wages awarded considering potential employability of the employee post-termination.

Issues: Is the award for back wages justified?

Ratio Decidendi: The company’s invocation of `No Work No Pay' was misguided; wrongful termination prevents application of this principle.

Result: Writ petition dismissed, Labour Court's award upheld.

Table of Content
1. background of employment termination case. (Para 1 , 2 , 3 , 4 , 5 , 6)
2. labour court awarded reinstatement and back wages. (Para 10 , 11)
3. arguments presented by both parties. (Para 12 , 13 , 14)
4. court's analysis of back wages entitlement. (Para 15 , 16 , 17 , 18)
5. evaluation of legal principles governing back wages. (Para 19 , 20 , 21 , 22 , 23)
6. dismissal of writ petition and order for payment. (Para 24 , 25)

JUDGMENT

Gaurang Kanth, J.

1. The present petition has been preferred against the award dated 22.4.2008 ("the impugned award") passed by the Labour Court-VI, Karkardooma Courts, Delhi in I.D. No.19/2005. Vide the impugned award, the learned labour court ordered petitioner- corporation to reinstate the respondent with payment of 50% of the back wages.

FACTS RELEVANT FOR ADJUDICATION OF DISPUTE

2. The facts of the case as incorporated by the petitioner in its writ petition is that the respondent was appointed as a driver with petitioner on 29.05.1984. On 03.07.2000, the respondent was consigned with the duty of driving Bus bearing no. DEP-6106 to Sonipat at about 1400 hours from D.T.C. Dichaon Kalan Depot, New Delhi. While in the bus depot, respondent drove the said vehicle allegedly in a rash and negligent manner and struck the same into a stationary bus bearing no. DEP -9506 which was parked in the yard. Due to the high hitting impact, one of the employees who were working/repairing the stationary bus bearing no. DEP -9506, Shri Ishwar Singh, Assistant Fitter ("the deceased") received grievous injury and died on the spot. Subsequently, a criminal case vide FIR no. 346/2000 dated 03.07.2000 at P.S. Najafgarh u/s 279/304-A IPC was initiated against the respondent.

3. On receipt of report no. 369390 dated 03.07.2000 from Shri. Mahender Singh T.I., respondent was placed under suspension vide letter dated 04.07.2000. Further, a charge sheet dated 04.07.2000, was issued to the respondent for the above- mentioned irregularity. A disciplinary inquiry was conducted to investigate into the charges levelled upon respondent. Thereafter, the enquiry officer submitted its report to the Disciplinary Authority holding the charges proved against him.

4. In pursuance to the enquiry report, a show cause notice dated 16.08.2000 was issued by the depot manager to the respondent as to why he be not removed from the services. The respondent challenged the said show cause before this Court in W.P. (C ) No. 4718 of 2000. Vide order dated 25.08.2000, this court was pleased to grant a stay of further action till the disposal of his pending appeal. Later, this Court disposed of the said writ petition with directions to the respondent to file the reply to the show cause notice.

5. On 11.06.2001, the petitioner corporation-imposed punishment of `removal from service' upon the respondent. Aggrieved by the aforesaid removal, the respondent raised the industrial dispute before the conciliation officer, Delhi which resulted in failure. Govt. of NCT of Delhi referred the said industrial dispute for adjudication with the following terms of reference:

    "Whether Sh. Suraj Mal S/o Late Sh.Kanshi Ram has been removed from services illegally and/or unjustifiably by the management, if so to what sum of money as monetary relief along with consequential relief along with consequential in terms of existing law/Govt. Notification and to what other relief he entitled to and what directions are necessary in this respect. ?"

6. The respondent filed his statement of claim on 28.01.2005 before the learned Labour court, wherein he alleged that enquiry conducted against him was improper and against principles of natural justice. Also, that petitioner is bound by the law of estoppel since it has earlier taken position before the learned Labour court that respondent was not driving the vehicle in a rash and negligent manner. Petitioner herein filed its written statement wherein it defended itself by submitting that the decision of manage

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