HARSIMRAN SINGH SETHI J.

1. In the present regular second appeal, the question of law, which arises is whether, an employee, who has been directed to be reinstated in service with continuity of his service, will be deemed to be in service for the period he/she remained out of service for all intents and purposes or not.

2. The undisputed factual position needs to be stated herein so as to appreciate the controversy in correct perspective.

3. The respondent-plaintiff was engaged in service as a Mali in the Municipal Corporation, Hisar on 17.05.1985. As per the allegations, in February, 1993 as the respondent-plaintiff was absent and his services were terminated by the appellant-defendant. In 1994, the respondent-plaintiff availed the remedy under the Industrial Disputes Act by serving a demand notice upon the appellant-defendant challenging the order terminating his services. The Labour Court vide Award dated 08.06.1998, held the order terminating the services of the respondent-plaintiff as bad and directed that the respondent-plaintiff be reinstated in service with continuity but only with the grant of 50% of the back wages. The said Award was challenged by both i.e. appellant-defenda