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2015 Supreme(Online)(SC) 245

SUPREME COURT
Ruma Pal, C. K. Thakker, Markandey Katju, JJ.
State of Madhya Pradesh and Another v. Mahadeo Karade
C. A. No. 2169 of 2006



The High Court erred in reinstating a temporary employee with back wages despite clear provisions allowing termination.

Headnote:The appeal challenges an order from the High Court reinstating a temporary employee and awarding back wages and benefits. The Court found that the respondent's appointment allowed for termination without notice, and the respondent had acknowledged misconduct. Therefore, the Court reversed the High Court's decision, concluding that the reinstatement was erroneous, but mandated an ex gratia payment due to the respondent's prolonged litigation. The final outcome ordered payment within six weeks.

Table of Content
1. challenge to reinstatement of a temporary employee. (Para 1 , 2)
2. court's ruling reversed high court's order due to errors. (Para 3)

1. Leave granted. The subject - matter of challenge in this appeal is an order passed by the High Court reinstating the respondent in the services of the appellant and directing that the respondent be paid fifty per cent back wages and all other benefits.

2. The High Court appears to have overlooked the fact that the respondent was a temporary employee and his letter of appointment clearly stipulates that his services could be terminated at any time without notice. Despite this fact, the appellant, in fact, gave notice to the respondent to show cause as to why action should not be taken against him for his objectionable conduct. In answer to the show - cause notice, the respondent admitted his lapses.

3. In the circumstances, we are of the view that the High Court erred in directing the respondent's reinstatement with consequential benefits. We, accordingly, allow the appeal and set aside the impugned order. However, having regard to the fact that the respondent has been pursuing litigation in courts for some time, the State Government will pay an ex gratia amount of rupees twenty - five thousand to the respondent within a period of six weeks from today.

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