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2025 Supreme(Online)(Tel) 24730

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
Namavarapu Rajeshwar Rao, J
M.I.A. Khan – Appellant
Versus
APSRTC – Respondent
WRIT PETITION No.15427 OF 2008



Advocates:
For the Appellants/Petitioners: V.Narasimha Goud
For the Respondents: R.Anurag

Reinstatement with full back wages is the normal rule in cases of wrongful termination, but the payment of back wages remains discretionary and depends on proof of whether the employee remained gainfully employed during the period of unemployment.

Headnote:(A) Industrial Disputes Act, 1947 - Section 11-A - Reinstatement - Back wages - Normal rule - Employee removed from service for alleged cash and ticket irregularities - Labour Court set aside removal order but denied back wages - Held, as the petitioner was not gainfully employed during the dismissal period, and considering the charges were based on presumption without examination of passengers, the denial of back wages is partly modified to allow 50% back wages. (Paras 12, 18, 22, 23)

Facts of the case:
The petitioner, a Conductor in the respondent Corporation, was removed from service following allegations of cash and ticket irregularities. The Labour Court set aside the removal order and directed reinstatement with full service benefits but without back wages. The petitioner challenged this decision solely regarding the denial of back wages in the present writ petition.

Findings of Court:
The Court observed that while there were lapses on the part of the petitioner, including his direct approach to the Court without exhaustion of appellate remedies, the charges were not conclusively proved as no passenger evidence was recorded during the enquiry. Given the petitioner remained unemployed, the Court modified the award to grant 50% back wages.

Issues: Whether the petitioner is entitled to back wages following his reinstatement where the initial termination was found unsustainable, and to what extent.

Ratio Decidendi: Reinstatement with continuity of service and back wages is the normal rule in cases of wrongful termination. However, the entitlement remains discretionary based on facts and evidence of gainful employment; therefore, where lapses occur on both sides but unemployment is established, a partial award of back wages is appropriate.

Result: Writ petition partly allowed.

Table of Content
1. procedural background of the wrongful termination dispute. (Para 1 , 2 , 3)
2. contentions of parties regarding evidence of misconduct and entitlement to back wages. (Para 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11)
3. judicial precedents on back wages, gainful employment, and discretionary powers. (Para 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20)
4. court's findings on the proof of misconduct and equity in awarding back wages. (Para 21 , 22 , 23)

ORDER:

This writ petition is filed challenging the Award, dated 01.11.2007 passed in I.D.No.47 of 2005 by the Labour Court-I, Hyderabad, insofar as denying back wages to the petitioner.

2. Brief facts of the case are as follows :-

(a) The petitioner was appointed as a Conductor in the respondent Corporation on 31.12.1980 on regular basis. On 25.04.2004, while the petitioner was conducting bus bearing No.AP-9Z-8139 on route No.179-V, a check was exercised at Stage No.6, and the petitioner was found guilty of committing serious cash and ticket irregularities. Accordingly, a memo was issued to the petitioner alleging that he had issued five tickets of Rs.2/- denomination bearing Nos.087/7866611 to 087/7866615) to a batch of passengers on seeing the checking officials and that he was working without MTD-141 chart. The petitioner submitted an explanation to the said Memo alleging that the tickets were issued to the passengers in question at the boarding point and that the same was properly accounted in the SR, and the MTD-141 chart was not supplied by the depot as endorsed in the SR.

(b) Not satisfied with the explanation submitted by the petitioner, the 2nd respondent suspended the petitioner on 11.05.2004 and issued a charge-sheet framing the following charges:

“(i) "For having issued 5 tickets bearing Nos. 087/7866611 to 786615 of Rs.2/- denomination to a batch of 5 passengers found alighting with the above tickets at Stage No.6 i.e., Madhuban Colony, who boarded the bus at Stage No.5 le Katedan (ex. stages 05 to 06), but the above said tickets have been punched at Stage No.4 on sighting the checking officials. Further, it is found that the ticket bearing No. 087/786610 of Rs.2/- denomination has been punched at Stage No.5, which constitutes misconduct in terms of Reg. 28(x) & (xxxii) of APSRTC Employees (Conduct) Reg. 1963."

(ii)"For having found working without MTD-141 chart, which constitutes misconduct in terms of Reg. 28(xxxii) of APSRTC Employees (Conduct) Regulations, 1963."

(c) The petitioner submitted an explanation to the said charge-sheet denying the allegations levelled against him. Not satisfied with the said explanation, an enquiry was ordered. Basing on the enquiry report, the petitioner was removed from service vide proceedings dated 03.12.2004. Aggrieved thereby, the petitioner filed I.D.No.47 of 2005 before the Labour Court and the Labour Court while setting aside the order of removal dated 03.12.2004 directed the respondent herein to reinstate the petitioner into service with continuity of service and all other attendant benefits, but without back wages.

(d) Aggrieved by the Award dated 01.11.2007 passed by the Labour Court insofar as not granting back wages, the petitioner filed the present writ petition.

3. The respondent filed counter affidavit stating as follows :-

(a) On 25.04.2004 while the petitioner was conducting bus service at stage No.6, a check was exercised by the TTIs and at that time, the petitioner was standing on the footboard and, upon seeing the checking officials, allegedly attempted to dispose of tickets improperly by throwing them to other passengers. The witnesses produced by the petitioner during the enquiry were non-genuine, as they could not be recognized by the checking officials, nor could they provide any evidence to prove that they have travelled in the bus in question on the relevant date.

(b) The ticketless passengers boarded at Stage No.5 and alighted at Stage No.6, but the tickets were punched at Stage No.4, which was due to the

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