[1] This appeal concerns a matter of principle. More specifically, it relates to the proper principle to be applied in assessing quantum of backwages awarded by the Industrial Court, the second respondent.

[2] The appellant, Dr James Alfred, was appointed as the general manager of the first respondent, Koperasi Serbaguna Sanya Bhd, Sabah on 1 November 1984 with a salary of RM8,000 a month. On 15 May 1986, the first respondent levelled charges of misconduct against the appellant alleging abuse of authority. The appellant replied to the charges. It made no difference because on 1 June 1986, he was dismissed. He then lodged a complaint to the Minister of Human Resources. On 19 January 1988, the Minister referred the case to the Industrial Court. The Industrial Court held that the appellant was dismissed without just cause or excuse. It awarded him backwages and compensation in lieu of reinstatement as follows: