Judgment

D. A. DESAI, J.:- This appeal by special leave, limited to the question of grant of back wages, raises a very human problem in the field of industrial jurisprudence, namely, where termination of service either by dismissal, discharge or even retrenchment is held invalid and the relief of reinstatement with continunity of service is awarded what ought to be the criterion for grant of compensation, to the extent of full wages or a part of it?

2. A few relevant facts will highlight the prolem posed. Appellant is a private Limited Company having set up an industrial unit in engineering industry. The raw material for its manufacturing process is tin plates. The appellant served notice of retrenchment on 56 workmen in February, 1974 alleging non-availability of raw material to utilise the full installed capacity, power shedding limiting the working of the unit to 5 days a week, and the mounting loss. Subsequently, negotiations took place between the Union and the appellant leading to an agreement dated 1st April, 1974 whereby the workmen who were sought to be retrenched were taken back in service with continuity of service by the appellant and the workmen on their part agreed to c