G H CHIEF REGIONAL MANAGER, UNITED INDIA INSURANCE COMPANY LIMITEDversusSIRAJ UDDIN KHAN
- Citation
- 2019 INSC 752
- Decided
- 11 July 2019
- Disposal
- Case Partly allowed
- Bench
- ASHOK BHUSHAN
Holding
Setting aside a termination order does not by itself confer entitlement to back wages; the High Court’s direction to pay salary for 14 May 2009 to 20 June 2012 is set aside and the appellant must adjudicate the claim.
Summary
The respondent, an assistant typist with United India Insurance Co., was transferred to a new branch but failed to join, leading to disciplinary proceedings and a punishment order on 14 May 2009. He retired on 20 June 2012, after which a termination order dated 26 June 2012 was set aside by the High Court. The High Court also directed payment of salary for the period 14 May 2009 to 20 June 2012, but the Supreme Court held that setting aside the termination order does not automatically confer back‑wages and that no adjudication existed for that period. Consequently, the Court set aside the High Court’s salary direction and ordered the appellant to consider the respondent’s claim for back wages for 14 May 2009 to 20 June 2012 and pass appropriate orders. The appeal was partly allowed.
Issues considered
- Whether the setting aside of the termination order dated 26 June 2012 automatically entitles the respondent to back wages for the period 14 May 2009 to 20 June 2012.
- Whether the principle of ‘no work no pay’ applies to the respondent’s claim for salary during the period of unauthorised absence.
- Whether the High Court’s direction to pay salary for the said period was legally correct.
Legislation cited
Subjects
Judgment
232 [2019]REPORTS
SUPREME COURT 9 S.C.R. 232 [2019] 9 S.C.R.
A CHIEF REGIONAL MANAGER, UNITED INDIA
INSURANCE COMPANY LIMITED
v.
SIRAJ UDDIN KHAN
B (Civil Appeal No. 5390 of 2019)
JULY 11, 2019
[ASHOK BHUSHAN AND NAVIN SINHA, JJ.]
Service Law – Payment of arrears of salary and other
benefits – Respondent-assistant typist was transferred from
C
Allahabad Branch to Jaunpur Branch – He did not join the said
branch and was unauthorisedly absent from 02.02.2007 –
Disciplinary proceedings were initiated against him – By order dated
14.05.2009, disciplinary authority held respondent guilty of charge
of unauthorised absence – Thereafter, respondent attained the age
D of superannuation on 20.06.2012 – On 26.06.2012, disciplinary
authority terminated his services – Appeal against the said order
dated 26.06.2012 was dismissed on 18.07.2014 – Writ petition was
filed by respondent against the orders dated 14.05.2009, 26.06.2012
and 18.07.2014 – Single Judge of the High Court by order dated
29.05.2015, set aside the order dated 26.06.2012 and insofar
E
order dated 14.05.2009 was concerned, no relief was granted to
the respondent – However, Division Bench of the High Court by
order dated 15.02.2016 quashed the order dated 14.05.2009 and
held appellant entitled to all consequential benefits – Since, the
said order of the Division Bench of the High Court was not
F challenged it has become final – Thereafter, respondent filed
another writ petition praying for payment of salary from January,
2007 to June, 2012 – The Single Judge of the High Court held that
appellant was entitled for salary w.e.f. 02.02.2007 upto 14.05.2009,
since order dated 14.05.2009 was set aside by the Division Bench
of the High Court – Further, order dated 26.06.2012 was also set
G
aside by the Single Judge of the High Court by order dated
29.05.2015, thus, salary w.e.f. 14.05.2009 to 20.06.2012 cannot
be denied to the respondent – On appeal, held: In pursuance of the
order of the Division Bench of the High Court dated 15.02.2016,
the respondent is entitled to receive salary from 02.02.2007 to
H
232
CHIEF REGIONAL MANAGER, UNITED INDIA 233
INSURANCE COMPANY LTD. v. SIRAJ UDDIN KHAN
14.05.2009 – Insofar claim for salary or back wages for the A
period 14.05.2009 to 20.06.2012 is concerned, there is no
adjudication regarding claim of salary or back wages to the
respondent in the impugned judgment of Single Judge for the
period 14.05.2009 to 20.06.2012 – Single Judge was of the
opinion that in view of the setting aside of the order dated
B
26.06.2012, payment of salary is automatic, this view of the Single
Judge is not correct – The present is not a case where the
respondent was dismissed from the service and consequent to
dismissal, he could not work and when dismissal was set aside, he
will be automatically entitled for back wages – Therefore, direction
of the High Court to the appellant to make payment of salary after C
14.05.2009 till 20.06.2012 set aside – Further, appellant directed
to consider the claim of respondent for back wages after 14.05.2009
to 20.06.2012.
Partly allowing the appeal, the Court
HELD: 1. The issue, which has to be answered is as to D
whether by setting aside of the order dated 26.06.2012, whereby
disciplinary authority terminated the service of the respondent,
the respondent was automatically entitled for back wages. A
perusal of the judgment of Single Judge dated 29.05.2015
indicates that although Single Judge has set aside the order dated E
26.06.2012, but there was no order for payment of back wages or
consequential benefits. Single Judge has set aside the order dated
26.06.2012 and has left the matter there. [Para 11] [241-D-E]
2. It was after 15.11.2017 that Writ Petition No.61102 of
2017 was filed by the respondent. Thus, in the Writ Petition F
No.61102 of 2017, the Single Judge was required to adjudicate
on the entitlement of respondent for payment of salary. Single
Judge has adjudicated with regard to entitlement of salary from
02.02.2007 to 14.05.2009 and issued directions thereunder. This
Court may notice that the Division Bench while setting aside the
order dated 14.05.2009 has directed for payment of G
consequential benefits. [Para 13] [242-B-C]
3. There is no adjudication regarding claim of salary or back
wages to the respondent in the impugned judgment of Single Judge
for the period 14.05.2009 to 20.06.2012. Single Judge was of the
H
234 SUPREME COURT REPORTS [2019] 9 S.C.R.
A opinion that in view of the setting aside of the order dated
26.06.2012, payment of salary is automatic, which view of the
Single Judge is not correct. The present is not a case where the
respondent was dismissed from the service and consequent to
dismissal, he could not work and when dismissal was set aside,
he will be automatically entitled for back wages. [Para 15]
B
[243-D-E]
4. It is not a case where respondent was kept away from
the work on account of dismissal. Admittedly, the respondent
attained the age of retirement on 20.06.2012 and order
terminating his services was passed only on 26.06.2012, which
C was rightly held to be ineffective. [Para 17] [244--F]
5. In the present case, as noted above, the respondent was
not kept away from work by any order of the appellant. The order
of termination of his services/dismissal was passed on 26.06.2012,
after his retirement on 20.06.2012, which in no manner
D prohibited the respondent from working. The respondent during
submission has submitted that he was illegally transferred to
Branch Office, Jaunpur from Allahabad. He was suffering from a
disability of more than 40% and he could not have been
transferred to another place. There is nothing on record to
E indicate that transfer of respondent from Branch Office, Allahabad
to Branch Office, Jaunpur was at any time set aside or withdrawn.
The salary upto 14.05.2009 was allowed to the respondent on
account of setting aside of the order dated 14.05.2009, which
was with all consequential benefits but with regard to entitle-
ment of salary after 14.05.2009 to 20.06.2012, there has been no
F adjudication by the High Court, which is apparent from judgment
of the High Court dated 03.07.2018. [Para 22] [247-F-H;
248-A-B]
6. Single Judge having itself not determined the
entitlement of respondent to receive salary after 14.05.2009 to
G 20.06.2012, it ought to have directed the appellant to consider
the entitlement and take a decision thereon. This Court is of the
view that ends of justice be served in setting aside the direction
of the High Court directing the appellant to make payment of
salary after 14.05.2009 till 20.06.2012, with a direction to the
H appellant to consider the claim of respondent for back wages
CHIEF REGIONAL MANAGER, UNITED INDIA 235
INSURANCE COMPANY LTD. v. SIRAJ UDDIN KHAN
after 14.05.2009 to 20.06.2012 and pass appropriate orders. A
[Para 23] [248-B-C]
Deepali Gundu Surwase v. Kranti Junior Adhyapak
Mhavidyalaya (D.Ed.) and Others (2013) 10
SCC 324 : [2013] 9 SCR 1 ; Airports Authority of
India and Others v. Shambhu Nath Das alias S.N. Das B
(2008) 11 SCC 498 – relied on.
Shobha Ram Raturi v. Haryana Vidyut Prasaran Nigam
Limited and Others (2016) 16 SCC 663 – referred to.
Case Law Reference
C
(2016) 16 SCC 663 referred to Para 7
[2013] 9 SCR 1 relied on Para 16
(2008) 11 SCC 498 relied on Para 18
CIVIL APPELLATE JURISDICTION: Civil Appeal No.5390 of
D
2019
From the Judgment and Order dated 03.07.2018 of the High Court
of Judicature at Allahabad in Writ A. No.61102 of 2017.
P. P. Malhotra, Sr. Adv., Mohit Paul, Yasir Rauf, Ms.Sumaina
Phul, Advs. for the Appellant. E
Respondent-in-person.
The Judgment of the Court was delivered by
ASHOK BHUSHAN, J. 1. Leave granted.
2. This appeal has been filed challenging the judgment dated F
03.07.2018 of Allahabad High Court, partly allowing the writ petition of
the respondent, wherein direction has been issued by the High Court for
payment of arrears of salary and other benefits.
3. By our order dated 02.01.2019, limited notice was issued to the
question as to whether the respondent was entitled for payment of G
salary after 14.05.2009 to 20.06.2012. The respondent has filed a counter
affidavit and appeared in person when the matter was heard on
01.07.2019.
4. We have heard Mr. P.P. Malhotra, learned senior counsel for
the appellant and the respondent appearing in-person. H
236 SUPREME COURT REPORTS [2019] 9 S.C.R.
A 5. The brief facts of the case necessary to be noticed for
deciding the limited issue as entertained by this Court in this appeal
are: -
5.1 The respondent was appointed by the appellant company on the
post of assistant/typist. The respondent was transferred by
B order dated 18.08.2006from Allahabad branch of the company
to Jaunpur branch in pursuance of which he was relieved on
01.02.2007 from Allahabad to join at Branch Office, Jaunpur.
The respondent did not join and was unauthorizedly absent from
02.02.2007. A charge sheet dated 07.06.2007 was issued with
regard to his unauthorised absence from 02.02.2007 to
C 07.06.2007, for which disciplinary proceedings were initiated,
Writ petition No.11840 of 2008 was filed by the respondent
praying for expeditious disposal of the departmental inquiry and
further direction to the appellant for payment of salary w.e.f.
23.07.2007.
D 5.2 Learned Single Judge of the High Court vide its order dated
05.03.2008 disposed of the writ petition directing for
expeditious disposal of the proceedings and with regard to claim
of the salary of the respondent, direction was issued to consider
and decide the representation of the respondent dated 11.11.2007.
E The disciplinary proceedings with regard to unauthorised
absence resulted in order dated 14.05.2009 of the disciplinary
authority holding the respondent guilty of charge of unauthorised
absence and awarding punishment of “reduction of basic pay
by two steps” under Rule 23(a) of the General Insurance
(Conduct, Discipline & Appeal) Rules, 1975. The respondent
F filed an appeal, which too was rejected.
5.3 A second charge sheet was issued alleging unauthorised absence
of 663 days. Charge sheet was sent to the respondent but he
did not receive the same. The inquiry was conducted ex-parte.
The respondent, in the meantime, attained the age of
G superannuation on 20.06.2012. An order dated 26.06.2012 was
passed by the disciplinary authority terminating his services. A
departmental appeal against the order dated 26.06.2012 was
also dismissed on 18.07.2014. A Writ petition No. 59041 of 2014
was filed by the respondent praying for quashing the orders
H
CHIEF REGIONAL MANAGER, UNITED INDIA INSURANCE 237
COMPANY LTD. v. SIRAJ UDDIN KHAN [ASHOK BHUSHAN, J.]
dated 14.05.2009, 26.06.2012 and 18.07.2014. The learned Single A
Judge decided the writ petition filed by the respondent vide its
judgment dated 29.05.2015. The order dated 26.06.2012
terminating his services was set aside on two grounds, firstly,
the inquiry proceedings are vitiated since the charge sheet was
never served upon the respondent and secondly, the respondent
B
having already retired on 20.06.2012, he could not have been
terminated on 26.06.2012. Insofar as the challenge to order
dated 14.05.2009 was concerned, awarding punishment of
reduction of basic pay by two steps, writ petition was dismissed
on the ground that the same is barred by laches and the relief to
that extent was denied. C
5.4 The appellant aggrieved by the order of the learned Single Judge
dated 29.05.2015 had filed a Special Leave Petition (C) No.26395
of 2015, which was dismissed by this Court on 18.09.2015. The
respondent, aggrieved by order of learned Single Judge insofar
as it has dismissed the writ petition challenging the order dated D
14.05.2009, filed a special appeal before Division Bench of the
High Court. The Division Bench proceeded to consider the
challenge to the order dated 14.05.2009 and allowed the special
appeal setting aside the order rejecting the challenge to the
order dated 14.05.2009. The order dated 14.05.2009 was
quashed and it was held that appellant shall be entitled to all E
consequential benefits. The order dated 15.02.2016 passed by
the Division Bench in the special appeal was not challenged
and has become final.
5.5 A contempt application was filed by the respondent being
Contempt Application No. 2680 of 2016 alleging disobedience F
of judgment of learned Single Judge dated 29.05.2015 as well
as contempt of the Division Bench order dated 15.02.2016.
5.6 The respondent filed another writ petition being Writ Petition
No. 61102 of 2017 praying for salary for the period from
January, 2007 to June, 2012 with interest and all consequential G
benefits, such as, promotion arrears, medical bills, lump sum
medical reimbursement and re-fixation of pension. The said
writ petition has been partly allowed by impugned judgment dated
03.07.2018.
H
238 SUPREME COURT REPORTS [2019] 9 S.C.R.
A 5.7 The learned Single Judge held that the order dated 14.05.2009
awarding punishment having been set aside by Division Bench
of the High Court by order dated 15.02.2016, the appellant is
entitled for salary w.e.f. 02.02.2007 upto 14.05.2009. The
contention regarding non-payment of salary by the appellant
from 02.02.2007 to 20.06.2012 was noticed in paragraph No.16
B
of the impugned judgment, to the effect that respondent having
been relieved from Branch Office, Allahabad by relieving order
dated 01.02.2007 and he having not joined the Branch Office,
Jaunpur, he was not entitled for any salary. Insofar as
entitlement of salary from 02.02.2007 to 14.05.2009 is concerned
C following directions were issued by learned Single Judge in
paragraph Nos. 17 and 19, which is to the following effect: -
“17. However, this Court in Special Appeal Defective No.
87 of 2016 by its order dated 15.02.2016 had set aside the
punishment order dated 14.05.2009 and directed that the
D appellant shall be entitled to consequential reliefs. This Court
having directed the petitioner to be given all consequential
benefits and the order dated 14th of May, 2009 being quashed,
the petitioner was entitled to salary w.e.f. 02.02.2007 up to
14.05.2009, the date, the punishment order was passed of
reduction in basic pay by two stages. This payment of salary
E has apparently not been made by the respondent on the ground
of “No Work No Pay”.
19. The petitioner is entitled to salary w.e.f. 02.02.2007 up to
14.05.2009 along with interest at the rate of 18 per cent per
annum.”
F
5.8 With regard to claim of salary of the appellant after 14.05.2009,
learned Single Judge took the view that the order dated
26.06.2012 having been set aside by learned Single Judge on
29.05.2015, which judgment was unsuccessfully challenged in
this Court and has attained finality, hence salary w.e.f.
G 14.05.2009 to 20.06.2012 cannot be denied and direction was
issued to pay salary with 18% interest. With regard to other
claims, the High Court noticed the payments made to the
respondent towards provident fund, gratuity fund, GSLI Claim,
Leave Encashment and other payments totalling
H Rs.25,73,830/-.
CHIEF REGIONAL MANAGER, UNITED INDIA INSURANCE 239
COMPANY LTD. v. SIRAJ UDDIN KHAN [ASHOK BHUSHAN, J.]
5.9 There is no other issue in the present appeal except direction A
for payment of salary after 14.05.2009 to 20.06.2012.
6. Learned counsel for the appellant submits that High Court
committed error in directing for payment of salary after 14.05.2009 to
20.06.2012, whereas the respondent absented from work during the period
and was clearly not entitled for payment of salary on the principle of B
“No Work No Pay”. It is submitted that present is not a case where by
virtue of any order terminating the services of the respondent, he could
not work. With regard to salary after 14.05.2009 till 20.06.2012, learned
Single Judge has not adjudicated the claim except observing that in view
of the judgment of High Court dated 29.05.2015 against which special
leave petition was dismissed, respondent was entitled for arrears of C
salary. He further submits that the fact that by virtue of the judgment of
learned Single Judge dated 29.05.2015, respondent has to be treated in
service does not automatically result in any direction to pay the salary,
since no such direction was issued in the judgment of learned Single
Judge dated 29.05.2015. The payment of salary for the aforesaid period D
does not automatically flow from the judgment of learned Single Judge.
He submits that the fund of the appellant company being public fund, the
payment of salary cannot be made when the respondent kept himself
away from the work.
7. The respondent appearing in person refuted the submissions of E
the appellant and submits that he was entitled for salary since his
dismissal order dated 26.06.2012 was set aside on 29.05.2015, against
which special leave petition filed by the company had been dismissed by
this Court on 18.09.2015. He submits that he went to join the Branch
Office at Allahabad on 23.07.2007 but he was not permitted to take
charge by Branch Manager of Branch Office-1, Allahabad. He has F
placed reliance on the judgment of this Court in Shobha Ram Raturi
Vs. Haryana Vidyut Prasaran Nigam Limited and Others, (2016)
16 SCC 663. He submits that the principle of “No Work No Pay”
does not apply in the facts of the present case and learned Single Judge
has rightly directed for payment of salary after 14.05.2009 to 20.06.2012. G
8. We have considered the submissions of the learned counsel for
the parties and have perused the records.
9. In Writ Petition No. 59041 of 2014, two set of orders were
challenged namely the order dated 14.05.2009, by which for unauthorised
H
240 SUPREME COURT REPORTS [2019] 9 S.C.R.
A absence for the period 02.02.2007 to 07.06.2007, he was awarded
punishment of reduction of basic pay by two steps and secondly, the
order dated 26.06.2012 terminating his services and order dated
18.07.2014 dismissing his departmental appeal. Learned Single Judge
has set aside the order dated 26.06.2012 vide its judgment dated
29.05.2015 as noted above. The learned Single Judge quashed the
B
order dated 26.06.2012 on following two grounds – one, second charge
sheet alleging unauthorised absence for 663 days was never served on
the respondent and second, the respondent having retired from service
on 20.06.2012, no order terminating his services could have been passed
on 26.06.2012. The relevant discussion and order of the learned Single
C Judge with regard to order dated 26.06.2012 is as follows:-
“There is nothing on record to show that the chargesheet was
ever sought to be served upon the petitioner through registered
post and it is not known as to from where this endorsement has
come and to who wrote the remark “GHAR BAND RAHTA
D HAI” or “not met”. Even, if it is assumed that the petitioner was
not at his house and therefore the house was closed, it was
expected of the respondents to have taken steps to notify the
petitioner about the chargesheet through newspaper publication.
Nothing has been mentioned in the counter affidavit as to whether
this procedure was adopted. Therefore, it is quite clear that the
E chargesheet was never served upon the petitioner till 20.06.2012
and thereafter the order of removal from service was passed on
26.06.2012. In this view of the matter, the petitioner cannot be
said to have had notice of the enquiry proceedings and therefore
if the respondents proceeded to hold enquiry ex parte, such
F proceedings are clearly vitiated and it must be held that the
petitioner has been denied reasonable and adequate opportunity
of hearing.
There is another aspect of the matter. The petitioner’s case is
that he retired from service on 20.06.2012 and the order of
G termination was passed on 26.06.2012. The averments in
paragraph 39 of the counter affidavit are also to the effect that
the petitioner retired from service and even on the date of
retirement he had refused to accept the chargesheet and absconded
from office. This being so once the petitioner retired from service
on 20.06.2012 no order terminating his services could have been
H passed on 26.06.2012 as he ceased to be in service of the
CHIEF REGIONAL MANAGER, UNITED INDIA INSURANCE 241
COMPANY LTD. v. SIRAJ UDDIN KHAN [ASHOK BHUSHAN, J.]
respondents w.e.f. 20.06.2012. A person cannot be removed from A
service after he has already retired from service.
In this view of the matter, the impugned orders dated 26.06.2012
and 18.07.2014 cannot survive and are accordingly quashed.
The writ petition is allowed.”
B
10. As noted above, learned Single Judge dismissed the writ
petition insofar as order dated 14.05.2009 is concerned, challenge to
which order stood accepted by Division Bench in Special Appeal No. 87
of 2016, where Division Bench has set aside the order dated 14.05.2009
and directed for payment with consequential benefits. In pursuance of
the order of the Division Bench dated 15.02.2016, the respondent is C
entitled to receive salary from 02.02.2007 to 14.05.2009 with regard to
which we have not entertained the appeal.
11. Now, the issue, which has to be answered by us is as to whether
by setting aside of the order dated 26.06.2012, the respondent was
automatically entitled for back wages. A perusal of the judgment of D
learned Single Judge dated 29.05.2015 indicates that although learned
Single Judge has set aside the order dated 26.06.2012, but there was no
order for payment of back wages or consequential benefits. Learned
Single Judge has set aside the order dated 26.06.2012 and has left the
matter there. E
12. It is further relevant to notice that when contempt application
was filed by the respondent being Contempt Application No. 2680 of
2016, the High Court observed that there has been no adjudication by
the Writ Court on the question as to whether the respondent was entitled
to payment of salary for the period 2007 to 2012. The observations of F
the Contempt Court in last two paragraph is as follows:-
“From the materials brought on record, it transpires that there is
no adjudication by the writ court on the question as to whether the
applicant is entitled to payment of salary for the period 2007 to
2012, particularly as he had not worked during that period. There
G
is also no adjudication of his right to claim promotion or to receive
medical bills. The issues therefore as are being raised by the
applicant in this petition need not be entertained by this Court, at
this stage. It transpires that on account of setting aside of the
dismissal order the petitioner has been paid all his retiral dues.
H
242 SUPREME COURT REPORTS [2019] 9 S.C.R.
A Leaving it open for the applicant to seek appropriate adjudication
in respect of his entitlement to receive salary for the period 2007
to 2012 as well as other benefits including promotional pay scale,
medical bills and re-fixation of his pension, in appropriate
proceedings, this contempt petition is consigned to records.”
B 13. It was after 15.11.2017 that Writ Petition No.61102 of 2017
was filed by the respondent. Thus, in the Writ Petition No.61102 of
2017, the learned Single Judge was required to adjudicate on the
entitlement of respondent for payment of salary. Learned Single Judge
has adjudicated with regard to entitlement of salary from 02.02.2007 to
14.05.2009 and issued directions thereunder. We may notice that the
C Division Bench while setting aside the order dated 14.05.2009 has
directed for payment of consequential benefits. It is useful to extract
the operative portion of the said Appellate Court judgment dated
15.02.2016, which is to the following effect:-
“We accordingly allow the special appeal. The judgment and
D order of the learned Single Judge dated 29 May, 2015 and 2
December, 2015 insofar as it rejects the challenge laid by the
appellant to the order dated 14 May, 2009 is hereby set aside.
Consequently, the order dated 14 May, 2009 is also quashed. The
appellant shall be entitled to all consequential benefits.”
E 14. There is clear difference between the direction of the High
Court insofar as setting aside the order dated 14.05.2009 is concerned
and insofar as setting aside the order dated 26.06.2012 is concerned,
whereas there is a clear direction for payment of consequential reliefs
while setting aside the order dated 14.05.2009 there is no direction with
F regard to payment of salary while setting aside the order dated
26.06.2012, hence the question was required to be gone into by learned
Single Judge while deciding the Writ Petition No.61102 of 2017. We
may also notice the consideration of learned Single Judge while noticing
the claim of the respondent for quashing and setting aside the order
dated 26.06.2012. In paragraph Nos. 20 and 21, entire discussion re-
G garding setting aside the order dated 26.06.2012 is contained, which is to
the following effect:-
“20. With regard to the absence of the petitioner thereafter, the
petitioner was subjected to disciplinary proceeding and a charge
sheet was issued to him alleging the absence of 663 days. The
H
CHIEF REGIONAL MANAGER, UNITED INDIA INSURANCE 243
COMPANY LTD. v. SIRAJ UDDIN KHAN [ASHOK BHUSHAN, J.]
inquiry proceeded ex-parte against him and ultimately the A
dismissal order was passed on the ground of unauthorised
absence on 26.06.2012. The petitioner had in the meantime been
retired on 20.06.2012 and this Court in its judgment and order
dated 29.05.2015 in Writ - A No. 59041 of 2014 set aside the
dismissal order and the appellate order. This judgment of this Court
B
was challenged by the respondent in Special Leave Petition which
was dismissed on 18.09.2015 and the judgment and order dated
29.05.2015 attained finality.
21. The respondent cannot therefore say that the petitioner was
unauthorisedly absent for the said period now at this late stage.
The petitioner is entitled to the arrears of salary w.e.f. 14.05.2009 C
up to 20.06.2012, the date of his retirement, along with interest at
the rate of 18% per annum from the date when it became due till
the date of its actual payment.”
15. There is no adjudication regarding claim of salary or back
wages to the respondent in the impugned judgment of learned Single D
Judge for the period 15.05.2009 to 20.06.2012. Learned Single Judge
was of the opinion that in view of the setting aside of the order dated
26.06.2012, payment of salary is automatic, which view of the Single
Judge is not correct. The present is not a case where the respondent
was dismissed from the service and consequent to dismissal, he could E
not work and when dismissal was set aside, he will be automatically
entitled for back wages.
16. We may notice some of the judgments of this Court where
issue of back wages has been considered by this Court. This Court in
Deepali Gundu Surwase Vs. Kranti Junior Adhyapak F
Mhavidyalaya (D.Ed.) And Others, (2013) 10 SCC 324 was
considering a case where the question was considered as to whether
the appellant was entitled to wages for the period she was kept out of
service forcibly by the management of school. In paragraph No. 22,
following was laid down:-
G
“22. The very idea of restoring an employee to the position which
he held before dismissal or removal or termination of service
implies that the employee will be put in the same position in which
he would have been but for the illegal action taken by the
employer. The injury suffered by a person, who is dismissed or
H
244 SUPREME COURT REPORTS [2019] 9 S.C.R.
A removed or is otherwise terminated from service cannot easily be
measured in terms of money. With the passing of an order which
has the effect of severing the employer-employee relationship,
the latter’s source of income gets dried up. Not only the
employee concerned, but his entire family suffers grave
adversities. They are deprived of the source of sustenance. The
B
children are deprived of nutritious food and all opportunities of
education and advancement in life. At times, the family has to
borrow from the relatives and other acquaintance to avoid
starvation. These sufferings continue till the competent
adjudicatory forum decides on the legality of the action taken by
C the employer. The reinstatement of such an employee, which is
preceded by a finding of the competent judicial/quasi-judicial body
or court that the action taken by the employer is ultra vires the
relevant statutory provisions or the principles of natural justice,
entitles the employee to claim full back wages. If the employer
wants to deny back wages to the employee or contest his
D
entitlement to get consequential benefits, then it is for him/her to
specifically plead and prove that during the intervening period the
employee was gainfully employed and was getting the same
emoluments. The denial of back wages to an employee, who has
suffered due to an illegal act of the employer would amount to
E indirectly punishing the employee concerned and rewarding the
employer by relieving him of the obligation to pay back wages
including the emoluments.”
17. We may hasten to add that present is not a case where
respondent was kept away from the work on account of dismissal.
F Admittedly, the respondent attained the age of retirement on 20.06.2012
and order terminating his services was passed only on 26.06.2012, which
was rightly held to be ineffective.
18. We may notice another judgment of this Court in Airports
Authority of India and Others Vs. Shambhu Nath Das alias S.N.
G Das, (2008) 11 SCC 498. In the above case, the respondent did not
join after expiry of the leave. The respondent was issued a warning that
unless he joins on or before 30.10.1985, failing which it would be
presumed that he had voluntarily abandoned his service with the
consequence that his name would be struck off the rolls with effect
from 01.11.1985. The said order was challenged by the respondent and
H
CHIEF REGIONAL MANAGER, UNITED INDIA INSURANCE 245
COMPANY LTD. v. SIRAJ UDDIN KHAN [ASHOK BHUSHAN, J.]
learned Sigle Judge on 10.11.1995 directed the Airports Authority of A
India to allow the respondent to join duty but it was held that he shall not
be entitled for the arrears of pay for the period he was absent. The
order of learned Single Judge was again challenged by the respondent
without joining. The Division Bench set aside the order of the learned
Single Judge and remanded the matter back to the learned Single Judge.
B
Learned Single Judge directed the appellant to reinstate the respondent
and further directed that insofar as the salary of the writ petitioner is
concerned, during the period he stayed away from the work, Airports
Authority of India, is directed to consider the matter sympathetically
and, if it is permissible under its rules, allow to him half of the salary and
other benefits during the period from 17.10.1985 till 10.11.1995. The C
Airports Authority of India accepted the judgment and allowed him to
join w.e.f. 01.11.1999 and passed an order on 14.05.2002 holding that
the period of unauthorised absence was to be treated as dies-non and
the claim for back wages was accordingly disallowed on the principle of
“no work no pay”. The order dated 14.05.2002 was once again
D
challenged by the respondent claiming back wages, which was allowed
by the learned Single Judge. On further denial of claim, matter was
taken by respondent to learned Single Judge to issue certain directions.
Against the learned Single Judge’s Order, matter was taken in appeal
before Division Bench, where direction to pay 50% of back wages was
issued. Allowing the appeal, this Court stated following in paragraph E
Nos. 8 to 11:-
“8. This order of the learned Single Judge has been set aside by
the Division Bench vide the impugned order dated 21-3-2007 with
the observations that the order of the High Court in CR (W)
No. 5715 of 1986 which had directed that the respondent be paid F
50% of the back wages for the period from 17-10-1985 to
10-11-1995 should be complied with.
9. The learned counsel for the appellant has pointed out that as
the respondent had not attended to his duties for almost 15 years
despite having been called upon to do so repeatedly, the direction G
of the Division Bench to grant him back wages from 17-10-1985
to 10-11-1995 was clearly not justified on the principle of “no
work no pay”. She has pointed out that the appellant Authority
would have been fully justified even if it had dismissed the
respondent from service, but on the contrary, a huge benefit had
H
246 SUPREME COURT REPORTS [2019] 9 S.C.R.
A already been given to him as he had been taken back in service
despite having remained absent for almost fifteen years.
10. The learned counsel for the respondent has, however, supported
the judgment of the Division Bench. We are of the opinion that in
the light of the fact that the respondent did not report for duty for
B 15 years, there was no justification whatsoever to grant him any
back wages on the general principle that nobody could be directed
to claim wages for the period that he remained absent without
leave or without justification. We also find that the judgment dated
13-8-1999 which had attained finality had directed as under:
C “(a) Insofar as the salary of the writ petitioner is concerned
during the period he stayed away from the work, the
respondent Airports Authority of India, is directed to consider
the matter sympathetically and, if it is permissible under its
rules, allow to him half of the salary and other benefits.”
D 11. This claim was considered by the competent authority and
rejected for valid reasons. We are, thus, unable to endorse the
High Court’s order for payment of 50% back wages for the period
from 17-10-1985 to 10-11-1995 which are far in excess of the
directions in the order dated 13-8-1999. We accordingly allow
this appeal, set aside the order of the Division Bench and restore
E the order of the learned Single Judge dated 15-4-2004.”
19. This Court held that there was no justification whatsoever to
grant any back wages to the respondent on the general principle that
nobody could be directed to claim wages for the period that he remained
absent without leave or without justification.
F
20. We may further notice the judgment of this Court, which has
also been relied on by the respondent in his counter affidavit, i.e.,
judgment of this Court in Shobha Ram Raturi Vs. Haryana Vidyut
Prasaran Nigam Limited and Others (supra). In the above case,
the appellant was retired from service on 31.12.2002, even though he
G would have, in the ordinary course, attained his date of retirement on
superannuation, only on 31.12.2005. The appellant assailed the order of
retirement, which was allowed by learned Single Judge. Learned Single
Judge has denied the back wages to the appellant on the principle of “no
work no pay”. The order of learned Single Judge was assailed by the
appellant by filing a Letters Patent Appeal, which too was dismissed.
H
CHIEF REGIONAL MANAGER, UNITED INDIA INSURANCE 247
COMPANY LTD. v. SIRAJ UDDIN KHAN [ASHOK BHUSHAN, J.]
This Court allowed the appeal of the appellant and made following A
observations in paragraph Nos. 3 and 4:-
“3. Having given our thoughtful consideration to the controversy,
we are satisfied, that after the impugned order of retirement dated
31-12-2002 was set aside, the appellant was entitled to all
consequential benefits. The fault lies with the respondents in not B
having utilised the services of the appellant for the period from
1-1-2003 to 31-12-2005. Had the appellant been allowed to
continue in service, he would have readily discharged his duties.
Having restrained him from rendering his services with effect
from 1-1-2003 to 31-12-2005, the respondent cannot be allowed
to press the self-serving plea of denying him wages for the period C
in question, on the plea of the principle of “no work no pay”.
4. For the reasons recorded hereinabove, we are satisfied, that
the impugned order passed by the High Court, to the limited
extent of denying wages to the appellant, for the period from
1-1-2003 to 31-12-2005 deserves to be set aside. The same is D
accordingly hereby set aside.”
21. This Court held in the above case that; having restrained the
appellant from rendering his services with effect from 1-1-2003 to
31-12-2005, the respondent cannot be allowed to press the plea of the
principle of “no work no pay” for denying the wages. In the above case, E
the appellant was restrained from working due to order of retirement
dated 31.12.2002, due to which he could not work till his normal
retirement. When the order dated 31.12.2002 was set aside,
automatically, he became entitled for back wages and the principle of
“no work no pay” was not attracted. F
22. In the present case, as noted above, the respondent was not
kept away from work by any order of the appellant. The order of
termination of his services/dismissal was passed on 26.06.2012, after
his retirement on 20.06.2012, which in no manner prohibited the
respondent from working. The respondent during submission has G
submitted that he was illegally transferred to Branch Office, Jaunpur
from Allahabad. He was suffering from a disability of more than
40% and he could not have been transferred to another place. There is
nothing on record to indicate that transfer of respondent from Branch
Office, Allahabad to Branch Office, Jaunpur was at any time set aside
H
248 SUPREME COURT REPORTS [2019] 9 S.C.R.
A or withdrawn. The salary upto 14.05.2009 was allowed to the
respondent on account of setting aside of the order dated 14.05.2009,
which was with all consequential benefits but with regard to entitlement
of salary after 14.05.2009 to 20.06.2012, there has been no adjudication
by the High Court, which is apparent from judgment of the High Court
dated 03.07.2018, as extracted above.
B
23. Learned Single Judge having itself not determined the
entitlement of respondent to receive salary after 14.05.2009 to 20.06.2012,
it ought to have directed the appellant to consider the entitlement and
take a decision thereon. We are of the view that ends of justice be
served in setting aside the direction of the High Court directing the
C appellant to make payment of salary after 14.05.2009 till 20.06.2012,
with a direction to the appellant to consider the claim of respondent for
back wages after 14.05.2009 to 20.06.2012 and pass appropriate orders
giving reasons within three months from today. It shall also be open for
the respondent to submit an appropriate representation alongwith
D relevant materials regarding his entitlement for salary for the period
15.05.2009 to 20.06.2012 to the appellant within a period of one month
from today.
24. The appeal is partly allowed to the extent as indicated above.
The parties shall bear their own costs.
E
Ankit Gyan Appeal partly allowed.
F
G
H
Search Indian case law
Ask in plain English, not just keywords. 25,000 AI words free, no card.