“Employer Cannot Benefit from Its Own Wrong”: Gujarat High Court Upholds Labour Court’s Award on Reinstatement with Full Back Wages

In a landmark decision , the Gujarat High Court dismissed an appeal by Cargo Motors (Gujarat) Limited, thereby affirming the Labour Court’s award of reinstatement with full back wages to the workman, Kritikant Shivajirav Jadav.

The bench, comprising Honourable Chief Justice Mrs. Justice Sunita Agarwal and Honourable Mr. Justice N.V. Anjaria, stated, “It is settled law that in a case of termination of employment, though award of back wages is not automatic with the award of reinstatement, but in case the fault is found on the part of the employer, 100% wages can be provided.”

The case revolved around the wrongful termination of the workman, with the Labour Court initially taking around 17 years to decide on the reference. The High Court noted that there was no explanation offered for the delay in reinstating the workman for a period of 1 year and 7 months.

The appellant employer had challenged the award of 100% back wages, arguing that it should not be automatic upon reinstatement. However, the court observed that the workman had been victimized by the employer, stating, “The fundamental principle is that no one can take benefit of its own wrong.”

The court also referred to various Apex Court decisions, including Deepali Gundu Surwase vs. Kranti Junior Adhyapak Mahavidyalaya, to assert that in cases of wrongful termination, reinstatement with full back wages is the normal rule.

The appeal was dismissed, and the Civil Application also stands disposed of, thereby upholding the Labour Court’s original award.

Date of Decision: 07/08/2023

CARGO MOTORS ( GUJARAT ) LIMITED  vs KRITIKANT SHIVAJIRAV JADAV