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The Supreme Court in a recent judgment has held that reinstatement with full back wages is not automatic in every case, where termination/dismissal is found to be not in accordance with the procedure prescribed under law.

The sole respondent herein was appointed as Clerk-cum-Cashier in the appellant – Allahabad Bank on. During the year 1989, he was posted in Aurangabad Branch, District Lakhimpur Kheri, Uttar Pradesh. On 08.02.1989, there was fire accident in the Bank and an FIR was registered with regard to the burning incident of Bank records by unknown persons. The Respondent being a suspect in the alleged matter was put under suspension. On completion of enquiry, the respondent was dismissed from service vide Order dated 22.08.1991.Afer being rejected by departmental appeal and mercy appeal, the respondent raised the industrial dispute and the same was referred to the Central Government Industrial Tribunal–cum–Labour Court. The  Tribunal–cum–Labour Court held that misconduct alleged against the respondent is not proved, but on the ground that a case is made out by the management of loss of confidence, has ordered payment of compensation of Rs.30,000/- in lieu of reinstatement.

Aggrieved by the said order the respondent moves the High Court. The High Court has ordered reinstatement of the respondent with all consequential benefits. The said Order is subject matter of challenge in this Appeal.

The Court after hearing both sides opined that even though there is a strong suspicion of the respondent’s involvement in the alleged fire, but suspicion can not be replacement for proof. There was never any proof of the Respondent’s involvement and hence the Tribunal ordered a payment of Rs. 30,000.

Given the fact that the Respondent has reached the age of superannuation since his termination in 1991, the Supreme Court ordered a lump-sum payment. The Court stated that,

"The reinstatement with full back wages is not automatic in every case, where termination / dismissal is found to be not in accordance with procedure prescribed under law".

Case Title: Allahabad Bank & Ors. vs. Krishan Pal Singh

Access Copy of Judgment Here