2000 (11) TMI 1259 - SC - Indian Laws

Summary

Issues:
1. Interpretation of Section 33C(2) of the Industrial Disputes Act, 1947 regarding computation of back wages.
2. Scope of the Labour Court in determining back wages based on an award of reinstatement.
3. Whether reinstatement necessarily includes the award of back wages.
4. Jurisdiction of the Labour Court in adjudicating claims for back wages.
5. Applicability of pre-existing benefits under Section 33C(2) of the Act.

Analysis:
1. The Central Government referred a question under Section 10 of the Industrial Disputes Act, 1947 regarding the termination of services of certain employees by the State Bank of India. The Tribunal awarded reinstatement to the workmen without specifying back wages. A subsequent writ petition challenging the lack of back wages was dismissed by the High Court.

2. The workmen then filed an application under Section 33C(2) of the Act before the Labour Court for computation of back wages. The Labour Court allowed the application, determining the amounts payable to the workmen. The appellant contested this decision, arguing that no right to back wages had accrued as per the award.

3. The High Court upheld the Labour Court's decision, stating that reinstatement inherently includes the award of back wages. The appellant argued that the Labour Court exceeded its jurisdiction by interpreting the award to imply back wages. The Court emphasized that the award of reinstatement did not automatically grant the right to back wages.

4. Both parties cited legal precedents to support their arguments. The appellant contended that the Labour Court's role is limited to calculating pre-existing benefits, while the respondent argued that the Labour Court can interpret the award to include back wages. The Court highlighted the need for a factual examination in determining back wages, which is best done through a reference under Section 10 of the Act.

5. The Court concluded that the award of reinstatement alone does not necessarily include back wages. It emphasized the importance of considering various factors before awarding back wages and stated that such determinations are best suited for a reference under Section 10. Ultimately, the Court allowed the appeal, set aside the Labour Court's order, and dismissed the application under Section 33C(2) of the Act, with each party bearing their own costs.