Illegally Terminated Employee Entitled To Benefits As If Termination Never Occurred: Jharkhand High Court

Background Facts

The Petitioner was appointed as a Clerk in J.K.R.R High School, Chirkunda, Dhanbad, (Employer) in 1989. His services were terminated on 23.07.1992. The Employer cited lack of sanction for the appointment from the District Education Office (DEO), Dhanbad.

In the Labour Court, the Petitioner challenged the termination. The court ruled in favour of the Petitioner on 25.01.1995. The court directed the Employer to consider the case, as the DEO's sanction was not required. However, the case was rejected. Subsequently, the Petitioner filed another petition in which the court ruled in his favour on 16.07.2009. The court directed the reinstatement of the petitioner to his original post in a regular vacancy.

The Petitioner rejoined his services on 30.11.2009. He received retirement benefits counting his services from 30.11.2009 but not for the period from 23.07.1992 to 30.11.2009. Hence, he filed this writ petition seeking regularization of services for the period of illegal termination.

It was argued by the Petitioner that his claim for regularization should not be rejected as the termination order had already been quashed. He argued this made him entitled to all consequential benefits, including the counting of the said period for pensionary benefits.

It was contended by the Employer that the Petitioner did not work for the period during which he was seeking regularization. Therefore, he should not be entitled to benefits. Further, it was argued that the court did not grant any back wages when quashing the termination order. As such, that period should not count towards the Petitioner's service benefits.

Findings of the Court

It was observed by the court that the illegal termination of the Petitioner in 1992 had been upheld through various rounds of litigation by the division bench of the High Court and Supreme Court. It noted that the Petitioner was not at fault for the period of non-employment. Therefore, denying him the benefits he would have enjoyed if not for the illegal termination was unfair.

The court relied on the Supreme Court's judgment in Pradeep Son of Raj Kumar Jain v. Manganese Ore (India) Ltd. wherein it was held that employees who have been wrongfully terminated should be compensation accordingly.

It was further observed by the court that the Petitioner's services from 23.07.1992 to 30.11.2009 should be counted for the purpose of all consequential benefits, including post-retirement and pensionary benefits. Hence, the court directed the Employer to consider the period of illegal termination as continuous service.

With these observations, the writ petition was allowed.

Case No. : W.P.(S) No. 6054 OF 2022

Counsel for the Petitioner : Mr. Mahesh Tewari

Counsel for the Respondents : Ms. Priti Priyamvada