The Himachal Pradesh High Court has directed the Himachal Pradesh State Electricity Board Limited (HPSEBL) to pay 50% back wages, along with applicable interest, to Chattar Singh, a daily-wage worker whose reinstatement had already been upheld by the Labour Court. Justice Sandeep Sharma held that the Labour Court erred in denying back wages despite the worker's specific claim that he had remained unemployed after termination.
The Court set aside the Labour Court's award dated 27 November 2024 to the extent that it refused back wages and directed the department to make the payment within six weeks.
Chattar Singh's daily-wage service was terminated with effect from 12 March 1997 under an order dated 14 March 1997 issued by the Executive Engineer, HPSEB, Rajgarh Division, Sirmaur district. The dispute was referred to the HP Industrial Tribunal-cum-Labour Court, Shimla, for adjudication.
In its award dated 27 November 2024, the Labour Court directed the department to reinstate him with seniority and continuity of service but denied back wages, reasoning that he had not produced sufficient evidence to establish that he was unemployed during the termination period.
Aggrieved by the denial of back wages, Singh approached the High Court. The department had accepted the Labour Court's direction for reinstatement, which had attained finality.
The High Court observed that a worker seeking back wages must first state that he was not gainfully employed or was earning less after termination. Once such a plea is made, the employer must specifically plead and prove that the worker was gainfully employed and received the same or substantially similar wages during the intervening period.
The High Court reiterated the following principle from the Supreme Court ruling discussed in its judgment:
"If the employer wants to deny back wages to the employee or contest his 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 Court also referred to the established principle that:
"In cases of wrongful termination of service, reinstatement with continuity of service and back wages is the normal rule."
The High Court noted that Singh had specifically pleaded unemployment in his claim petition. However, the department had failed to produce concrete evidence establishing that he had secured employment with similar earnings during the relevant period.
Allowing the petition, the High Court modified the Labour Court's award and directed HPSEBL to pay Singh 50% back wages with up-to-date interest from the date of termination, along with seniority and continuity of service. The payment must be made within six weeks. If the department fails to comply, the amount will carry interest at 6% per annum from the date it becomes due.
Case Title: Chattar Singh v. The Executive Engineer, HPSEBL
Case Number: CWP No. 8209 of 2025
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