The Supreme Court of India has reinstated back wages for a Maharashtra State Road Transport Corporation (MSRTC) employee, setting aside a High Court decision that had denied him long-pending dues. The bench emphasized that an employer cannot use its dominant position to deny rightful benefits to a worker.
Background of the Case
The case, Balaji Madhukar Konkanwar vs. Maharashtra State Road Transport Corporation, arose from a long-standing employment dispute. The appellant had been appointed as a cleaner on daily wages in 1993 but was orally terminated in 1994.
After years of litigation, the Labour Court held the termination illegal and ordered reinstatement with continuity of service and back wages. Despite this, the corporation delayed compliance, taking him back only in 2003 and regularising him much later in 2011.
The employee later sought back wages for the period between when he became eligible for regularisation and when he was actually regularised.
The bench led by Justice Sanjay Karol and Justice Nongmeikapam Kotiswar Singh found fault with the employer’s conduct and rejected the argument that the employee had accepted regularisation terms and could not claim earlier benefits.
“The doctrine of estoppel cannot grant a shield to the respondent,” the Court observed, noting that the worker had been continuously fighting for his rights for years.
The Court also took strong note of the delay in implementing earlier orders of the Industrial Court, which had directed regularisation after completion of 180 days of service.
Questioning the employer’s actions, the bench remarked that imposing fresh conditions at the time of regularisation reflected a clear imbalance of power.
“If this is not a use of unequal bargaining power… we do not know what may qualify as such,” the judgment stated.
Allowing the appeal, the Supreme Court set aside the High Court’s order and restored the Labour Court’s award granting back wages from October 1993 to January 2011.
However, the Court reduced the interest on the awarded amount from 12% to 8%, citing financial considerations. It also directed the corporation to pay the dues within eight weeks, failing which the original 12% interest would revive.
Additionally, the Court awarded ₹1 lakh as litigation costs to the employee.
Case Details
Case Title: Balaji Madhukar Konkanwar vs. Maharashtra State Road Transport Corporation
Case Number: Civil Appeal arising out of SLP (C) No. 21724 of 2022
Judges: Justice Sanjay Karol and Justice Nongmeikapam Kotiswar Singh
Decision Date: April 20, 2026
