HP High Court Directs HPSEBL To Pay 50% Back Wages With Interest To Reinstated Workman Over Alleged Illegal Termination
The Himachal Pradesh High Court has directed the Himachal Pradesh State Electricity Board Limited (HPSEBL) to pay 50% back wages, along with up-to-date interest, to a workman whose termination was set aside and reinstatement ordered by the Labour Court.
The Court held that once a workman pleads that he remained unemployed after termination, the burden shifts to the employer to establish that he was gainfully employed during the intervening period. The Court accordingly set aside the Labour Court's award to the extent that it denied back wages.
Justice Sandeep Sharma remarked that: “The respondent-department is directed to pay 50% back wages to the petitioner alongwith up-to-date interest from the date of his termination, with seniority and continuity in service, within a period of six weeks from today.”
Background of the Case
The petitioner, Chattar Singh, was removed from daily-wage employment with the Himachal Pradesh State Electricity Board with effect from March 12, 1997. The dispute was referred to the HP Industrial Tribunal-cum-Labour Court, Shimla, under Section 10 of the Industrial Disputes Act, 1947.
By an award dated November 27, 2024, the Labour Court directed his reinstatement with seniority and continuity of service but denied back wages. Aggrieved by the denial of back wages, Singh approached the Himachal Pradesh High Court, while the respondent-Board accepted the reinstatement award.
The Court held that reinstatement with continuity of service and back wages is the normal rule in cases of wrongful termination, subject to relevant circumstances.
The Court observed that once a workman pleads that he remained unemployed after termination, the burden shifts to the employer to prove gainful employment during the intervening period.
Since the petitioner had pleaded non-employment and the Board failed to produce evidence to rebut his claim, the Court set aside the Labour Court's denial of back wages and directed HPSEBL to pay 50% back wages with up-to-date interest, while maintaining his seniority and continuity of service.
Date of Decision: 16.09.2026