THE LIFE INSURANCE CORPORATION OF INDIA vs. SRI KALAPPA M. SANKAD (D) THR. LRS. .

Case Type: Civil Appeal

Date of Judgment: 12-10-2018

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Full Judgment Text

NON­REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO.10574 OF 2018 (Arising out of S.L.P.(C) No. 19953 of 2015) The Life Insurance Corporation of India             ….Appellant(s) VERSUS Sri Kalappa M. Sankad (D) Thr. Lrs. & Ors.    ….Respondent(s)                   J U D G M E N T Abhay Manohar Sapre, J. 1. Leave granted. Signature Not Verified Digitally signed by ANITA MALHOTRA Date: 2018.10.12 15:50:40 IST Reason: 1 2. This appeal is filed against the impugned final judgment   and   order   dated   13.02.2015   passed   by the High Court of Karnataka at Bengaluru in Writ Appeal No. 3120 of 2014(S­RES) whereby the High Court dismissed the appeal filed by the appellant. 3. The issue involved in the appeal is short. It would   be   clear   from   the   facts   mentioned   herein below. 4. Mr.   Kalappa   M.   Sankad   was   the   original respondent herein.   He died pending appeal and, therefore, represented by his legal representatives as respondents to continue the  lis . 5. Mr. Kalappa was working with the appellant ­ Life   Insurance   Corporation   (LIC)   since   1988.   He joined   as   an   Apprentice   Development   Officer   at Gulbarga office and then at Bijapur office.  6. The appellant (LIC) terminated the services of Mr. Kalappa by order dated 10.4.2013.  Mr. Kalappa 2 felt aggrieved and filed departmental appeal against his termination.   It was dismissed.   He then filed writ   petition   in   the   High   Court   of   Karnataka challenging   his   termination   order   on   several grounds. 7. By order dated 21.11.2014, the learned Single Judge allowed the writ petition and set aside the termination   order.   The   LIC   (appellant   herein)   felt aggrieved   and   filed   intra   court   appeal   before   the Division Bench.  8. By   impugned   order,   the   Division   Bench dismissed   the   appeal   and   upheld   the   order   of learned Single Judge, which gives rise to filing of the present appeal by way of special leave to appeal in this Court. 9. Heard   Mr.   Guru   Krishna   Kumar,   learned senior counsel for the appellant and Mr. R. Basant, learned senior counsel for the respondent(s). 3 10. Having   heard   the   learned   counsel   for   the parties and on perusal of the record of the case, we are not inclined to interfere in the impugned order and dispose of the appeal as indicated below for ensuring its compliance by the appellant. 11.    We have perused the order of the learned Single   Judge   and   the   impugned   order,   which resulted   in   quashing   Mr.   Kalappa's   termination order   resulting   in   directing   his   reinstatement   in service.  12. Having gone through the orders, in the facts of this case, we do not find any good ground to uphold the termination order and set aside the impugned order.  13. In our view, the two courts below rightly set aside the termination order, which does not call for any interference in this appeal. 4 14. Since Mr. Kalappa expired during pendency of this litigation, the question of his reinstatement in the services of LIC does not arise.   It is not now possible.  15. The   only   question,   which   now   survives   for consideration,   is   in   relation   to   payment   of   back wages   payable   to   the   present   respondents   (legal representatives of Mr. Kalappa) as a result of setting aside of the termination order of Mr. Kalappa. 16.  On this issue, we have heard both the learned counsels who gave their respective calculations. We have perused their statements. We may consider it apposite to mention that this matter did not arise from   Labour   Tribunal   but   arose   from   the   writ petition filed in the High Court.  17. It is for this reason, the parties did not adduce any   evidence   on   the   question   as   to   whether   Mr. Kalappa, after termination of his services from LIC, 5 was gainfully employed anywhere or not.  There was neither   any   pleading,   nor   evidence   much   less finding   either   way   on   this   issue   in   these proceedings.  18. It is for this reason and keeping in view all facts   and   circumstances   of   the   case,   we   have examined   the   question   of   total   payment   of   back wages payable to the respondents. 19. Mr. Kalappa was entitled for gross arrears of salary and CMD/TR GR/PLE DIFF for the period from ­ April 2013 to August 2016.  Keeping in view his last drawn salary which was calculated by the appellant   in   their   statement   on   the   basis   of   his revised basic pay scale, the total arrears towards salary is worked out to Rs.20,21,250.18 plus Rs. 35,857 i.e.  Rs. 20,57,107. 18.   6 20. It   is   not   in   dispute   that   there   were   certain recoveries   also   which   were   to   be   made   from   Mr. Kalappa under specific heads by the appellant such as (1) Provident Fund contribution­Rs.1,69,771.00 (2)   Income   Tax­Rs.4,00,000.00   and   (3)   recovery against loans & advances availed of by Mr. Kalappa while he was in service­Rs. 2,28,023.00 totalling to Rs. 12,59,313.18 .  21. In  our   view,   taking   into   account   the   overall factual scenario brought on record by the parties arising   in   the   case   coupled   with   what   we   have observed  supra , the respondents are held entitled to claim back wages amounting to   Rs. 20,57,107.18 minus Rs. .  12,59,313.18 22. In   other   words,   after   deducting   Rs. 12,59,313.18   from   Rs.20,57,107.18,   the   balance 7 amount be paid to the respondents after making proper verification and calculation, if need be.  23. We make it clear that we have not accepted the claim made by the respondents for arrears of salary, which we find was essentially based on several pay rise and notional promotion etc.   In our view, it is not legally sustainable in the facts of this case.  24.  Let the aforementioned amount be paid to the respondents by the appellant (LIC) within 3 months as   an   outer   limit   after   again   making   proper calculation under all the heads mentioned in their statement. 25. In view of the forgoing discussion, the appeal stands accordingly disposed of finally.    ………...................................J. [ABHAY MANOHAR SAPRE]                                       8                   .... ……..................................J.         [INDU MALHOTRA] New Delhi; October 12, 2018. 9