Supreme Court Judgment: Resolving Dispute Over Post-Award Wages

In a significant legal development, the Supreme Court has issued a judgment addressing the long-pending dispute over post-award wages in the case involving the Sugar Mills and the employee. The case originates from the Labour Court’s award of reinstatement and compensation to the employee, yet a disagreement arose regarding the payment of wages post the 1997 award. This judgment sets a precedent in clarifying the calculation and payment of these wages, providing closure to this labor dispute.


  • The respondent filed a petition under Section 33-C(2) of the I.D. Act seeking payment of wages post the Award dated 10.06.1997 due to non-reinstatement.
  • The Appellant-Sugar Mills challenged the Order dated 06.08.2011 by the Labour Court in Misc. Case NO.42 of 2011 pertaining to the petition filed under Section 33-C(2).
  • The genesis of the case lies in the Adjudication Case NO.64/1996 where the Labour Court had deemed the termination of the respondent on 07.12.1994 as improper and illegal.
  • The award directed the reinstatement of the respondent before the employer and payment of Rs.5,000/- as compensation for back-wages.
  • Intervening wages during the pendency of a writ petition were also addressed.

Also Read: Solapur Municipal Corporation vs. Majarewadi Gram Panchayat Employees


  • The High Court confirmed the Award dated 10.06.1997 for reinstatement
  • The Labour Court order dated 06.08.2011 quantifying and directing payment post the Award was challenged
  • Labour Court cannot decide on entitlement if not adjudicated or recognized by the employer
  • The order of Labour Court for payment of wages from 10.06.1997 to joining date was disputed by the employer
  • The scope of U.P. Industrial Disputes Act, 1947 is limited to calculation of monetary benefits with already adjudicated rights
  • Sufficient time has passed since the order passed by the Labour Court.
  • An amount of Rs.10,00,000 was deposited as an interim measure, of which Rs.6,00,000 has already been withdrawn by the employee.
  • An exercise to remit the matter to the employer for reconsideration is not necessary at this stage.

Also Read: Vaishali Wadhwani and Mamta Mishra vs. MPPSC: Upholding Justice and Integrity in Recruitment Processes


  • The appellant is directed to withdraw the amount of Rs.4,00,000/- which was held in deposit.
  • The appellant shall receive only the principal amount of Rs.4,00,000/- and the accrued interest shall be paid to the respondent.
  • The respondent has withdrawn Rs.6,00,000/- which will cover all wages payable till actual reinstatement post the Award dated 10.06.1997.
  • Any disputes regarding the subsequent termination of the respondent are to be addressed separately with all contentions open for discussion.

Also Read: Jagdishchandra v. Joint Charity Commissioner & Ors.


Case Number: C.A. No.-007218-007218 / 2019

Click here to read/download original judgement

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