SUNDARAM MOTORS PRIVATE LIMITED Vs. AMEERJAN

JUDGEMENT

(1.) We heard Mr. K. S. Ramamurthy, learned counsel for the appellant. We take note of the constructive suggestion made by him, that instead of granting reinstatement to the respondent compensation as deemed adequate by the Court may be awarded to the respondent which may sufficiently compensate the respondent for loss of future service and back wages. On this submission, we invited Mr. S. S. Khanduja, learned counsel for the respondent to state what would be the adequate compensation in lieu of reinstatement. Mr. Khanduja gave some rough calculations. Having examined the calculations we are satisfied that the appellant shall pay Rupees 2,25,000/- (Ruppes two lacs and twenty five thousand) to the respondent within two weeks from today. The amount of compensation thus awarded includes interest, costs, back wages and compensation in lieu of reinstatement. In other words, the respondent has no further claim against the appellant.

(2.) The amount calculated as compensation by this Court is in lieu of back wages and future wages which ought to have been paid from year to year. Therefore, the entire amount shall be spread over between the period 1970 to 1989, 1970 being the year of dismissal from service and 1989 being the presumed year of retirement on superannuation. As the compensation is being paid in total lump sum, we direct the spread over. If the income is not taxable in any year, no income-tax shall be deducted from the amount payable for the year.

(3.) This appeal is disposed of by our judgment and order dated August 7, 1984.