LIC OF INDIA Vs. UNION OF INDIA

JUDGEMENT

(1.) This writ petition challenges the order of the Central Government Labour Court, passed in LCA No. 180/88 dated 8th May, 1989 by which interest along with costs of proceedings and telephone charges in all totalling Rs. 1,81,857.86 paise was directed to be paid to the workman, who is the respondent No. 3-herein.

(2.) The proceedings arose from an award dated 10.2.1984 by which the CGIT directed the reinstatement of respondent No. 3 with the petitioner in the following terms:

(3.) The above dispute arose on account of the termination of service of respondent No. 3 by the petitioner/LIC in 1969 which on a question of whether a 'Development Officer' of LIC could be a workman as per the definition of Section 2(5) of the Industrial Dispute Act (hereinafter referred to as the 'Act') was decided against the LIC by the Hon'ble Supreme Court in a judgment in S.K. Verma v. Mahesh Chandra & Others, 1983(3) SCR 799=1983(2) SLJ 570 (SC). Eventually the respondent No. 3 was reinstated as per the award dated 10.2.1984 and on 31.7.1984 backwages amounting to Rs. 2,46,188/- were paid from 8.2 : 1969 to 31.7.1983. The application under Section 33-C(2) of the Act claimed interest on the aforesaid back wages. The Labour Court for granting interest inter alia relied upon the judgments of the Hon'ble Supreme Court in Gamon India v. Niranjan Das, 310 FLR 223=1984(1) SLJ 150 and Sudhir Chander v. Tata Iron & Steel Co., AIR 1984 S.C. 1064=1984(1) SLJ 576 (SC).