Siya Singh wins appeal against Bihar State Road Transport Corporation for wrongful termination compensation
In a significant judgment delivered on May 7, 2026, the Patna High Court overturned a previous decision, granting full back wages to Siya Singh, a conductor who was wrongfully terminated by the Bihar State Road Transport Corporation (BSRTC) in 1978. The Division Bench comprising Chief Justice Sangam Kumar Sahoo and Justice Harish Kumar allowed both Letters Patent Appeals filed by Singh, challenging the common order dated June 23, 2025, by the Single Judge of the Court.
The case originates from an incident on January 24, 1978, where Singh was accused of collecting fares from unbooked passengers without issuing tickets, resulting in his dismissal from service. The labour dispute was referred to the Labour Court, which ruled in Singh's favor in 2006, ordering his reinstatement with full back wages and consequential benefits. However, BSRTC's financial struggles led to Singh's reinstatement without back wages, which he initially accepted but later contested in the Labour Court, resulting in an award of Rs. 11,70,990 in back wages.
BSRTC challenged this award, citing financial hardship and claiming Singh was employed elsewhere during the idle period. The Single Judge had ruled in favor of BSRTC, but the Division Bench found this decision unsustainable, emphasizing that full back wages are the norm unless the employer can prove alternative employment or exceptional circumstances.
The High Court criticized BSRTC's failure to challenge the original Labour Court award, stating that the foundational award remained unchallenged, and relief not prayed for in the writ petition cannot be granted. The court also noted that the Certificate Officer's recall of the warrant without payment was ultra vires, highlighting the statutory mandates for recovery under the Public Demands Recovery Act.
This judgment reinforces the principle that wrongful termination entitles employees to full compensation unless employers demonstrate alternative employment during the dismissal period. The ruling is expected to have wide implications for similar cases, ensuring protection of workers' rights against arbitrary dismissals.
Bottom line:-
Labour Law - Employee entitled to full back wages upon reinstatement after wrongful termination unless employer proves gainful employment during the idle period or exceptional circumstances.
Statutory provision(s): Industrial Disputes Act, 1947 Section 33C, Public Demands Recovery Act, 1914 Section 38, Constitution of India, 1950 Article 226
Siya Singh v. State of Bihar, (Patna)(DB) : Law Finder Doc id # 2898826
