8 July 2024


High Court of Delhi

Vinod Kumar Gupta vs. National Institute of Immunology



Labour and Industrial

Monetary compensation is to be granted as an equitable relief, there is no fixed formula according to which the quantum of compensation is to be calculated

Present intra-court appeal challenges the judgment passed by the learned Single Judge. In the impugned judgment, the learned Single Judge dismissed Respondent's objections and endorsed the Labour Court's conclusion of illegal termination. Both the Labour Court and learned Single Judge declined to reinstate the Appellant to his former position, however, the learned Single Judge enhanced the initial compensation of Rs. 50,000, awarded by the Labour Court, to Rs. 1,50,000. It is this partial relief-specifically, the refusal to reinstate the Appellant-which motivates the present appeal.

The Appellant's employment was for a limited period of approximately 1 year and 4 months in 1991. The Labour Court initially awarded Rs. 50,000as compensation in lieu of reinstatement, which was enhanced to Rs. 1,50,000upon examining the overall facts and circumstances of the case, including the duration of employment and the salary drawn by him. Monetary compensation is granted as an equitable relief, in the interests of justice. As such, there is no fixed formula according to which the quantum of compensation is to be calculated. Rather, it is on a case-by-case basis, upon considering the specific facts of the case that the compensatory amount is finalized.

One of the factors considered by the Court is the length of service, and on occasion, the conduct of the employer has also been taken into account in determining the amount to be paidhighlighting the equitable nature of the relief. It is in exercise of this equity jurisdiction that the relief of enhancement of compensation is granted by the courts in the event that the previously granted quantum of compensation is inadequate given the peculiar facts of the case.

In the opinion of the Court, there is no infirmity in the view taken by the learned Single Judge. The passage of over three decades since the initial termination has not only extended the Appellant's emotional and financial distress but has also potentially resulted in missed opportunities for career growth and financial stability. Therefore, in balancing the equities and recognizing the hardships borne by the Appellant, present Court find it both just and equitable to enhance the compensation to Rs. 3,00,000.Appeal disposed off.

Tags : Compensation Enhancement Quantum

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