Legal Provisions Involved: Section 17(B) of the Industrial Disputes Act, 1947, Section 2A(2) of the Industrial Disputes Act, 1947, Life Insurance Corporation of India (Regulation of Superannuation) Rules, 1987
Judgement By: High Court of Delhi at New Delhi
Judge/Bench: Hon’ble Ms. Justice Renu Bhatnagar
Facts
The respondent, employed as a Higher Grade Assistant with LIC since 1984, faced disciplinary proceedings for alleged insubordination and refusal to perform assigned duties. The Tribunal held the domestic enquiry invalid and directed reinstatement with full back wages. LIC challenged the award, and the Court directed payment of last drawn wages under Section 17(B). Thereafter, LIC sought modification of this order after the respondent attained superannuation.
Issues raised
- Whether a workman is entitled to wages under Section 17(B) after attaining superannuation during pendency of proceedings
- Whether Section 17(B) operates independent of the employer-employee relationship
Key legal provisions
Section 17(B) of the Industrial Disputes Act, 1947; Section 2A(2) of the Industrial Disputes Act, 1947; Life Insurance Corporation of India (Regulation of Superannuation) Rules, 1987
Arguments
The Counsel for the Life Corporation of India said that Section 17(B) benefits cannot extend beyond superannuation as the provision presupposes a subsisting employer-employee relationship. On the other hand, the Respondent argued that Section 17(B) is linked to pendency of proceedings, not the employment relationship.
Judgement
The Court allowed LIC’s application, holding that Section 17(B) operates within the employer-employee relationship and cannot extend beyond superannuation.
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