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2018 (8) TMI 1746 - SC - Indian LawsTermination of an employee - quantification of damages - alleged misconduct of the employees - general strike - Since the Board was awaiting the announcement by the Government, it was informed to the workers that the management would take a call on the issue on 23.10.2000, and that the workers should not indulge in any disruptive activity. Despite the same, are stated to have gone ahead with their threat, and at the time when the Annual Function of the Mayo College was being held on 23/24.10.2000, instigated other staff members not to go to work and created disturbances, causing grave embarrassment to the Institution - non-compliance of Section 18 of Rajasthan Non-Government Educational Institutions Act, 1989. Held that:- We cannot lose sight of the fact that we are dealing with an educational institution of great eminence. Persons employed in educational institutions right from Class IV staff to the highest level have a far greater responsibility on account of the nature of activity which takes place in these institutions – Education. There are students of all ages, starting from younger ones to older teenagers, who are studying and living in these campuses. It is a different kind of ‘Gurukul’. Thus, anything which is done, as would cause an adverse impact on the mind of these young people, is something which we find difficult to approve, even if it is claimed as a right to make certain demands - The mode and methodology of making demands in these educational institutions cannot be at par with an industrial establishment, where workmen agitate for their rights. An annual day is always an important day in an educational institution, with active participation of parents. It is of great significance even to the passing out batch of students, and the sensitivity of the parents and children should have been kept in mind while asserting such rights, by the employees. This appears not to have been done. The facts of the present case are covered by the master-servant relationship. There is no adjudication by invocation of a reference to the Industrial Disputes Act, 1947. Thus, the remedy would only be in damages. Quantification of damages - adequacy of compensation to be awarded to the appellants - Held that:- The present case is one where the conduct of the appellants cannot be said to be such that would not result in loss of confidence. The factual matrix in the context of the show cause notice and the replies to it itself clarified the position. However, the issue remains that the respondent-Institution failed in the legal compliance of the second proviso to Section 18 of the said Act and must bear the consequences of the same - The methodology of calculation would be based on the principle of wrongful termination of an employee, under the master-servant relationship. This, in turn, would import into it the requirement of the appellants endeavouring to mitigate their losses. In fact, in this context, we may observe that the claim for back-wages has apparently been raised for the first time only in the present proceedings, arising from the manner in which the High Court dealt with the matter, where it granted some compensation. The principle of awarding adequate compensation in the form of backwages, keeping in mind aggravating and mitigating circumstances would, thus, have to be observed. The amount cannot be measly, nor can it be a bonanza. The High Court, in its wisdom, awarded the compensation of five (5) years’ backwages on the last pay drawn. Not only that, an additional benefit was conferred by providing for provident fund and retiral dues, to be calculated on the premise as if the services would be continued till the appellants attained the age of superannuation. There are no reason to find that such an aforesaid principle can be said to be fallacious or wrong, so as to call for our interference. It would not be appropriate to determine the amount on the basis of the last pay and allowances drawn. The calculation should be based on the actual pay and allowances liable to be drawn for the years in question, dependent on the period for which this amount is to be calculated. The net impact is an all-inclusive compensation of ₹ 25 lakhs, in the case of Kailash Singh and ₹ 18 lakhs in the case of Jeffry Jobard. Needless to say, the amount of ₹ 5 lakhs, already paid to the appellants, in pursuance to the directions of this Court, is liable to be adjusted from the said amounts payable - We are not inclined to grant future salary and allowances to Kailash Singh, merely because he has not been granted reinstatement, with further years of his service still remaining. The appellants are required to vacate the premises within a maximum period of one (1) month of the amount being so paid. Appeal allowed.
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