Authority: Supreme Court of India, Civil Appellate Jurisdiction
Order Date: 07 September 2026
Case Overview
- Civil Appeal No(s). 2026, arising out of SLP (Civil) No(s). 25861 of 2026, filed by Steel Authority of India Limited (appellant) against Bithika Choudhury and others (respondents), the legal heirs of the late Aloke Kumar Choudhury.
- The deceased employee was terminated by a departmental inquiry order dated 10 May 2008, which was affirmed by an appellate order on 17 June 2008.
- The employee filed Writ Petition No. 17735(W) of 2008 before the Calcutta High Court; the petition was transferred to the Central Administrative Tribunal (CAT), Kolkata Bench, and renumbered as Transferred Application No. 3 of 2013.
- CAT, by its order dated 8 September 2025, found procedural infirmities in the departmental enquiry, set aside the termination order of 10 May 2008 and the appellate affirmation of 17 June 2008, and held that a fresh enquiry would be futile as the employee had died. The Tribunal awarded the dependents retiral benefits but excluded salary for the period the employee was out of employment.
- The dependents challenged the exclusion of back wages before the Calcutta High Court via Writ Petition (Central Administrative Tribunal) No. 231 of 2025, limited to the issue of entitlement to back wages.
- The High Court, by judgment and order dated 2 December 2025, allowed the petition, holding that denial of back wages was unjustified and directing that the dependents receive back wages from the date of termination up to the employee’s death on 21 October 2018.
- SAIL filed the present appeal by special leave, contesting the High Court’s direction for payment of back wages.
- The Supreme Court, by order dated 24 July 2026, issued notice limited to the question of back wages for the period from the employee’s retirement (31 July 2012) to his death (21 October 2018) and stayed the disbursal of the amount.
- Notice was served on the respondents, who did not appear before the Court.
- Arguments were advanced by Mr. Anand Varma, learned counsel for SAIL.
Final Outcome
- The Court held that the High Court erred in directing back wages up to the date of death because the employee had attained superannuation on 31 July 2012; entitlement cannot extend beyond that date.
- The Court directed that the dependents’ entitlement to back wages and consequential monetary benefits be restricted to the period up to 31 July 2012.
- The High Court’s judgment and order dated 2 December 2025 is modified to the above extent.
- The appeal is partly allowed in these terms.
- Any pending applications, if any, stand disposed of.
Topics: Employment Law, Back Wages, Supreme Court Judgment