The Madhya Pradesh High Court has ruled that an employee who was compulsorily retired in violation of rules and later reinstated must receive full wages and benefits for the period he was out of service.
The division bench dismissed an appeal by the Bank of India (BOI) challenging an earlier ruling by a single-judge bench. The earlier order had directed the bank to compensate the employee for the years he was unemployed due to wrongful retirement.
Narmada Prasad Chaudhary joined BOI in July 1974. In January 2002, the bank prematurely retired him from service. He challenged the decision in the High Court, which ruled in his favour. The bank then appealed to the Supreme Court, but the apex court upheld the High Court’s decision. Chaudhary was reinstated in September 2009.
Despite his reinstatement, the bank did not consider the period of wrongful retirement when calculating his post-retirement benefits. His salary and other entitlements for over seven years were not accounted for.
Chaudhary took the matter back to the high court. The single-judge bench ruled in his favour, directing the bank to compensate him. The bank management then appealed against this order.
The division bench, led by Chief Justice SK Kait and Justice Vivek Jain, upheld the ruling. The court ordered the bank to pay Chaudhary his wages, fitment promotion, and all other benefits for the period he was out of service. Additionally, the bank must pay eight per cent interest on the dues.
Chaudhary argued his case without legal representation. The ruling reinforces employee rights in cases of wrongful retirement and ensures that reinstated employees receive complete compensation.
