The Supreme Court establishes grant of lump sum compensation instead of reinstatement with back wages, where it is more suitable given the circumstances 

The appellant i.e. the employer had terminated the services of a workman who was employed as a driver of a bus, due to a fatal accident occurred while he was behind the wheels. The termination was challenged before the Labour Court but relief was denied to the workman, upon appeal the High Court denied interference to the order of Labour Court. Thereafter, the case was taken up in the Motor Accidents Claims Tribunal, wherein it was categorically held that the accident was due to the negligence of lorry driver who was coming from the other side charging towards the workman’s bus. Based on the set of facts, the Supreme Court granted the workman back wages with full terminal benefits and interest. Further, the Supreme Court in this Civil Appeal No. 13834 of 2024 observed that the courts may be confronted with cases where grant of lumpsum compensation, instead of reinstatement with back wages, could be the more appropriate remedy. The courts may, in such cases, providing justification for its approach direct such lumpsum compensation to be paid keeping in mind the interest of the employee as well as the employer.