HINDUSTAN STEELS LTD., ROURKELA vs A. K. ROY & ORS.

The Supreme Court held that the Industrial Tribunal's discretion in ordering reinstatement instead of compensation must be exercised judicially and in accordance with established principles. The Court found that the Tribunal erred in directing reinstatement without properly assessing whether the circumstances warranted such a decision, as per Article 226 of the Constitution of India. The High Court's refusal to interfere with the Tribunal's order was also deemed incorrect, leading to the conclusion that reinstatement was not justified in this case.