JILA SAHAKARI KENDRIYA BANK MARIYADIT vs JAGDISHCHANDRA .

The Supreme Court upheld the order of reinstatement of the employee under Section 55(2) of the Madhya Pradesh Co-operative Societies Act, 1960, while setting aside the award of back wages. The Court found that although the employee had embezzled funds, the termination was illegal due to the lack of a prior inquiry. The Court clarified that reinstatement does not automatically entitle an employee to back wages if the dismissal was set aside on technical grounds.