M.P. State Electricity Board vs Smt. Jarina Bee

The Supreme Court addressed the issue of entitlement to full back wages upon the setting aside of a dismissal order, referencing the principles of natural justice and the discretionary nature of back wages under labour law. The Court held that while reinstatement is a natural consequence of an unlawful dismissal, the award of full back wages is not automatic and must be determined based on the facts of each case, as established in P.G.I. of Medical Education and Research, Chandigarh v. Raj Kumar. The appeal by the Madhya Pradesh State Electricity Board was allowed, emphasizing that the High Court erred in its conclusion regarding automatic entitlement to full back wages.