M.P. STATE ELECTRICITY BOARD vs JARINA BEE

The Supreme Court addressed the issue of entitlement to full back wages upon the setting aside of a dismissal order, specifically in the context of service law. The Court held that while reinstatement is a natural consequence of setting aside a dismissal, the award of full back wages is not automatic and must be justified based on the circumstances of each case. The judgment clarified that the discretion regarding back wages must consider the nature of the allegations and the findings of the lower courts, referencing P.G.I. of Medical Education and Research, Chandigarh v. Raj Kumar (JT 2001(1) SC 336).