M.D., U.P. Shram Evam Nirman Sahkari S. ... vs Dev Prakash Tewari & Ors

The Supreme Court held that the High Court's order directing payment of full back wages and reinstatement after setting aside the dismissal of an employee was not in accordance with the law established in Managing Director, ECIL, Hyderabad vs. B Karunakar (1993 (4) SCC 727). The Court clarified that in cases of reinstatement for a fresh inquiry, the employee is entitled only to subsistence allowance during the inquiry, and back wages can only be awarded based on the outcome of that inquiry. Consequently, the Supreme Court set aside the High Court's order regarding back wages and allowed the appeal.