M.D.,U.P.S. E. N. SAHKARI S.LTD vs DEV PRAKASH TEWARI .

The Supreme Court held that the High Court's order directing reinstatement and payment of full back wages to the respondent 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 where a dismissal is set aside for violation of natural justice, the employee may only receive subsistence allowance during a fresh inquiry, and back wages cannot be awarded until the inquiry's outcome. Consequently, the Supreme Court set aside the High Court's order regarding back wages and allowed the appeal.