M/S. LAXMI RATTAN COTTON MILLS LTD. vs STATE OF U.P. .

The Supreme Court addressed the principles governing the grant of back wages in the context of employment under the National Textile Corporation, emphasizing that the terms of engagement as trainees did not guarantee permanent employment. The Court held that the respondents, who were initially appointed as trainees and later as clerks, accepted their positions without protest and thus could not claim back wages for the period after the mill's closure under Section 25O of the Industrial Disputes Act, 1947. The appeal was dismissed, affirming the High Court's decision.