VASHRAMBHAI DHANABHAI VEGAD vs STATE OF GUJARAT .

The Supreme Court held that while the High Court's decision to award a lumpsum compensation of Rs.50,000 was inadequate, reinstatement was not the appropriate remedy. The Court increased the compensation to Rs.5,00,000, considering the appellant's twenty years of intermittent service. The judgment emphasized that this decision should not be treated as a precedent, and the compensation must be paid within two months, failing which interest at 12% per annum would apply.