Prem Narain vs M/S Swadeshi Cotton Mills, Juhi & Anr

The Supreme Court held that the High Court erred in setting aside the Labour Court's award of reinstatement, as the Management did not challenge the reinstatement but only sought to limit backwages. The Court directed that the appellant is entitled to 50% backwages from the date of termination until the date of superannuation, and deemed him to have continued in service until superannuation on 01.07.1997. The Court mandated that all eligible benefits be computed and paid within three months, with interest on any default.