New Delhi, Oct 9 — The Supreme Court has enhanced compensation awarded to a Rajasthan contractual daily wager whose reinstatement in service was denied, increasing the amount from Rs 5 lakh to Rs 7.5 lakh in view of his prolonged legal battle over the termination of his services.
A Bench of Justices Ujjal Bhuyan and Atul S. Chandurkar passed the order while disposing of an appeal filed by Kallu Khan challenging the Rajasthan High Court’s refusal to review its earlier decision substituting his reinstatement and 50 per cent backwages with a lump sum monetary compensation of Rs 5 lakh.
The top court clarified that the enhancement was being granted in view of the peculiar facts of the case and should not be treated as a precedent.
"Coupled with the fact that the appellant was pursuing his remedies since 10.09.1998 which culminated into the order dated 04.08.2025 and that, if reinstated, the appellant would have served for a period of three more years, we are of the view that award of monetary compensation of ₹7,50,000 would serve the ends of justice," the Justice Bhuyan-led Bench said.
The Supreme Court directed that the enhanced compensation be paid to the appellant within one month.
The case arose from the termination of Khan's services as a contractual daily wager, which he challenged under Section 2A(2) of the Industrial Disputes Act, 1947.
He had worked from November 19, 1990, to September 1, 1998, before approaching the appropriate forum to challenge the termination.
The Labour Court, through its award passed on February 18, 2020, directed his reinstatement with continuity of service, full backwages and other consequential benefits.
However, in a writ petition filed by the District Education Officer, the Rajasthan High Court's Single Judge Bench partly modified the award on March 5, 2021, while maintaining the direction for reinstatement and reducing backwages from 100 per cent to 50 per cent.
Subsequently, the Division Bench of the High Court, by an order dated August 4, 2025, replaced the relief of reinstatement with continuity of service and 50 per cent backwages with a lump-sum monetary compensation of Rs 5 lakh.
Khan challenged the decision before the Supreme Court by filing a Special Leave Petition (SLP). On December 12, 2025, the apex court declined to interfere with the High Court's order under Article 136 of the Constitution, while granting him liberty to pursue appropriate remedies available in law.
He, thereafter, sought a review of the High Court's order. However, the Division Bench rejected his review petition on February 11, 2026, prompting him to approach the Supreme Court again.
In its order, the apex court recorded that the original order substituting reinstatement with monetary compensation had already been unsuccessfully challenged before it and, therefore, its correctness could not be re-examined in the present proceedings.
"It would, therefore, not be permissible for this Court to again re-examine the correctness of the order dated 04.08.2025," the Justice Bhuyan-led Bench said.
It observed that the High Court's order rejecting the review petition did not warrant interference. However, considering the duration of the appellant's service, the period for which he had been pursuing legal remedies and the additional three years he would have served had he been reinstated, it found that an enhancement of compensation was justified.
"We reiterate that this order is passed in the peculiar facts of the present case and same shall not be treated as a precedent," the top court said.
The respondent District Education Officer did not contest the appeal despite service of notice and was set ex parte on September 24, 2026.