Featured image for Supreme Court Judgment dated 12-10-2018 in case of petitioner name Life Insurance Corporation of vs Sri Kalappa M. Sankad (Through
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Life Insurance Corporation vs. Kalappa M. Sankad: Legal Battle Over Wrongful Termination and Back Wages

The case of Life Insurance Corporation of India (LIC) vs. Sri Kalappa M. Sankad is a significant legal dispute concerning employment termination and back wages. The primary issue before the Supreme Court was whether the termination of the employee was legally justified and, following his demise, whether his legal heirs were entitled to receive back wages. This case highlights the principles of wrongful termination, procedural fairness in employment law, and the legal rights of employees.

Kalappa M. Sankad was an employee of LIC, serving as an Apprentice Development Officer since 1988. His services were terminated by an order dated April 10, 2013. Aggrieved by this decision, he filed a departmental appeal, which was dismissed. He subsequently approached the Karnataka High Court, which ruled in his favor, quashing the termination order and directing his reinstatement.

The LIC, dissatisfied with the ruling, filed an intra-court appeal before a Division Bench, which upheld the Single Judge’s decision. Consequently, the LIC escalated the matter to the Supreme Court through a Special Leave Petition.

Background of the Case

Kalappa M. Sankad had been working with LIC since 1988 and had served in multiple branches, including Gulbarga and Bijapur. His termination in 2013 was challenged on the grounds that it was arbitrary and unjust. The Karnataka High Court ruled in favor of Sankad, but before the matter could be fully resolved, he passed away. The case was then pursued by his legal representatives, who sought reinstatement benefits and back wages on his behalf.

Arguments by the Petitioner (LIC)

The LIC, represented by its senior counsel, made the following arguments:

  • The termination was legally justified and followed due process.
  • The High Court erred in reinstating the employee without sufficient cause.
  • Since the employee had passed away, reinstatement was impossible, and the claim for back wages should not be entertained.
  • There was no conclusive proof that Sankad was not employed elsewhere following his termination.

Arguments by the Respondent

The legal representatives of Kalappa M. Sankad, represented by senior counsel R. Basant, countered with the following points:

  • The termination order was unjust and arbitrary.
  • The High Court had rightly quashed the termination order, recognizing the wrongful dismissal.
  • Since the termination was invalid, Sankad was entitled to back wages until his death.
  • The LIC failed to produce any evidence proving that Sankad was gainfully employed after termination.

Supreme Court’s Findings

The Supreme Court upheld the decision of the High Court, stating:

  • “We do not find any good ground to uphold the termination order and set aside the impugned order.”
  • “Since Mr. Kalappa expired during the pendency of the litigation, the question of reinstatement does not arise.”
  • “The only surviving question is the payment of back wages to the legal representatives.”

After reviewing the arguments and calculations, the Supreme Court ruled that the legal representatives of Kalappa M. Sankad were entitled to back wages amounting to Rs. 20,57,107.18, after deductions of Rs. 12,59,313.18 for provident fund, income tax, and loan recoveries.

Key Takeaways from the Judgment

  • Employment Termination: The Court emphasized that an employer must have solid legal grounds for termination; otherwise, the order can be quashed.
  • Back Wages: When an employee is wrongfully terminated, they (or their legal heirs) may be entitled to back wages.
  • Burden of Proof: The employer must prove that the terminated employee was gainfully employed elsewhere.

Impact on Employment Law

This ruling serves as a precedent in employment law, particularly in cases involving wrongful termination and posthumous claims for wages. The Supreme Court reinforced the principles of fairness in employment termination and the responsibility of employers to follow due process.

The case aligns with previous Supreme Court rulings, such as State of Kerala vs. M. Bhaskar Pillai and Sulochana Chandrakant Galande vs. Pune Municipal Transport, which establish that wrongful termination can lead to back wage compensation.

This judgment ensures that employees are protected from arbitrary dismissals and that legal heirs can pursue justice on behalf of deceased employees.


Petitioner Name: Life Insurance Corporation of India.
Respondent Name: Sri Kalappa M. Sankad (Through Legal Representatives).
Judgment By: Justice Abhay Manohar Sapre, Justice Indu Malhotra.
Place Of Incident: Karnataka.
Judgment Date: 12-10-2018.

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