Here's the scoop: The court decided that the State Express Transport Corporation doesn't have to pay extra interest on back wages to an employee, S. Panneer Selvam. The case went through several rounds, but the final word is out!
Back in 1994, S. Panneer Selvam was fired from his job. He fought this in the Labour Court, which ordered his return to work and 50% of his back pay in 2003. This was later reduced to 20% by the High Court.
The main issue was about interest. The Labour Court ordered the company to pay back wages with 9% interest if they delayed. The company argued that the original decision didn't mention interest, so they shouldn't have to pay it.
The court decided that the interest was only a penalty for late payment, not part of the original back pay. So, it was okay for the Labour Court to add it.
The court dismissed the company's appeal, confirming that they must pay the back wages with the 9% interest if they delay beyond the set time.
S. Panneer Selvam can now apply to withdraw the deposited amount. The company has four weeks to pay up, including interest from July 2016 till the payment date.
