The Supreme Court of India has enhanced the compensation payable to Kallu Khan, a contractual daily wager from Rajasthan, from ₹5 lakh to ₹7.5 lakh, citing the exceptional duration of his legal battle that stretched nearly 28 years since 10 September 1998. The order was passed on 9 October 2026 by a Bench comprising Justice Ujjal Bhuyan and Justice Atul S. Chandurkar while disposing of Khan's appeal against the Rajasthan High Court's refusal to review its earlier ruling.

Background of the Case

Kallu Khan had worked as a contractual daily wager from 19 November 1990 to 1 September 1998, after which his services were terminated. He challenged the termination under Section 2A(2) of the Industrial Disputes Act, 1947. The Labour Court, in an award dated 18 February 2020, directed his reinstatement with full backwages and continuity of service.

The Rajasthan High Court's Single Judge Bench, acting on a writ petition filed by the District Education Officer, partly modified the award on 5 March 2021, maintaining reinstatement but reducing backwages from 100% to 50%. The Division Bench subsequently went further on 4 August 2025, replacing reinstatement altogether with a lump-sum compensation of ₹5 lakh.

Khan's Repeated Challenges and the Apex Court's Stance

Khan filed a Special Leave Petition (SLP) before the Supreme Court, which on 12 December 2025 declined to interfere with the High Court's order under Article 136 of the Constitution, though it granted him liberty to pursue other available remedies. He then sought a review of the High Court's order, which the Division Bench rejected on 11 February 2026, prompting him to return to the apex court.

In the present proceedings, the Supreme Court made clear that the correctness of the 4 August 2025 order substituting reinstatement with monetary compensation could not be re-examined. '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 also found that the High Court's rejection of the review petition did not warrant interference.

Why the Court Enhanced the Compensation

Despite declining to revisit the reinstatement question, the Bench found merit in enhancing the monetary award. It noted that Khan had been pursuing legal remedies since 10 September 1998, that proceedings culminated in the order of 4 August 2025, and that had he been reinstated, he would have served for an additional three years. The court concluded that an award of ₹7,50,000 'would serve the ends of justice.'

The Supreme Court directed the enhanced amount to be paid to Khan within one month. Notably, the respondent District Education Officer did not contest the appeal and was set ex parte on 24 September 2026.

Court's Non-Precedent Caveat

The apex court was emphatic that its decision was confined to the specific facts of this case. '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 Bench stated. The clarification signals that while equitable relief was warranted here, the ruling cannot be invoked by similarly situated workers to seek automatic enhancement of lump-sum compensation orders.

The case underscores the prolonged timelines that contractual workers in India often face when contesting service terminations — Khan's legal journey spanned nearly three decades across the Labour Court, the Rajasthan High Court, and the Supreme Court.