Wrongful termination

What and where is any point in it leading to defamation, character assasination, loss of reputation, embrassment etc etc?

Kindly elaborate how embarrasment caused to you?

You might have included the points raised in your post before court.

Has court decided matter of wrongful termination?

I mean our win will prove that we have terminated him rightly and we were unnecessarily dragged in case which resulted in our legal expences. can we request court that the employee pays for our expenses along with penalty.

I do not think there is any provisions under the Industrial Disputes Act to ask for compensation for legal expenses and/ or penalty from the employer in Labour Court.

Just because you have won a case and had to spend legal expenses for conducting the case, does not automatically entitle you to compensation/ damages unless you can prove that the applicant initiated the case against you with malafide intentions.

Since it is a labour matter, I assume that the said matter was referred to the court after failure of settlement by the labour commissioner. The labour commissioner failed to settle the matter only after the labour considering the dispute as an industrial dispute and hence the matter was referred to court. Now when the labour commissioner considered that there was an existing industrial dispute and referred the matter to court, how the applicant was to be blamed, even if the company wins. This is my thinking.

The internal Greivance Redressal System, opportunity of natural hearing  are exhausted before effecting termination and aproaching authority outside establishment.

You are a commercial establishment and can and may engage a counsel/Law Firm specializing in labor/service matters, to advise you.