JAI BHAGWAN v. THE MANAGEMENT OF THE AMBALA CENTRAL COOPERATIVE BANK LIMITED AND ANOTHER

Citation: [1984] 1 S.C.R. 158

Court: Supreme Court of India

Bench: D.A. DESAI, O. CHINNAPPA REDDY, A. VARADARAJAN

Case summary

t ought to have pursued the reriiedy of appeal· ing to the B'oard of Management against the order -of termination and ·his failure to do so disentitJed him from raising any industrial dispute....

Judgment text

JAIBHAGWAN V. THE MANAGEMENT OF THE AMBALA CENTRAL COOPERATIVE BANK LIMITED. AND ANOTHER 8 September 29, 1983 (D. A. DESAI, 0. CHJNNAPPA REDDY AND A. VARADARAJAN, JJ. J Industrial Dis]iutes Act, 1947-Domestic enquiry-No charge sh1et or show ·cause notice for termination ofservices issued-No indication ofguilt ofemployel! in the report-Services terminated-Enquiry-Whether violates principles of natural justice-Failure to appeal to higher a1Uhority, whether bars tribunal's jurisdiction. There was a complaint from an account holder, of the respondent bank that his accpunt was wrongly debited with a big sum of money even though he had never issued a. cheque for that sum. The appellant, a clerk-cum-cashier, was appareD. tJy suspected to be responsible for tl~e presentation of the cheque. · The bank lodged a complaint with the police but the ippellant. was . eventually, discharged. In the meanwhile. the bank placed him under suspension.

An Cnquiry as to the genuineness of the customer's ·complaint was ordered. The . appellant was advised to be present at the enquiry but no charge-sheet was ever served oflhim. In his rePort. the enquiry officer stated that •'there liea the possibility that the complaint_of the applicant may. be genuine. '' But there was no indication in the report that the appellant had anything to do with the presentation ofthe cheque. Yet, on basis of this report the appellant's services were terminated: Thereafter the appellant raisCd an industriaJ dispute. The Industrial Tribunal, I-ejecting the appellant's contention that principles. of natural justice had not been observed uphClci theorder of termination of his . services. In the workman's appeal to this Court it was contended on behalf of the respondent that the appetlan.

t ought to have pursued the reriiedy of appeal· ing to the B'oard of Management against the order -of termination and ·his failure to do so disentitJed him from raising any industrial dispute. Allowing the appeal, HELD : ,The order terminating the services of the appellant was wholly unsustainabJe. The appellant is entitled to be reinstated with continuity of service from the date of termination of his services. There Was total nenapp! ication of the mind by the Trib. unal. [161 G; 164 D; 162 HJ There was a total breach of the princip1~s of natural justice: the appellant wa~ never asked tq al'.! swer an>' chars;e; there w~s no enquiry a~ainst h~. p:i; no JAi BllAGWAN V. AMBALA COOP. BANK 159 notice was issued to him to show cause why his services should not be terminated and even the order terminating his services fa'iled to mention any reason. The Bank should have led necessary evidence to prove the charge against the appellant.

None of the three witnesses examined ,by the Bank could either prove that the cheque was a forgery or that it had been presented by the appellant. The enquiry was not directed against the 3. ppellant but was held with a view to find out whether there was any truth in the customer's complaint. The enquiry officer did D. qt say that the appellant was guilty or had anything to do with the presentation of the bogus cheque. T! J,e complainant, who would have been the most crucial Witne~s, was not examined. [161 F; H; 162 A; C-El Notwithstanding all this, by a curious process of reasoning the Industrial Tribunal upheld the order of termination, dismissing the appellant's contention that principles of natural justice had not been observed. The Tribunal's observation that strict rules of evidence were not applicable to domestic enquiries and that "not too much legalism was expected in such matters from the enquiry officer" was far from correct.

In short, the Tribunal, without applying its mind to the facts of the case and without bothering to· peruse the records, gave a findings that the termination of his services was justified. The Tribunal's findings ~nd conclusion we're therefore worthless. [162 B-G; H; 163 B-C] Raising an industrial dispute is a well-recognised and legitimate mode of redress available to a workman, which has achieved statutory recognition under the Act and there is no reason why a statute-recognised mode of redress should be d~nied to a workman because of the existence or availability of another remedy. Nor has an industrial tribunal, to whiqh a dispute had been referred for adjudication, the power to refuse to adjudicate upon it and surrender its jurisdiction to some other authority. While the Government may exercise its discretion to iefer or not to refer a dispute for adjudication, once a dispute is referred. to it, the Tribunal has no discretion to decide whether to adjudicate or not.

The Tribunal has to resolve the dispute. The Tribunal cannot avoid it on the ground that the workman bad failed to pursue some [ other remedy. [163 G-H; 164 A-BJ The attempt to connect the order terminating tl). e appellant's services -with his absence from the bank On two days was an attempt made for the first time before this Court. It cannot be allowed to be raised now. The letter dated 17th September, 1974 addreysed to the appellant had nothing to do with ' the presentation of the cheque or withdrawal of money, but related to his absence from duty on two days in August 1974 and bis signature said to have been found in the attendance register on those days. [164 B-C; 163 A-BJ The workman bas awarded half#back wages from the date Of termination of service to the date of judgment and full wages thereafter to the date of reinstatement on the ground that he raised the dispute after a considerable delay witpout doing anything in the meanwhile. [164 EJ CIVIL t\PPELLAW JUR[SDICT!

ON : Civil. Appeal No. 5274 (NL) of 1~83. ' Appeal by Special leave from the Judgment and Order dated the 4th March, 1982 of the Industrial Tribunal Haryai:ta at 'Faridabad in Refererice·No. 79/80 published in Haryana Govt. Gazette dated the 6th June, 1982. AND Civil Appeal No. 5275 _of 1983 · '' Appeal by Special leave from the Judgment and Order dated · the 16th day of August, 1982 of the Punjab and Haryana High ~ Court in Writ Petition No. -3475 of 1983. Ms. Chantler Malhotra & Mrs. Indra Sawhney for the Appellant---· ,. _ in both the Appeals. · K. B. Rohtagi for the Respondent in both the appeals. The Judgiμent of the'Cotirt was delivered by CHINNAPPA REDDY, 'J. Shri Phulel Singh had a savings account with the Naraingarh branch of the Ambala Central Co· operative Bank Limited. A cheque for Rs.

4200 purporting to have been signed by :lhri Phulel Singh, drawn on the Ambala Central Co-operative Bank was presented through the Punjab & Sind Bank Limited, Dhulkot and the proceeds were duly remitted to the fatter .. bank. The account. of Shri Phulel Singh was debited with that amount. Later when Shri Phulel Singh presented his pass book, appropriate entries were made. Shri Phulel Singh objected to the ' entry relating to. th~ debit of Rs. 4200. He ,alleged that he had never issued the cheque for Rs. 4200 said· to have been issued by him. A complaint was also lodged -with the police. The present ·' · appellant, who was clerk·cum·cashier of the Naraingarh Branch of the bank, and who was apparently suspected in connection with the presentation of the' bogus cheque, was interrogated by the police and his statement was also recorded. A First Information Report was registered against him, but the case ended in· discharge.

In the meanwhile, the Managing Committee of the bank placed the appellant under suspension. Shri Hans Raj, an Assistant Manager ii. was appointed to enquire into the matter. in order to ascertain the genuineness of the complaint made by the customer. The appellant was advised to be present at the Naraingarh branch of the ban)I Oll ]Al BHAGWAN v. AMBALA COOP. DANK (Chinnappa Reddy, J. ) 161 July 29, 1974 in connection with the enquiry. No chargesheet was ever issued to the appellant. The statement of the appellant was however re9orded by the enquiry officer on July 29, 1974 along with the statements of several other persons. Th~ enquiry officer subt mitted his report on August 21, 1974. The find;ng of the enquiry officer may be extracted here. It was as follows :... "As a result of enquiry and on the basis of the points given in the report, there lies the possibility that the complaint of the applicant may be genuine.

" The enquiry officer thus indicated that there might be truth in the complaint of the customer that a bogus cheque was presented and his account debited with the amount. There was, however, no indication in the report that the appellant, Jai Bhagwan was guilty or had anything to do with the presentation of the bogus cheque. Thereafter, on January 31, 1975, the appellant was informed that his services. had been terminated ·with immediate effect. No reason Dwas mentioned in the order terminating the services of the appellant. We have no information nor was his learned counsel in a position to tell us as to any immediate steps taken by the appellant to question the order of termination of his services.

But he did ultimately raise an industrial dispute and by an order dated December 15, 1980 the Governor of Haryana referred ·the following dispute for adjudication to the Industrial Tribunal, Haryana at Faridabad : "Whether the termination of services of Shri Jai Bhagwan was jnstified and in order ? If not, to what relief is he entitled ? " Even from the brief narration of facts, it is obvious that there was a total breach of the Principles of natural justice. The appellant was never asked to answer any charges, there was no enqniry ogainst him, no notice was issued to him ·to show cause why his services should not be terminated and even the order terminating his services failed to mention any reason. The order terminating the services of the appellant was wholly unsustainable.

If, therefore, the bank wanted to sustain the order terminating the services of the·appellant, it· was up to the bank t the order of termination of services sought to be sustained on the basis ofthe absence of the workman from the bank on August 13 and 14, 1974. It cannot be done now. · - ·The appellant is, therefore, entitled to be reinstated in service •with ·continuity of Service from the date on which his services were terminated. Having regard to the circumstance ·that the workman raised an Industrial dispute after considerable' delay without doing anything in the meanwhile. to question . the termination of his services, we do. -not think that we will be justified in awarding full back wages. We think that award of half the back wages from the date of termination of service until to day and full wages from this day until reinstatement will meet the ends of justice. The appellant will be entitled to his costs which we quantified at Rs. 5,000. ' P. B. R. Appeal allowed. - '