M-S. TATA ENGINEERING AND LOCOMOTIVE COMPANY LIMITED v. N.K. SINGH

Citation: [2006] SUPP. 8 S.C.R. 755

Court: Supreme Court of India

Bench: ARIJIT PASAYAT, S.H. KAPADIA

Case summary

M-S. TATA ENGINEERING AND LOCOMOTIVE COMPANY LIMITED v. N.K. SINGH.pdf

Judgment text

MIS. TATA ENGINEERING AND LOCOMOTIVE COMPANY LIMITED v. N. K. SINGH . NOVEMBER 8, 2006 [ARIJITPASAYAT ANDS. H. KAPADIA,JJ.

] Labour Laws: Industrial Disputes Act, I947: Workman-Allegation of misconduct and assault against-FIR- Domestic inquiry-Dismissedfrom service-Dispute-Labour Court held that though the charge of misconduct levelled against the workman established but order of his dismissal from service was disproportionate to the charge proved-It directed reinstatement ofthe workman with payment ofhalfofthe back wages-Challenge to--Modifying the Award, Single Judge of High Court directing payment of half of the back wages from the date of the award-Letters Patent Appeal dismissed by the High Court-On appeal, Held: Misconduct as alleged was ofvery grave nature-Labour Court found inquiry to be fair and proper-Both the Courts below have not found the misconduct of any minor nature-Finding on facts establishing the charge ofmisconduct not disturbed by the Labour Court-Under the circumstances, leniency shown by the Labour Court directing reinstatement ofthe delinquent - would in fact encourage indiscipline and also not supported by reason, hence, unwarranted-Order of dismissal from service as passed in the disciplinary proceedings stand restored-Penal Code, 1860; Section 307 rlw Section 34 ·and Section 311.

The respondent-workman, working as Assistant Store Keeper, was in unauthorized occupation ofquarter belonging to the appellant-company. A suit for eviction filed by the appellant-company was decreed in its favour. When the Town Warden went to execute the decree along with Nazir ofCivil Court, he was allegedly assaulted ~y the respondent. First Information Report was also lodged with the Police against the respondent alleging commission of offences punishable under Sections 311and307 read with Section 34 of the Indian Penal Code, 1860. In the domestic inquiry the respondent was found guilty of misconduct and was dismissed from service. A dispute was raised by 755 II the respondent and reference was made by the State Government under Section lO(l)(c) of the Industrial Disputes Act, 1947. In the meantime, the respondent was acquitted in the criminal case on the ground of lack of evidence.

The Labour Court held that the domestic inquiry was fair, proper and in accordance with the principles of natural justice. An award was passed by the Labour - Court holding that though the charge of misconduct levelled against the respondent was established, the order of dismissal was disproportionate to the charge proved. Hence, it directed reinstatement of the workman with payment of half of the back wages. Appellant-company filed a writ petition before the High Court. The Single Judge partly allowed the petition directing that half of the back wages was to be paid from the date of award. Letters Patent Appeal filed by the Company was dismissed by the High Court. Hence the present appeal.

The appellant contended that the High Court has fallen into grave error by setting aside the order of dismissal and directing reinstatement of the Workmen and payment of 50% back wages; that the respondent was guilty of misconduct; that the Labour Court having found that the domestic inquiry was fair, proper and in accordance with the principles of natural justice should not have interfered with the order ofdismissal; and that the High Court clearly missed to notice that the charges were serious in nature. Allowing the appeal, the Court HELD:l. 1. The Labour Court has found the inquiry to be fair and proper. The conduct highlighted by the management and established in inquiry was certainly of very grave nature. The Labour Court and the High Court have not found that misconduct was of any minor nature. On the contrary, the finding on facts that the acts complained of were established has not been disturbed.

That being so, the leniency shown by the Labour Court is clearly unwarranted and would in fact encourage indiscipline. Without indicating any reason as to why it was felt that the punishment was disproportionate, the Labour Court should not have passed the order in the manner done. (759-D-E) 1. 2. The case of another workman as taken into consideration by the Court was not on the similar footing as the incumbent in that case was one of the persons instigating whereas the respondent in the present case was the person who committed the acts. Therefore, the orders of the Labour Court as affirmed by the High Court cannot be sustained and are set aside. The order of dismissal from service in the disciplinary proceedings stands restored. ~~ CIVIL APPELLATE JURISDICTION : Civil Appeal No. 685 of2006. From the final Judgment and Order dated 22. 9. 2004 of the High Court of Jharkhand at Ranchi in Letters Patent Appeal No. 232/2004.

Sanjeev Sen, Nandini Gore, Praga Singh, Jayant Mohan and Manik Karanjawala for the Appellant. A. N. Deo, A. Janani and T. V. George for the Respondent. The Judgment of the Court was delivered by ARIJIT PASAYAT, J. Appellant calls in question legality ofthe judgment rendered by a Division Bench of the Jharkhand High Court dismissing Letters Patent Appeal filed by the appellant. Background facts as projected by appellant in a nutshell are as follows: The respondent who was working as Assistant Store Keeper, was in unauthorized occupation of quarter belonging to the appellant-company. A suit for vacation was filed by the appellant •vhich was decreed in his favour. When the Town Warden (Sri A. K. Banerjee) went to execute the decree along with Nazir of Civil Court he was assaulted by fists and bricks. Shri A. K. Banerjee, suffered serious injuries. In the domestic inquiry the respondent was found guilty ofmisconduct and was dismissed from service. With reference to alleged incident on 17.

10. 1984, First Information Report was lodged alleging commission of offences punishable under Sections 311 and 307 read with Section 34 ofthe Indian Penal Code, 1860 (in short the 'IPC'). Allegation was that the respondent as well as others on his instigation assaulted Shri A. K. Banerjee and he was also threatened with dire consequences. On 23. 10. 1984 charge sheet-cum-notice of inquiry was issued and served on the respondent under the Works Standing Orders ofthe appellant, particularly under Standing Order 24, sub Clauses (xvi) and (xxxii) asking him to show cause to furnish his explanation and appear at the inquiry. Said Sub-clauses of Clause 24 read as under: "Without prejudice in the general meaning ofthe 'misconduct' ....... (xvi) Drunkernns fighting or riotous or disorderly or indecent behaviour or any acts subversive of discipline or efficiency' (xxxii) Threatening or intimidating any employees". The respondent submitted his explanation on 27 . 10. 1984.

After considering the explanation to be unsatisfactory, domestic inquiry was held and at the conclusion of the domestic inquiry, Inquiry Officer submitted a report holding the respondent to be guilty of misconduct. After perusal of the report and inquiry proceedings, the General Manager ofthe appellant-company ordered dismissal of the respondent from service of the company w. e. f. 25. 10. 1984 i. e. the date of issue of charge-sheet in terms of Standing Orders. A dispute as raised by the respondent and reference was made by the State Government under Section lO(l)(C) of the Industrial Disputes Act, 1947 (in short the 'Act'). The terms of reference were as follows: "Whether the termination of services of Shri. N. K. Singh ticket No. 9956/08843/l workman of Tata Engineering of Locomotive Company ·Ltd. , Jameshedpur is justified? If not, whether he is entitled to reinstatement and for any reliefs?

" That on the notice in the reference case, the petitioner and respondent workman submitted their respective claims. In th. e meanwhile, the application was filed by the petitioner to decide the validity of the domestic enquiry as preliminary issue. " The appellant and the respondent submitted their respective claim. An application was filed by the appellant to decide the preliminary issue as to the validity ofthe domestic inquiry. On 6. 3. 1987 the respondent was acquitted in the criminal case on the ground of Jack of evidence. By order dated 17. 6. 1995 the Labor Court decided the validity of the domestic inquiry conducted and held that same was fair, proper and in accordance with the pr-inciples of natural justice. By order dated 5. 1. 1996 award was passed by the Labor Court setting aside the order of dismissal and directing respondent's reinstatement with full back wages.

Though it was held that the charge ofmisconduct levelled against the respondent was established, the order of dismissal was disproportionate to the charge proved. Therefore, reinstatement with payment ofhalf of the back wages was directed. Appellant filed a writ petition before the High' Court. Learned Single Judge partially allowed the writ petition directing that half of the back wages was to be paid from the date of award. As noted supra, Letters Patent Appeal was dismissed. It was noted that one R. P. Singh who stood on identical footing was directed . to be reinstated with half back wages. In support of the appeal learned counsel for the appellant submitted that the High Court has fallen into grave error by setting aside the order of dismissal and directing reinstatement and payment of 50% back wages. R. P. Singh 's case is distinguishable on facts. The facts on record clearly_ show that the respondent was guilty of misconduct.

The Labour Court having found that the domestic inquiry was fair, proper and in accordance with the principles of natural justice should not have interfered with the order of dismissal. The High court clearly missed to notice that the charges were serious in nature. Learned counsel for the respondent on the other hand submitted that the High Court has taken a practical and reasonable view and the order of dismissal was clearly disproportionate to the alleged misconduct. We find that the Labour Court has found the inquiry to be fair and proper. The conduct highlighted by the management and established in inquiry was certainly of very grave nature. The Labor Court and the High Court have not found that misconduct was of any minor nature. On the contrary, the •. , finding on facts that the acts complained of were established has not been disturbed. That being so, the leniency shown by the Labour Court is clearly unwarranted and would in fact encourage indiscipline.

Without indicating any reason as to why it was felt that the punishment was disproportionate, the Labor Court should not have passed the order in the manner done. The case of R. P. Singh was not on a similar footing. He was one of the persons instigating whereas the respondent was the person who committed the acts. Therefore, the orders of the Labour Court as affirmed by the High Court cannot be sustained and are set aside. The order of dismissal from service in the disciplinary proceedings stand restored. The appeal is allowed with no order as to costs. S. K. S. Appeal allowed.