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2000 Supreme(SC) 583

2000(2) Supreme 316
SUPREME COURT OF INDIA
(From Allahabad High Court)
S. Saghir Ahmad & D.P. Wadhwa, JJ.
U.P. State Road Transport Corporation -Appellant
versus
Subhash Chandra Sharma & Ors. -Respondents
Civil Appeal No. 2128 of 2000
(Arising out of SLP (Civil) No. 1920 of 1999)
Decided on 15-3-2000
Counsel for the Parties :
For the Appellant : Ashok K. Srivastava, Advocate.
For the Respondents : Shrish Kr. Misra, Advocate.

IMPORTANT POINT
In a case of serious charge of misconduct when the punishment of removal from service awarded was not in any way shockingly disproportionate to the nature of the charge found proved against an employee, the discretion exercised by the Labour Court in interfering with the order of removal, held capricious and arbitrary and hence not justified.

Headnote:LABOUR LAW-Industrial Disputes Act, 1947-Section 11-A-Powers of Labour Court to give appropriate relief-Discretionary power to substitute order of discharge or dismissal of a workman into an order of reinstatement-Scope-Respondent, a driver in State Road Transport Corporation-Charge against him that he, in drunken state, along with a Conductor abused Assistant Cashier and threatened to assault him when the Cashier refused to give him money-Labour Court upholding the charge substituted punishment of removal by punishment of stoppage of one wage increment and payment of 50% of back wages-Writ petition-Whether it being a serious charge of misconduct Labour Court was justified in interfering with order of removal when charge against him stood proved-(No)-Discretion exercised by Labour Court was capricious and arbitrary and not justified-It being a serious charge of misconduct, punishment awarded to respondent was not, in any way shockingly disproportionate to the nature of charge found proved against him-High Court failed to exercise its jurisdiction and did not correct erroneous order of Labour Court.

       Held : This Section, as interpreted by this Court, no doubt, vests the Labour Court with discretion to substitute the order of discharge or dismissal of a workman into an order of reinstatement of the workman on such terms and conditions, if any, as it thinks fit or give such other relief to the workman including the award of any lesser punishment in lieu of discharge or dismissal as the circumstances of the case may require. (Para 8)

       The Labour Court, while upholding the third charge against the respondent nevertheless interfered with the order of the appellant removing the respondent from the service. The charge against the respondent was that he, in drunken state, along with a conductor went to the Assistant Cashier in the cash room of the appellant and demanded money from the Assistant Cashier. When the Assistant Cashier refused, the respondent abused him and threatened to assault him. It was certainly a serious charge of misconduct against the respondent. In such circumstances, the Labour Court was not justified in interfering with the order of removal of respondent from the service when the charge against him stood proved. Rather we find that the discretion exercised by the Labour Court in the circumstances of the present case was capricious and arbitrary and certainly not justified. It could not be said that the punishment awarded to the respondent was in any way "shockingly disproportionate" to the nature of the charge found proved against him. In our opinion, the High Court failed to exercise its jurisdiction under Article 226 of the Constitution and did not correct the erroneous order of the Labour Court which, if allowed to stand, would certainly result in miscarriage of justice. (Para 9)

       

JUDGMENT

S. Saghir Ahmad, J.-Leave granted.

2. Respondent No. 1, (hereinafter referred to as Respondent ), who was a driver in the U.P. State Road Transport Corporation (appellant), was charge-sheeted on 16.8.1989 for disciplinary proceedings. Three charges were indicated in the charge-sheet. The first charge related to his habitual absence from duty for the period June, 1988 to May, 1989, regarding which he also did not submit the mileage form. The second charge was that on 19th May, 1989, when he reached Badaun at about 9 P.M. with Bus No. 8680, he informed the Conductor, Dinesh Kumar, that the bus had developed some defects and, therefore, he parked the bus in Badaun workshop. Dinesh Kumar, Conductor, went to sleep in another bus, but when he woke up in the morning he found that the Bus was taken by Respondent to Bareilly, regarding which an information was also given by Dinesh Kumar to the Station Incharge, Badaun. The Bus was also seen coming back from Bareilly. It was noticed that in order to cover up his act of taking the Bus to Bareilly, the Respondent got a remark entered in his duty form by Rampal, Vulcanizer of Badaun Depot, about the defect in the Bus. The third and last charge against the Respondent was that on 24th May, 1980 at about 8.30 P.M., he, along with Shiv Kumar Sharma, Conductor, went to Ramesh Chandra, Assistant Cashier, in the cash room in a drunken state. He demanded money from Ramesh Chandra and when the latter refused, the Respndent abused and threatened to assault him, which was treated as an act of misconduct. The charges were enquired into by Shri S.C. Jain, a retired District Judge, who was appointed as the Enquiry Officer.

3. The Enquiry Officer submitted the Report on 21st September, 1990, in which he found that the charge about habitual absence was not proved against the Respondent. The other charge relating to taking the Bus to Bareilly was also not established, but it was established that he had taken out the Bus unauthorisedly from Badaun workshop to some place without taking the Conductor in the Bus. The third charge of misconduct was found fully established. Thereafter, a show cause notice was issued to the Respondent on 12th August, 1991, and by order dated 31st August, 1991, he was removed from service.

4. On an industrial dispute being raised by Respondent, a reference was made on 31st March, 1993 to the Labour Court for adjudication. The Labour Court, by its award dated 6th December, 1996, came to the conclusion that though the departmental enquiry did not suffer from any infirmity, the punishment of removal was excessive. It consequently set aside the order of removal and substituted the punishment of removal by the punishment of stoppage one wage increment and payment of 50% of the back-wages. The award was challenged by the appellant before the High Court in a writ petition which was dismissed summarily on 27th April, 1998.

5. Learned counsel appearing for the appellant has contended that once it was found by the Labour Court that the departmental enquiry conducted against the Respondent was proper and it did not suffer from any infirmity, it was not open to it to interfere with the quantum of punishment. It is contended that the High Court should have, on that ground, set aside the award and maintained the order of removal passed against the Respondent.

6. Whether it is open to Industrial Tribunal or Labour Court or the High Court to interfere with the quantum of punishment is, no longer, res integra, as the question has been answered by this Court several times in its various decisions. In Union of India & Anr. v. B.C. Chaturvedi1, a 3-Judge Bench of this Court has held that Section 11-A of the Industrial Disputes Act, 1947 confers power on Industrial Tribunal/Labour Court to apply its mind on the question of proportion of punishment or penalty. It was held that this power is also available to High Court under Article 226 of the Constitution, though it was qualified with a limitat










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