SUPREME COURT OF INDIA
17th October, 1958
S.J. IMAM, S.K. DAS AND J.L. KAPUR, JJ.
M/s. G. Mckenzie and Co. Ltd., Appellants
Versus
Its Workmen and others, Respondents.
Civil Appeal No. 500 of 1957.
Advocates Appeared
Mr. M. C. Setalvad, Attorney-General for India (M/s. D. N. Mukherjee and B. N. Ghosh, Advocates with him), for Appellants; Mr. Y. Kumar, Advocate, for Respondents (Nos. 2 to 25 and 27 to 48).
INDUSTRIAL DISPUTES ACT, 1947 - S. 33 - INDUSTRIAL TRIBUNAL - POWER TO INTERFERE WITH EMPLOYER'S DECISION - PRINCIPLES - LABOUR APPELLATE TRIBUNAL - POWER TO SIT IN APPEAL AGAINST MANAGERIAL ENQUIRY - SCOPE OF ENQUIRY - NATURAL JUSTICE - NOTICE TO WORKMEN - RES JUDICATA - BASIC ERROR - COMPENSATION.
Fact of the Case:
The appellant company, a jute mill, dismissed 64 workmen for their involvement in an illegal strike and wrongful confinement of the acting Works Manager. The workmen challenged the dismissal, and the matter was referred to the Industrial Tribunal under S. 10 of the Industrial Disputes Act, 1947. The Tribunal upheld the dismissal of 3 workmen and refused permission to dismiss the rest. The Labour Appellate Tribunal set aside the Tribunal's order and reinstated all the workmen. The company appealed to the Supreme Court.
Finding of the Court:
The Supreme Court held that the Labour Appellate Tribunal erred in setting aside the Industrial Tribunal's order. The Tribunal had correctly applied the principles governing the interference of an Industrial Tribunal with the decision of an employer following a managerial enquiry. The Labour Appellate Tribunal had misapprehended the nature of the proceedings and had acted as if it was sitting in appeal against the managerial enquiry. The Court also held that the appellant company had complied with the principles of natural justice in serving notices on the workmen and that there was no basic error in the Tribunal's award.
Issues: 1. Whether the Labour Appellate Tribunal erred in setting aside the Industrial Tribunal's order upholding the dismissal of 3 workmen and refusing permission to dismiss the rest. 2. Whether the appellant company had complied with the principles of natural justice in serving notices on the workmen. 3. Whether there was a basic error in the Tribunal's award.
Ratio Decidendi: 1. The Labour Appellate Tribunal erred in setting aside the Industrial Tribunal's order because it misapprehended the nature of the proceedings and acted as if it was sitting in appeal against the managerial enquiry. The Tribunal had correctly applied the principles governing the interference of an Industrial Tribunal with the decision of an employer following a managerial enquiry. 2. The appellant company had complied with the principles of natural justice in serving notices on the workmen by affixing them on its notice boards both inside and outside the company's premises and by sending Registered Acknowledgment Due notices to all workmen. 3. There was no basic error in the Tribunal's award.
Final Decision: The appeal was allowed, and the decision of the Labour Appellate Tribunal as to all the workmen and the award of the Industrial Tribunal as to workmen Nos. 2 to 24 were set aside. The claim for compensation was also disallowed.
Judgement
J. L. KAPUR, J. : This is an appeal by special leave against the order of the Labour Appellate Tribunal and the question for decision is the dismissal of some workmen. The appellant before us is the employer and the respondents are some of the workmen, 47 in number who might be divided into two sets, the first set Nos. 2 to 24 and second Nos. 25 to 48. Out of the latter No. 26 is dead.
2. The facts leading to the appeal are that on 3rd August 1958, the Government of West Bengal referred under S. 10, Industrial Disputes Act, hereinafter called the Act, to the second Industrial Tribunal, an industrial dispute between the appellant and its workmen. During the pendency of this Reference the workmen acted in a manner subversive of discipline, wilful insubordination and disobedience inasmuch as they surrounded by forming a kind of cordon round E. L. D Cruz, acting Works Manager of the Company, illegally confined him in a small place in the factory premises and kept him so confined between the hours of 9-15 a.m. to 2-15 p.m.., till he was rescued by the police. The cause of this action on the part of the workmen is stated to be a dispute as to the payment of Puja bonus for the year 1953. The same day the workmen went on strike at 9.15 a.m. D Cruz called upon them to resume work but they refused and the appellant-company issued notices at 9-45 a.m., and 10-45 a .m. asking the workmen to resume work immediately. The workmen took no notice of these notices and the appellant company after the arrival of the police declared a lockout. Some of the workmen were then arrested. The appellant company then served charge sheet on the workmen calling upon them to submit their explanations within 24 hours. The workmen gave no explanation. An enquiry was held and the workmen were found guilty of gross misconduct amounting to major misdemeanour which merited dismissal and the company proposed to dismiss them. For that purpose the appellant company on 31st October 1953, made three applications Cal. Nos. 518, 519 and 557 of 1953 to the Tribunal for permission under S. 33 of the Act to dismiss 170 workmen with effect from 6th October 1953. During the course of the proceedings the appellant company withdrew its case against a large number of workmen and the proceedings were ultimately continued against 67 workmen. One of these workmen died and two resigned leaving 64 workmen against whom the proceedings were continued.
3. The workmen in their defence denied the commission of any offence and also denied the receipt of charge sheets. They pleaded that there was no enquiry, that the lockout was illegal and that the appellant had acted in contravention of the principles of natural justice. The three applications were heard together and were disposed of by one order. The Tribunal held that a prima facie case had been made out for granting permission for dismissal of workmen directly involved in the incident ; that the appellant company had acted bona fide and that it was not guilty of discrimination, vindictiveness or arbitrary action. Although, it had started cases against 170 workmen it took back a majority of them on their expressing regret. The Tribunal gave permission for the dismissal of only three workmen Subbas Roy, Madhusudhan Rout and Bimal Kumar Ghose and permission with regard to the rest was refused on the ground that there was reasonable doubt as to their identity and complicity in the incident.
4. On 8th January 1954, the workmen made an application under S. 33A of the Act which was allowed on 2nd July 1954. Three appeals were filed, two by the appellant company against the orders under S. 33 and the other made under S. 33A of the Act. The third appeal was filed by workmen as to the dismissal of three workmen. On 29th March 1955, the appeal of the company with regard to application under S.33 of the Act was dismissed and so was the appeal of the workmen and thus the order as to 3 workmen was upheld. The employers contended that as the st
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