SUPREME COURT OF INDIA
16th March, 1961
P.B. GAJENDRAGADKAR AND K.N. WANCHOO, JJ.
The Imperial Tobacco Company of India Ltd., Appellant
Versus
Its Workmen, Respondents.
Civil Appeal No. 333 of 1960.
Advocates appeared
Mr. C. K Daphtary, Solicitor-General of India (M/s. J. B. Dadachanji, S. N. Andley and Rameshwar Nath Advocates of M/s. Rajinder Narain & Co. with him), for Appellant; Mr. H. N. Sanyal, Addl. Solicitor-General of India (Mr. P. K. Chatterjee, Advocate, with him), for Respondents.
INDUSTRIAL DISPUTES ACT, 1947 - S. 10 - Dismissal of workman - Inquiry - Procedure not followed - Order of dismissal invalid - Reinstatement with back wages.
Fact of the Case:
Akhileshwar Prasad, an employee of the appellant, was dismissed from service for alleged misconduct. The inquiry into the charges against him was not conducted in accordance with the procedure prescribed by the Standing Orders of the appellant.
Finding of the Court:
The labor court held that the inquiry was not conducted in the manner required by the Standing Orders and therefore the order of dismissal was invalid. It also held that the appellant had not justified the order of dismissal before it and ordered the reinstatement of Akhileshwar Prasad with 50% of his wages for the period of his absence from duty.
Issues: Whether the inquiry into the charges against Akhileshwar Prasad was conducted in accordance with the procedure prescribed by the Standing Orders of the appellant.
Ratio Decidendi: The inquiry was not conducted in the manner required by the Standing Orders of the appellant. Even though Akhileshwar Prasad had withdrawn from the inquiry, the inquiry should have been completed and all evidence should have been taken ex parte. Thereafter, the branch manager should have appraised the evidence, recorded his conclusions, and the punishment he intended to inflict, and should have called upon Akhileshwar Prasad to say what he wanted to say against the intended punishment.
Final Decision: The appeal was dismissed with costs.
Judgment
WANCHOO, J. : This appeal by special leave arises out of a dispute between the appellant and its workmen with respect to the dismissal of one Akhileshwar Prasad, Akhileshwar Prasad was responsible for the maintenance of leave registers. In December, 1957 he was charged with regard to his willfully omitting to make entries in respect of the annual leave, sick leave and casual leave taken by him during the period from January 1, 1957 to September 28, 1957. He was also charged with altering and overwriting without the appellant s knowledge entries relating to 1957 leave and leave carried forward from the previous year 1956 in respect of certain other employees, thereby intentionally causing wrongful gain to himself and to other clerks. The last charge was with respect to his neglecting the duty of keeping in safe custody the leave register for 1956 which was missing. Akhileshwar Prasad denied his responsibility with respect to these charges and consequently an inquiry was made against him.
2. Under the Standing orders of the appellant an elaborate procedure is provided for inquiries into charges of misconduct like the present. The charge has to be read out to the employee & all witnesses in support of the charge are to be examined in his presence unless he deliberately absents himself, in which case a note to that effect has to be recorded. The employee charged is allowed to cross-examine the witnesses if he declines to do so a note to that effect has to be recorded. The employee has liberty to produce such wit-nessesas he wishes, unless he refuses to do so, in which case a note to that effect has to be recorded. After the evidence is over, the branch manager has to make a brief appraisal of the evidence recorded and has to record his conclusion, and the punishment if any intended to be imposed by him in writing. In doing so he has to take into consideration the service record of the employee concerned and has to record what such employee has to say against the intended punishment. He then passes the order of punishment in writing recording the misconduct proved and the punishment imposed in the service record of the employee concerned.
3. The main contention on behalf of the respondents was that the procedure prescribed for an inquiry was not followed and therefore the dismissal of Akhileshwar Prasad was invalid. It appears from the record of the inquiry proceeding that after two witnesses were examined on behalf of the appellant there was a dispute as to the cross-examination of the second witness. In consequence of this Akhileshwar Prasad declined to cross-examine the second witness further and withdrew from the inquiry. Thereafter it seems that the inquiry was closed and the branch manager passed the following order against Akhileshwar Prasad.:-
"Akhileshwar Prasad dismissed from service under Branch Standing Order 17 (d) with effect from November 27, 1957. This decision has been communicated to him by letter No. P/64/88 dated December 11, 1957."
A reference was made to the labour court by the Government of Bihar on February 25, 1958, asking it to decide whether the dismissal of Shri Akhileshwar Prasad was justified and if not, whether he was entitled to reinstatement or any other relief, the labour court held that Akhileshwar Prasad was incharge of the have register. It also held that the inquiry was not carried out as required by the Rules and therefore the order of dismissal was invalid. It then went into the question whether the appellant had justified the order of dismissal before it & came to the conclusion that though there was some negligence on the part of Akhileshwar Prasad, it was not such as to bring, the case within Standing Order 16(d), (k) or (1) with which he was charged. However it held that as the omissions were also in respect of Akhileshwar Prasad s own leave account of which he should have been more particular, it ordered his reinstatement with only 50 per cent, of his wages for the period of his ab
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