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1963 Supreme(SC) 154

SUPREME COURT OF INDIA
2nd May, 1963
P.B. GAJENDRAGADKAR, K.N. WANCHOO AND K.C. DAS GUPTA, JJ.
M/s. Khardah and Co. Ltd. Appellant
Versus
The Workmen, Respondents.
Civil Appeal No. 705 of 1962.
Advocates appeared
Mr. H. N. Sanyal, Solicitor-General of India (Mr. P. K. Chatterjee, Advocate, with him), for Appellant; M/s. D. L. Sen Gupta and Janardhan Sharma, Advocates, for Respondents.

Advocates:
D.L.SEN GUPTA, H.N.SANYAL, JANARDAN SHARMA, P.K.CHATTERJI

In industrial disputes, domestic enquiries conducted by employers must be fair and just, and the principles of natural justice must be observed. The Industrial Tribunal has the jurisdiction to consider the merits of the dispute and reach its own conclusion, even if a domestic enquiry has been conducted by the employer.

Headnote:

INDUSTRIAL DISPUTE - UNJUSTIFIED DISMISSAL - REINSTATEMENT - FAIRNESS OF DOMESTIC ENQUIRY - PRINCIPLES OF NATURAL JUSTICE - BURDEN OF PROOF - INDUSTRIAL TRIBUNAL'S JURISDICTION.

Fact of the Case:

The appellant, Khardah Co. Ltd., dismissed its employee, Samiran Jadav, alleging misconduct. The respondents, Jadav's union, claimed the dismissal was mala fide and unjustified, motivated by Jadav's trade union activities. The Industrial Tribunal found the dismissal unjustified and ordered reinstatement.

Finding of the Court:

The Supreme Court held that the domestic enquiry conducted by the appellant was unfair and did not adhere to the principles of natural justice. The failure of the enquiry officer to record findings after the enquiry constituted a serious infirmity. The Tribunal was justified in not attaching importance to the enquiry and considering the merits of the dispute on the evidence before it.

Issues: 1. Whether the domestic enquiry conducted by the appellant was fair and in accordance with the principles of natural justice? 2. Whether the Industrial Tribunal erred in not attaching importance to the domestic enquiry and considering the merits of the dispute on the evidence before it?

Ratio Decidendi: 1. A domestic enquiry conducted by an employer against an employee must be fair and just, and the principles of natural justice must be observed. This includes recording evidence in the presence of the employee, allowing the employee to cross-examine witnesses, and providing the employee with a copy of the evidence against him. 2. The Industrial Tribunal has the jurisdiction to consider the merits of an industrial dispute and reach its own conclusion, even if a domestic enquiry has been conducted by the employer. The Tribunal can disregard the findings of the domestic enquiry if it finds that the enquiry was unfair or that the employer's conduct was mala fide or vindictive.

Final Decision: The Supreme Court dismissed the appeal, holding that the Industrial Tribunal was justified in finding the dismissal of Jadav unjustified and ordering his reinstatement.

Judgment

GAJENDRAGADKAR, J.: This appeal arises out of an industrial dispute between the appellant, Khardah Co. Ltd., and the respondents, its workmen. The dispute was in regard to the dismissal of the appellant s employee, Samiran Jadav. The respondents alleged that the said dismissal was unjustified, whereas, according to the appellant, the said employee had been properly and validly dismissed. The dispute which was referred to the 4th Industrial Tribunal, West Bengal, for its adjudication was whether the said dismissal was justified, and to what relief, if any, was the workman entitled? The Tribunal has held that the dismissal was unjustified and so it has directed the appellant to reinstate the said employee to his old post within a month from the date of the publication of the award. It has also ordered that the period starting from the date of the dismissal till the date of reinstatement should be treated as leave without pay and as such, should be counted towards the length of service. It is against this award that the appellant has come to this Court by special leave.

2. The respondent s case was that Jadav had been dismissed by the appellant mala fide with the motive of victimising him for his trade union activities. Jadav was the Organising Secretary of the Union and since he supported the Union s demands very strongly, the appellant wanted to get rid of him. It appears that Jadav had been working as a Weaver for some years past. He was confirmed in service with effect from April 12, 1954. On September 19, 1960, he went on a week s leave. When he returned on September 26, 1960, he was asked to work on the machine producing twill, though , normally, he was assigned work on a plain machine. Jadav was not accustomed to work on the complicated machine which produces twill and so, he requested the management that he should be asked to do his usual work on a plain machine. This request was, however, turned down. Being unaccustomed to work on the machine producing twill, Jadav met with an accident on September 27, 1960; and was granted medical leave for a week ending on Saturday October 1, 1960. On October 3, 1960, when he resumed duty, he again requested the management that he should be permitted to work on the plain machine, but when his request was turned down, he told the management that he would work on the twill machine in the second shift which starts from 1 P. M. On that day another employee Mahboob, who was ailing and had been on leave, asked for further leave which was refused and he fell unconscious while he was going to operate his machine. As a result. 700 weavers of the appellant stopped work and the weaving section could not resume work at 1 P. M. The management then declared a lock-out on October 5, 1960 which continued until October 29, 1960.

3. On October 3, 1960, the management served a charge-sheet on Jadav in which it was alleged that Jadav had wilfully disobeyed the lawful and reasonable order of his superior and had acted in a manner subversive of discipline. The case against him was that he had moved from one place to another in the Weaving Department and incited workers of the said department to go on strike. The management alleged that by his conduct, Jadav had committed misconduct under R. 14(c) (I) and (viii) of the Standing Orders. Jadav was called upon to offer his explanation within 24 hours after receipt of the charge-sheet.

4. After Jadav gave his explanation, an enquiry was heard. At the initial stages of the enquiry. Jadav appeared, but, later, he did not take part in the proceedings. The appellant contends that Jadav deliberately refrained from taking part in the proceedings, whereas according to the respondents, the enquiry was conducted unfairly, and so, it became impossible for Jadav to participate in it. This enquiry was conducted by the Manager himself. After the enquiry was over, the Manager decided that Jadav was guilty of the charge, and so, dismissed him on November 21, 1960. The res













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