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1963 Supreme(SC) 104

SUPREME COURT OF INDIA
4th April. 1963
K.N. WANCHOO AND K.C. DAS GUPTA, JJ.
M/s. Kesoram Cotton Mills Ltd., Appellant
Versus
Gangadhar and others. Respondents and vice versa.
Civil Appeals Nos. 425 and 426 of 1962.
Advocates appeared
Mr. M. C. Setalvad, Senior Advocate, (Mr. B. P. Maheshwari, Advocate, with him), for Appellant (In C. A. No. 425 of 1962) and Respondents (in C. A. No. 426 of 1962); Mr. Y. Kumar Advocate, for Respondents (In C. A. No. 425 of 1962) and Appellant (In C. A. No. 426 of 1962).

Advocates:
B.P.MAHESHVARI, M.C.SETALVAD, Y.Kumar

The principles of natural justice require that a party should have the opportunity of adducing all relevant evidence on which he relies, that the evidence of the opponent should be taken in his presence, and that he should be given the opportunity of cross-examining the witnesses examined by that party, and that no materials should be relied upon against him without his being given an opportunity of explaining them.

Headnote:

INDUSTRIAL DISPUTE - Suspension of workmen - Termination of employment - Reinstatement - Compensation - Interpretation of agreement - Principles of natural justice - Dismissal of workmen - Wages during suspension.

Fact of the Case:

The dispute arose between the appellant and the respondents with respect to two matters, which were referred to the tribunal for adjudication by the Government of West Bengal. The first term of reference related to the suspended workmen, while the second term of reference related to the termination of employment of certain workmen.

Finding of the Court:

The tribunal ordered reinstatement of certain workmen with compensation for the period of suspension, while it permitted the dismissal of certain other workmen. The appellant challenged the order of reinstatement, while the respondents challenged the order of dismissal.

Issues: 1. Whether the tribunal was justified in ordering reinstatement of certain workmen with compensation for the period of suspension? 2. Whether the tribunal was justified in permitting the dismissal of certain other workmen?

Ratio Decidendi: 1. The tribunal was justified in ordering reinstatement of certain workmen with compensation for the period of suspension, as the appellant failed to prove that these workmen had adopted go-slow tactics or were guilty of other misconduct. 2. The tribunal was not justified in permitting the dismissal of certain other workmen, as the inquiries conducted against them were not in accordance with the principles of natural justice.

Final Decision: The appeal by the management was dismissed, while the appeal by the workmen was allowed only with respect to the grant of wages in the manner indicated.

Judgment

WANCHOO, J.: These are two appeals by special leave against the same award of the First Industrial Tribunal. West Bengal and will be dealt with together, Appeal No. 425 of 1962 is by the employers and appeal No. 426 of 1962 is by the workmen. The employers will be referred to as the appellant throughout this judgment while the workmen will be referred to as the respondents. There was a dispute between the appellant and the respondents with respect to two matters, which were referred to the tribunal for adjudication by the Government of West Bengal in the following terms:-

1. To what relief the suspended workmen whose names are mentioned in list A are entitled?

2. Whether the termination of employment of the workmen whose names are mentioned in list B was justified? Are they entitled to reinstatement and/or compensation?

List A consisted of 29 workmen while list B consisted of 12 workmen.

2. The genesis of the dispute as to the suspended workmen was this according to the case of the appellant. The workmen of the weaving department of the appellant commenced slow down from October 28, 1957, in spite of the warning given by the appellant. On November 3, 1957, doffers of carding refused to work on new machines. The workmen of loose godown and folding section started slow down from October 27, 1957 and November 4, 1957 respectively. On November 23, 1957, the workmen of the spinning department adopted slow down tactics and indulged in other subversive activities and left their respective machines in groups rendering the work in backward and forward processes idle. As a result of this conduct of the workmen for a period of about four weeks, the appellant had to lay-off a large number of workmen without compensation. Then on December 3, 1957, the workmen of dye house and printing department, went on an illegal stay-in-strike. In the first week of December, 1957, the workmen of blow room and carding went on strike. On December 9, the strike was commenced in the engineering department, cotton godown, bale godown canteen, high speed winding and old stores department. In the circumstances the appellant had to suspend 1600 workmen on charges of slowdown and various other charges. Thereafter negotiations were started between the union of the workmen and the management and an agreement was arrived at on December 23, 1957. The interpretation of some of the terms of the agreement is in dispute and we shall refer to them in due course. Suffice it to say here that by this agreement the workmen resumed work and undertook not to take recourse to go-slow activities either individually or jointly and not to take recourse to illegal methods and means for the achievement of their demands or for getting their grievances redressed. It was also agreed that maintenance of discipline was of paramount importance and the workmen as also the union at all times would co-operate with management in taking appropriate disciplinary action against the workmen for the maintenance of discipline in the factory. The agreement however provided that thirty workmen named in annexure A thereof would remain suspended pending inquiry and disciplinary action by the appellant. The first term of reference with respect to suspended workmen is about the thirty workmen who were to remain suspended under the terms of the agreement of December 23, 1957.

3. The twelve workmen with which the second term of reference is concerned, were claimed by the appellant to have been guilty of various acts of misconduct for which they were liable to dismissal under the standing orders. They were duly charge-sheeted and inquiries were held against them and thereafter they were dismissed according to the provisions of law. As however the dismissals had taken place during the pendency of a dispute before the first industrial tribunal in which the appellant was a party, applications were made under S. 33 (2) (b) of the Industrial Disputes Act. No. 14 of 1947, (hereinafter referred to as




































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