SUPREME COURT OF INDIA
M. HIDAYATULLAH AND C.A. VAIDIALINGAM, JJ.
Employers of Firestone Tyre and Rubber Co. (Private) Ltd., Appellant
Versus
The Workmen, Respondents.
Civil Appeal No. 515 of 1966,
D/- 22- 8-1967
Advocates Appeared
Mr. S. V. Gupte, Solicitor-General of India, (M/s. Rameshwar Nath, Mohinder Narain and P. L. Vohra, Advocates of M/s. Rajinder Narain and Co. with him), for Appellant; M/s. B. R. Dolia, E. C. Agarwala and P. C. Agarwala, Advocates, for Respondents.
INDUSTRIAL DISPUTE - DOMESTIC ENQUIRY - PRINCIPLES OF NATURAL JUSTICE - SCOPE AND APPLICABILITY - ENQUIRY OFFICER QUESTIONING DELINQUENT BEFORE LEADING EVIDENCE AGAINST HIM - VALIDITY - CIRCUMSTANCES IN WHICH PERMISSIBLE.
Fact of the Case:
Subramaniam, a van driver employed by Firestone Tyre and Rubber Co., was dismissed after a domestic enquiry found him guilty of theft, fraud, or dishonesty in connection with the employer's business or property. The enquiry was challenged by the union, and the Labour Court set aside the dismissal and ordered reinstatement without back wages.
Finding of the Court:
The Supreme Court held that the domestic enquiry was properly conducted and did not offend any principles of natural justice. The court found that the enquiry officer had afforded Subramaniam every opportunity to controvert or prove his case, and that the evidence of Das, who supported Subramaniam's claim that no tyres were lost during the journey, was not properly considered by the enquiry officer.
Issues: 1. Whether the domestic enquiry was conducted in accordance with the principles of natural justice? 2. Whether the Tribunal erred in setting aside the dismissal of Subramaniam?
Ratio Decidendi: 1. The principles of natural justice require that a delinquent be informed of the charges against him, be given an opportunity to defend himself, and be allowed to cross-examine witnesses. However, these principles are not absolute and may be modified in certain circumstances. 2. In the present case, the enquiry officer questioned Subramaniam before leading evidence against him. This was permissible because the accusation was based on a matter of record and the facts were admitted by Subramaniam. The enquiry officer also gave Subramaniam ample opportunity to explain his version of events and to cross-examine witnesses. 3. The Tribunal erred in setting aside the dismissal of Subramaniam because it failed to appreciate that the enquiry was properly conducted and that the evidence supported the finding of guilt.
Final Decision: The appeal was allowed, and the order of the Labour Court was set aside.
Judgement
HIDAYATULLAH, J. :- The present appeal arises from the award of the Presiding Officer, Labour Court, Andhra Pradesh, Hyderabad, by which the dismissal of one Subramaniam, van driver in the employ of the Firestone Tyre and Rubber Co. (P) Ltd. after a domestic enquiry was set aside and the Company was ordered to reinstate him but not to pay him his back wages. The Reference in which this decision was rendered was made by the Government of Andhra Pradesh on February 7, 1964. The following are the circumstances leading up to it.
2. Subramaniam was a van driver with the Firestone Tyre and Rubber Co. from 1953. One of his duties as a van driver was the transportation for delivery of the products of the Company. On June 18, 1963, Subramaniam set out to deliver tyres covered by six invoices to diverse addresses. Two of the invoices (Nos. 13815 and 13816) were concerned with eight tyres (4 tyres per invoice) of the specification 8.25 X 20 Tran. H.D.Nyl.12-PR. Subramaniam took delivery of the tyres and signed the six invoices. After locking the tyres in his van with a key which he claims never left his possession, he set out with one M. V. Das (packer/ scooter driver) by his side in the driver s cabin. This was soon after the lunch break. At about 3-15 P. M. Subramaniam telephoned to the office of the Company that two tyres from the two invoices were short. He was asked to return at once. On his return the tyres with him were unloaded and counted. By way of an immediate check the tyres held in stock were also counted. There was no excess in stock. The tyres in the van were short by two. Subramaniam maintained that no tyres were lost or stolen on the way. His case was that the tyres were shortloaded. After investigation, a charge-sheet was served on him for the following act of misconduct:-
"Theft, fraud or dishonesty in connection with the employer s business or property."
The charge-sheet gave full details and fixed the time and place of an enquiry to be held against him, and further informed him that he could defend himself through a workman, produce evidence or cross-examine the witnesses. He was suspended pending the result of the enquiry. The enquiry was held by Mr. R. M. Coyajee, Industrial Relations Officer. Four witnesses for the Company and two for Subramaniam were examined. The Company filed 20 documents and Subramaniam filed 2 documents.
3. Mr. Coyajee found the charge proved and submitted the minutes of the enquiry to the Superior Officers. Then the Manager Southern Division informed Subramaniam that he was convinced of the latter s guilt and that he had tentatively decided to dismiss him. He asked Subramaniam to show cause, if any, against this decision. Subramaniam showed cause but the Manager ordered his dismissal.
4. The Tyre and Rubber Company s Employees Union having raised a dispute the matter was referred to the Tribunal :
"(a) whether the dismissal of Shri K. Subramaniam, van Driver by the employers of Firestone Tyre and Rubber Co. (P) Ltd. Hyderabad is justified ?
(b) If not, to what relief is he entitled?" Before the Tribunal the Union contended that the enquiry was opposed to the principles of natural justice and the conclusion was perverse. The Tribunal held that the enquiry was not held properly and the conclusion arrived at the domestic enquiry was perverse. The Tribunal rejected the evidence and on the basis of evidence recorded by it, held that the charge was not proved.
5. The Tribunal gave several reasons for its conclusion that the enquiry was not properly conducted. These were :
(a) that the inquiry was held immediately after the investigation without taking the explanation of the workman;
(b) The workman was examined and cross-examined even before the evidence against him was recorded;
(c) Copies of the statements of witnesses examined at the preliminary enquiry were not supplied to the workman;
(d) copies of the minutes of the inquiry were not given to the workman before asking him to reply to the show c
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