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1972 Supreme(SC) 118

SUPREME COURT OF INDIA
C.A. VAIDIALINGAM AND G.K. MITTER, JJ.
Binny Limited, Appellant
Versus
Their Workmen and another, Respondents.
Civil Appeal No. 1851 of 1967, D/- 17-2-1972.
Advocates appeared
Mr. O. P. Malhotra, Sr. Advocate (Mr. D. N. Gupta, Advocate, with him), for Appellant; Mr. M. Kuppuswamy, in person for Respondent No. 2

Headnote:

Constitution of India,1950 – Article 311 - Industrial Disputes Act – Section 10(1) - Misconduct - Guilty of misconduct - Reinstatement - Reinstatement of service - One alleged to have behaved in an insolent manner towards Warehouse Master, his superior officer, in respect whereof he was given a charge sheet complaint against him being that he was guilty of misconduct falling under Standing Order No. 13 (11) i.e. act subversive to discipline - He submitted a written explanation - An enquiry was held by Mill Manager and on the same day the Mill Manager came to the conclusion that the charge against said one had been proved and taking into account gravity of misconduct and his past conduct Mill Manager found him not a fit person to remain in employment of company and terminated his services - Before the Labour Court said one filed his statement of claim - Whether compensation should have been awarded in lieu of reinstatement – Held, appellant pursues an industry with a large number of workmen and court cannot imagine any serious dislocation of work by order of reinstatement of one workman - Normally it will be months before an order of reference is made by Government and one or two years elapse in almost all cases before adjudication by an Industrial Tribunal is complete - If mere lapse of time be enough to lead the Industrial Tribunal to hold that there should be no reinstatement of service power of reinstatement will become obsolete - On the question as to whether compensation should have been awarded in lieu of reinstatement, court were referred to the case of Hindustan Steels. v. A. K. Roy, (1970) 1 Lab LJ 228 where it was said that it was in discretion of the tribunal to make an order of reinstatement or to award compensation in lieu thereof and it is only when the tribunal exercises its jurisdiction in disregard of circumstances or relevant principles laid down in regard thereto that this Court would interfere with its discretion - In this case, there is no allegation that Management had lost confidence - It is extremely doubtful whether the Manager would have ordered dismissal if said one had not drawn his attention to past lapses of respondent about which he was not allowed to have a say - Court do not therefore feel that court must interfere with award of reinstatement of the respondent - In the result the appeal fails - Appeal dismissed.

Judgment

MITTER, J.:- This is an appeal by Special leave from an award of the Labour Court, Bangalore dated October 9, 1967 where the dispute referred for adjudication was "whether the Management of the Bangalore Woollen, Cotton and Silk Mills Ltd. (hereinafter referred to as the Company ) was justified in terminating the services of five workmen including one Kuppuswamy? .

2. During the course of the proceedings the Binny Mills Labour Association, Bengal, a registered trade union, sponsoring the cause of the dismissed workmen entered into a settlement with the management whereby the management agreed to reinstate one Ramanatha and the union gave up its demand for reinstatement of three other excluding Kuppuswamy. The Union however withdrew its support to Kuppuswamy from the date of the settlement and the latter stated before the Labour Court that he would conduct his own case.

3. The facts relating to the dismissal of Kuppuswamy are as follows. He is alleged to have behaved in an insolent manner towards the Warehouse Master, his superior officer, on 3rd November, 1963 in respect whereof he was given a charge sheet on 6th November, 1963 the complaint against him being that he was guilty of misconduct falling under Standing Order No. 13 (11) i.e. act subversive to discipline. He submitted a written explanation on 8th November. An enquiry was held by the Mill Manager on 10th November and on the same day the Mill Manager came to the conclusion that the charge against Kuppuswamy had been proved and taking into account the gravity of the misconduct and his past conduct the Mill Manager found him not a fit person to remain in the employment of the company and terminated his services. Before the Labour Court Kuppuswamy filed his statement of claim, the management its statement of objections followed by a rejoined of Kuppuswamy. Kuppuswamy examined himself and one Shadgopalan was examined on behalf of the management. The records of the domestic enquiry were marked in evidence by common consert. The Labour Court while accepting the finding of the domestic tribunal that Kuppuswamy was guilty of the misconduct alleged against him was not inclined to retain the order of termination of his service mainly on the ground that he was not given an opportunity to challenge the statement of one Veeraraghavan regarding his past record of service nor was he given any opportunity to say whether Veeraraghavan s statement was true or false or reasonably explainable. According to the Tribunal the enquiry officer:

"might have thought fit to pass this very order of termination even without going into the past record of Kuppuswamy. But the possibility of his awarding a lesser punishment also cannot be ruled out, altogether.

4. We have therefore to examine what happened at the enquiry stage to ascertain whether the labour court was right in acting in the manner it did. The charge against Kuppuswamy formulated by the manager was that :

"on the 3rd of this month at about 9.15 a.m. Kuppuswamy had behaved in an insolent manner towards the Warehouse Master Mr. Veeraraghavan by shouting at him and creating a disorderly scene in the Warehouse office.

The Manager reminded Kuppuswamy of his written explanation and asked him whether he had anything to add. Kuppuswamy stated that he had stacked a number of pieces which had mounted so high that he apprehended that the same might fall over and he therefore started stacking the pieces in between the pieces already mounted before the examiners. The Manager reminded him that the charge against him was not about stacking pieces but of behaving in an insolent manner toward the Warehouse Manager. Kuppuswamy was asked whether he wanted to call anyone as witness and Kuppuswamy answered in the negative. Veeraraghavan was then examined by the Manager. According to Veeraraghavan s statement. Kuppuswamy had disregarded the instructions given to him by one Allam, Assistant Manager by stacking the pieces between the examiners in a ma





























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