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1980 Supreme(SC) 295

SUPREME COURT OF INDIA
A.C. GUPTA AND N.L. UNTWALIA, JJ.
Steel Authority of India, Appellant
Versus
The Presiding Officer, Labour Court at Bokaro Steel City, Dhanbad and another, Respondents.
Civil Appeal No. 1682 (L) of 1978
Decided on 23-7-1980.

Headnote:

Industrial Disputes Act -Section 33 (2) (b) - Conduct Rules - Rule 20 - Employed as a Registration Assistant - Acts of misconduct - Charge sheets - Dismissed from service - Second respondent was employed as a Registration Assistant in Medical Department of appellant company - He was appointed by Personnel Manager of company and his scale of pay - On two different dates Chief Medical Officer of Hospital served two charge sheets on respondent for alleged acts of misconduct - Chief Medical Officer also constituted a committee to inquire into charges - Respondent participated in inquiry - Agreeing with findings of committee appearing from its reports submitted Personnel Manager of company found respondent guilty of charges and dismissed him from service by his order dated - During pendency of application under Section 33 (2) (b) of Industrial Dispute Act respondent made an application under Section 33A of Act praying for setting aside his dismissal and for reinstating him with consequential reliefs - Two applications were taken up for hearing together by Labour Court and on respondents prayer issue as to authority of Chief Medical Officer to frame charges and to constitute inquiry committee was head as a preliminary issue - Whether authority who framed charges against respondent and constituted inquiry committee had the power to do so – Held, At that time head of medical department was called the Senior Executive Medical Officer - Managing Director had delegated full powers to all the heads of departments frame charges and to constitute inquiry committees with regard to employees "up to and including grade subject to rules and procedures and in consultation with Personnel Department - Copy of service rules given to during hearing of appeal includes various amendments to these rules made from time to time till which were approved by Board of Directors - Copy does not include aforesaid office orders on which appellant company sought to build their case – Court agree with concurrent finding of High Court and the Labour Court that Discipline and Appeal Rules of company which had been approved by Board of Directors did not authorise Chief Medical Office to frame charges against the respondent or to constitute inquiry committee - High Court and Labour Court also rightly repelled a contention put forward on behalf of the company built on Rule 20 of Conduct Rules for the employees which has no application in this case - Appeal dismissed.

JUDGMENT

GUPTA, J.:—The second respondent (hereinafter referred to as the respondent), Shri Rajendra Jha, was employed as a Registration Assistant in the Medical Department of the appellant company. He was appointed by the Personnel Manager of the company and his scale of pay was Rs. 245-440. On two different dates in 1973 the Chief Medical Officer of the Hospital served two charge sheets on the respondent for alleged acts of misconduct. The Chief Medical Officer also constituted a committee to inquire into the charges. The respondent participated in the inquiry. Agreeing with the findings of the committee appearing from its reports submitted in January, 1975 the Personnel Manager of the company found the respondent guilty of the charges and dismissed him from service by his order dated March 1, 1975. On the same day an application was made on behalf of the company before the Labour Court under Section 33 (2) (b) of the Industrial Disputes Act seeking approval of the action taken against the respondent. The respondent filed a written objection before the Labour Court contending that :

(a) according to Rule 8 read with the schedule of the Discipline and Appeal Rules of the company the appointing authority is the disciplinary authority for alleged misconduct which might lead to imposition of major penalaties including dismissal from service for all posts below the scale of pay Rs. 500 - 1050.

(b) the Personnel Manager of the company being his appointing authority was the only authority according to the aforesaid rules competent to issue the chargesheets and constitute the inquiry committee, and therefore the framing of charge sheets by the Chief Medical Officer and the constitution of the inquiry committee by him were without jurisdiction. The respondent prayed that the company be directed to reinstate him with full compensation for the period of forced unemployment.

2. During the pendency of the application under Section 33 (2) (b) of the Industrial Dispute Act the respondent made an application under Section 33A of the Act praying for setting aside his dismissal and for reinstating him with consequential reliefs. The two applications were taken up for hearing together by the Labour Court and on the respondents prayer the issue as to the authority of the Chief Medical Officer to frame charges and to constitute the inquiry committee was head as a preliminary issue. On November 16, 1976 the Labour Court held that the Chief Medical Officer was incompetent under the rules to frame charges against the respondent and constitute the inquiry committee and accordingly held that the domestic inquiry was defective and invalid. The Labour Court was however of opinion that the companys case could not be dismissed at this stage and that the company should be given an opportunity to adduce evidence in support of the action it had taken against the respondent.

3. From the order of the Labour Court two writ petitions were filed in the Patna High Court, one by the respondent praying for quashing that part of the order which permitted the company to lead evidence in support of its action in dismissing him, and the other by the company questioning the finding that the Chief Medical Officer was not competent to frame the charges against the respondent and constitute the inquiry committee. The High Court dismissed both the writ petitions. The appeal before us has been filed by special leave by the company challenging the finding made by the Labour Court and approved by the High Court that the Chief Medical Office of the company had no authority to frame the charges against the respondent or constitute the inquiry committee and as such the procedure followed in dismising the respondent from service was bad.

4. The only question for decision in this appeal is whether the authority who framed the charges against the respondent and constituted the inquiry committee had the power to do so. Before the Labour Court as well as the High Court the respective case




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