SUPREME COURT OF INDIA
Y.V. CHANDRACHUD, CJI., A.P. SEN, J.
Nirmal Singh, Appellant
Versus
State of Punjab and others, Respondents.
Civil Appeal No. 1746 (NL) of 1980
Decided on 9-8-1984.
Punjab Co-operative Societies Act, 1961 - Section 55 - Industrial Disputes Act, 1947 - Section2 (s) and 12 - Appointed as a clerk - Dismissed from service - Fraudulent encashment of draft - Appellant was appointed as a clerk in Central Co-operative Bank Ltd., which is respondent 3 to this appeal - He was transferred as Branch Manager of branch of Bank - On one opened an account in Branch under an introduction given by one - Two days later, deposited in that account a draft in sum issued by Royal Bank of Canada on Chartered Bank - Amount due on draft was credited by Bank in account - On that very day, withdrew a sum from his account - Three days later, be withdrew remaining amount - Draft was stolen and that money due thereon was fraudulently collected by person in whose name an account was opened in Branch - On Executive Committee of respondent 3-Bank resolved that an enquiry be held for fixing responsibility in matter of fraudulent encashment of draft - Whether appellant is a workman within meaning of Sec. 2 (s) of Industrial Disputes Act - Whether dismissal of appellant from services of Bank is legal and justified - Whether appellant could be taken back in employment without payment of full back wages - Whether it is not possible to drop proceedings against appellant and take him back in employment - Whether appellant is liable to repay amount to Bank, which was fraudulently withdrawn – Held, appellant was not only not included in array of the accused in that prosecution but judgment of learned Magistrate dated shows that during course of investigation, it was found that appellant was not responsible for fraud - In fact, appellant was examined as prosecution witness No. 4 in that case - Two out of three accused were discharged by learned Magistrate while accused No. 1, was convicted under Ss. 419 and 420 of Penal Code and was sentenced to undergo rigorous imprisonment for two years and to pay a fine - Prosecution and arbitration proceedings, in order that Bank may examine whether it is not possible to drop proceedings against appellant and take him back in employment - If Bank finds that the appellant was merely negligent in discharge of his duties as a Branch Manager, it may consider whether appellant could be taken back in employment without the payment of full back wages - Appeal allowed.
JUDGMENT
CHANDRACHUD, CJI.:— In April, 1962, the appellant was appointed as a clerk in the Hoshairpur Central Co-operative Bank Ltd., which is respondent 3 to this appeal. On August 10, 1976 he was transferred as Branch Manager of the Dholbaha branch of the Bank. On Oct 22, 1977 one Labh Singh s/o. Harnam Singh opened an account in the Dholbaha Branch under an introduction given by one Balram Singh. Two days later, Labh Singh deposited in that account a draft in the, sum of Rs. 5,000/- issued by the Royal Bank of Canada on the Chartered Bank, New Delhi. The amount due on the draft was credited by the Bank in Labh Singhs account, on November 14. On that very day, Labh Singh withdrew a sum of Rs. 2,500/- from his account. Three days later, be withdrew the remaining amount of Rs. 2,500/-. Soon thereafter, a person claiming to be the real Labh Singh in whose favour the draft was issued by the Royal Bank of Canada, complained to the Chartered Bank, New Delhi, that the draft was stolen and that the money due thereon was fraudulently collected by the person in whose name an account was opened in the Dholbaha Branch. On Nov. 10, 1978, the Executive Committee of respondent 3-Bank resolved that an enquiry be held for fixing responsibility in the matter of the fraudulent encashment of the draft. The enquiry was held by the Chief Executive Officer, Satish Chander Dutt, who was of the rank of the Assistant Registrar in the Co-operative Department. As a result of the report submitted by him, the appellant was dismissed from service on Dec. 30, 1978.
2. The demand raised by the appellant in regard to his dismissal was referred by the Government of Punjab to the Conciliation Officer, who recommended that the appellants case, should be forwarded for adjudication on the question whether big dismissal from service was justified. The Labour Commissioner of Punjab, exercising the powers of the State Government, declined to refer the dispute for adjudication on the ground that the appellant was not a workman. The appellant filed a writ petition in the High Court of Punjab and Haryana, challenging the decision of the Labour Commissioner, but that writ petition was dismissed summarily. The appellant has filed this appeal by special leave, challenging the decision of the High Court and the Labour Commissioner. The State of Punjab and the Labour Commissioner are respondents 1 and 2 to this appeal.
3. The grievance made by Shri N. D. Garg, who appears on behalf of the appellant, that the Labour Commissioner ought to have given reasons in support of his decision, is justified. All that the Labour Commissioner has stated in the order is that the post held by the appellant did not fall "within the category of workman" This, really, is the conclusion to which the Labour Commissioner came but no reasons are given to justify that conclusion. We an of the opinion that the Labour Commissioner ought to have given reasons why he came to the conclusion that the appellant is not a "workman" within the meaning of S. 2 (s) of the Industrial Disputes Act, 1947.
4. We could have remanded the matter to the Labour Commissioner asking him to state his reasons why the appellant is not a workman but, that will entail delay. Instead, it is advisable from the point of view of not only the appellant but the Bank also that a reference is made either to the Labour Court or to the Industrial Tribunal under Sec. 12 (5) of the Industrial Disputes Act, 1947, for adjudication of the question as to whether the dismissal of the appellant from the services of the Bank is legal and justified. Accordingly, we direct that the 2nd respondent, the, Labour Commissioner, Chandigarh, to whom the State Government has delegated its powers under Section 12 of the Act shall make a reference to either of the two authorities as he considers proper.
5. At one stage, we wanted to decide for ourselves the question as to whether the appellant is a workman within the meaning of Sec. 2 (s) of the Industrial Di
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