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1990 Supreme(SC) 69

SUPREME COURT OF INDIA
K. JAGANNATHA SHETTY AND T.K. THOMMEN, JJ.
MANAGEMENT OF M/s M.S. NALLY BHARAT ENGINEERING CO. LTD.
Versus
STATE OF BIHAR AND OTHERS
Civil Appeal No. 1102 of 1990{From the Judgment and Order dated October 7, 1988 of the Patna High Court in C.W.J.C. No. 2075 of 1988}, decided on February 9, 1990
Advocates appeared :
A.K. Sen, K.D. Prasad and J. Krishna, Senior Advocates (Ms Naresh Bakshi, Advocate, with them) for the Appellant;
S.K. Sinha and U.S. Prasad, Advocates, for the Respondents.

Advocates:
A.K.SEN GUPTA, J.KRISHNA, K.D.PRASAD, Naresh Bakshi, S.K.Sinha, U.S.Prasad

Headnote:Industrial Disputes Act, 1947 - Section 33 B(1) - ambit of power under - power conferred on the appropriate Government to withdraw any pending proceeding from one Labour Court/Tribunal and transferring it to another for disposal can be exercised suo moto or on representation of parties - expression "may" in the subsection only makes it discretionary in so far as the appropriate Government taking a decision as to whether the powers conferred has to be exercised or not - on taking a decision to transfer a pending proceeding, the requirement of giving reasons becomes mandatory - authority is under legal obligation to record reason for its decision - failure to give reasons or giving reasons not germane would be fatal - where transfer of proceeding effected on representation of workman, State in fairness ought to have afforded an opportunity of hearing to the Management - denial of opportunity is a fatal flaw. 1957 SCR 233, (1961) II LLJ 122, 1976 (2) SCR 384-Relied Upon; (1965) II LLJ 218, 1975 (30) FLR 166 - Approved: 1977 LIC 1739, 1979 LIC 325, 1983 LIC 335 - Overruled. (Paras 7, 24 & 25).

       Natural Justice - concept and use of - importance in the modern administration is the fairness of procedure with elimination of element of arbitrariness - State functionaries must act fairly and reasonably - audi alteram partem is a highly effective rule devised by the courts to ensure that a Statutory authority arrives at a just decision and it is calculated to act as a healthy check on the abuse or misuse of power - principles of natural justice are fundamental in the constitutional set up of this country - no man or no man's right should be affected without an opportunity to ventilate his views - fairness is a fundamental principle of good administration - it is a rule to ensure that vast power in modem State is not misused but properly exercised - fairness has no set form or procedure - it depends on facts and circumstances of each case - the non-observance of natural justice is itself prejudice to any man and proof of prejudice independently of proof of denial of natural justice is unnecessary 1964 AC 40, (1970) 1 SCR 457, (1972) I WLR 534, (1973) 3 5CR 22, (1974)2 SCR 348, (1978) I SCC 405, (1978) 2 SCR 52, (1981) 1 SCC 664, (1981) 1 SCR 746, 1985 (Supp) 2 SCR 131, 1989 JT 532 - Relied Upon; (1971) 2 Lloyd’s Rep 515 - Referred. (Paras 13, 15, 16, 18, 20 & 25)

Judgment

K. JAGANNATHA SHETTY, J.- Special leave is granted.

2. This appeal from an order of the Patna High Court raises an important question as to the scope of Section 33-B of the Industrial Disputes Act, 1947 (the Act).

3. The facts can be quite shortly stated: The appellant-company is mainly engaged in construction of coal washeries on contract basis in different collieries and also doing allied and incidental work. Shivaji Prasad Sinha - respondent 4 was a Senior Supervisor in the companys establishment at Dhanbad. It is said that he was caught red-handed when carrying 55 pieces of electromagnetic clutch plates kept concealed in the tool box of his scooter. The management held domestic enquiry into the incident and found him guilty of committing theft. He was accordingly dismissed from service. The dispute arising therefrom was referred under Section 10(1)(c) of the Act to Labour Court, Dhanbad for adjudication. The Labour Court registered the case as Reference Case No. 4 of 1988 and issued notice to the parties. The parties entered appearance and filed their respective pleadings. When the matter was thus pending consideration the respondent seems to have written to the government stating that it would be difficult for him to attend the Labour Court, Dhanbad since he has been residing at Hajipur and it would be convenient for him if the case is transferred to Labour Court, Patna. That application was made without intimation to the management. The government however, has acceded to the request of the respondent and without opportunity to the management transferred the case to Labour Court, Patna. The notification issued in that regard reads as follows:

"Notification Patna dated August 8, 1988

S.O. In exercise of powers conferred by sub-section (1) of Section 33-B of the Industrial Disputes Act, 1947 (14 of 1947) the Governor of Bihar after careful consideration of the application of the petitioner Shri Shivajee Prasad Sinha wherein he has prayed for the transfer of adjudication proceedings to Patna keeping in view to the difficulties expressed by him to attend the Labour Court, Dhanbad, regularly due to his residence at Majipur is pleased to withdraw the proceeding shown in Annexure A pending before Labour Court, Dhanbad and transfer the said proceeding to the Labour Court, Patna for speedy disposal for the stage at which the case is transferred."

4. The management moved the High Court by way of writ petition under Article 226 of the Constitution to have the notification quashed. The High Court did not agree and summarily dismissed the writ petition with an observation:

"Since no prejudice is being caused to the petitioner and no allegation of mala fide has been made against the Presiding Officer, Patna, we are not inclined to interfere with the order under challenge.

This application is dismissed."

5. The management in the appeal challenges the government notification withdrawing and transferring the pending case from the Labour Court, Dhanbad to Labour Court, Patna.

6. Since the impugned notification has been issued under Section 33-B of the Act, we may for immediate reference set out that section.

Omitting immaterial words, it is in these terms:

"33-B. Power to transfer certain proceedings.- (1) The appropriate government may, by order in writing and for reasons to be stated therein, withdraw any proceeding under this Act pending before a Labour Court, Tribunal, or National Tribunal and transfer the same to another Labour Court, Tribunal or National Tribunal, as the case may be, for the disposal of the proceeding and the Labour Court, Tribunal or National Tribunal to which the proceeding is so transferred may, subject to special directions in the order of transfer, proceed either de novo or from the stage at which it was so transferred."

7. Section 33-B provides power to the appropriate government to withdraw any proceedings pending before a Labour Court or Tribunal and transfer it for disposal to another Labour Court or Tribunal.




























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