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1995 Supreme(SC) 640

SUPREME COURT OF INDIA
B.P. JEEVAN REDDY, S.C. SEN AND G.T. NANAVATI, JJ.
The Rajasthan State Road Transport Corporation and another etc. etc., Appellants
Versus
Krishna Kant etc. etc., Respondents.
Civil Appeal Nos. 3100 of 1991 with 4948 of 1991 and 9314 of 1994 with 5386-89 of 1995, (arising out of S.L.P (C) Nos. 10902 / 92, 13152/10263 and 14169 of 1993
Decided on 3-5-1995.

Advocates:
A.P.Dhamija, Altaf Ahmed, B.K.Mishra, CHANDAN RAMAMURTHI, EJAZ MAQBUL, GUNVANT DARA, JITENDRA SHARMA, M.D.ADKAR, MANINDER SINGH, P.Gaur, P.P.Rao, SUSHIL JAIN

Headnote:

Road Transport Corporations Act, 1950 - Road Transport Corporations Act, 1950 - Industrial Disputes Act, 1947, - Section 2(s) - (Central) Rules, 1946 – Employment of appellant - Jurisdiction to entertain suits - Appeals are employees of appellant Corporation - Rajasthan State Road Transport Corporation - Pursuant to disciplinary enquires held against them on charges of misconduct their services courted terminated - They filed civil suits for declaration that order terminating their services is illegal and invalid and for further declaration that they must be deemed to have continued and are still continuing in service of Corporation with all consequential benefits - Corporation resisted suits on ground inter alia that Civil Court had no jurisdiction to entertain suits - Trial Court decreed suits as prayed for - Appeals as also Second Appeals preferred by Corporation courted dismissed by District Judge and High Court – Held, Applying above principles court must hold that suits filed by respondents in these appeals courted not maintainable in law - Even so question is whether court should set aside decrees passed in their favor by Civil Courts - So far as Civil Appeal is concerned this Court had while granting leave ordered on January insofar as respondent is concerned he appellants counsel states that he will abide by decree - Application for stay is rejected - Therefore there is no question of setting aside decree concerned in this appeal –Court verso far as other appeals are concerned position is slightly different - In Civil Appeal in civil arising out only there is no such condition but this Court had granted stay as prayed for by appellant Corporation - In two other matters and civil arising out only order is to issue notice - Having regard to facts and circumstances of these matters court modify decrees in these matters except decree concerned in Civil Appeal by reducing back wages to half - Decrees in all other respects are left undisturbed - These orders are made in view fact that position of law was not clear until now and it cannot be said that respondents had not acted bona fide in instituting suits - Appeals disposed of accordingly - It is directed that principles enunciated in this judgment shall apply to all pending matters except where decrees have been passed by Trial Court and matters are pending in appeal or second appeals case may be - All suits pending in Trial Court shall be governed by principles enunciated herein as also suits and proceedings to be instituted hereinafter - Order accordingly

JUDGMENT

B. P. JEEVAN REDDY, J. :—Leave granted in all Special Leave Petitions.

2. The respondents in these appeals are the employees of the appellant-Corporation, viz., Rajasthan State Road Transport Corporation. Pursuant to disciplinary enquires held against them on charges of misconduct, their services were terminated. They filed civil suits for a declaration that the order terminating their services is illegal and invalid and for a further declaration that they must be deemed to have continued and are still continuing in the service of the Corporation with all consequential benefits. The Corporation resisted the suits on the ground inter alia that the Civil Court had no jurisdiction to entertain the suits. The Trial Court decreed the suits as prayed for. Appeals as also Second Appeals preferred by the Corporation were dismissed by the learned District Judge and High Court.

3. When these appeals came up for hearing before a Bench of two learned Judges of this Court, the appellant-Corporation relied upon the principles enunciated in Paragraphs 23 and 24 of the judgment in Premier Automobiles Limited v. Kamlekar Shantaram Wadke of Bombay (1976) 1 SCC 496 and in particular upon the decision in Jitendra Nath Biswas v. M/s. Empire of India and Ceylone Tea Co. (1989)3 SCC 582. The Bench was of the opinion, agreeing with the decision in Jitendra Nath Biswas, that the Civil Court had no jurisdiction to entertain the present suits but in view of the order dated October 18, 1989 in S.L.P.(C) No. 9386 of 1988 (rendered by two-Judge Bench of this Court) holding a civil suit concerning a similar dispute to be maintainable, the Bench thought it appropriate that the appeals are heard by a Bench of three Judges. It is pursuant to their order dated September 23, 1993 that these appeals have been placed before this Bench.

4. The appellant-Corporation has been constituted under the Road Transport Corporations Act, 1950. It is a statutory Corporation. Though Section 45 of the said Act empowers the Corporation to frame regulations prescribing the conditions of service of its employees, not such regulations have been framed insofar as the employees answering the description of "workman" as defined in Section 2(s) of the Industrial Disputes Act, 1947, are concerned. They are governed by the certified Standing Orders framed under and in accordance with the Industrial Employment (Standing Orders) Act, 1946. These Standing Orders inter alia define "misconduct" and prescribe the procedure for conducting the disciplinary proceedings against such employees.

5. The Corporation says that the disciplinary enquiries, which resulted in the dismissal of the respondents were conducted perfectly in accordance with the Standing Orders, whereas the case of the respondents/plaintiffs is that they were conducted in violation of the Standing Orders. The precise question in these appeals is whether a suit of this nature is maintainable in a Civil Court. The Corporation says that it is not. According to them the respondents only remedy was to approach the Labour Court for the reliefs sought for by them in the suit.

6. Section 9 of the Code of Civil Procedure says that "the Courts shall (subject to the provisions herein contained) have jurisdiction to try all suits of a civil nature except the suits of which their cognizance is either expressly or impliedly barred." The question is whether by virtue of the provisions of the Industrial Disputes Act read with the Standing Orders aforesaid, the Civil Courts jurisdiction to take cognizance of such suits is barred? This question calls for a brief reference to the relevant provisions of the Industrial Disputes Act as well as the Standing Orders Act, 1946.

The Industrial Disputes Act (the Act) was enacted to make provision for the investigation and settlement of industrial disputes and for certain other purposes. The statement of objects and reasons appended to the Bill (which became the Act) stated inter alia. "(T) he bill also s


































































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