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1993 Supreme(SC) 858

SUPREME COURT OF INDIA
A.M.Ahmadi : S.C.Agrawal
Rajasthan State Road Transport Corporation
Versus
Krishna Kant: Mohd.Jaki: Ramesh Chandra Tailor
Case No. : 3100 of 1991
Date of Decision : 9/23/93
Advocates Appeared: Adkar M.D. : Atreya Sudhanshu : Dhamija A.P. : Jain P.C. : Jain Pratibha : Jain S.K. : Maqbool Ejaz : Prasad Yogeshar : Rao P.P. : Sharma Jitendra : Singh Maninder

Advocates:
A.P.Dhamija, EJAZ MAQBUL, JITENDRA SHARMA, M.D.ADKAR, MANINDER SINGH, P.C.Jain, P.P.Rao, PRATIBHA JAIN, S.K.JAIN, SUDHANSHU ATREYA, YOGESHAR PRASAD

Headnote:

Road Transport Corporations Act, 1950 – Constitution of India - Article 311 - Industrial Employment – Jurisdiction – Acquittal - question which has been raised by the Corporation is with regard to jurisdiction of the civil courts to entertain the suits. It has been urged that dispute between the Corporation and the respondent-employees whose services have been terminated was an industrial dispute under the Industrial Disputes Act, 1947, hereinafter referred to as the Act, and in view of the decision of this court in Premier Automobiles Ltd. of Bombay jurisdiction of the civil courts is barred and the only remedy available to the respondent-employee is that provided under Act, viz. to have the dispute referred for adjudication to a court – Held, Learned senior counsel appearing for the Corporation has urged that the said decision of the Rajasthan High court in case has not correctly construed observations of this court in Premier Automobiles case defining the limits within which principle is to be invoked. It has been urged that order of this court dismissing the special leave petition against the said decision of the High court, also does not give effect to the narrow limits of the applicability of principle of the Premier Automobiles case has also placed reliance on the decision of this court in Empire of India and Tea Co. wherein an employee who was dismissed from service on the basis of domestic inquiry conducted in respect of charges of misconduct had filed a suit for declaration that the dismissal was null and void as the inquiry was conducted in disregard of the standing orders passed under the Industrial Employment (Standing Orders) Act - It was held that the civil suit was not maintainable as the relief sought was in substance for reinstatement and back wages and such relief could only be available to a workman under the Act - This court has laid down - IT is therefore clear that this Act i.e. Industrial Disputes Act not only confers the right on a worker for reinstatement and back wages if the order - of termination or dismissal is not in accordance with the Standing Orders but also provides a detailed procedure and machinery for getting this relief. Under these circumstances therefore there is an apparent implied exclusion of the jurisdiction of the civil court - Learned counsel for the respondents, on the other hand has stressed that Corporation, being a statutory corporation, is a governed by the provisions of Road Transport Corporations Act and a declaration can be sought against Corporation from the civil court that the respondent-employees continue to be in service - In this regard has placed reliance on the following observations – Order accordingly

(1) THESE appeals and the special leave petition have been filed by the Rajasthan State Road Transport Corporation, hereinafter referred to as the Corporation, which is constituted under the provisions of Road Transport Corporations Act, 1950. The respondents in these matters were employees of the Corporation. Their services were terminated on charges of misconduct. They filed civil suits seeking declaration that the termination of their services was null and void and that they should be treated to be under employment of the Corporation. The orders of termination were assailed on the ground that the same had been passed in contravention of the standing orders framed by the Corporation under the Industrial Employment (Standing Orders) Act as well as Article 311(2 of the Constitution. The said suits have been decreed by the courts below.

(2) THE question which has been raised by the Corporation is with regard to jurisdiction of the civil courts to entertain the suits. It has been urged that dispute between the Corporation and the respondent-employees whose services have been terminated was an industrial dispute under the Industrial Disputes Act, 1947, hereinafter referred to as the Act, and in view of the decision of this court in Premier Automobiles Ltd. v. Kamlekar Shantaram Wadke of Bombay the jurisdiction of the civil courts is barred and the only remedy available to the respondent-employee is that provided under the Act, viz. to have the dispute referred for adjudication to a labour court.

(3) IN the Premier Automobiles case (decided by a bench of three Honble Judges of this court), the principles applicable to the jurisdiction of the civil court in relation to an industrial dispute have been stated thus:

"(1 If the dispute is not an industrial dispute, nor does it relate to enforcement of any other right under the Act the remedy lies only in the civil court.

(2 If the dispute is an industrial dispute arising out of a right or liability under the general or common law and not under the Act, the jurisdiction of the civil court is alternative, leaving it to the election of the suitor concerned to choose his remedy for the relief which is competent to be granted in a particular remedy.

(3 If the industrial dispute relates to the enforcement of a right or an obligation created under the Act, then the only remedy available to the suitor is to get an adjudication under the Act.

(4 If the right which is sought to be enforced is a right created under the Act such as Ch. V-A then the remedy for its enforcement is either Section 33-C or the raising of an industrial dispute, as the case may be.

WE may, however, in relation to principle No. 2 stated above hasten to add that there will hardly be a dispute which will be an industrial dispute within the meaning of Section 2(k) of the Act and yet will be one arising out of a right or liability under the general or common law only and not under the Act.. Such a contingency, for example, may arise in regard to the dismissal of an unsponsored workman which in view of the provision of law contained in Section 2-A of the Act will be an industrial dispute even 1976 I SCC 496: 1976 SCC (LAS) 70: 1976 I SCR 427 though it may otherwise be an individual dispute. Civil courts, therefore, will have hardly an occasion to deal with the type of cases falling under principle No. 2. Cases of industrial disputes by and large, almost invariably, are bound to be covered by principle No. 3 stated above."

(4) A division bench of the Rajasthan High court, in Rajasthan State Road Transport Corpn. v. Kaluram has considered the question of jurisdiction of the civil court in the light of the aforesaid principles. In that case, the services of the employees of the corporation had been terminated on charges of misconduct after holding an inquiry and the employees had filed a civil suit wherein they sought a declaration that the order of dismissal was null and void being








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