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2007 Supreme(SC) 745

2007(4) Supreme 657
SUPREME COURT OF INDIA
S.B. Sinha & Markandey Katju, JJ.
Management, Pandiyan Roadways Corp. Ltd. — Appellant
versus
N. Balakrishnan — Respondent
Appeal (civil) 2534 of 2007
[Arising out of S.L.P. (Civil) No. 12280 of 2006]
Decided on : 15-05-2007

IMPORTANT POINTS
Court shall not exercise its jurisdiction under Article 136 of Constitution of India, only because it may be lawful to do so.
Question as to whether acquittal in a criminal case will be conclusive in regard to the order of punishment imposed upon the delinquent officer in a departmental proceeding is a matter which will again depend upon the fact situation involved in a given case.

Headnote:Constitution of India,1950 – Article 136 - Industrial Disputes Act, 1947 - Section 33(2)(b) - Termination of services of respondent employed as helper at Depot of appellant on alleged commission of theft of Rs. 37,086.05 – Application for approval of order of removal u\s 33(2)(b) of IDA – Dismissed on premise that in passing said order of termination, Clause 17(5) of Certified Standing Orders of Corporation, which required management to take into account past record before passing order of dismissal, was not complied with - Writ petition – Allowed – Appeal – Allowed by High Court – Appeal – Ordinarily, although sub-clause (5) of Clause (17) of Certified Standing Orders is required to be complied with - Same, however not means that in a given situation, there cannot be any deviation therefrom-In a case where dismissal or removal of service is to be ordinarily followed, e.g. in a case of grave misconduct like misappropriation, strict enforcement of rule may not be insisted upon.Paras 19,21,25)

       Fact of the case :

       1.The respondent employed as helper at Depot of appellant herein in the instant case was dismissed from services on alleged commission of theft of Rs. 37,086.05. An Application for approval of order of removal u\s 33(2)(b) of IDA was dismissed on premise that in passing said order of termination, Clause 17(5) of Certified Standing Orders of Corporation, which required management to take into account past record before passing order of dismissal, was not complied with. Writ petition there against was allowed. Appeal filed by respondent was allowed by High Court.

       2.Present appeal has been filed by appellant corporation against said order of high Court.

       Findings of the Court :

       The Court held that Ordinarily, although sub-clause (5) of Clause (17) of Certified Standing Orders is required to be complied with. Same, however not means that in a given situation, there cannot be any deviation therefrom. In a case where dismissal or removal of service is to be ordinarily followed, e.g. in a case of grave misconduct like misappropriation, strict enforcement of rule may not be insisted upon. Application under Section 33(2)(b) of Act was filed on 16.06.1986. It was rejected by an order dated 19.4.1989. Respondent, was taken back in service. Despite fact that Writ Petition filed by appellant was allowed on 08.10.1999, by reason of an interim order of stay granted by Division Bench, respondent continued in his service. Respondent was merely a class IV employee and was not holding any office of confidence. Respondent, in meanwhile, had also been acquitted. Factum of acquittal of respondent had been taken into consideration by Division Bench, which was considered to be an additional factor. Respondent was not charged with an offence of criminal breach of trust. Held to be not a fit case for Court to exercise its extra extra-ordinary jurisdiction under Article 136 of Constitution of India.

JUDGMENT

S.B. SINHA, J. —

1.Leave granted.

2.Respondent herein was employed as a helper at Kumuli Depot of Appellant. A criminal complaint was lodged against him for alleged commission of theft of Rs.37,086.05 on 03.11.1985. A disciplinary proceeding was also initiated against him. He pleaded not guilty to the said charge both before the disciplinary authority as also the criminal court. In the disciplinary proceeding, he was, however, found to be guilty of the said charge. He was dismissed from services only after a show cause notice was served on him.

3.Appellant filed an application for approval of the said order of removal purported to be in terms of Section 33(2)(b) of the Industrial Disputes Act, 1947 (for short, ‘the Act’). Approval sought for was not granted on the premise that in passing the said order of termination, Clause 17(5) of the Certified Standing Orders of the Corporation, which required the management to take into account the past record before passing the order of dismissal, was not complied with.

4.During pendency of the said proceedings before the Tribunal, admittedly the Criminal Court held the respondent not guilty of commission of the charge of removal of the said amount of Rs.37,086.05. He was, therefore, acquitted.

5.A Writ Petition was filed by the appellant questioning the said Order of the Labour Court which was marked as Writ Petition No.1485/1990. A learned Single Judge of the said Court allowed the Writ Petition. Aggrieved by and dissatisfied therewith, Respondent preferred an appeal before a Division Bench of the High Court. By reason of the impugned judgment, the said appeal has been allowed holding :

“14.Unfortunately, the learned Judge while accepting the case of Management, committed two errors. The first one is that he proceeded that the charge leveled against the workman relates to misappropriation. It is not in dispute that based on the complaint of the Management, prosecution was launched against the workmen for the offence of theft, which also ended in acquittal in C.C. No. 75 of 1986 on the file of Judicial Magistrate, Uthamapalyam dated 14.10.1987. Secondly, the learned Judge committed an error in holding that when an employee is involved in the case of misappropriation of funds, no lesser punishment than the dismissal from service can be imposed. However, according to the learned Judge when a major punishment is to be imposed depending upon the nature or gravity of the offence, then the factors mentioned in clause 17(5) of the Standing Orders have some relevance.”

6.Appellant is, thus, before us.

7.Mr. T. Harish Kumar, learned counsel appearing on behalf of the appellant, would submit that Clause 17(5) of the Certified Standing Orders of the Corporation cannot be held to be imperative in character. According to the learned counsel, in a case of misconduct involving criminal breach of trust, the employer would be justified in imposing a punishment of termination of services and in that view of the matter, question of looking into the past conduct of the employee would not arise.

8.It was contended that past conduct of an employee would be taken into consideration, only in the event the misconduct proved is not a grave one. In a matter involving commission of grave misconduct on the part of the workman, it was contended, there is no place for generosity or sympathy and the case has to be dealt with firmly. Reliance, in this behalf, has been placed on Janatha Bazar (South Kanara Central Cooperative Wholesale Stores Ltd.) and Others v. Secretary, Sahakari Naukarara Sangha and Others,1(2000) 7 SCC 517] and Divisional Controller, KSRTC (NWKRTC) v. A.T. Mane,2 [(2005) 3 SCC 254].

9.The learned counsel argued that it was not a case where the High Court could have taken into consideration the question as to whether the punishment imposed was shockingly disproportionate to the misconduct proved. It was urged that the jurisdiction of the Labour Court in considering the petition under Section 33(2)(b)












































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