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2007 Supreme(SC) 1260

2007(6) Supreme 609
Supreme Court of india
(From Gujarat High Court)
Dr. Arijit Pasayat & Lokeshwar Singh Panta, JJ.
U.B. Gadhe & Ors. etc. etc. — Petitioners
versus
G.M., Gujarat Ambuja Cement Pvt. Ltd. — Respondent
Appeal (civil) 892 of 2007
Decided on : 28-09-2007

important point
Discretion vested in the Industrial Tribunal u/s 11-A is wide whereas the discretion in writ jurisdiction is extremely limited. However it must be exercised judicially and judiciously.

Headnote:(a)Industrial Disputes Act, 1947 – Section 11-A and Article 226, Constitution of India – Discretion vested in the Industrial Tribunal u/s 11-A is wide whereas the discretion in writ jurisdiction is extremely limited – However, being discretionary, power under Section 11-A has to be exercised judiciously – Punishment imposed by the management can be interfered with only when it is wholly and shockingly disproportionate to the degree of guilt of the workman concerned, that too by an speaking order supported by valid reasons. (Paras 17 and 18)

       (b)Judicial Review – The reliefs granted by the Courts must be seen to be logical and tenable within the framework of the law and should not incur and justify the criticism that the jurisdiction of the Courts tends to degenerate into misplaced sympathy, generosity and private benevolence.(Para 19)

       1994 (1) SCALE 631 – Relied upon.

       (c)Industrial Disputes Act, 1947 – Section 11-A – Though under Section 11-A, the Tribunal has the power to reduce the quantum of punishment, it has to be done within the parameters of law. Possession of power is itself not sufficient; it has to be exercised in accordance with law.(Paras 20)

       AIR 2006 SC 615 – Relied upon.

       Facts of the case:

       Respondent is involved in providing public utility services. In the year 1989-1990, there were certain disputes between the management and the employees. There was an extended strike in which a large number of employees employed by the respondent-company participated. This disrupted the working of the plant where the concerned workmen were employed. The respondent-company, therefore, initiated disciplinary action against the striking employees. Against the workmen concerned, charge sheet came to be issued. Since the workmen did not participate they were proceeded ex-parte. Eventually, eight workmen were dismissed from the service by the respondent-company by order dated 01.03.1990. The concerned workmen, therefore, raised industrial disputes challenging their dismissal orders.

        Earlier once the references were disposed of by the Labour Court by an award dated 23.04.1999. The workmen concerned were directed to be reinstated in service with full back-wages from the date of dismissal till reinstatement. The employer challenged the award of the Labour Court by filing Special Civil Application No.6055/1999. The learned Single Judge disposed of the application on 14.5.2004 by giving certain directions, and the proceedings were remanded back to the Labour Court. After remand, the Labour Court took up the proceedings afresh, recorded the evidence and passed the awards on 31.12.2004. The High Court held that once the charges have been proved, the Labour Court ought not to have interfered with the quantum of punishment.

       Findings of the Court:

       High Court ought to have duly considered the import of the amended Section 11-A.

       Result : Appeal disposed of accepting offer of the respondent.

judgment

Dr. ARIJIT PASAYAT, J. —

1.Appellants call in question the judgment rendered by a learned Single Judge of the Gujarat High Court allowing the Special Civil Applications filed by the respondent (hereinafter referred to as the ‘employer’).

2.The respondent had filed the applications questioning correctness of the award dated 31.12.2004 passed by the Labour Court. Another set of petitions were filed by the employer questioning correctness of the said award by which the Labour Court had partially allowed the reference of the concerned workmen. By the said award the workmen were directed to be re-instated in service with continuity but without back wages. Challenge of the workmen was to the award insofar as it provided for no back wages and only re-instatement.

3.Background facts in a nutshell are as follows :

Respondent is involved in providing public utility services. In the year 1989-1990, there were certain disputes between the management and the employees. There was an extended strike in which a large number of employees employed by the respondent-company participated. This disrupted the working of the plant where the concerned workmen were employed. The respondent-company, therefore, initiated disciplinary action against the striking employees. Against the workmen concerned, charge sheet came to be issued. Since the workmen did not participate they were proceeded ex-parte. Eventually, eight workmen were dismissed from the service by the respondent-company by order dated 01.03.1990. The concerned workmen, therefore, raised industrial disputes challenging their dismissal orders.

Earlier once the references were disposed of by the Labour Court by an award dated 23.04.1999. The workmen concerned were directed to be reinstated in service with full back-wages from the date of dismissal till reinstatement. The employer challenged the award of the Labour Court by filing Special Civil Application No.6055/1999. The learned Single Judge disposed of the application on 14.5.2004 by giving certain directions, and the proceedings were remanded back to the Labour Court. These directions read as follows :

“11. For the reason stated above, it is necessary to quash and set aside the impugned judgment and awards while giving the following directions :-

I.The proceedings of aforesaid Reference Cases are remanded back to the Labour Court for re-trial.

II.When the proceedings of the aforesaid cases are remanded back to the Labour Court, the petitioner will be at liberty to lead additional evidence to substantiate its action taken against the respondents.

III.The respondents will be at liberty to lead evidence contra.

IV.The material already adduced before the Labour Court including the oral evidence led on behalf of the respondents will remain as it is.

V.The Labour Court to complete the hearing and final declaration of the judgment and awards on or before 30th September, 2004.

VI.That parties to the aforesaid Reference cases will fully cooperate the Labour Court with the hearing of the cases and no adjournment will be sought without compelling reasons. The common judgment and award passed in Reference L.C.A. Nos. 139/1998, 146/1998, 162/1998, 145/1998 and 150/1998 dated 23rd April, 1999 are hereby ordered to be quashed and set aside. The petitions are allowed. Rule made absolute with no order as to costs”.

4.After remand, the Labour Court took up the proceedings afresh, recorded the evidence and passed the awards on 31.12.2004.

5.Before recording the observations and conclusions of the Labour Court in the impugned award, it would be useful to notice the allegations made against the concerned workmen by the employer.

6.Charges against all the workmen were identical. Twelve different charges were leveled against them. By way of illustration the High Court took the case of appellant No.1. The charges read as follows:

“(1)Use of impertinent languages, insult to superiors, indecent behaviour, insubordination and any act which is subversive of discipline.

(2)U






































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