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2007 Supreme(SC) 1549

2007(8) Supreme 288
Supreme Court of india
Dr. Arijit Pasayat & S.H. Kapadia, JJ.
United Bank of India — Petitioner
versus
Tamil Nadu Banks Deposit Collectors Union and Anr. — Respondents
Appeal (civil) 5344 of 2005
Decided on : 05-12-2007

Important point
A wrong permission granted to lead evidence and absence of acceptable evidence is conceptually different.

Headnote:Labour law – Termination of services of two persons engaged as commission agents by appellant bank – Industrial disputes regarding alleged termination of said two persons – Tribunal passed an award answering reference against claimant and in favour of management – Writ petition there against before High Court by respondent 1 Union – Dismissed by single judge – Writ Appeal – Allowed by division Bench of High Court holding that Tribunal not referred to any misconduct and hence there was no justification for Tribunal to permit appellant bank to rely upon documents and materials to justify orders – Appeal – Plea of appellant that it was permissible for the Tribunal to allow the employer to lead evidence - Relying upon decision in case of In Workmen of Fire Stone Tyre Rubber Company v. Management held that An employer, who wants to avail himself of the opportunity of adducing evidence for the first time before the Tribunal to justify his action, should ask for it at the appropriate stage and if such an opportunity is asked for, the Tribunal has no power to refuse.- Held inevitable conclusion was that the Division Bench of the High Court was not justified in allowing writ appeal - A wrong permission granted to lead evidence and absence of acceptable evidence are conceptually different - Division Bench appeared to have been confused between two concepts - There was no finding recorded that permission was wrongly granted - Appeal allowed. (Paras 10, 11)

       Facts of the case :

       Services of two persons engaged as commission agents were terminated by appellant bank. Industrial disputes were raised regarding alleged termination of said two persons. Tribunal passed an award answering reference against claimant and in favour of management. Writ petition there against before High Court by respondent 1 Union was dismissed by single judge. Writ Appeal there against was allowed by division Bench of High Court holding that Tribunal not referred to any misconduct and hence there was no justification for Tribunal to permit appellant bank to rely upon documents and materials to justify orders.

       Present appeal has been filed against said order of division Bench of High Court.

       Findings of the Court :

       The Court held that inevitable conclusion was that the Division Bench of the High Court was not justified in allowing the writ appeal. A wrong permission granted to lead evidence and absence of acceptable evidence is conceptually different. Division Bench appeared to have been confused between two concepts. There was no finding recorded that permission was wrongly granted.

       Result: Appeal allowed.

JUDGMENT

Dr. ARIJIT PASAYAT, J.—

1.Challenge in this appeal is to the order Passed by a Division Bench of the Madras High Court allowing the writ appeal filed by the respondents.

2.Background facts in a nutshell are as follows :

“Two persons named Koshi Kottikeran and Liakath Ali were engaged as Commission agents with the appellant Bank in its Coimbatore Branch. On 11.10.1984 and 12.12.1984 engagements of Koshi Kottikeran and Liakath Ali came to be terminated by the appellant-Bank. Respondent No.1-The Union raised two disputes purported to be an industrial dispute with regard to alleged termination of the aforesaid two persons. The matter was referred to the Industrial Tribunal, Tamil Nadu (in short the ‘Tribunal’) I.D. Case Nos.26 and 44 of 1987. Appellant Bank took the stand that these two persons were not workmen and in any event the dis-engagement was legal, justified and permissible. The Tribunal passed a common award answering the reference against the claimant and in favour of the management.

Aggrieved by the award the respondent No. 1-Union preferred Civil Writ Petition No. 15538 of 1997 before the Madras High Court.

Learned Single judge by order dated 15.10.1997 dismissed the writ petition. The Union carried the matter further in writ appeal. By the impugned order the Division Bench of the High Court allowed the writ appeal. The High Court came to hold that a Tiny Deposit Collector was a workman. Therefore, it is a valid dispute, and the dispute referred to can be adjudicated by the Tribunal. It referred to the letters of disengagement and came to hold that the termination orders disclosed that they were simple orders of termination. That being so no specific reason for termination of services was disclosed. They did not refer to any misconduct and therefore there was no justification for the Tribunal to permit the appellant-bank to rely upon documents and materials to justify the orders. It was also held that there was absolutely no acceptable evidence placed before the Tribunal to justify the orders of termination. Accordingly writ appeal was allowed.”

3.Learned counsel for the appellants submitted that it was permissible for the Tribunal to allow the employer to lead evidence. The learned Single judge categorically observed that the evidence led before the Tribunal was to substantiate the stand of the employer about the misconduct of the two workmen.

4.There is no appearance on behalf of respondent No.1-Union in spite of service of notice.

5.Circumstances, when permission can be granted to an employer to lead evidence to justify its order of termination, have been highlighted by this Court in several cases.

6.The reference to the Tribunal was as follows :

“ID 26/87 :Whether the action of the management of the United Bank of India, Madras, in terminating the services of Shri Koshy Kottikaran, Tiny Deposit Collector, United Bank of India, Oppanakkara Street, Coimbatore from 20.12.1984 is legal? If not to what relief is workman concerned entitled?”

ID 44/87 : Whether the action of the Management of the United Bank of India, Madras, in terminating the services of Shri Liakath Ali, Tiny Deposit Collector, United Bank of India, Oppanakkara Street, Coimbatore from 11.10.1984 is legal? If not to what relief is the workman concerned entitled?”

7.The reasons which weighed with the Tribunal for deciding in favour of the appellant bank read as follows :

“The Dy. General Manager asked the Regional Manager to give the particulars regarding the non-engagement of Commission Agent for TSS is disclosed by Ex. M 10. The commission Agents decided to demonstrate at 5.00 p.m. from 28.8.1984 in front of the Bank for one week and 28t” onwards is revealed by Ex. M. 11. This scheme was abolished due to complaints and problems. The object of the introduction of the Tiny Deposit Scheme is to create a Saving habit of the weaker section of the society is proved by Ex. M. 13. The Manager wrote to the Regional Manager, Southern Region, regarding the Tiny Depo













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