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2018 Supreme(SC) 1196

SUPREME COURT OF INDIA
ABHAY MANOHAR SAPRE, INDU MALHOTRA, JJ.
Manju Saxena – Appellant
Versus
Union of India & Anr. – Respondents
Civil Appeal Nos. 11766-11767 of 2018 (Arising out of SLP (Civil) Nos. 30205-30206 of 2017)
Decided On : 03-12-2018

IMPORTANT POINTS
When the employee, after his post becoming redundant, refuses to accept alternative posts and raises claims only in respect of enhancing compensation, the conduct constitutes abandonment of service.
Requirement of section 25F(c) is directory and mandatory.

Headnote:(a) Industrial Disputes Act, 1947 – S. 2(oo) – Appellant declining to accept any of the four posts offered by Bank – Raising claims only with respect to enhancement of compensation – Held, appellant’s conduct constituting abandonment of service. (Para 5)

       (1964) 4 SCR 265; (2013) 10 SCC 253 – Relied upon

       (b) Industrial Disputes Act, 1947 – S. 25F – Applies to an employee in continuous service – Instantly, Bank paying 6 months’ pay in lieu of notice as required by section 15F(a), compensation on the basis of 15 days’ salary for each completed year as required by section 25F(b) – No Notice was sent to the Appropriate Government or authority notified, in compliance with S. 25F(c) – However, requirement of section 25F(c) is directory and mandatory. (Para 5)

       AIR 1960 SC 923; (1991) 1 SCC 189; (2003) 4 SCC 619 – Relied upon

       Facts of the case:

       On 01.10.2005, the Bank issued a Letter terminating the services of the Appellant on the ground that her current job had become redundant. The Appellant was offered several job opportunities, however, she did not choose any of these offers. The Bank had offered a generous severance package, which she was not prepared to accept. The Bank terminated her service, and paid 6 months’ compensation in lieu of Notice as per the contract of employment. In addition, as a special case, the Bank paid Compensation, which was equivalent to 15 days’ salary for every completed year of service. The total amount paid to the Appellant was Rs. 8,17,071/-.

       The Appellant raised an Industrial Dispute before the Regional Labour Commissioner, and sought enhancement of the severance package paid to her. The Appellant did not raise any claim for reinstatement to the R2-Bank.

       CGIT passed an Award dated 01.06.2009, and directed the R2-Bank to reinstate the Appellant, with full terminal benefits.

       The Bank filed Writ Petition before the Delhi High Court, to challenge the Award passed by the CGIT.

       The Writ Petition filed by the Bank was allowed by the Single Judge and the Award passed by the CGIT came to be set aside.

       The LPA has been dismissed.

       Finding of the Court;

       The amounts received by her may be treated as a final settlement of all her claims.

       Result: Appeals dismissed.

JUDGMENT :

Indu Malhotra, J.

Leave granted.

1. The present S.L.P.s arise out of the impugned Judgment dated 14.07.2017 passed in L.P.A. No. 467/2017, and Order dated 13.09.2017 passed in R.P. No. 380/2017 of the Delhi High Court, wherein the High Court dismissed the L.P.A filed by the Appellant against the 2nd Respondent HSBC Bank.

2. Briefly stated, the factual matrix in which the present S.L.P. has been filed are summarized as under:

2.1 The Appellant was appointed on 01.04.1986 as a “Lady Confidential Secretary” by the 2nd Respondent-HSBC Bank, (hereinafter referred to as “the R2-Bank”).

Subsequently, on 23.04.1992 the Appellant came to be promoted as a “Senior Confidential Secretary” to the Senior Manager (North India) of HSBC.

2.2 In May 2005, the post of “Senior Confidential Secretary” became redundant, as the Officer with whom the Appellant was attached, left the services of the R2-Bank. Her services were utilized by giving her some other duties for the time being, till alternate jobs could be offered to her.

The Management admittedly offered her four alternate jobs of (i) Business Development Officer, (ii) Customer Service Officer, (iii) Clearing Officer, and (iv) Banking Services Officer. Each of these jobs were in the same pay scale.

The Appellant has admitted in her Statement of Claim dated 20.03.2006, that she declined to accept any of these jobs on the ground that such jobs were either temporary in nature, or the claimant did not possess the experience or work knowledge to take up such jobs.

2.3 On 01.10.2005, the Bank issued a Letter terminating the services of the Appellant on the ground that her current job had become redundant. The Appellant was offered several job opportunities, however, she did not choose any of these offers. The Bank had offered a generous severance package, which she was not prepared to accept. The Bank terminated her service, and paid 6 months’ compensation in lieu of Notice as per the contract of employment. In addition, as a special case, the Bank paid Compensation, which was equivalent to 15 days’ salary for every completed year of service. The total amount paid to the Appellant was Rs. 8,17,071/-.

2.4 The Appellant raised an Industrial Dispute before the Regional Labour Commissioner under the Industrial Disputes Act, 1947 (hereinafter referred to as the I.D. Act) on 03.10.2005, and sought enhancement of the severance package paid to her. It is relevant to note that the Appellant did not raise any claim for reinstatement to the R2-Bank.

Conciliation proceedings were commenced between the Appellant and R2-Bank, wherein the Appellant made the following claims:-

HEADS

AMOUNT (INR)

Severance

69,99,600.00

Provident Fund

8,90,111.60

Gratuity

3,81,209.00

Leave Encashment

86,541.40

Compensation + Notice Pay

8,17,071.00

TOTAL

91,74,533.00

The Bank, in response, offered the following package:-

HEADS

AMOUNT (INR)

Severance

32,79,600.00

Provident Fund

8,90,111.60

Gratuity

3,81,209.00

Leave Encashment

86,541.40

Compensation + Notice Pay

8,17,071.00

TOTAL

57,29,533.00

The only difference between the two parties was with respect to the amount of Severance payable to the Appellant. Since the parties were unable to arrive at a settlement, the conciliation proceedings failed.

2.5 The Appellant filed her Statement of Claim dated 20.03.2006, before the Central Government Industrial Tribunal (referred to as “the CGIT”) claiming inter alia an enhanced severance package, waiver of outstanding Housing Loan, and full pension. The Claim was opposed by the R2-Bank. The R2-Bank filed its Written Statement and contested the claim of the Appellant, stating that the Appellant was not a “workman” under the I.D. Act, 1947. The Bank further stated that they had followed the procedure outlined under the I.D. Act, while terminating the services of the Appellant.

The Ld.



















































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