SUPREME COURT OF INDIA
K.M. Joseph, S. Ravindra Bhat, JJ.
Chairman And Managing Director, BHEL - Appellant
Versus
Vijay Kumar. D - Respondent
Civil Appeal No. 8763 of 2017
Decided On : 28-07-2021
Probation - Employment - [Section 2.3, 2.4, 2.5 of the Company's Service Rules] - The court discussed the rules governing the probation and confirmation of the respondent's employment. The court emphasized the requirement of an express order of confirmation for the respondent to be considered confirmed in service, and the employer's right to terminate services if found unsuitable during the probation period. The court found that the High Court overlooked the crucial provision requiring an express order of confirmation, and modified the reinstatement order to a monetary compensation of Rs. 18 lakhs.
Fact of the Case:
The respondent was dismissed from service on grave charges, reappointed on trial, and later terminated due to unsatisfactory performance and unauthorized absenteeism. The respondent filed a writ petition seeking continuation of service from the date of dismissal to the date of reappointment.
Finding of the Court:
The High Court allowed the appeal filed by the respondent, directing reinstatement with 50% backwages and other benefits. The Supreme Court modified the order, directing the appellant to pay a sum of Rs. 18 lakhs within a month instead of reinstatement with backwages.
Issues: The issues revolved around the respondent's probation, confirmation of service, unsatisfactory performance, and unauthorized absenteeism, leading to the termination of service.
Ratio Decidendi: The court emphasized the requirement of an express order of confirmation for the respondent to be considered confirmed in service, and the employer's right to terminate services if found unsuitable during the probation period. The court found that the High Court overlooked the crucial provision requiring an express order of confirmation, and modified the reinstatement order to a monetary compensation of Rs. 18 lakhs.
Final Decision: The appeal was allowed, and the order of reinstatement with 50% backwages was modified to a direction for the appellant to pay a sum of Rs. 18 lakhs within a month. No costs were awarded.
ORDER :
1. The respondent joined the appellant as a Trainee Engineer on 05.10.1981. As he completed the period of training, he was designated as Commercial Engineer with effect from 07.10.1982. He was placed on probation for a period of on year, which was extended. Thereafter his probation was declared with effect from 06.01.1984.
2. Disciplinary proceedings were commenced against him which resulted in appellant being dismissed. It must be noted that the charge against him was that he forged the signature of Manager, Production (TC) in two leave applications and also forged the signature of the Manager, Projection (TC) on the Employees Attendance Certificate certifying his own attendance. Thereafter, it appears, the case of the respondent was considered sympathetically. The following order is passed which evidenced his appointment. The said order is dated 10.02.1986:
He will be on trial for a period of one year with effect from 20.10.86 during which his performance work and conduct including punctuality attendance will be reviewed periodically and decision taken for his continuance or otherwise. During the trial period, his services are liable for termination without notice or without assigning reasons therefore and on satisfactory completion, which shall not be deemed to have been completed unless he is informed in writing, his services will be liable for termination by either side giving six months notice or payment of salary in lieu thereof.
He will be governed by the service rules & regulations including the conduct rules and administrative orders of the company in force from time to time and shall obey all such orders and directions he may receive from his superiors.
He will be treated as fresh entrant for all purposes and he will be junior most to all those who are already in EI grade on the date of his appointment in this organisation i.e. 20.10.86.
He is allotted staff No. 1882252 and posted to commercial, CDC (840) as commercial engineer (CDC).”
3. Thereafter, it is the case of the appellant that the performance of the respondent was not on expected lines. Memo dated 29.04.1989 may be noticed at this stage.
4. The respondent filed Writ petition No. 15002/1989 before the High Court. Therein, the relief sought was that the appellant may be directed to give continuation of respondent’s service from the date of first dismissal to the date of his reappointment.
5. The said writ petition culminated in judgment dated 07.09.1990. The following may be noticed: -
Counsel for the petitioner submitted that the petitioner may be held entitled atleast to a declaration of his probation of confirmation in terms of the Standing Order. Those are not matters covered by this writ petition. The petitioner h
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