Andhra Pradesh High Court
Judges : I.P.RAO
Ch.Veera Venkata Prabhakar Rao - Appellant
Versus
Plant Manager KCP Ltd - Respondent
Decided On : 02-22-91
INJUNCTION - DOMESTIC ENQUIRY - INDUSTRIAL DISPUTES ACT - JURISDICTION OF CIVIL COURT - EMPLOYEES RIGHT TO ENGAGE ADVOCATE - INHERENT POWER OF COURT - CIVIL PROCEDURE CODE, ORDER 39, RULE 1 - STANDING ORDERS OF FACTORY - WRIT PETITION - NATURAL JUSTICE - SECTION 94 - INDUSTRIAL DISPUTES ACT, 1947 - SECTION 10 - CODE OF CIVIL PROCEDURE, 1908 - ORDER 7 - ARTICLE 226 - CONSTITUTION OF INDIA, 1950.
Fact of the Case:
Employees of a sugar factory were subjected to disciplinary action for participating in a hunger strike. They filed a suit seeking a permanent injunction restraining the factory from proceeding with the domestic enquiry without permitting them to engage an advocate. The trial court dismissed the petition, holding that the civil court lacked jurisdiction.
Finding of the Court:
The High Court held that the civil court had jurisdiction to entertain the suit and grant temporary injunction in the interests of justice. The court noted that the employees were at a disadvantage in facing the disciplinary enquiry without legal assistance, and that the factory's standing orders did not empower them to have such assistance. The court also observed that the employees had filed a writ petition challenging the validity of the standing orders, and that the outcome of the writ petition would have a bearing on the outcome of the suit.
Issues: 1. Whether the civil court has jurisdiction to entertain a suit seeking to restrain a domestic enquiry conducted by an employer? 2. Whether the employees have a right to engage an advocate to assist them in a domestic enquiry? 3. Whether the court can exercise its inherent power to grant temporary injunction in a case not covered by Order 39 of the Code of Civil Procedure?
Ratio Decidendi: 1. The jurisdiction of the civil court is not ousted unless there is a specific bar under a statute. In the absence of such a bar, the civil court has jurisdiction to entertain a suit seeking to restrain a domestic enquiry conducted by an employer. 2. The employees have a right to engage an advocate to assist them in a domestic enquiry, as a denial of such assistance would amount to a denial of reasonable opportunity of hearing. 3. The court can exercise its inherent power to grant temporary injunction in a case not covered by Order 39 of the Code of Civil Procedure, in the interests of justice.
Final Decision: The High Court allowed the civil revision petition and granted temporary injunction restraining the factory from proceeding with the domestic enquiry against the employees pending disposal of the suit and the writ petition.
( 1 ) THIS revision is preferred against the order of the learned Subordinate judge, Gudivada in C M A No. 25 of 1990. The facts leading to the filing of the civil revision petition are, briefly, as follows;
( 2 ) DISCIPLINARY action was initiated against six employees of K C P Ltd. Sugar Factory (hereinafter referred to as the factory ) for certain mis-conduct under the standing orders of the factory. It is alleged that the said employees have participated and conducted a hunger strike outside the factory premises; that at the intervention of elders and politicians, the hunger strike was called-off; that the Plant Manager of the factory orally agreed not to victimise the employees but contrary to that assurance, the factory has initiated disciplinary action against them: that the factory has appointed a retired Assistant Commissioner of labour as the enquiry officer and a postgraduate in Labour Laws and a Personnel manager as the presenting officer to represent the management in the enquiry and that when the employees requested the factory management for permission to engage an advocate to represent them in the domestic enquiry, such permission was refused.
( 3 ) THE employees filed O S No. 144 of 1990 on the file of the Court of the District Munsif, Gannavaram for permanent injunction and also I A No. 515 of 1990 for a temporary injunction restraining the defendants from proceeding with the domestic enquiry against the employees without permitting them to engage an advocate to assist them in the disciplinary enquiry.
( 4 ) THE defendants opposed the petition on the ground that if there is any infraction or violation of any rule in the conduct of the enquiry, the employees have to question the same by raising a dispute under the Industrial Disputes act: that the Civil Court has no jurisdiction: that the Civil Court has no power to set aside the order of termination of service nor to intradict the proceedings of the disciplinary enquiry and that the petition for injunction is not maintainable. The learned District Munsif came to the conclusion that this case has to be dealt with either by the Labour Court or by the Industrial Tribunal but not by the civil Court and that where the relief in the suit cannot be granted, interim relief also cannot equally be granted. Accordingly he dismissed the petition.
( 5 ) AGGRIEVED by the said decision, the employees have preferred an appeal in c M A No. 25 of 1990 to the learned subordinate Judge, Gudivada. The learned subordinate Judge held that when the impugned proceedings before the Civil court are not final orders of termination of service but only proceedings initiating an enquiry into the conduct of the employees, the Civil Court has no jurisdiction to intradict those proceedings; that the power of the Civil Court under order 39 of the Code of Civil Procedure cannot be invoked as a supplementary proceedings to adjudicate the claim in the main suit; that when the delinquent employees have got a right to question the final orders of the management, there is no need to interfere with the domestic enquiry proceedings at each and every stage and that is is absolutely unnecessary to intradict the disciplinary proceedings before the enquiry officer initiated by the management. The learned Judge further observed that all the complaints of the employees under the head of natural justice can be heard and decided in the appropriate proceedings challenging the final orders of the management passed on the basis of the enquiry report.
( 6 ) DURING the course of arguments the learned counsel for the petitioners-employees has cited certain decisions in support of his contention that the jurisdiction of the Civil Court is not ousted unless there is a specific bar under a statute and he contended that inasmuch as there is no specific bar for the Civil Court to entertain a suit of this nature, the jurisdiction of the civil court cannot be said to be barred. It is not desirabl
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