S. C. Railway Employees Cooperative Credit Society vs Labour Court. Hyderabad

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

Headnote:A P SHOPS AND ESTABLISHMENTS ACT - Removal of an Employee by the Management on the ground of loss of confidence in the Employee - Reinstatement of employee by the appellants authority - When can be justified - Explained
       HELD: In order to arrive at a conclusion whether the employer has lost confidence in the employee there cannot be a straight Jadket principles 8S each case has to be assessed on its peculiar facts and circumstances The derelict observance 0 any act by the employee giving rise to the complaint of losing confidence must be a deliberate one An Innoccous find Inadvertent act which causes detriment will not be a losing confidence In the employee The normal rule is that in cases of invalid order of dismissal the direction is or reinstatement of the dismissed employee and the exception is expedience where say the employer held a position of confidence and trust, and the employer lost confidence reinstatement will not be fair
       In this case It Is not at all expedient to hold that the employee was holding any position of confidence and trust and thereby the employer could be said to have lost confidence in him The act attributed to the employee cannot be said to be one amounting to divulgence at any secrecy which could be said to have caused any detriment to the employer The past long record of service which is unblemished lends further credence to the case of reinstatement Therefore there is no compelling circumstance to make a departure from the normal rule which Is reinstatement In cases where an employee has been dismissed on invalid grounds and award compensation in leeu thereat
       W P Dismissed

S. C. Railway Employees Cooperative Credit Society vs Labour Court. Hyderabad - 1982 Supreme(AP) 103