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1984 Supreme(Kar) 253

Karnataka High Court
Judges : M.Rama Jois
MANAGEMENT OF KARNATAKA AGRO INDUSTRIES CORPORATION - Appellant
Versus
PRESIDING OFFICER, INDUSTRIAL TRIBUNAL - Respondent
Writ Petition 43070 Of 1982
Decided On : 10/15/1984

The revocation of suspension without prejudice to the continuation of disciplinary proceedings does not entitle an employee to withheld increments, and the entitlement to increments is contingent upon the nature of the final order passed in the inquiry.

Headnote:

S. 33 (2) (b) - Industrial Disputes - Regulations of the Corporation - 3. 11 - The court discussed the application of S. 33 (2) (b) of the Industrial Disputes Act and the relevant Regulation 3. 11 of the Corporation. It highlighted the entitlement to increments as a matter of course and the postponement of increments during suspension, emphasizing that the revocation of suspension does not equate to reinstatement on exoneration. The court allowed the Writ Petition and set aside the order of the Industrial Tribunal, remitting the case for further proceedings.

Fact of the Case:

The petitioner, Karnataka Agro Industries Corporation, sought to quash the order of the Industrial Tribunal dismissing their application made under S. 33 (2) (b) of the Industrial Disputes Act. The dispute arose from the dismissal of an employee and the subsequent application for approval of the dismissal.

Finding of the Court:

The court found that the revocation of suspension did not entitle the employee to the two increments claimed, as the revocation was without prejudice to the continuation of the disciplinary proceedings. It emphasized that the revocation did not equate to reinstatement on exoneration and allowed the Writ Petition, setting aside the order of the Industrial Tribunal.

Issues: The main issue was whether the petitioner was obligated to add two increments to the employee's salary in compliance with S. 33 (2) (b) of the Act, based on the revocation of suspension and the relevant regulations of the Corporation.

Ratio Decidendi: The court held that the revocation of suspension without prejudice to the continuation of disciplinary proceedings did not entitle the employee to the claimed increments. It emphasized the clear implications of the relevant regulations and the nature of the final order passed in the inquiry.

Final Decision: The Writ Petition was allowed, the order of the Industrial Tribunal was set aside, and the case was remitted to the Industrial Tribunal for further proceedings.

( 1 ) THIS petition is by the Management of Messrs. Karnataka Agro Industries Corporation limited ('the Corporation' for short) praying for quashing the order of the Industrial Tribunal, bangalore, by which the application of the petitioner made under S. 33 (2) (b) of the Industrial disputes Act ('the Act' for short) has been dismissed.

( 2 ) THE petition is in the orders list. By consent of both the Counsel, it is taken up for final hearing.

( 3 ) THE facts of the case, in brief, are as follows : The Second Respondent was an employee of the petitioner. Disciplinary proceedings were instituted against him and simultaneously an order placing him under suspension during the pendency of the inquiry was made on 5th August, 1979. On 25th April, 1980 the order of suspension was revoked, but without prejudice to the continuance of the disciplinary proceedings. Ultimately, the Second Respondent was found guilty of the charges framed against him and the penalty of dismissal from service was imposed by an order made by the petitioner on 9th December, 1980. As an Industrial Dispute with which the Second Respondent was connected was pending before the Industrial Tribunal, Bangalore, the petitioner was obliged to comply with the mandatory conditions prescribed under S. 33 (2) (b) of the Act. Accordingly, simultaneous with the passing of the order of dismissal on 9th december, 1980, the petitioner made an application before the Industrial Tribunal seeking its approval for the order of dismissal and also paid one month's salary of Rs. 606. 10, the salary which the Second Respondent was getting prior to the date of his dismissal.

( 4 ) BEFORE the Tribunal, an objection was raised on behalf of the Second Respondent to the effect that as suspension had been revoked on 25th April, 1980, it was obligatory on the part of the petitioner to have added the two increments which fell due on 1st January, 1979 and 1st January, 1980 respectively and consequently the one month's salary which the petitioner was required to pay in compliance with the provisions of S. 33 (2) (b) of the Act, was Rs. 606. 10 plus the amount of two increments which were due on 1st January, 1979 and 1st January, 1980 and as only Rs. 606. 10 was paid there was non-compliance with the condition prescribed under S. 33 (2) (b) of the act and therefore the application was rightly rejected.

( 5 ) THE objection of the Second Respondent was upheld by the Industrial Tribunal and it rejected the application of the petitioner. Aggrieved by the said order, the Corporation has presented this petition.

( 6 ) THE question 'whether an amount equal to two increments was due to the Second Respondent and therefore it should have been added to the one month's wages payable in complaince with S. 33 (2) (b) of the Act ?' depends upon the conditions of service which were applicable to the petitioner. The relevant regulation is 3. 11 of the Regulations of the Corporation. It reads :

"3. 11. INCREMENTS : 1. 11. a) Increment in the time scale of the post to which the person is appointed shall be drawn as matter of course except where such increments have been withheld as a result of penalty imposed under these regulations. On an order, withholding increments the withholding authority shall state the period for which it is withheld, whether the postponement shall have the effect of postponing future increments.

11. b) In all cases of suspension pending enquiry the increment of the employee under suspension who holds a time scale of pay shall be postponed for the duration he is under suspension, in case the employee is reinstated with punishment. 'provided, however, this shall not apply if the employee is reinstated after being exonerated of the charges levelled against him. "

( 7 ) ACCORDING to Regulation 11-a, an employee of the Corporation is entitled to get increments as a matter of course. According to Regulation 11-b the increments due to an employee stands positioned during the period of suspensi








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