IN THE HIGH COURT OF KARNATAKA
K.S. Mudagal, J.
Vmware Software India Pvt. Ltd - Appellant
Versus
Ashis Kumar Nath - Respondent
Writ Petition No. 8149 of 2021 (L-RES)
Decided On : 12-05-2022
Termination - Labour Dispute - Industrial Dispute Act, 1947 - [NSX Senior quality engineering developer] - [Industrial Dispute Act, 1947, Section 2A, Section 10] - The court discussed the termination of the respondent's employment, the requirement of a domestic enquiry before termination, and the principles of natural justice. It also considered the lack of mutual confidence between the parties and the objective test for loss of confidence. The court concluded that the termination without a domestic enquiry was violative of natural justice and industrial jurisprudence. It set aside the reinstatement and back wages but directed the petitioner to pay compensation of Rs. Ten lakhs to the respondent.
Fact of the Case:
The respondent, a NSX Senior quality engineering developer, was terminated from service by the Management. The Labour Court set aside the termination and directed reinstatement with full back wages and continuity of service. The Management sought quashing of the award.
Finding of the Court:
The court found that the termination without a domestic enquiry was violative of natural justice and industrial jurisprudence. It set aside the reinstatement and back wages but directed the petitioner to pay compensation of Rs. Ten lakhs to the respondent.
Issues: The issues included the validity of the termination, lack of mutual confidence between the parties, and the appropriate relief to be granted.
Ratio Decidendi: The court held that the termination without a domestic enquiry was violative of natural justice and industrial jurisprudence. It also applied the objective test for loss of confidence and concluded that the reinstatement and back wages were not sustainable in law. It awarded compensation of Rs. Ten lakhs to the respondent.
Final Decision: The impugned award for reinstatement, back wages, continuity, and all other consequential benefits was set aside. The petitioner was directed to pay a sum of Rs. Ten lakhs to the respondent within 30 days.
JUDGMENT
K.S. Mudagal, J. - The above petition is filed by the Management seeking quashing of award annexure-a dated 26.02.2021 in Reference No.46/2018 passed by the III-additional Labour Court, Bengaluru. By the impugned award the Labour Court set aside the order of the petitioner terminating the respondent from service, directed the petitioner to reinstate the respondent with full back wages and continuity of service.
2. For the purpose of convenience the petitioner and respondent will be referred to henceforth as Management and Workman respectively.
3. The Management is a company being part of VM Ware group of companies having its head quarters at California United States of america. Management is engaged in the business of providing software services. On 04.02.2015 the Management appointed the workman as NSX Senior quality engineering developer in its Bengaluru office on annual pay package of Rs,24,75,000/- on probation of six months. His primary work was that of network testing/testing engineer. admittedly, the workman represented to the Management before his recruitment that he has 11 years' work experience in the field.
4. On his induction in the service the Management provided him 3 weeks training in July-august 2015 in U.S.a. after his return from U.S.a he was given 4 weeks training during September-October 2015.Thereafter he was posted to work in Bengaluru. One Dharsak Patel was his mentor and his immediate higher officer.
5. In November 2015 he was paid bonus. Under the letter dated 09.12.2015 on completion of the probation his service was confirmed. The management directed the workman to undergo Performance Improvement Program (for short 'PIP') as per annexure-E2 claiming that his performance is not satisfactory. The workman declined the same. The workman claimed that PIP is a strategy to terminate his services.
6. Some difference arose between the parties on the issue of undergoing the PIP. Ultimately, the Management under annexure-J notice dated 28.12.2015 terminated the services of the workman on the ground that he declined to undergo PIP. The Management also offered him one month's pay etc.,
7. Thereafter the differences between the parties were aggravated. On 05.01.2016 the Management filed complaint before J.P Nagar police against the workman alleging that the workman employed violence against the Management's staff. On 13.06.2016 the workman also filed complaint before the very same police against the H.R managers of Management alleging that they criminally intimidated him at their office. In that regard First Information Report in Crime No.272/2016 as per annexure-K8 was registered. The management filed Crl.P.No.5594/2016 for quashing that First Information Report. This Court vide order annexure-M quashed the said First Information Report.
8. The workman raised dispute against his termination which was registered in Reference No.46/2018 before the Labour Court Bengaluru. The Management contested the said Reference and the parties adduced evidence. The Labour Court by the impugned award set aside the order of termination and directed for reinstatement and back wages etc., as aforesaid.
Submissions of Sri. Dhyan Chinnappa, learned Senior Counsel for advocate on record for the petitioner
9. There was sufficient material to show that despite sufficient training the workman was underperforming, non-cooperative, belligerent and violent. That was evident by his admitted E-Mails. The impugned award was passed without analyzing the evidence and assigning reasons on the same. There was clear evidence of loss of confidence between the parties. Under such circumstances the Labour Court committed grave error in ordering for reinstatement. The impugned award suffers perversity and contrary to the judicial precedents.
10. In support of his submissions, he relies upon the following judgments:
1. National Gandhi Museum v. Sudhir Sharma 2021 LLR 1040
2. The Divisional Controller, KSRTC vs. M.G.Vittal Rao (2012) 1 SCC 442
Ashok Kumar Sharma vs. Oberoi Flight Services AIR 2010 SC 502
Chandu Lal vs. Pan American World Airways (1985) 2 SCC 727
Deepali Gundu Surwase vs. Kranti Junior Adhyapak Mahavidyalaya (2013) 10 SCC 324
Francis Klein & Co. (P) Ltd. vs. Their Workmen & Ors. AIR 1971 SC 2414
Harjinder Singh vs. Punjab State Warehousing Corporation (2010) 3 SCC 192
Indian Railway Construction Co.Ltd. vs. Ajay Kumar (2003) 4 SCC 579
Jagbir Singh vs. Haryana State Agriculture Marketing Board (2009) 15 SCC 327
L.Michael and Anr. vs. Ms.Johnson Pumps Ltd. (1975) 1 SCC 574
M/s.Ruby General Insurance Co. Ltd. vs. Shri P.P.Chopra (1969) 3 SCC 653
Madhya Pradesh Administration vs. Tribhuban (2007) 9 SCC 748
Mahboob Deepak vs. Nagar Panchayat Gajraula & Ors. (2008) 1 SCC 575
National Gandhi Museum vs. Sudhir Sharma 2021 LLR 1040
Sita Ram vs. Moti Lal Nehru Farmers Training Institute (2008) 5 SCC 75
U.P.State Brassware Corpn. Ltd. vs. Uday Narain Pandey (2006) 1 SCC 479
U.P.State Road Transport Corporation vs. Mohan Lal gupta & Ors. (2000) 9 SCC 521
U.P.State Sugar Corporation Ltd. vs. Kaushal Kumar Sinha 2017 LLR 673
AI
The termination without a domestic enquiry was violative of natural justice and industrial jurisprudence. The lack of mutual confidence should be objective, and the court may grant compensation as ap....
In cases of illegal termination, reinstatement with back wages is the norm, but courts may instead award reasonable compensation based on the context of service and misconduct.
The termination of the workman was deemed unjustified and punitive, leading to an increase in compensation from Rs.2,00,000 to Rs.4,00,000 based on the nature of his duties and the stigma attached to....
The main legal point established in the judgment is that the employer must follow the relevant provisions of the I.D. Act before terminating the service of an employee, and failure to do so may entit....
The burden of proof lies on the employer to establish the voluntary nature of the workman's resignation, and the court emphasized the principles governing the payment of back wages.
The burden of proof for misconduct lies with the employer, and failure to substantiate claims of loss of confidence invalidates the denial of reinstatement.
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