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2008 Supreme(Bom) 848

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
S.C.DHARMADHIKARI, J.
Municipal Corporation of Gr.Bombay – Petitioner
Versus
General Secretary, BEST Workers’ Union – Respondent
WRIT PETITION NO.1249 OF 2008
DECIDED ON : 23rd June 2008

Advocates appeared:
Mr.S.K.Talsania, Senior Advocate with Mayur
Shett and Kavita Anchan i/b. M/s.M.V.Kini & Co. for petitioner
Mr.C.U.Singh, Senior Advocate with Mr.N.D.Nagle for respondent

The standing orders do not get vitiated nor do they become unreasonable or unfair because second opportunity is not to be found therein.

Headnote:

STANDING ORDER - AMENDMENT - INDUSTRIAL EMPLOYMENT (STANDING ORDERS) ACT, 1946 - SECTION 10(2) - BOMBAY INDUSTRIAL RELATIONS ACT, 1946 - SECTION 35(2), 36(3), 39(1) - PRINCIPLES OF NATURAL JUSTICE - SHOW CAUSE NOTICE - REASONABLENESS - FAIRNESS - INDUSTRIAL PEACE - Held, the impugned orders directing addition to standing order 23(a) are unsustainable. The authorities below have clearly erred in law and have ignored the binding principles which have to be applied while considering such issues in industrial matters.

Fact of the Case:

The petitioner, Municipal Corporation of Greater Mumbai, through its General Manager, Bombay Electric and Supply and Transport Undertaking (BEST), challenged the order dated 30th December 2002 delivered by the Dy.Commissioner of Labour and Settlement Officer, which has been confirmed by the President Industrial Court on 16th August 2007. The respondent is Trade Union registered under the Trade Union’s Act. It is represented and approved Union for the Transport Industry of the petitioner. The petitioner pointed out that the respondent by letter dated 5th March 2002 moved the Commissioner of Labour for alterations in the Standing Orders settled for the employees of the Undertaking. It was their case that standing order No.23(b) provides that the delinquent employee be given an opportunity to show cause as to why proposed punishment should not be imposed upon him. However, this standing orders deals with the procedure in respect of summary enquiry. The contention of the Union is that the Standing Order No.23(a) does not have a similar provision which gives an opportunity to the delinquent employee to show cause as to why proposed punishment should not be imposed against him, in an enquiry conducted under the standing orders. Therefore, it was their case that the protection similar to that of Standing Order No.23(b) must also be provided in Standing Order No.23(a). According to respondent, the General Manager delegates the powers to designated officers to issue charge sheets in departmental enquiry and impose punishment provided for in the Standing Order. The officer to whom powers are delegated conducts the enquiry and records findings and also imposes necessary punishment.

Finding of the Court:

The impugned orders directing addition to standing order 23(a) are unsustainable. The authorities below have clearly erred in law and have ignored the binding principles which have to be applied while considering such issues in industrial matters. Once their orders are vitiated on account of misdirection in law and failure to apply their mind to settled principles, then, they cannot be upheld. This Court would be failing in its constitutional duty if it upholds the orders which are patently unsustainable.

Issues: Whether the existing standing order of the petitioner undertaking requires any amendment much less amendment proposed by the Union so also certified by the Authority?

Ratio Decidendi: The Supreme Court decisions clearly lay down one principle viz., the standing orders do not get vitiated nor do they become unreasonable or unfair because second opportunity is not to be found therein. In fact, in the earlier decisions of the Supreme Court, a contention was raised before it that a notice contemplated by the then Article 311 must be imported in to industrial matters. That contention was specifically turned down. The Supreme Court held that to equate enquiries and employment so also matters falling under Article 311 with Industrial matters, would be equating industrial employees with civil services for which there is no justification on any principle. The Supreme Court sounded a note of caution that importing such concept would unnecessarily prolong disciplinary enquiries which is not in the interest of Industrial Peace. Interest of industrial peace demands early and expeditious disposal of disciplinary enquiries. Therefore, the modification was not held to be justifiable on the ground of reasonableness or fairness.

Final Decision: Petition allowed.

ORAL JUDGEMENT:- Rule. Mr.Nagle waives service for respondents. By consent, rule is made returnable forthwith.

2. By this petition under Article 226 of the Constitution of India, the petitioner, Municipal Corporation of Greater Mumbai, through its General Manager, Bombay Electric and Supply and Transport Undertaking (BEST), challenges the order dated 30th December 2002 delivered by the Dy.Commissioner of Labour and Settlement Officer, which has been confirmed by the President Industrial Court on 16th August 2007.

3. The petitioner is engaged in the supply of electricity so also conduct and maintenance of Public Transport Service in Greater Mumbai. The undertaking of the petitioner is registered as such under section 11 of the Bombay Industrial Relations Act, 1946. (B.I.R.Act for short). The respondent is Trade Union registered under the Trade Union’s Act. It is represented and approved Union for the Transport Industry of the petitioner.

4. The petitioner states that Standing Orders (Transport section) of the petitioner undertaking are settled by the Commissioner of Labour under section 35(2) of the B.I.R. Act, 1946. They are also settled by the Industrial Court under section 36(3) of the said Act. The alterations therein made by the Commissioner of Labour under section 39(1) of the Act have also come into effect and the standing orders as altered came into operation on and from 1st September 1955.

5. The petitioners point out that the respondent by letter dated 5th March 2002 moved the Commissioner of Labour for alterations in the Standing Orders settled for the employees of the Undertaking. It was their case that standing order No.23(b) provides that the delinquent employee be given an opportunity to show cause as to why proposed punishment should not be imposed upon him. However, this standing orders deals with the procedure in respect of summary enquiry. The contention of the Union is that the Standing Order No.23(a) does not have a similar provision which gives an opportunity to the delinquent employee to show cause as to why proposed punishment should not be imposed against him, in an enquiry conducted under the standing orders. Therefore, it was their case that the protection similar to that of Standing Order No.23(b) must also be provided in Standing Order No.23(a). According to respondent, the General Manager delegates the powers to designated officers to issue charge sheets in departmental enquiry and impose punishment provided for in the Standing Order. The officer to whom powers are delegated conducts the enquiry and records findings and also imposes necessary punishment.

6. It is their case that the officer conducting the enquiry does not have sufficient independence as they are officers subordinate to the General Manager. Therefore, the standing order No.23(a) should also provide for an opportnity to show cause against proposed punishment. This would be in accordance with the principles of natural justice. The respondents, therefore, requested the Commissioner of Labour to alter the standing orders as per the Annexures submitted along with the letter.

7. The petitioner submitted its reply/response to the Union’s letter. It is contended that standing order No.23 provides for two types of enquiries. There is a regular enquiry for grave offence and that is covered by Standing Officer No.23(a). Standing Order No.23(b) is summary trial for minor penalties/punishment. It was contended by the petitioner that both standing orders provided for adherence to principles of natural justice in the conduct of disciplinary enquiry against the delinquent employee. A careful perusal of Standing Order No.23(a) would indicate that at the regular enquiry for imposing major penalty/punishment, the enquiry officer is also the disciplinary authority. He is required to give full opportunity to the delinquent employee and his representative to answer the charge and to be defended before trying officer. Evidence is led, cross examination of






























































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