IN THE HIGH COURT OF BOMBAY AT NAGPUR BENCH
D.J. JAGANNADHA RAJU, J.
Seth Radhakisan Ramnath – Appellant
Versus
Ramji Langadu – Respondent
Criminal Revision Application Nos. 453, 475 of 1959
Decided On : 11-03-1960
INDUSTRIAL DISPUTES - Illegal Change - Dismissal of Employee - Whether Illegal Change - Interpretation of S. 47, 51 and Sch. II of the Central Provinces and Berar Industrial Disputes Settlement Act, 1947.
Fact of the Case:
Ramji, an employee of the bidi factory of Ramkrishna Ramnath, was dismissed by Ghasilal, the general manager and agent. Ramji applied to the district industrial court for a declaration that his dismissal was illegal. The district industrial court and the State industrial court held the dismissal to be illegal. Ramji then gave notice to the firm for being reinstated, but the firm declined. Ramji prosecuted Ghasilal and Radhakisan, the proprietor of the firm, for committing an offence punishable under S. 47 of the Central Provinces and Berar Industrial Disputes Settlement Act, 1947. The trying magistrate and the Sessions Judge convicted both Ghasilal and Radhakisan under S. 47(1) of the Act.
Finding of the Court:
The court held that the prosecution had failed to prove that the dismissal of Ramji amounted to an illegal change within the meaning of S. 47 of the Act. The court interpreted S. 47, 51 and Sch. II of the Act and held that the dismissal of Ramji was not a change in any industrial matter mentioned in Sch. II and that S. 31 of the Act, which requires an employer to give 14 days' notice of intention to effect a change in any standing order or industrial matter mentioned in Sch. II, had no application. The court also held that Radhakisan could not be held criminally liable for the dismissal of Ramji as there was no vicarious liability under the Act.
Issues: 1. Whether the dismissal of Ramji amounted to an illegal change within the meaning of S. 47 of the Central Provinces and Berar Industrial Disputes Settlement Act, 1947? 2. Whether S. 31 of the Act, which requires an employer to give 14 days' notice of intention to effect a change in any standing order or industrial matter mentioned in Sch. II, applied to the dismissal of Ramji? 3. Whether Radhakisan could be held criminally liable for the dismissal of Ramji.
Ratio Decidendi: 1. The court held that the dismissal of Ramji did not amount to an illegal change within the meaning of S. 47 of the Act because: a. The dismissal was not a change in any industrial matter mentioned in Sch. II of the Act. b. S. 31 of the Act, which requires an employer to give 14 days' notice of intention to effect a change in any standing order or industrial matter mentioned in Sch. II, had no application to the dismissal of Ramji. c. The prosecution had failed to prove that the dismissal was not in accordance with law or as provided for in the standing orders. 2. The court held that Radhakisan could not be held criminally liable for the dismissal of Ramji because there was no vicarious liability under the Act.
Final Decision: The court allowed both the revision applications and set aside the convictions of Ghasilal and Radhakisan under S. 47(1) of the Act. The fines, if paid, were ordered to be refunded.
JUDGMENT :
D.J. JAGANNADHA RAJU, J.
1. This judgment will dispose of two Criminal Revisions Nos. 453 and 475 of 1959. The facts involved are common and common questions of law are also involved. The facts giving rise to these two revision applications are that one Ramji, who is admittedly an employee of the bidi factory of the firm of Ramkrishna Ramnath of Kamptee at Tumsar, was dismissed on 20 October 1953. Admittedly Radhakisan (applicant in Criminal Revision No. 453 of 1959) is the proprietor of this firm and Ghasilal (applicant in Criminal Revision No. 475 of 1959) was the general manager and agent at Tumsar. After Ramji was dismissed by Ghasilal on 20 October 1953, he applied to the district industrial court, Bhandara, for a declaration that his dismissal was illegal. The district industrial court by its order dated 30 April 1956. Held the dismissal to be illegal and in appeal the State industrial court. Nagpur, confirmed this order on 28 June 1957. Ramji then gave notice to the firm of Ramkrishna Ramnath for being reinstated, but the firm replied on 15 July 1957 declining to reinstate him. Thereafter Ramit prosecuted the two applicants and also Goverdhandas for having committed an offence punishable under S. 47 of the Central Provinces and Berar Industrial Disputes Act of 1947 which will hereinafter be referred to as the Act. Goverdhandas was acquitted but the other two persons were convicted.
2. The trying magistrate hold that the prosecution evidence has sufficiently established that the complainant was removed from duty without any cause or enquiry into the matter, and that such a removal of a permanent employee amounted to an illegal change as already held by the industrial courts. After holding that an illegal change had taken place, the trying magistrate hold that both Radhakisan and Ghasilal were responsible for this illegal change. The trying magistrate thereupon convicted each of them under S. 47 of the Act and sentenced them each to pay a fine of Rs. 1,000 or in default to suffer simple imprisonment for 3 months.
3. In appeal the learned Sessions Judge held that the question whether an illegal change had taken place or not had become conclusive in view of the decision of the district industrial court and the State industrial court. He also added that even if that question can be gone into by civil or criminal court, oven then having regard to S. 51 of the Act and item 3 of Sch. II there to no doubt that the dismissal of the complainant, not being in accordance with law, would amount to an illegal change. He, therefore, confirmed the conviction of both Radhakisan and Ghasilal under S. 47 of the Act and he also confirmed their sentences.
4. Section 47 of the Act reads as follows:-
(1) Any employer who makes any illegal change shall, on conviction, be punishable with fine which may extend to five thousand rupees and in the case of a continuing offence with an additional fine which may extend to two hundred rupees per day for every day during which the offence continues after his last conviction for such offence.
(2) An employer who acts in contravention of a standing order settled under S. 30 shall, on conviction, be punishable with fine which may extend to one hundred rupees and in the case of a continuing contravention of such standing order, with an additional fine which may extend to twenty-five rupees per day for every day during which such contravention continues after his last conviction for such contravention."
The charge against the two applicants was that they had effected an illegal change and not that they had contravened any standing order. The charge against the two applicants and their convictions are, therefore, under S. 47(1) and not under Sub-section (2) of S. 47. This is conceded by the learned Special Government Pleader. The conviction of the two applicants, therefore, rests on the finding that they had made an illegal change. The finding in turn rests mainly on the decisi
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