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1968 Supreme(Pat) 172

PATNA HIGH COURT
N.L.Untwalia and S.Wasiuddin JJ.
Calcutta Chemical Co.Ltd.
Versus
D.K.Barman
Civil Revision No. 371 of 1965 ; 320 of 1967 ;
Civil Writ Jurisdiction Case No. 509 of 1967 ;
Decided On : OCTOBER 29, 1968

Headnote:

SHOPS AND ESTABLISHMENTS ACT, 1953 - Sec. 26 - Dismissal of employee - Reasonable cause - Reinstatement - Power of Labour Court - Scope - Interpretation of Sec. 26(5)(b) - Principles to be applied for ordering reinstatement.

Fact of the Case:

The employee, Dipak Kumar Barman, was employed as a salesman in the Patna branch of the Calcutta Chemical Company Limited. He was dismissed from service on 14-9-1964, on the ground of alleged misconduct. The employee filed a complaint under Sec.26 of the Bihar Shops and Establishments Act, 1953 (the Act), challenging the order of dismissal. The Labour Court, Patna, held that the order of dismissal was not justified and ordered the reinstatement of the employee with back wages for six months.

Finding of the Court:

The High Court held that the Labour Court had erred in ordering the reinstatement of the employee. The Court found that the employee had been guilty of several acts of misconduct, including negligence, dishonesty, and insubordination. The Court also found that the employer had lost confidence in the employee and that it would be impossible for them to work together harmoniously. The Court held that, in these circumstances, an order of reinstatement would not be appropriate. The Court modified the order of the Labour Court and held that the employee's services would be deemed to have been dispensed with from 14-9-1964, and that he would be entitled to compensation in the form of six months' pay.

Issues: 1. Whether the Labour Court erred in ordering the reinstatement of the employee? 2. Whether the employee was guilty of misconduct justifying dismissal? 3. Whether the employer had lost confidence in the employee? 4. Whether an order of reinstatement would be appropriate in the circumstances of the case?

Ratio Decidendi: 1. The power of the Labour Court under Sec. 26(5)(b) of the Act to order reinstatement is not arbitrary or whimsical. The Court must give reasons for its decision and must consider all the relevant factors, including the past record of the employee, the nature of the alleged misconduct, and the ground on which the order of dismissal is set aside. 2. In the present case, the employee had been guilty of several acts of misconduct, including negligence, dishonesty, and insubordination. The employer had lost confidence in the employee and it would be impossible for them to work together harmoniously. In these circumstances, an order of reinstatement would not be appropriate.

Final Decision: The High Court modified the order of the Labour Court and held that the employee's services would be deemed to have been dispensed with from 14-9-1964, and that he would be entitled to compensation in the form of six months' pay.

Judgment

N.L.Untwalia, J.

1. The two Civil revision applications filed under Sec.115 of the Code of Civil Procedure by the Calcutta Chemical Company Limited and the application under Article 227 of the Constitution (C. W. J. C. 509/67) filed by the employee, Dipak Kumar Barman, arise out of the same proceeding before the Labour Court, Patna, under Sec.26 of the Bihar Shops and Establishments Act, 1953 Bihar Act 8 of 1954 (hereinafter called the Act), and hence all these three applications have been heard together and are being disposed of by this judgment. I shall deal with the preliminary objection raised on behalf of the employee as to the maintainability of the two civil revision applications as also the other points which fall for our decision in these cases after I have stated the relevant facts.

2. The Calcutta Chemical Company Limited has got its head office in Calcutta. It has got a branch office at Patna which is undisputedly registered as an establishment under Sec. 6 of the Act. Barman was employed as a salesman in the Patna branch of the Company. He seems to have been so employed on 28-8-1961. On 7-9-1964, Barmans case is that he fell ill and applied for three days sick leave from 8-9-1964 to 10-9-1964. He had to extend his leave up to 12-9-1964 supported by a medical certificate. The Governing Director of the Company who lives in Calcutta wrote a letter dated 10-9-1964, which is Ext. 1/C in the proceeding, refusing the prayer for leave made by Barman by his letter dated 8-9-1964. Explanation was also asked for, and he was prohibited from resuming his duties till the matter was decided. Barmans case is that he submitted his explanation on 12-9-1964, a copy of which is Ext. 1/b and prayed for resumption of his duties on the expiry of his leave. He received its reply on 16-9-1964. This letter of the Governing Director is dated 14-9-1964 and is Ext. 1/d. According to the case of the employee, his service was terminated from 8-9-1964. He was offered one months pay in lieu of notice and other amenities up to 30-6-1964 in case he did not contest the order contained in Ext. 1/d. I will do better to quote here in full the contents of Ext. 1/d, a copy of which is Annexure A to the supplementary affidavit filed on behalf of the petitioner in Civil Revision 320 of 1967.

"Your letter dated 12-9-1964 justifying your conduct.

We have reasons to suspect that your sickness is malingering and that you do not want to work any more with the van driver and attendant who were reporting your laxity. Our sales are already down and the Puja market is being neglected.

We do not want to rake up all these things unless we are compelled to and want to give you a chance to work with some other concern after correcting yourself.

Kindly consider your services terminated effective from 8th September, 1964. You will be paid one months salary in lieu of this notice and will be entitled to receive other amenities up to 30th June, 1964. All these offers will be considered as withdrawn if there is a contest between us and we will be free to disclose all charges against you."

3. The case of the employee further was that he had sent a letter on 26-9-64 to the management enquiring the authority and the reasons for his dismissal, but he received no reply. The Labour Court savs in its impugned order that his letter dated 26-9-64 has not been produced. He also alleges to have demanded one months pay from the officer in charge of the Patna branch, but payment is alleged to have been refused. He then filed a complaint under Sub-section (2) of Sec.26 of the Act on 10-10-1964. On that very date, i.e., 10-10-64, the Governing Director, Mr. K. C. Das, is said to have passed an order of dismissal which is contained in the letter of that date. This letter is said to have been received by the employee later. It is Ext. G in the proceeding and a copy of it is Annexure C to the supplementary affidavit on behalf of the petitioner in Civil Revision 320 of 1967.

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