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2004 Supreme(Cal) 72

High Court Of Calcutta
D. K. SETH, RAJENDRA NATH SINHA
AJIT KUMAR NAG - Appellant
Versus
GENERAL MANAGER, INDIAN OIL CORPORATION LTD. - Respondent
F. M. A.  3093  Of  2002
Decided On : 02/06/2004

Advocates Appeared:
ARIJIT CHAUDHARY, K.K.MITRA

The power conferred by sub-clause (VI) of clause 20 of the standing order is not a policy decision and can be delegated.

Headnote:

STANDING ORDER - Termination of Service - Clause 20 (VI) - Exercise of Special Power - Mala Fide - Delegation of Power - Validity - Acquittal from Criminal Case - Relevance - INDUSTRIAL EMPLOYMENT (STANDING ORDERS) ACT, 1946 - SECTION 10.

Fact of the Case:

Appellant/petitioner challenged the order of termination dated May 6, 1999, in exercise of clause 20 (VI) of the standing order for the Haldia Refinery of the Indian Oil Corporation Limited (Refineries and pipelines Division) certified under the Industrial Employment (Standing Orders) Act, 1946. The appellant was dismissed on the ground of misconduct subject to Clause 20 of the standing orders in a manner contrary to Article 311 (2) of the constitution of India.

Finding of the Court:

The Court held that the order of dismissal was supported by reasons given in the report, which are quite long. It appears that the reasons given in the order of dismissal have summarized each and every part of the detailed report leading to the formulation of the opinion for resorting to the extraordinary power. The Court further held that the power conferred by sub-clause (VI) is not a policy decision as is apparent from the view taken in Tulsiram Patel (supra). Therefore, this power can be delegated.

Issues: 1. Whether the power exercised under clause 20 (VI) of the standing order was mala fide? 2. Whether the power under clause 20 (VI) of the standing order could be delegated? 3. Whether the acquittal from the criminal case is relevant in the disciplinary proceeding?

Ratio Decidendi: 1. The Court held that the reasons given in the order and the detailed report does not lead us to hold that the reasons are perverse or mala fide or that no reasonable man could take such a decision. The allegation that witnesses were examined and that enquiry could be held is of no consequence since the situation was to be assessed at the hour on the spot and upon having so assessed the situation, the authority had taken the decision. 2. The Court held that the power conferred by sub-clause (VI) is not a policy decision as is apparent from the view taken in Tulsiram Patel (supra). Therefore, this power can be delegated. Clause 2. 6 of the standing order defines "general Manager" to mean "a person for the time being appointed or authorised to act as General Manager of the refinery by the Company and includes any other officer authorised to act as General manager for the time being". This definition clearly means a person appointed or authorised to act as general Manager by the Company. This phrase gives a clear meaning. It does not require any further clarification. 3. The Court held that the acquittal from the criminal charges does not absolve a delinquent of the finding in a disciplinary proceeding or otherwise. The decision upon exercise of such power is independent of the criminal proceedings. It has to be examined on its own merit without the aid and assistance of the order of acquittal.

Final Decision: The appeal was dismissed and the order passed by the learned single Judge was affirmed.

DILIP KUMAR SETH, J, J.


( 1 ) THE writ Petitioner had unsuccessfully challenged the order of termination dated May 6, 1999 in exercise of clause 20 (VI) of the standing order for the Haldia Refinery of the indian Oil Corporation Limited (Refineries and pipelines Division) certified under the industrial Employment (Standing Orders) Act, 1946 in Writ Petition No. 10667 (W) of 1999 since dismissed by an order dated July 9, 2002 passed by the learned single Judge, which is under challenge in this appeal. Submission on behalf of the appellant:

( 2 ) MR. K. K. Moitra, learned senior counsel, appearing on behalf of the appellant/ petitioner had assailed the judgment on four principal grounds: first, the provisions contained in sub-clause (VI) of clause 20 of the standing orders is an exception, which can be exercised only in an extremely exceptional case, the test whereof has not since been satisfied in the case of the petitioner. Relying on Motiram Deka and Ors. v. General manager, North East Frontier Railway AIR 1964 SC 600 : 1964- II-LLJ-467 he contended that right to continue in permanent service cannot be invaded. According to him, this principle has been followed in Paresh Chandra dutta v. Collector of Calcutta and Ors. , 1978 (2)clj 316. The dismissal of the petitioner was effected on the ground of his misconduct subject to Clause 20 of the standing orders in a manner contrary to Article 311 (2) of the constitution of India, which is to be exercised only in special circumstances in view of the power conferred on the authority under clause (V) (a ). Inasmuch as, the allegations under which the dismissal was effected could be met by putting the petitioner under suspension pending enquiry. Second, the grounds disclosed in support of the exercise of the extraordinary power itself goes to show that the power was exercised in a manner mala fide. Inasmuch as, several witnesses were examined before the order of dismissal was passed. The enquiry so held is itself an indication that the enquiry was practicable and could be held. Third, out of the same allegation, a criminal case was also initiated against the appellant/ petitioner. After trial, the appellant/petitioner was acquitted from the case. Therefore, on the self same allegation, the dismissal could not be sustained in view of the ratio decided in the decision in Captain M. Paul Anthony v. Bharat gold Mines Ltd. and Anr. AIR 1999 SC 1416 : 1999 (3) SCC 679 : 1999- I-LLJ-1094. Fourth, the standing order has a statutory force and it has to be applied only in the manner as prescribed. In support of his contention that the standing order has statutory force, he relied on d. K. Yadavv. J. M. A. Industries Ltd. , 1993 (3)scc 259 : 1993-II-LLJ-696 a three Judge bench decision. He relied on the decision in hukam Chand Shyam Lal v. Union of India and ors. , AIR 1976 SC 789 : 1976 (2) SCC 128 to contend that the power prescribed by a statute has to be exercised in that particular manner and no other.

( 3 ) WHILE elaborating the fourth point, Mr. Moitra contended that the special power under sub-clause (VI) of clause 20 can be exercised by the General Manager, which in this case is gm (I/c), under whom the General Manager (Project) [gm (PJ)] was working. The impugned order has since been passed by the gm (PJ ). The exercise of this special power embraces a policy decision. Unless the statute provides for delegation of power involving policy decision, such power could not be delegated. GM (PJ) was acting as GM (I/c ). A. person acting cannot exercise statutory powers as was held in T. R. Pandey v. Chief commissioner, Andaman and Nicobar Islands and ors. , 1978 Lab 1c 41. When a statute provides that a particular action is to be taken or exercised in a particular manner, the same is to be exercised in that manner alone, as was held in Marathwada University v. Seshrao Balwant rao Chavan, AIR 1989 SC 1582 : 1989 (3)scc 132 : 1989-II-LLJ-161. With regard to this point, his second limb of argume

























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