HIGH COURT OF CALCUTTA
AJIT KUMAR SENGUPTA & SHYAMAL KUMAR SEN, JJ.
Sri Arunangshu Chakrabarty
vs.
M/s. Aaj Kaal Publishers Ltd. & Ors.
Appeal No. of 1991 Matter No. 3255 of 1990
Decided on: April 7, 1994
Industrial Disputes Act, 1947 - Section 2(k) and 10(4) - Termination of service - Demotion - Distinction between termination and demotion - Whether demotion can be equated with termination - Applicability of Standing Orders.
Fact of the Case:
The appellant, a Principal Correspondent at Aajkaal, a newspaper company, was demoted to the rank of Staff Reporter as a disciplinary action for misconduct. The appellant challenged the demotion as a termination of service and raised a dispute before the Labour Commissioner through the Indian Journalists' Association. The Labour Commissioner referred the dispute to the Industrial Tribunal for adjudication on the issue of whether the termination of service was justified. The appellant filed a writ petition challenging the order of reference, arguing that the demotion was not a termination of service and, therefore, the dispute could not be raised under the Industrial Disputes Act.
Finding of the Court:
The court held that demotion and termination are totally different concepts in service law. Termination of service is not a disciplinary action nor a punishment, while demotion is a disciplinary action taken by the employer as a punishment for misconduct. The court also held that the Standing Orders applicable to the newspaper establishment of the company recognized termination of service and reduction in rank/demotion as totally separate concepts.
Issues: 1. Whether demotion can be equated with termination of service? 2. Whether the dispute arising from demotion can be raised under the Industrial Disputes Act? 3. Whether the order of reference to the Industrial Tribunal was valid?
Ratio Decidendi: 1. Demotion and termination are totally different concepts in service law. Termination of service is not a disciplinary action nor a punishment, while demotion is a disciplinary action taken by the employer as a punishment for misconduct. 2. The dispute arising from demotion cannot be raised under the Industrial Disputes Act, as it is not a termination of service. 3. The order of reference to the Industrial Tribunal was invalid as it was based on the erroneous assumption that the demotion was a termination of service.
Final Decision: The court dismissed the appeal and upheld the order of the trial court quashing the order of reference to the Industrial Tribunal.
Ajit Kumar Sengupta, J
1. This appeal is directed against the judgment and order dated 10th October, 1991 passed by a learned single Judge of the Court.
2. Shortly stated, the facts are that the Respondent No. 1 M/s. Aaj Kaal Publishers Private Limited. (hereinafter referred to as "AAJ KAAL") is a Newspaper Organisation, publishing a Bengali daily from Calcutta in the name of "Aaj kaal". The Appellant Sri Arunangshu Chakraborty who joined "Aaj kaal' as a Trainee Journalist, was promoted to the rank of Senior Reporter, and subsequently to the rank of Principal Correspondent.
3. During his employment as Principal Correspondent at the Delhi Office of the Respondent Company, the appellant committed certain acts which prima facie constituted misconduct. A domestic enquiry was held into the allegation of misconduct and the appellant was found guilty of the charge and a second show cause notice was served on him to show cause why he should not be dismissed from service.
4. The Board of Directors of Aajkaal after going through the representation of the appellant, was of the opinion that the appellant be given "an opportunity to reform himself and therefore instead of imposing the maximum penalty of dismissal we take lenient view of the matter and decide that he be reduced in rank and be placed in the rank of a reporter".
5. The resolution of the Board of Aajkaal dated January 22, 1990 was conveyed to the appellant by a letter dated January 28, 1990 and by the same letter the appellant was asked to report as a Staff Reporter of Aajkaal at Port Blair within a fortnight on receipt of the said communication. Inspite of the posting of the appellant as a Staff Reporter at Port Blair, Andaman, the appellant did not join his duties till date and instead against the decision of the Board of Directors demoting him from the rank of Principal Correspondent to that of Staff Reporter and transferring him to Andaman, raised a purported dispute before the Labour Commissioner through the Indian Journalists' Association.
6. The Indian journalists' Association by letter dated 21st April, 1990 complained to the Labour Commissioner against the demotion and transfer of the appellant as a Staff Reporter to Andaman.
7. Aajkaal raised objection regarding the locus standi of the Indian Journalists' Association to espouse the cause of the appellant as Indian Journalists' Association had no following amongst the employees of Aaj Kaal and, as such, it could not raise an Industrial Dispute with regard to any employee of Aaj Kaal under s. 2(k) of the Industrial Disputes Act. It was also specifically stated in the said objection that the appellant was given the punishment of demotion in rank after the charge of misconduct was proved in an enquiry.
8. After realising the fact that Indian Journalists" Association cannot raise a dispute under s. 2 (k) of the Industrial Disputes Act, 1947 as it had no following in Aajkaal, the appellant by a letter dated 5th June, 1990 stated that in addition to the grounds taken by the Indian Journalists' Association on behalf of the appellant and submitted on 21st April, 1990 and 7th May, 1990, the appellant was advancing fresh grounds, namely, the dispute carne squarely within s. 2A of the Industrial Disputes Act and according to the appellant, his service as Principal Correspondent was terminated and his demotion to the rank of a staff Reporter from that of Principal Correspondent was a new appointment.
9. Aajkaal by its letter dated 13th June, 1990 specifically stated that demotion cannot be equated with dismissal and, as such, the effort of the appellant to bring his grievances within s. 2A of the Industrial Disputes Act, 1947 had no basis whatsoever. By another letter, it was specifically stated that the case was not of termination of service but a case of demotion by way of disciplinary action and, as such, no dispute can be raised under s. 2A of the Industrial Disputes Act, 1947. In paragraph I of the said letter addressed to t
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