High Court Of Delhi
MANAGEMENT OF DELHI TRANSPORT UNDERTAKING - Appellant
Versus
B B L HAJELEY - Respondent
Civil 719 of 1969
Decided On : 01/21/1971
INDUSTRIAL DISPUTES ACT - SECTION 33(2)(B) - REMOVAL OF EMPLOYEE - APPROVAL OF LABOUR COURT - POWER OF DELEGATION - PROVISO TO SECTION 95(1) OF DELHI MUNICIPAL CORPORATION ACT, 1957 - INTERPRETATION.
Fact of the Case:
The petitioner, Delhi Transport Undertaking (D.T.U.), challenged the order of the Labour Court, Delhi, which rejected its application under Section 33(2)(b) of the Industrial Disputes Act, 1947, for approving the removal of respondent No. 2 from service. The Labour Court held that the application could only be made by the employer, who, according to the court, was the General Manager, Transport, and that the removal of respondent No. 2 by the Assistant General Manager was invalid and ineffective in view of the first proviso to Section 95(1) of the Delhi Municipal Corporation Act, 1957 (hereinafter referred to as the Corporation Act).
Finding of the Court:
The court held that the Assistant General Manager, who filed the application before the Labour Court, was not an employer and was, therefore, not competent to move the application for approval. The court further held that the removal of respondent No. 2 by the Assistant General Manager was invalid as the power of removal had not been validly delegated to him by the General Manager (Transport). The court interpreted the first proviso to Section 95(1) of the Corporation Act to mean that no employee shall be removed or dismissed by an authority subordinate to that by which he was appointed.
Issues: 1. Whether the Assistant General Manager was an employer and competent to move the application for approval under Section 33(2)(b) of the Industrial Disputes Act, 1947? 2. Whether the removal of respondent No. 2 by the Assistant General Manager was valid?
Ratio Decidendi: 1. The court held that the Assistant General Manager was not an employer and was, therefore, not competent to move the application for approval under Section 33(2)(b) of the Industrial Disputes Act, 1947. The court relied on the definition of 'employer' in Section 2(g)(ii) of the Industrial Disputes Act, which defines 'employer' in relation to an industry carried on behalf of a local authority as the Chief Executive Officer of that authority. The court further held that the General Manager (Transport) was the Chief Executive Officer of the D.T.U. and, therefore, the only person competent to move the application for approval. 2. The court held that the removal of respondent No. 2 by the Assistant General Manager was invalid as the power of removal had not been validly delegated to him by the General Manager (Transport). The court interpreted the first proviso to Section 95(1) of the Corporation Act to mean that no employee shall be removed or dismissed by an authority subordinate to that by which he was appointed. The court held that the Assistant General Manager was subordinate to the General Manager (Transport) and, therefore, could not remove respondent No. 2, who had been appointed by the General Manager of the Transport Authority, which was an authority equal in rank to the General Manager (Transport).
Final Decision: The court dismissed the writ petition filed by the D.T.U., upholding the order of the Labour Court, Delhi, which had rejected the D.T.U.'s application for approving the removal of respondent No. 2 from service.
( 1 ) THIS is a writ petition filed by the management of the Delhi Transport Undertaking (hereinafter called the undertaking ) against the order of the Labour Court, Delhi, dated February 8, 1969, by which it rejected the application filed by the petitioner under Section 33 (2) (b) of the Industrial Disputes Act for approving the removal of the respondent No. 2 from the service.
( 2 ) RESPONDENT No. 2 was originally employed as a driver under the Delhi Road Transport Authority (hereinafter called the Transport Authority) which had been constituted under the Delhi Road Transport Authority Act, 1950. Respondent No. 2 later on became an B employee under the Undertaking of the Delhi Municipal Corporation (hereinafter called the Corporation) by virtue of the Second Schedule to the Delhi Municipal Corporation act, 1957, (hereinafter called the Corporation Act) read with Sections 511, 516, 53 and 64, An enquiry was started against respondent No. 2 and he was served with a charge sheet on 7-8-1962. After holding an enquiry a show cause notice was issued to respondent No. 2 by the Assistant General Manager on 8-1-1963. Cause was shown by respondent No. 2, but the Assistant General Manager was not satisfied with the reply and decided to remove respondent No. 2, from service with effect from 16-5-1963. As there was an Industrial Dispute pending against the petitioner an application was made by the petitioner before respondent No. 1 for approval of the action of removal as provided under Section 33 (2) (b) of the Industrial Disputes Act. Respondent No. 1 by the impugned order has held that the application could only have been "made by the employer who acco-ding to respondent No. 1 was the General Manager, Transport. Another objection taken by respondent No. 2, before respondent No. 1 and which has also been accepted by respondent No. 1 was that respondent No. 2 had been appointed by the General Manager of the Transport Authority and, therefore, could have been removed only by the General Manager of the Undertaking. Respondent No. 1 accepted this objection and has held that the removal of respondent No. 2 by the Assistant General Manager was invalid and ineffective in view of the first proviso to Section 95 (1) of the Corporation Act. Respondent No. 1 in view of these two legal grounds did not consider it necessary to decide on merits the enquiry against respondent No. 2. He consequently by the impugned order rejected the application filed by the petitioner. Aggrieved against that decision the petitioner filed this writ petition in this court.
( 3 ) THE matter in the first instance came before Deshpande J. who noticed that there was a conflict of views in the decision taken by Tatachari J. in C. W. 1234 of 1967 decided on 16-5-1969; whereby his lordship had held that the delegation made by the General Manager to the Assistant Genera] Manager was permissible and valid and the decision of the Division Bench of Punjab High Court sitting in Circuit at Delhi consisting of Mehar Singh C. J. and Mahajan J. reported as 1967 S. L. R. 56 wherein they had taken a contrary view. In view of this Deshpande J. by his order dated 16-9-1970 referred this matter for consideration by a larger bench. The matter thereafter came up before my lord the Chief Justice and Deshpande J. who in view of the conflicing decisions mentioned above and in view of the importance of the question involved referred the case to a larger bench. It is in these circumstances that this matter has been placed before us for decision.
( 4 ) RESPONDENT No. 1 has held that the Assistant General Manager who filed the application before it was not an employer and was, therefore, not competent to move the application tor approval. Now Section 33 (2) (b) of the Industrial Disputes Act provides that an application in this behalf may be moved by an employer. An employer is defined in Section 2 (g) (ii) of the Industrial Disputes Act as in relation to an industry carried on
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