IN THE HIGH COURT OF DELHI
DIPAK MISRA, SANJIV KHANNA, JJ.
U.P. Singh – Appellant
Versus
Punjab National Bank – Respondent
Letters Patent Appeal No. 481 of 2010
Decided On : 10-02-2011
Advocate Appeared:
For the Respondent: Rajat Arora.
The employer has the right to suspend an employee pending an inquiry into his conduct, and the employee's refusal to report for duty can justify deemed voluntary retirement.
Headnote:
Suspension - Employment Dispute - Fourth Bipartite Settlement, Shastri Award - [FACT OF THE CASE] Mr. U.P. Singh, the Appellant, was deemed to have voluntarily retired from service by the Respondent-PNB after being suspended and not reporting for duty. The Central Government Industrial Tribunal-cum-Labour Court (CGIT) directed reinstatement with full back wages, but the Single Judge set aside the finding, holding that the Fourth Bipartite Settlement was applicable and the post held by the Appellant was transferable. [FINDING OF THE COURT] The court found that the Appellant's refusal to report for duty and repeated warnings from the Respondent-PNB justified the deemed voluntary retirement. [ISSUES] The main issue was whether the Appellant's suspension and subsequent deemed voluntary retirement were justified. [RATIO DECIDENDI] The court held that the employer had the right to suspend an employee pending an inquiry into his conduct, and the Appellant's refusal to report for duty justified the deemed voluntary retirement. [FINAL DECISION] The court dismissed the appeal, upholding the Single Judge's findings.
SANJIV KHANNA, J.
1. Mr. U.P. Singh, Appellant who appears in person, assails judgment and order dated 26th February, 2010 of the learned Single Judge allowing the writ petition No. 7834/2003 filed by the Respondent-Punjab National Bank (hereinafter referred to as PNB, for short) quashing the Award dated 27th August, 2003 passed by the Central Government Industrial Tribunal-cum-Labour Court (CGIT, for short). By the impugned judgment, the learned Single Judge has set aside the CGIT's finding that the action of the Respondent-PNB deeming the Appellant to have been voluntarily retired was not justified. Relief of reinstatement in service with full back wages and consequential benefits in the impugned Award has been quashed.
2. The Appellant-workman was appointed in service with the Respondent-PNB on 20th June, 1977. He was initially working at Respondent-PNB's branch office Barabanki (U.P.) and was transferred to branch office Zaidpur, Barabanki and then to Shahjanhanpur (U.P.) in August, 1978. On 14th June, 1982 he was suspended from services of the Respondent- PNB for acts of disorderly behavior. Pursuant to the finding recorded in the disciplinary proceedings, the Appellant was held guilty of all charges and awarded punishment of stoppage of two graded increments with cumulative effect vide order/letter dated 28th September, 1983. The said order has been quoted by the Appellant in the Appeal. Relevant portion reads:
"......Accordingly, the punishment of =Dismissal without Notice' has been reduced to, Stoppage of two Graded Increments with cumulative effect' which the undersigned hereby confirm.
You will not be paid anything except the subsistence allowance, already drawn by you during your period of suspension, as per rules.
You are accordingly advised to report for further duties to the Manager, BO: Bhagwantnagar, Unnao immediately. You will be deemed to have been reinstated in the Bank's service from the date you report for the duty at BO: Bhagwantnagar, Unnao."
(Emphasis supplied)
3. The Appellant did not join duty at the branch office Bhagwantnagar, Unnao. Relying upon clause XVI of Fourth Bipartite Settlement dated 17th September, 1984, by order dated 5th December, 1984 the Appellant was deemed to have voluntarily retired from service.
4. The Appellant wrote protest letters and after about six years on 28th August, 1990 raised a dispute before the Assistant Labour Commissioner and on 15th November, 1991, the following reference was made:
Whether the action of the Management of Punjab National Bank in treating Shri U.P. Singh, Clerk/Cashier as deemed to have retired voluntarily w.e.f. 5.12.1984 is justified? If not, to what relief is the workman entitled to?
5. By Award dated 27th August, 2003, reference was answered in favour of the Appellant holding, inter alia, that Clause XVI of the Fourth Bipartite Agreement was wrongly invoked by the Respondent-PNB. The Appellant was wrongfully not reinstated in service and the Respondent-PNB had remained silent to the lawful demand of the Appellant to revoke his suspension, to be reinstated in service and resume his duties. It was observed, the Respondent-PNB had failed to prove and establish a genuine cause for transfer of the Appellant from District Shahjanhanpur to Bhagwantnagar, Unnao. CGIT, in view of the said findings, directed that the Appellant was entitled to reinstatement in service with full back wages w.e.f. 28th September, 1983 along with interest @ 9% p.a. and all other consequential benefits.
6. Learned Single Judge in the impugned judgment has set aside the aforesaid finding holding that Clause XVI of the Fourth Bipartite Settlement was applicable and the post held by the Appellant was transferable. Learned Single Judge has specifically noticed and has rejected the ratio/finding of the CGIT that during suspension, contract of employment is suspended and consequently Rules of the Respondent-PNB including bipartite agreement containing the provision of deemed voluntary