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2020 Supreme(Del) 152

IN THE HIGH COURT OF DELHI AT NEW DELHI
S. MURALIDHAR, TALWANT SINGH, JJ.
Jagdish Chander - Appellant
Versus
Delhi Transport Corporation - Respondent
Writ Petition (Civil) No. 4638 of 2018
Decided On : 21-01-2020

Advocates Appeared:
Padma Kumar S., Bhakti Pasrija Sethi, Moksh Pasrija, Reshma, Advocates.

The main legal point established is that reinstatement with continuity of service is the norm in cases of wrongful termination of service, and the petitioner should be entitled to increments and benefits under the ACP Scheme upon reinstatement.

Headnote:

Industrial Disputes Act - Deemed Resignation - Section 25-F - Natural Justice - Continuity of Service - ACP Scheme

Fact of the Case:

The petitioner, a conductor with the Delhi Transport Corporation, was deemed to have resigned due to prolonged illness. The Industrial Tribunal ordered his reinstatement with full back wages, which was challenged by the DTC. The court vacated the stay on the award and directed compliance. The DTC reinstated the petitioner but denied continuity of service for re-fixation of pay and other benefits. The CAT dismissed the petitioner's claim for continuity of service and other benefits, relying on previous judgments.

Finding of the Court:

The court found that the CAT erred in denying the petitioner continuity of service and other benefits upon reinstatement. It set aside the CAT's orders and directed the DTC to fix the petitioner's pay scale, grant arrears of pay, and pass appropriate orders for gratuity and pension.

Issues: The issues involved the petitioner's entitlement to continuity of service, increments, and benefits under the ACP Scheme upon reinstatement, and the CAT's reliance on previous judgments to deny these benefits.

Ratio Decidendi: The court held that reinstatement with continuity of service is the norm in cases of wrongful termination of service. It emphasized that the petitioner should be entitled to increments on the pay scale at the time of termination and should be treated as having been in service throughout for the purpose of gratuity and pension.

Final Decision: The court allowed the petition, set aside the CAT's orders, and directed the DTC to grant the petitioner continuity of service, fix his pay scale, grant arrears of pay, and pass appropriate orders for gratuity and pension.

JUDGMENT :

S. Muralidhar, J.

This petition is directed against the order dated 17th November, 2015 passed by the Central Administrative Tribunal, Principal Bench, New Delhi ("CAT") dismissing the Petitioner's OA No.1271/2012. The petition also challenges the order dated 4th September, 2017 passed by the CAT, dismissing the Petitioner's Review Application being RA No. 39/2016, against the above order dated 17th November, 2015 in his OA.

2. The background facts are that the Petitioner was appointed as a Conductor with the Respondent/Delhi Transport Corporation ("DTC") in 1994. On 13th December, 1986, the Petitioner submitted an application to DTC requesting for leave, citing medical grounds, with effect from 15th December, 1986. The DTC sanctioned leave to him till 24th December, 1986. However, on account of his persisting illness, the Petitioner could not join back on the aforesaid date. He first submitted an application for extension of leave till 31st December, 1986; a second time, for extension till 15th February, 1987; and a third time, for extension till 7th May, 1987. Each of these applications was accompanied by medical certificates attesting to his continued ill health.

3. The DTC sanctioned and regularized leave to the Petitioner till 6th May, 1987. By an order dated 6th May, 1987, however, the Petitioner was deemed to have resigned from service. The Petitioner raised an industrial dispute against the aforesaid order of deemed resignation, challenging the action of DTC as not adhering with Section 25-F of the Industrial Disputes Act, 1947 ("ID Act").

4. Upon being referred to the Industrial Tribunal ("Tribunal"), the Tribunal first considered the question of whether the above order dated 6th May, 1987 amounted to retrenching the Petitioner under Section 2 (oo) of the ID Act or terminating his services. The Tribunal found that since in the domestic enquiry conducted prior to ordering his deemed resignation, the Petitioner had not been afforded a "reasonable and fair opportunity to put forth his case"; the DTC had violated principles of natural justice. It was of the view that the Petitioner's deemed resignation therefore amounted to his retrenchment. Admittedly, DTC had not complied with the procedure under Section 25-F of the ID Act before retrenching the Petitioner. The Tribunal by its award dated 23rd February, 1998, saw it fit to order the Petitioner's reinstatement into service with full back wages.

5. The DTC challenged the Tribunal's Award by way of W.P.(C) 5763/1998 before this Court. The Court by an interim order dated 13th January, 1999 in the said petition stayed the operation of the impugned Award of the Tribunal. By another impugned order dated 2nd August, 2000, the Petitioner's application under Section 17-B of the ID Act for payment of full wages and maintenance allowance till the disposal of the petition, came to be allowed.

6. Counsel for the DTC contended inter alia before the learned Single Judge that sufficient opportunity had been given to the Petitioner herein to present his case before the order of deemed resignation was passed under Clause 14 (10) (c) of the DRTA (Conditions of Appointment and Service) Regulations, 1952.

7. Counsel for the Petitioner, on the other hand, argued that even though Show Cause Notices ("SCNs") were issued to the Petitioner before the order of deemed resignation was passed, the SCNs merely paid "lip service" to the principles of natural justice, as the Petitioner had been unable to re-join service at that point. Instead, he should have been afforded an opportunity to respond to the SCNs once he joined duty. Counsel for the Petitioner also tried to make out the case that the order dated 6th May, 1987 did not even so much as mention the applications for sanction of leave submitted by the Petitioner and other communication in this regard in considering whether there were sufficient reasons for the Petitioner's absence.

8. The learned Single Judge, by an order dated 17th May, 2010,

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