IN THE HIGH COURT OF DELHI AT NEW DELHI
Prathiba M. Singh, J.
Securitrans India (p) Ltd - Appellant
Versus
Manoj Prasad & Ors. - Respondents
Civil Writ Petition No. 14889, 14901, 14902, 14903, 14904, 15007 of 2021, Civil Miscellaneous Application No. 47058-47059, 47079-47080, 47081-47082, 47083-47084, 47085-47086, 47369-47370 of 2021
Decided On : 23-12-2021
Labour Court - Validity of Domestic Inquiry - Section 2(s) of I.D. Act - [Section 2(s) of I.D. Act] - The court discussed the validity of the domestic inquiry as a preliminary issue and the settled legal position that the Labour Court should first decide the validity of the domestic inquiry before proceeding further. The court referred to various Supreme Court judgments and directed the Labour Court to adjudicate the issue of the validity of the domestic inquiry as a preliminary issue.
Fact of the Case:
The Workmen were terminated after a disciplinary inquiry by the Management. The Management sought framing of a preliminary issue regarding the validity and legality of the inquiry. The Labour Court partly allowed the application, leading to the Management's challenge.
Finding of the Court:
The court found that the Labour Court should first decide the validity of the domestic inquiry as a preliminary issue before proceeding further, based on the settled legal position and various Supreme Court judgments.
Issues: The main issue was whether the validity of the domestic inquiry should be decided as a preliminary issue, and if so, the Management's right to lead evidence supporting the termination of the Workmen.
Ratio Decidendi: The court held that the Labour Court should first decide the validity of the domestic inquiry as a preliminary issue, as per the settled legal position and various Supreme Court judgments.
Final Decision: The court directed the Labour Court to adjudicate the issue of the validity of the domestic inquiry as a preliminary issue and circulated the judgment to all Labour Courts for uniform practice.
JUDGMENT
Prathiba M. Singh, J. - This hearing has been done in physical Court. Hybrid mode is permitted in cases where permission is being sought from the Court.
2. These are six petitions filed by the Petitioner-Management (hereinafter "Management") challenging the order dated 22nd November, 2021 passed by the Labour Court in LIR No.2920/19, 2921/19, 2922/19, 2023/19, 2925/19 & 2926/19 whereby an application which was filed by the Management for framing of an additional issue in the proceedings before the Labour Court, and for deciding the said issue as a preliminary issue was partly allowed.
3. In this matter, the Respondents-Workmen (hereinafter "Workmen"), who were working with the Petitioner at various ATMs, were terminated after a disciplinary inquiry was held by the Petitioner. The said termination was challenged by the Workmen before the Labour Court. In the said claims filed by the Workmen, the terms of reference were framed on 3rd October, 2019. The matter was thereafter proceeded before the Labour Court. On 1st October, 2021, the following issues were framed:
"(1) Whether the workman is not covered under definition of a "workman" as defined under Section 2 (s) of I.D. Act? OPM.
(2) Whether the services of workman have been illegally and unjustifiably terminated by the management? OPW.
(3) If the answer to the aforesaid issue is in affirmative, then as to what monetary or any other consequential relief and benefits, the workman is entitled? OPW.
( 4) In terms of reference.
(5) Relief."
4. Since the Workmen had been terminated after a proper internal inquiry which was held by the Management, an application was moved by the Management seeking framing of a preliminary issue in respect of the validity and legality of the inquiry. The case of the Management was that as per the settled legal position, the Labour Court ought to frame an issue in respect of the said inquiry and thereafter treat the same as a preliminary issue. The Management relied upon various decisions of the Supreme Court in this regard. In the said application, the following order was passed by the Labour Court:
"An application has been filed by the management to frame preliminary issue with respect to validity of inquiry. Reply of the application is filed by the workman denying the contentions and praying to dismiss the application.
Arguments heard on the application and gone through the judgment relied by the management in support of contentions. The issues in this case were framed on 01.10.2021. Though the issue raised regarding the inquiry is well covered under the issue no. 2 regarding illegal termination of the workman by the management but in view of the specific objections of the management in the written statement, an additional issue vide issue no. 1 A is framed as under: -
Issue No. 1A:
Whether the inquiry conducted against the workman by the management was biased, unfair and not in consonance with the principles of natural justice? OPW
As regards, the prayer to frame the issue of inquiry as preliminary issue, the request is disallowed as the issue pertains to issue of law and facts.
Application is disposed off accordingly. Affidavit of the workman by way of evidence filed. Copy supplied to the AR for the management. Put up for examination and cross-examination of the workman on 20.01.2022."
5. Mr. Arun Mehta, ld. Counsel appearing on behalf of the Management, submits that the grievance of the Management is that if the inquiry related issue now framed as issue no.1A, is not decided as a preliminary issue and if the matter is adjudicated upon together finally by the Labour Court, the Management may lose an opportunity to lead evidence in the matter if for any reason, the Labour Court holds that the inquiry was not in accordance with law. He submits that as per the judgments of the Supreme Court in Cooper Engineering Limited v. Shri P.P. Munde, 1975 AIR 1900 and in M.L. Singhla v. Punjab National Bank, AIR 2018 SC 4668, the settled position is that the validity
The main legal point established is that the Labour Court should decide the validity of the domestic inquiry as a preliminary issue before proceeding further, based on the settled legal position and ....
The Labour Court must decide the validity of a domestic inquiry as a preliminary issue in employment termination cases to ensure adherence to natural justice principles.
The Labour Court should decide as a preliminary issue whether the domestic inquiry has violated the principles of natural justice.
The court established that issues regarding the violation of principles of natural justice in domestic enquiries should be decided as preliminary issues to ensure fairness and expedite the adjudicati....
The main legal point established is that in cases of dismissal or discharge of an employee referred for industrial adjudication, the Labour Court should first decide whether the domestic enquiry viol....
Fairness of disputed domestic enquiry must be decided as preliminary issue by Labour Court to enable parties to adduce additional evidence if enquiry held unfair.
Point of Law : Satisfaction under Section 11-A, about the guilt or otherwise of the workman concerned, is that of the Tribunal. It has to consider the evidence and come to a conclusion one way or oth....
Stage for interference under Section 11-A by the Tribunal is reached only when it has to consider the punishment after having accepted the finding of guilt recorded by an employer.
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