IN THE HIGH COURT OF DELHI AT NEW DELHI
Prathiba M. Singh, J.
Hindustan Antibiotics Limited - Appellant
Versus
B.n. Singh - Respondent
W.P.(C) 8297/2016 and CM Appl. 867/2020
Decided On : 28-10-2021
Labour Court - Industrial Disputes Act, 1947 - 17B, 36 - The judgment discusses the violation of principles of natural justice in the enquiry conducted by the management against the workman, the lack of evidence presented by the management, and the award of reinstatement with back wages and continuity of service by the Labour Court. The court also addresses the issue of jurisdiction and loss of confidence in the workman, and the applicability of lump sum compensation in lieu of reinstatement and back wages.
Fact of the Case:
The workman was terminated by the management on the grounds of falsely claiming Leave Travel Concession (LTC). The High Court ordered his reinstatement until a fresh enquiry was completed. Subsequently, a fresh chargesheet was issued, and the workman was terminated again. The workman filed a statement of claim before the Labour Court, which ultimately awarded reinstatement with back wages and continuity of service.
Finding of the Court:
The court found that the enquiry conducted by the management was contrary to the principles of natural justice, and the management failed to present any evidence to prove the alleged misconduct. The court also addressed the issue of jurisdiction and loss of confidence in the workman, ultimately awarding lump sum compensation in lieu of reinstatement and back wages.
Issues: Violation of principles of natural justice in the enquiry, lack of evidence presented by the management, jurisdiction of the Labour Court, loss of confidence in the workman, and the applicability of lump sum compensation.
Ratio Decidendi: The court held that the enquiry conducted by the management was contrary to the principles of natural justice, and the management's failure to present evidence led to the award of reinstatement with back wages and continuity of service by the Labour Court. The court also found that the Labour Court had jurisdiction and addressed the issue of loss of confidence in the workman, ultimately awarding lump sum compensation in lieu of reinstatement and back wages.
Final Decision: The court directed the management to pay a lump sum compensation of Rs.15,00,000 to the workman, instead of reinstatement and 100% back wages, and awarded litigation costs of Rs.1,00,000 in favor of the workman. The amounts were to be paid within eight weeks, with further interest at the rate of 6% if not paid within the specified period.
JUDGMENT
Prathiba M. Singh, J. (Oral). - This hearing has been done through hybrid mode.
2. The present writ petition has been filed by M/s Hindustan Antibiotics Limited (hereinafter, ‘Management’) challenging various orders passed by the Presiding Officer, Labour Court – XVII, Karkardooma Courts, Delhi (hereinafter, ‘Labour Court’) in LIR No. 207/16/10 (ID No. 236/10), finally culminating into impugned Award dated 2nd February, 2016. This petition seeks quashing of the said Award and various orders passed by the Labour Court, and also seeks remand of the matter back to the Labour Court to decide afresh after hearing the Management’s case.
3. The brief background of the matter is that the Respondent- Workman was appointed as a Medical Representative in the office of the Management in Patna. He worked with the Management until 1996. On 14th November 1996, a chargesheet was issued against him by the Management, on the ground that he had falsely claimed Leave Travel Concession (hereinafter, ‘LTC’) by filing a receipt of travel from Delhi to Patna and back, amounting to Rs. 6,000/-. According to the Management, he had not undertaken the said journey. and had not obtained approval, in respect thereof, of the Management/ competent authority for availing the LTC. In the chargesheet which was issued, an enquiry was conducted and a report dated 10th August, 1999, was submitted by the then enquiry officer. As per the said report, the Workman was found guilty of the charges levelled – i.e., ‘Fraud or Dishonesty in connection with the company’s business or property’. He was then terminated vide order dated 28th August, 2000 passed by the Disciplinary Authority, which concurred with the findings of the first enquiry officer. An appeal was preferred by the Workman before the Appellate Authority, which was dismissed vide order dated 9th November 2000. The Workman then filed a writ petition being CWP 3395/2001, seeking quashing of the said termination order dated 28th August 2000, as well as the enquiry report against him. The High Court, vide order dated 6th August 2002, recorded the statement of the Management that a new enquiry officer would be appointed in the matter, and accordingly ordered for the Workman to be reinstated into service, until the fresh enquiry was completed. The writ petition was disposed of with the said direction. The order of the High Court reads:
“Mr. Savla counsel for the respondent has contended that he has sought instructions and new enquiry officer shall be appointed. In view of the statement of counsel for the respondent, impugned order dated 28.8.2000, is quashed. The petitioner be reinstated in the service. However, the petitioner will not claim any back wages till the enquiry is completed. It is also open to the respondent to take whatever action that is contemplated under their own service rules and regulations. With these directions, writ petition as well as application stand disposed of.
Dasti.”
4. The Workman was then reinstated into service on 29th August, 2002, and he joined the services of the Management at the Delhi branch on 5th September 2002. On 30th October, 2002, a fresh chargesheet was issued against the Workman, and an independent domestic enquiry was again conducted. Upon the completion of the said enquiry, a report dated 17th January, 2007 was submitted by the enquiry officer to the Management, vide which he was once again found guilty of all the charges levelled in respect of the LTC availed by him. On 8th July 2008, a showcause notice was issued against the Workman, enclosing a copy of the said enquiry report, to which he had submitted a reply. Thereafter, vide letter dated 14th October 2009, the Workman was terminated by the Disciplinary Authority/ Competent Authority, which concurred with the findings of the second enquiry officer.
5. This termination letter dated 14th October 2009, was challenged by the Workman by invoking remedies under the Industrial Disputes Act, 1947 (hereinafter, “Act”), i
OP Bhandari vs. Indian Tourism Development Corporation Ltd. & Ors.
The court reaffirmed that termination must be substantiated with evidence, emphasizing that reinstatement is not automatic and compensation may be awarded based on case specifics.
Termination without due process violates principles of natural justice, necessitating notice and inquiry; compensation awarded due to managerial failure to follow procedure.
Termination of an employee may be deemed illegal if due process is not followed, primarily when the termination does not acknowledge legitimate reasons for absence and fails to observe principles of ....
The termination of employment must be in accordance with the principles of natural justice, and compensation may be awarded in lieu of reinstatement depending on the circumstances.
The termination of the workman was deemed unjustified and punitive, leading to an increase in compensation from Rs.2,00,000 to Rs.4,00,000 based on the nature of his duties and the stigma attached to....
Termination deemed illegal due to management's failure to prove salary payment, leading to workman's entitlement for compensation under Section 25F of Industrial Disputes Act.
In cases of wrongful termination, reinstatement with continuity of service and full back wages is the standard ruling, subject to specific considerations.
The burden of proof lies on the employer to establish the voluntary nature of the workman's resignation, and the court emphasized the principles governing the payment of back wages.
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