IN THE HIGH COURT OF DELHI AT NEW DELHI
Prathiba M. Singh, J.
Delhi Transport Corporation - Appellant
Versus
Raj Kumar Gupta - Respondent
Civil Writ Petition No. 3207, 3218 of 2014, Civil Miscellaneous Application No. 19708 of 2014, 12790 of 2015
Decided On : 15-03-2022
Labour Dispute - Termination - Industrial Disputes Act - Section 33(2)(b) - Summary
Fact of the Case:
The Corporation terminated the Workman's employment, alleging unauthorized absence and misconduct. The Workman challenged the termination, citing his wife's illness as the reason for leave. The Labour Court found the termination illegal and ordered reinstatement with full back wages and benefits.
Finding of the Court:
The Court found that the Workman's leave was justified due to his wife's illness, and the termination was illegal and unjustified. The Court upheld the Labour Court's findings that the domestic enquiry was unfair and the termination was contrary to natural justice.
Issues: The issues included the fairness of the domestic enquiry, the legality of the termination, and the approval sought by the Corporation under Section 33(2)(b) of the Industrial Disputes Act.
Ratio Decidendi: The Court held that the Workman's leave was justified, the domestic enquiry was unfair, and the termination was illegal. The Court awarded lump sum compensation instead of full back wages due to the Workman's age and length of service.
Final Decision: The Court disposed of the writ petitions, upholding the Labour Court's decision and awarding lump sum compensation of Rs.20 lakhs to the Workman.
JUDGMENT
Prathiba M. Singh, J. - This hearing has been done through video conferencing.
Brief Facts
2. The Petitioner-Corporation (hereinafter 'Corporation') has challenged the impugned orders dated 21st September, 2013 in O.P. No. 501/92 titled M/s Delhi Transport Corporation v. Sh. Raj Kumar Gupta and I.D. No. 400/93 titled Shri Raj Kumar Gupta v. Delhi Transport Corporation by which the Respondent-Workman (hereinafter 'Workman') has been awarded reinstatement, after holding that the termination of the Workman was illegal and unjustified and the enquiry conducted by the Corporation was vitiated. Similarly, the Workman was held to be not guilty of misconduct in O.P. No. 501/92, and the approval application of the Corporation was rejected.
3. Before proceeding to the impugned orders, this Court notes that the present matter has had a long history of litigation. a brief background of the present matter is as below.
4. The Workman was appointed as a Conductor with the Corporation on 9th March, 1982, and was in service for a period of approximately 10 years. In January, 1992, it is the case of the Corporation that the Workman was absent unauthorizedly between January to May, 1992, and there were 12 adverse entries also in his service book. The case of the Workman was that his wife was suffering from cancer and accordingly, he had put in applications for leave which were kept pending for sanction by the Corporation. It is not in dispute that the leave was not sanctioned. However, a charge-sheet being charge sheet no.RN-2/aIT/CS-119/92/380, was issued by the Corporation to the Workman on 21st July, 1992, and a domestic enquiry was also conducted by the Corporation. Post the enquiry, a show cause notice dated 29th/30th September, 1992, was issued to the Workman as to why he should not be removed from service due to the misconduct. On 22nd October, 1992, he was removed from service after an enquiry conducted by the Corporation.
5. The Corporation filed an application before the Labour Court seeking approval of its action under Section 33(2)(b) of the ID act. a separate parallel challenge was also raised by the Workman challenging his removal from services.
6. In so far as the approval application under Section 33(2)(b) of the ID act, in O.P. No.501/1992, the Labour Court dismissed the same vide order dated 27th March, 2003, holding the termination to be in violation of the principles of natural justice. This order was challenged in W.P.(C) 3750/2004.
7. Thereafter, order dated 25th November, 2004, was also passed by the Labour Court in ID No.400/93 concerning the validity of the termination of the Workman. Vide the said order, the preliminary issue of enquiry was decided and the enquiry was held to be defective and violative of principles of natural justice. Subsequently, vide order dated 5th July, 2005, the termination of the Workman was held to be illegal and the relief of reinstatement with 60% back wages and other consequential benefits was granted. The operative portion of the said award dated 5th July, 2005, reads as under:
'6. The issue No. 1was framed on the pleadings of the parties regarding domestic enquiry and treated as preliminary I Issue. The Parties were directed to lead evidence on the enquiry issue and thereafter it was decided vide order dated 25.11.2004 in favour of the Workman and against the Management.
7. The well settled law is that if in case enquiry proceedings are vitiated by the order of the Court then Management must be granted opportunity prove misconduct before the Court; The Management was granted more than sufficient opportunities to prove misconduct before the Court since 22.12.2004 to 6,5.2005. The Management failed to adduce any evidence on misconduct, therefore, the Court left with no other option but to close M.E.
The Management also not produced any evidence on gainful employment' Hence Management miserable failed to prove if misconduct against the workman.
RELIEF:
8. On the basis of findings of enquiry
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.
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 ....
Termination without due process violates principles of natural justice, necessitating notice and inquiry; compensation awarded due to managerial failure to follow procedure.
Unauthorized absence without prior permission may amount to misconduct, and the principles of natural justice must be complied with in conducting an enquiry under Section 33(2)(b) of the Industrial D....
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.
Discretion under Section 11-A must be exercised judiciously; compassion cannot be the basis for modifying penalties in labor disputes involving misconduct.
The court established that a fair domestic enquiry and proportional punishment for habitual unauthorized absence from duty are essential under the Industrial Disputes Act, 1947, and that the burden o....
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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