IN THE HIGH COURT OF DELHI AT NEW DELHI
Gaurang Kanth, J.
Naubat Ram – Appellant
Versus
Delhi Power Co. Ltd. – Respondent
W.P.(C) 8549 of 2003 and C.M. No. 2867 of 2004
Decided On : 12-01-2023
Misappropriation - Labour Dispute - DESU (DMC) Service (Control & Appeal) Regulations, 1976 - The Industrial Disputes Act, 1947 - [Rule 3(1) (i) & (ii) of COS (Conduct) Rules, 1964, Section 11-A of the I.D. Act] - The court discussed the fair and proper conduct of the enquiry, the scope of judicial review, and the power of Labour Courts/Tribunals to re-appreciate evidence and substitute findings. The court emphasized that the finding of fact by the Industrial adjudicator can only be interfered with if patently illegal.
Fact of the Case:
The Petitioner, a senior clerk, was found guilty of misappropriating funds and demoted by the Disciplinary Authority. The Labour Court upheld the punishment, leading the Petitioner to file a Writ Petition challenging the decision.
Finding of the Court:
The court found that the enquiry was conducted fairly and in accordance with the principles of natural justice. It held that the Petitioner failed to establish that the domestic enquiry was improper. The court emphasized the limited scope of judicial review and the wide powers of Labour Courts/Tribunals under Section 11-A of the I.D. Act.
Issues: Validity of the enquiry, scope of judicial review, and the power of Labour Courts/Tribunals under Section 11-A of the I.D. Act.
Ratio Decidendi: The court emphasized the limited scope of judicial review and the wide powers of Labour Courts/Tribunals under Section 11-A of the I.D. Act. It held that the finding of fact by the Industrial adjudicator can only be interfered with if patently illegal.
Final Decision: The Writ Petition was dismissed, and the impugned award was upheld. The court found no exceptional circumstances to interfere with the decision of the Labour Court.
JUDGMENT
Gaurang Kanth, J.
1. The case at hand is a Writ Petition preferred under Article 226/ 227 of the Constitution of India. The Petitioner in the present case is aggrieved by the Award dated 20.12.2002 passed by the Industrial Tribunal No. II in I.D. No. 17/1993 titled as The management of M/s Delhi Electric Supply Undertaking Shakti Bhawan, Nehru Place, New Delhi and Shri Naubat Ram through Delhi State Electricity Board Employees Union 626, Natra Neel Delhi (hereinafter referred to as "impugned award").
2. Vide the impugned award, learned Labour Court has held that a fair enquiry had been conducted against the Petitioner in which he had been found guilty of misappropriation of funds. Consequently, learned Labour Court, upheld the punishment imposed by the Disciplinary Authority and held that the Petitioner was not entitled for any relief from the learned Labour Court. Being aggrieved by the said decision, the Petitioner has prayed for issuance of a writ in the nature of Certiorari or any other appropriate writ thereby setting aside the impugned award.
FACTS RELEVANT FOR THE CONSIDERATION OF THE PRESENT WRIT PETITION ARE AS FOLLOWS:
3. The Petitioner, Shri Naubat Ram, had joined the services of Delhi Power Company Limited (the erstwhile Delhi Electricity Supply and Undertaking) as a junior clerk on 20.03.1970 and was promoted as a senior clerk on 28.8.1979.
4. During his service, the Respondent management issued a chargesheet dated 03.04.1986 against the Petitioner with the following charges:
"Shri Naubat Ram, Sr. Clerk while working as such on 1.10.83 at Counter No.509, Distt. LWR misappropriated a sum of Rs.200/- out of Rs.750/- paid to him as consumption charges by one Shri A.C. Sharma son of regd. Consumer in respect of electricity Bill pertaining to K.Kos. 736767 and 736651, Thus he failed to maintain absolute integrity and devotion to duty in violation of Rule 3(1) (i) & (ii) of COS (Conduct) Rules, 1964 as detailed in the statement of allegations attached,"
5. The Respondent/Management conducted an enquiry against the Petitioner in accordance with the DESU (DMC) Service (Control & Appeal) Regulations, 1976. The enquiry officer submitted a detailed enquiry report holding that the charges levelled against the Petitioner workman as 'proved'. Disciplinary Authority accepted the recommendation of the enquiry officer and imposed a penalty of reduction in rank of the Petitioner to the grade of Junior Clerk initially for a period of two years, which was reduced to one year upon an appeal being preferred by the Petitioner to the Appellate Authority.
6. Aggrieved by his demotion, the Petitioner raised an Industrial Dispute. Vide reference No. F.24 (4551)/92-Lab dated 08.01.1993, the Secretary (Labour) Government of the National Capital Territory of Delhi referred the dispute between the management of M/s Delhi Electric Supply Undertaking and the Petitioner for adjudication to the Industrial Tribunal with the following term of reference:
"Whether the penalty of reduction in rank to the grade of Jr. Clerk for a period of one year, imposed upon on Naubat Ram is illegal and/ or unjustified and if so, to what relief is he entitled and what directions are necessary in this regard?"
7. On the basis of the pleadings of the parties, the learned Labour Court framed the following issues on 17.10.1994:
"(1) Whether the dispute has been validly and properly espoused by the union as alleged in the written statement? 1f so, its effect?
(2) Whether BSEB Employees Union has locus standi to raise the dispute? If so, its effect?
(3) Whether the employees of DESU are not the members of the Municipal Employees Union? If so, its effect?
(4) As per terms of reference."
8. Subsequently, on 17.10.1995, the following additional issue was also framed by the learned Labour Court:
"4-A Whether the enquiry conducted by the management was not fair and in accordance with the principles of natural justice? If so, to what effect?"
9. In order to prove his ca
The finding of fact by the Industrial adjudicator can only be interfered with if patently illegal.
Labour Courts must refrain from re-evaluating evidence after confirming the fairness of a disciplinary inquiry; interference is only permissible when findings are perverse or lack evidence.
The High Court, in exercising supervisory jurisdiction, does not review merits but ensures the decision-making process of the Labour Court complies with principles of natural justice.
The court emphasized the power of the tribunal to regulate its own procedure and the principle that technical and procedural lapses should not hinder substantial justice.
The requirement of natural justice necessitates supplying an inquiry report to the delinquent, and failure to do so invalidates disciplinary action, justifying reinstatement of the employee.
The Labour Court must first determine the validity of domestic enquiry before evaluating evidence presented for dismissal in industrial disputes.
Disciplinary actions by employers must comply with fair enquiry standards; failure to allow cross-examination does not nullify properly conducted proceedings.
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