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2022 Supreme(Del) 2224

IN THE HIGH COURT OF DELHI AT NEW DELHI
Dinesh Kumar Sharma, J.
Indraprastha Power Generation Co. Ltd. – Appellant
Versus
Someer Chaterjee (Deceased) Through Lrs. – Respondent
W.P.(C) 1642 of 2021, CM APPL. 4694 of 2021, CM APPL. 37401 of 2021
Decided On : 09-09-2022

Advocates appeared:
Mr. Vinay Sabharwal and Mr. Karunesh Shah, Advocates, for the Petitioner.
Mr. Salim A. Inamdar, Mr. M. H. Khan, Mr. Abhishek and Ms. Shruti, Advocates, for the Respondent.

The Labour Court should decide as a preliminary issue whether the domestic inquiry has violated the principles of natural justice.

Headnote:

domestic inquiry - violation of principles of natural justice - Industrial Disputes Act, 1947, section 10(4)

Fact of the Case:

The respondent workmen participated in a dharna organized by their trade union. Management issued a show cause notice and conducted a domestic inquiry, resulting in dismissal from services. The workmen challenged the inquiry under section 10(4) of the Industrial Disputes Act, 1947.

Finding of the Court:

The Labour Court held the domestic inquiry to be in violation of principles of natural justice and set it aside.

Issues: Validity of the domestic inquiry in accordance with the principles of natural justice and service rules governing the workmen.

Ratio Decidendi: The Labour Court should first decide as a preliminary issue whether the domestic inquiry has violated the principles of natural justice. The finality of this order is to be determined by the superior courts. A two-tranche challenge - first against the preliminary award or opinion and thereafter against the final award, ought not to be entertained.

Final Decision: The present petitions along with all pending applications are dismissed.

JUDGMENT

Dinesh Kumar Sharma, J. (Oral)

1. The present petitions have been filed impugning and seeking to set aside the Order dated 23rd December, 2019, passed by the learned Presiding Officer, Labour Court, New Delhi, vide which, the learned Labour Court, while deciding on the preliminary issue of legality and validity of the domestic inquiry conducted with respect to the workmen herein, held the same to be in violation of principles of natural justice and set aside the same.

2. Briefly stated the facts as alleged in the petition are that the respondent workmen herein participated in a dharna organized by their trade union. As a result, management issued a show cause notice to the workmen, including the respondents herein, who participated in the dharna. Domestic inquiry was conducted, whereby the penalty of dismissal from services, was imposed on the workmen. Respondent workmen challenged the said domestic inquiry and the consequent dismissal order by filing proceedings under section 10 (4), Industrial Disputes Act, 1947, before the learned Labour Court, and the following reference was framed to be adjudicated and determined:

    "Whether there was a fair and proper enquiry in accordance with the principles of natural justice and the service rules governing the workman ? OPW".

3. The legality and validity of the aforementioned domestic inquiry was treated as a preliminary issue and both the parties led their evidence on the issue of inquiry first. Learned Labour court upon appreciating evidence and materials on record returned a categorical finding that the domestic inquiry conducted by the management against the workmen were not as per principles of natural justice and set aside the same. Aggrieved thus, the petitioner management has preferred the present petitions assailing the same.

4. Learned counsel for the petitioner submits that the learned Labour Court has fallen into grave error. The impugned order suffers from legal infirmity. It has been submitted that the facts of the present case are distinguishable from the facts contained in the order/judgment delivered in "Cooper Engineering Ltd. v. Shri P.P. Mundhe", (1975) 2 SCC 661 and "D.P. Maheshwari v. Delhi Administration", (1983) 4 SCC 293 by the Supreme Court.

5. Learned counsel for the petitioner has submitted that the issue in the present case regarding the validity of the inquiry conducted against the respondent-workman is in fact final in nature. It has been stated to be preliminary but the Labour Court has given its final verdict as to the validity of the inquiry.

6. Learned counsel submits that therefore the finality of this order is to be determined by the superior courts i.e. High Courts and the Supreme Court before proceeding further.

7. Per contra, learned Counsel for the respondent has submitted that consequent to setting aside the domestic enquiry, learned Labour Court had granted the management as per their request, an opportunity to lead evidence in support of its allegations against the respondent workmen. However, despite being granted a second chance to prove its case, petitioner management has parallelly challenged the decision on the preliminary issue by way of the present petitions. Learned Counsel for the respondent submits that the present petitions against the decision of the Learned Labour Court on the preliminary issue of validity and legality of domestic enquiry is not maintainable for the following reasons:

i. It is barred by the dicta of the Supreme Court. Reliance is placed on "Cooper Engineering Ltd. v. Shri P.P. Mundhe", (1975) 2 SCC 661; "D.P. Maheshwari v. Delhi Administration", (1983) 4 SCC 293 and National Council for cement & Building Materials v. State of Haryana, (1996) 3 SCC 206;

ii. It is barred by estoppel premised on the doctrine of election. Reliance is placed on "National Highways Authority of India v. Panipat Jalandhar NH-1 Tollways Pvt. Ltd.", FAO (OS) (COMM) 55/2021;and

iii. It is barred by delay and laches as the present

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