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IN THE HIGH COURT OF DELHI
Prathiba M. Singh, J.
Hindustan Antibiotics Limited - Appellant
Versus
B.N. Singh - Respondent
W.P.(C) 8297 of 2016 and CM Appl. 867 of 2020
Decided On : 28-10-2021




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.

Headnote:(A) Industrial Disputes Act, 1947 - Jurisdiction of Labour Court - Principles of natural justice - The case involved a workman challenging termination after allegations of fraud relating to Leave Travel Concession, culminating in a Labour Court award for reinstatement and back wages. The Management's failure to present evidence led to the court upholding the Labour Court's findings. The High Court ultimately awarded lump sum compensation instead of reinstatement, considering the workman's long absence from service and the nature of the allegations. (Paras 9, 26, 27)

(B) Rights of the workman - The court emphasized the importance of evidence and adherence to procedural fairness in disciplinary proceedings, underlining that mere allegations without substantiation cannot justify termination. The power of the court to award compensation rather than reinstatement can be exercised under appropriate circumstances, taking into account the workman's tenure and the context of the case. (Paras 24, 27).

Facts of the case:
The workman was terminated after being found guilty of fraud regarding LTC, having been previously reinstated following a prior wrongful termination. The subsequent Labour Court proceedings revealed the Management failed to substantiate its claims against him.

Findings of Court:
The termination was found to be unjust as the Management did not prove the alleged misconduct. The original Labour Court awarded reinstatement with back wages, which was modified by the High Court to a lump sum compensation of Rs. 15,00,000.

Issues: The primary issues were the validity of termination, adherence to the principles of natural justice, and the appropriateness of remedies including reinstatement versus compensation.

Ratio Decidendi: The court decided that the Management's failure to present evidence negated their claims, establishing that reinstatement should not be automatic and that compensation can be a suitable remedy depending on circumstances.

Result: Petition disposed of with directions for payment of lump sum compensation.

Table of Content
1. challenge of termination of workman. (Para 2 , 3)
2. details of domestic enquiry and proceedings. (Para 4 , 5 , 6 , 8)
3. arguments presented by both parties. (Para 11 , 12 , 13)
4. court’s views on evidence and jurisdiction. (Para 15 , 16 , 17 , 18 , 19 , 21)
5. reinstatement vs. compensation principles. (Para 23 , 25 , 26)
6. final directions regarding compensation. (Para 27 , 28 , 29)

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 charge sheet 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 charge sheet 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 charge sheet 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 show-cause notice was issued against the Workman, enclosing a copy of

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