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2024 Supreme(Guj) 800

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
MAUNA M. BHATT, J.
Devendrabhai Ramalal Patel – Appellant
Versus
Manager - Mehsana District Cooperative Bank Ltd. & Anr. – Respondents
R/Special Civil Application No. 18692 of 2017 With R/Special Civil Application No. 14640 of 2017
Decided on : 02-05-2024

Advocates:
Advocate Appeared:
For the Appellant : MR G.R. MANAV
For the Respondent: MR PRABHAKAR UPADYAY

IMPORTANT POINT
Dismissal based on unproved allegations is inappropriate, and failure to pay legal dues is condemned.

Headnote:

Dismissal - Industrial Dispute - Gujarat Industrial Relation Act, 1946 - Sections 78/79, Banking Regulations - Misconduct, Inquiry Proceedings, Backwages - 29.11.2005, 27.04.2017, 14.08.2014

Fact of the Case:

The employee, a Peon in a bank, was dismissed for misconduct. The Labour Court held the inquiry proceedings as illegal and modified the dismissal into discharge, directing the bank to pay all legal dues. The Industrial Court partly allowed the employee's appeal, directing the bank to pay 50% backwages from the date of dismissal till the date of retirement.

Finding of the Court:

The Court found that the charges were not proved and were merely allegations, leading to the dismissal being modified to discharge. The Court condemned the bank for not paying the legal dues and confirmed the Industrial Court's decision to award 50% backwages.

Issues: Validity of dismissal, legality of inquiry proceedings, entitlement to backwages

Ratio Decidendi: Dismissal based on unproved allegations is inappropriate. Failure to pay legal dues is condemned. Entitlement to backwages is based on the period worked.

Final Decision: The dismissal was modified to discharge, and the bank was directed to pay 50% backwages. Both petitions were dismissed, and the bank was ordered to pay all legal dues within 6 weeks.

JUDGMENT :

1. Captioned are cross petitions filed, challenging an order of Industrial Court, Ahmedabad dated 27.04.2017 in Appeal (IC) No.23 of 2014 in T. Application No.142 of 2008, wherein, Industrial Court, Ahmedabad, by holding the order of dismissal as illegal, directed the employer-bank to pay 50% of backwages to the employee from 29.11.2005 (date of dismissal) till date of superannuation.

2. Since, both these petitions are filed challenging the same award, with consent of the learned advocates for the respective parties, they are heard and decided together by this common judgment.

3. For the purpose of this judgment, facts referred in Special Civil Application no.14640 of 2017 (filed by employer- bank) are considered.

3.1 Employer here is a Bank registered under the provisions of the Gujarat Co-operative Societies Act, 1961 and functioning as per the provisions of the Banking Regulations. Employee was working as a Peon in the Dingucha Branch of employer bank. It was case of the employer-bank that while employee was on duty on 21.05.2005, he misbehaved with superior and other staff of the bank and on account of this serious misconduct, he was put under suspension, by order dated 13.06.2005. Inquiry officer was appointed and due opportunity was granted to the employee to lead the evidences and defend his case. After following due procedure under provisions of law, the inquiry was concluded and Inquiry Officer gave his report dated 09.09.2005, holding charge as proved. Second Show Cause Notice along with inquiry report was served to the employee and employee replied on 22.09.2005. Upon consideration of reply to the Show Cause Notice, an order of dismissal dated 29.11.2005 was passed.

3.2 Aggrieved by order of dismissal, employee preferred T. Application No.7 of 2006 under Sections 78/79 of the Gujarat Industrial Relation Act, before Labour Court, Mehsana. Upon issuance of Notice, employer-bank filed its written statement. Employee also challenged the legality and validity of the inquiry proceedings initiated by the employer-bank. T. Application No.7 of 2006 was transferred to the Labour Court, Mehsana. Upon transfer, T. Application No.7 of 2016 was renumbered as T. Application No.142 of 2008. The Labour Court, Mehsana, thereafter passed an order dated 15.03.2012, holding inquiry proceedings as illegal, however, granted opportunity to the employer-bank to prove charges before it, by leading oral as well as documentary evidences. Upon adjudication, Labour Court Mehsana, passed final order dated 14.08.2014, below Exh-69 in T. Application No.142 of 2008, wherein the order of dismissal dated 29.11.2005, was modified into discharge. The Labour Court further directed to pay all the legal dues to the employee. Cost of Rs.5,000 was also awarded.

3.3 Aggrieved by the order below Exh-69 dated 14.08.2014 in T. Application No.142 of 2008, an appeal was filed by the employee under section 84 of the Gujarat Industrial Relation Act,1946 before Industrial Court Ahmedabad, registered as Appeal (IC) No.23 of 2014. Upon adjudication, Industrial Court, Ahmedabad partly allowed the appeal of the employee, by quashing and setting aside the order of dismissal dated 29.11.2005 and the order dated 14.08.2014 of Labour Court, Mehsana in T. Application No.142 of 2008. The Industrial Court directed the employer-bank to pay 50% backwages from the date of dismissal till the date of retirement. Aggrieved by an order of Industrial Court Ahmedabad, dated 27.04.2017 in Appeal (IC) No.23 of 2014, the captioned petitions are filed.

3.4 Employer-bank has filed Special Civil Application No.14640 of 2017, against holding the order of dismissal as illegal and further directions to grant 50% backwages from the date of dismissal till date of retirement, whereas employee has filed Special Civil Application No.18692 of 2017, against non- grant of balance 50% backwages from the date of dismissal till the date of retirement.

4. Heard Mr.Prabhakar Upadyay, learned advocate for

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