Back
IN THE HIGH COURT OF KERALA AT ERNAKULAM
ANIL K. NARENDRAN, MURALEE KRISHNA S., JJ.
M.K. Gopalan S/o Late Velu - Appellant
Versus
The REC Multi Purpose Co-Operative Society Ltd. and Others - Respondents
WA Nos. 1252, 1541, 1569 of 2024
Decided On : 18-02-2025
(A) Kerala Cooperative Societies Act, 1969 - Sections 66 and 68(1) - Writ appeals challenging the common judgment of the learned Single Judge regarding the termination of service of an employee for alleged misappropriation - The court found that the domestic enquiry was vitiated due to violation of natural justice, as the employee was not given a fair opportunity to defend himself. (Paras 6, 10, 16, 23)
(B) Natural Justice - The principles of natural justice must be adhered to in disciplinary proceedings, including the right to cross-examine witnesses and present evidence. (Paras 9, 16)
(C) Back Wages - An employee whose service has been illegally terminated is entitled to full back wages unless the employer proves otherwise. (Paras 19, 22)
Facts of the case:
The appellant, a Salesman in a Consumer Co-operative Society, was terminated for alleged misappropriation of funds. The Arbitration Court set aside the termination, citing a flawed enquiry process. The Tribunal later reduced back wages, which was contested.
Findings of Court:
The court upheld the Arbitration Court's award, stating the enquiry was invalid and the appellant was entitled to full back wages.
Issues: The main issues included the validity of the disciplinary proceedings and the entitlement to back wages.
Ratio Decidendi: The court ruled that the domestic enquiry was flawed due to a lack of adherence to natural justice principles, and the appellant was entitled to full back wages.
Result: Writ appeals allowed; the impugned judgment set aside, and the appellant entitled to full back wages with interest.
JUDGMENT :
(Muralee Krishna S., J.)
These writ appeals are filed by the 1st respondent in W.P.(C) No.20797 of 2023 and W.P.(C)No.25628 of 2023 who is the petitioner in W.P.(C)No.18555 of 2024, invoking the provisions under Section 5(i) of the Kerala High Court Act, 1958, challenging the common judgment dated 04.06.2024 of the learned Single Judge, whereby W.P.(C)Nos.20797 of 2023 and 25628 of 2023 were allowed and W.P.(C) No.18555 of 2024 was dismissed.
2. The 1st respondent is a Consumer Co-operative Society (‘Society’ for short) started functioning on 11.11.1963. The membership of the society is confined to the staff of the Regional Engineering College, Kozhikode (NIT). The Society has been running a consumer store dealing with provision stores, stationery and textile items. The appellant was appointed as a Salesman in the society on 16.08.1976. On 21.11.2000, the Unit Inspector, Kunnamangalam Unit conducted an inspection in the office of the store of the Society and noticed misappropriation of funds by manipulation of records and vouchers. On getting the report, the Assistant Registrar of Co-operative Societies issued a show cause notice to the Society on 29.11.2000. Then, the President and Board Members of the Society conducted an inspection and found that misappropriation of the fund of the Society had been committed by the appellant as well as an Attender by name Gopinathan. Thereafter, the department officers as well as auditors also conducted an inspection and found large scale misappropriation of funds of the Society which according to them was committed by the appellant and the other employee. A statutory inspection under Section 66 of the Kerala Cooperative Societies Act, 1969 (‘the Act’ for short) was conducted as per order dated 23.03.2001 by appointing the Unit Inspector, Kunnamangalm Unit and he submitted Ext.P2 report dated 20.03.2002 to the Joint Registrar. On the basis of the said report, the Joint Registrar ordered enquiry under Section 68(1) of the Act as per Ext.P3 order dated 31.01.2003 and appointed the Assistant Registrar (G), Kozhikode as the Enquiry Officer.
2.1. On the basis of the enquiry conducted, the disciplinary sub-committee formed by the society issued Ext.P5 order dated 25.04.2002 terminating the service of the appellant, finding that he misappropriated the fund of the Society. The Society then filed A.R.C. No.10 of 2001 before the Joint Registrar of Co-operative Societies for recovery of the misappropriated amount from the appellant. Challenging Ext.P5, the appellant filed A.R.C. No.123 of 2011 before the Co-operative Arbitration Court (Northern), Kozhikode (‘Arbitration Court’ for short). As per Ext.P6 award dated 28.05.2018 the Arbitration Court set aside the punishment of termination of service imposed on the appellant and directed to pay him all service benefits, including back wages. Challenging Ext.P6 award, the Society filed A.P No.83 of 2018 before the Kerala Co-operative Tribunal, Thiruvananthapuram (‘Tribunal’ for short). The appellant filed Ext.P7 cross-objection before the Tribunal claiming 18% interest on the amount awarded.
2.2. As per Ext.P9 judgment dated 24.05.2022, the appeal filed by the Society was allowed and the cross-objection filed by the appellant was dismissed by the Tribunal. Challenging Ext.P9 judgment of the Tribunal, the appellant filed W.P.(C)No.24868 of 2022 before this Court. As per Ext.P10 judgment dated 17.10.2022 this Court set aside Ext.P9 judgment of the Tribunal and remanded the matter to the Tribunal for fresh consideration. As per Ext.P11 judgment dated 25.02.2023, the Tribunal partly allowed the appeal and dismissed the cross-objection with a direction to pay to the appellant 80% of the back wages from the date of termination till superannuation, together with 9% interest from the date of termination till payment.
2.3. Challenging the judgment in the appeal, the Society filed W.P.(C)No.20797 of 2023 and challenging the judgment in the cross-objection, the
An employee whose service is illegally terminated is entitled to full back wages unless the employer proves otherwise, and disciplinary proceedings must adhere to principles of natural justice.
The court upheld the principle that failure to adhere to natural justice, particularly the right to cross-examine key witnesses in disciplinary proceedings, invalidates termination, warranting reinst....
An employee whose service is illegally terminated is entitled to full back wages unless the employer proves otherwise.
Acquittal in a criminal case does not bar disciplinary action in employment matters, as the standards of proof and objectives differ significantly.
The main legal point established in the judgment is the violation of employee rights under the Maharashtra Employees of Private Schools (Conditions of Service) Regulation Act, 1977, and the rules fra....
Misconducts - Award Modified - Workman was earning by plying rickshaw since his dismissal i.e. from 1990, appropriate relief may be moulded in favour of workman by tilting balance -Workman be paid re....
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
