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2025 Supreme(HP) 858

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA 
AJAY MOHAN GOEL, J.
State of Himachal Pradesh - Appellant
Versus
Ramesh Chand - Respondent
CWP No. 8500 of 2013
Decided On : 24-02-2025

Advocates:
Advocate Appeared:
For the Appellant : Sumit Sharma
For the Respondents: Sanjeev Bhushan, Sparsh Bhushan

Termination based on a preliminary inquiry without a formal inquiry is punitive and invalid under the Industrial Disputes Act.

Headnote:

(A) Industrial Disputes Act, 1947 - Sections 2(oo) and 25-F - Termination of services - The Labour Court found the termination of the claimant's services improper and unjustified, ordering reinstatement with back wages of 25% due to lack of a proper inquiry - The claimant was accused of misconduct without a fair hearing, leading to a violation of natural justice principles. (Paras 1, 6, 7, 22)

(B) Termination - The court emphasized that termination based on a preliminary inquiry without a formal departmental inquiry is punitive and invalid, referencing the Supreme Court's ruling in Nar Singh Pal vs. Union of India. (Paras 8, 21)

Facts of the case:
The claimant was engaged as a daily wage worker and was terminated on allegations of misconduct without a proper inquiry. He was acquitted in a related criminal case. (Paras 2, 3)

Findings of Court:
The Labour Court ruled the termination was unjustified and ordered reinstatement with back wages. (Paras 6, 10)

Issues: The main issues included whether the termination was justified and what relief the claimant was entitled to. (Paras 5)

Ratio Decidendi: The court held that a termination based on a preliminary inquiry without a proper inquiry is invalid and constitutes punishment. (Paras 21, 22)

Result: Petition dismissed.

JUDGMENT :

Ajay Mohan Goel, J.

1. By way of this Writ Petition, the petitioners have challenged the Award, dated 01.09.2012, passed by the Court of learned Presiding Judge, Industrial Tribunal-cum-Labour Court, Shimla, H.P. in Reference No. 54 of 2009, titled as Ramesh Chand vs. State of H.P. & others, in terms whereof, the Reference made by the Appropriate Government, under Section 10 of the Industrial Disputes Act, 1947 was answered by learned Labour Court as under:-

“For the reasons recorded hereinabove, the claim of the petitioner is allowed and the reference is answered in negative as the termination of the services of thepetitioner is improper and unjustified. Consequently, the petitioner is entitled to reinstatement in service with immediate effect on the same terms and conditions with seniority and continuity along with back wages @ 25%. Let a copy of this award be sent to the appropriate government for publication in official gazette. File, after completion, be consigned to records.”

2. Brief facts necessary for the adjudication of the present petition are that on an industrial dispute raised by respondent/workman, the following Reference was made by the Appropriate Government to learned Labour Court:-

“Whether the termination of services of Shri Ramesh Chand S/o Shri Dilmee Ram by the Executive Engineer, HPPWD Division, Chopal, District Shimla, H.P. w.e.f. 26.1.1999 on the allegation of misconduct and tempering of office record is proper and justified? If not, what relief of service benefits including seniority and compensation the above workman is entitled to?”

3. The claim put up by the workman/claimant (hereinafter referred to as the ‘claimant’) before learned Labour Court was that he was engaged as a daily wage Beldar by the employer in the month of September, 1991, though he was discharging the duties of a Supervisor. Rather than conferring work charge status upon him upon completion of eight years of service as such, followed by regularization, on 26.02.1999, the claimant was served with one month’s notice of retrenchment from service. The basis for termination of services of the claimant was his alleged misconduct, which allegation as per the claimant was false and frivolous. As per the claimant, no inquiry, as envisaged in law, was conducted, nor the principles of natural justice were complied with by the respondent. He was condemned un-heard. It was further his case that the alleged misconduct was relating to the charge of tampering with the official record, on which allegation a criminal case was also registered against the claimant, i.e. Criminal Case No.6-I of 2001, titled as State Versus Ramesh Chand, in which, he was acquitted by the Court of learned Judicial Magistrate, 1st Class, Chopal, District Shimla, H.P. on 30.07.2002, which acquittal attained finality. It was further the contention of the claimant that he was forced to concede to the allegations levelled against him by the concerned Sub-Divisional Officer.

4. The stand of the employer before learned Labour Court was that the claimant was neither entitled for conferment of work charge status nor regularization. He, in fact, was performing the duties of Beldar. His services were terminated after serving one month’s notice of retrenchment on 26.02.1999, which was necessitated by the fact that the claimant who was deployed in the division office of the the Executive Engineer, HPPWD, Chopal, to assist the dealing hand to sort out the record during screening, was found tampering with the record rather than assisting the dealing hand. Therefore, as the claimant was found guilty of tampering with the official record with a malafide intent, the Department had no option, but to terminate his services in public interest, which was accordingly done after complying with the provisions of Section 25-F of the Industrial Disputes Act.

5. Learned Labour Court on the basis of the pleadings of the parties, framed the following issues:

“1. Whether the termination of the ser

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