Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2025 Supreme(Jhk) 1174

IN THE HIGH COURT OF JHARKHAND AT RANCHI
SANJAY PRASAD, J.
Employers in relation to the Management of Mohuda Area No.II (Now Western Jharia Area) of M/s Bharat Coking Coal Limited - Appellant
Versus
Their Workman being represented by the Secretary – Respondent
W.P.(L) No. 149 of 2010
Decided on : 28-04-2025

Advocates:
Advocate Appeared:
For the Petitioner:Mr. Anoop Kr. Mehta, Advocate, Mr. Amit Kr. Sinha, Advocate, Mr. Pratyush, Advocate
For the Respondent: None

The requirement of natural justice necessitates supplying an inquiry report to the delinquent, and failure to do so invalidates disciplinary action, justifying reinstatement of the employee.

Headnote:(A) Industrial Disputes Act, 1947 - Section 11-A - Domestic inquiry - Fair and proper inquiry conducted before dismissal - Tribunal’s award for reinstatement with 50% back wages challenged by management as arbitrary and illegal, citing authority of disciplinary authority over domestic inquiry findings - Judgment distinguishes between appellate review and supervisory jurisdiction of courts. (Paras 6, 30, 41)

(B) Natural justice - Requirement of supplying inquiry report to the delinquent - Non-supply declared as unfair procedure denying opportunity to challenge findings - No merit in management's appeals against the Tribunal’s decision. (Paras 60-63)

(C) Judicial precedent - Acquittal in criminal case not binding but influential in related domestic inquiry - Reaffirmation of employee's right to fair hearing within disciplinary proceedings. (Paras 36, 40)

Facts of the case:
The petitioner challenged an award ordering the reinstatement of a workman dismissed for misconduct involving fraudulent withdrawal of funds, asserting the inquiry was fair. Respondent maintained allegations were unfounded and process was improper.

Findings of Court:
Court found that the domestic inquiry violated principles of natural justice due to non-provision of inquiry report to the respondent; thus, the Tribunal’s order reinstating the workman with back wages was justified.

Issues: Whether the domestic inquiry was fair and whether the actions of the Tribunal were justified in reinstating the workman despite a finding of misconduct.

Ratio Decidendi: The Tribunal's order was upheld as the dismissal was based on violated principles of natural justice; the workman was not afforded a proper opportunity to defend himself, especially due to non-supply of the inquiry report.

Result: Writ Petition dismissed.

Table of Content
1. writ petition filed to quash tribunal's award. (Para 1 , 2 , 10)
2. management's argument on procedural fairness and the background of dismissal. (Para 3)
3. petitioner's arguments against the tribunal's findings. (Para 4 , 6 , 8)
4. judicial precedents cited by petitioner for support. (Para 5 , 7 , 9)
5. allegations of misconduct against workman. (Para 12 , 14 , 16)
6. procedural fairness and natural justice principles discussed. (Para 19 , 28 , 30)
7. discussion on supply of enquiry report and its necessity. (Para 31 , 32 , 34)
8. court's decision to dismiss the writ petition. (Para 36 , 40 , 44)
9. the court's decision on the matter, emphasizing dismissal of the writ. (Para 45 , 46)

JUDGMENT :

This writ petition has been filed for quashing the Award dated 09.09.2009 of the Central Government Industrial Tribunal No.1, Dhanbad (Hereinafter to be referred to as “The Tribunal”) in Ref No. 159 of 1994 (i.e. Annexure-4), whereby the Tribunal has answered the Reference in favour of the concerned Respondent-Workman Sri Kalachand Das directing the Petitioner-Management to reinstate the concerned Respondent-Workman in service with 50% back wages.

2. The case of the Petitioner-Management, as it transpires from the pleadings in the writ petition as well as the Award is that the Respondent-Workman, namely Kalachand Das was a Loader and a permanent employee of Lohapatti Colliery of M/s Bharat Coking Coal Limited One Mahesh Chandra Mishra, a Clerk of CMPF Section of Bhattdih Colliery under Mohuda Area, devised a fraudulent method of withdrawing Provident Fund amount deposited in the names of different workmen of the colliery in the Coal Mines Provident Fund and in that connection, the concerned Respondent-Workman- Kalachand Das became a party in aiding and abetting Sri Mahesh Chandra Mishra in commission of fraud and dishonesty in withdrawing the amount lying in the names of different workmen Shri Mahesh Chandra Mishra manipulated documents and applied before Bhatdih colliery of M/s Bharat Coking Coal Limited for advancing loan for the purpose of marriage from the C.M.P.F. A/c in the name of Sri Khagendra Nath Chattia, Mining Sirdar of Bhattdih Colliery and got a loan of Rs.18,000/- sanctioned from the office of the Commissioner, C.M.P.F. and a cross cheque bearing No. 872642 dated 28.08.1990 was deposited in the Bank of India, Chas Branch for payment of Rs.18,000/- to Sri Khagendra Nath Chattia Sri Mahesh Chandra Mishra opened a Savings Bank A/c No. 14351 in the Bank of India, Chas Branch and the concerned Respondent-Workman Kalachand Das identified Sri Mahesh Chandra Mishra as Khagendra Nath Chattia in order to facilitate Sri Mahesh Chandra Mishra to withdraw the amount of Rs.18,000/-deposited in the name of Sri Khagendra Nath Chattia.

Shri Khagendra Nath Chattia had never applied for any loan nor he was knowing anything relating to the transaction, but as soon as he came to know about the fraudulent transaction, he reported the matter and the act of the concerned Respondent-Workman in cheating him by withdrawing the amount of Rs. 18,000/- from his C.M.P.F. Account.

When this fact came to the knowledge of the Petitioner-Management, the concerned Respondent- Workman gave in writing to the Petitioner-Management that he had introduced Mahesh Chandra Mishra as Khagendra Nath Chattia for opening a Pass Book in the Chas Branch of Bank of India.

From the aforesaid act on the part of the concerned Respondent-Workman, a prima-facie case of misconduct was revealed and accordingly a chargesheet bearing Ref. No. LC/C. Sheet/92/2579 dated 19.09.1992 (Ext.M-1) was served upon the Respondent-Workman.

The Respondent-Workman replied that sometime in the year 1990, Sri Mahesh Chandra Mishra approached him to introduce a person whom he introduced to the Respondent-Workman as his friend to open a Bank Account in the Bank of India, Chas Branch in which the Respondent-Workman had also his Bank A/c. Since such introduction is a general formality of the Ba