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2015 Supreme(Mad) 780

HIGH COURT OF JUDICATURE AT MADRAS
SATISH K. AGNIHOTRI & M. VENUGOPAL, JJ.
The Manager, Atomic Energy Employees Consumer Cooperative Stores Ltd. - Appellant
Versus
A.L. Chidambaram & Another - Respondents
W.A. Nos. 1759 & 1760 of 2014 & M.P. Nos. 1, 1 & 2 of 2014
Decided on: 10-02-2015

Advocates:
Advocate Appeared:
For the Appellant:P. Anbarasan, Advocate.
For the Respondent:R1, K.V. Ananthakrishnan, Advocate.

Headnote:

Shops and Establishment Act, 1947 - Section 41(2) - Industrial Disputes Act, 1947 - Section 33-C(2) - Shops Act - Section 41(2) - Legality and validity of common order - Terminated from service - Order of reinstatement or grant of any consequential benefits - First respondent while working as Assistant Manager was terminated from service vide order - There against employee preferred an appeal under Section 41(2) of Tamil Nadu Shops and Establishment Act, 1947 - Appellate authority having noted fact that employer has failed to establish charges by evidence recorded at enquiry has set aside order of termination without there being an order of reinstatement or grant of any consequential benefits - There against a Writ petition was preferred by Management which was dismissed by Single Judge - There against an appeal being was preferred - A Division Bench of this court by judgment dismissed appeal - So far as back wages is concerned management had not taken any plea before appellate authority or before single Judge that respondent is not entitled for back wages being in job in some other organization during intervening period - No such plea having been taken before appellate authority or before learned single Judge or before this Court are not inclined to give any finding in this regard – Held, Grant of back wages is dependent on several factors gainful employment duration of operation of order of termination and other incidental factors – Hence entitlement of back wages itself involves adjudication and same cannot be granted automatically after termination order has been set aside as unlawful - In case on hand there was no order to grant back wages passed by appellate authority in TSE - Said order was taken up to Division Bench of this Court - Division Bench declined to record finding in respect of entitlement of employee to back wages - As a sequel there was no adjudication on issue of back wages and as such there was no pre-existing right to invoke jurisdiction of Lab our Court under Section 33-C(2) of I.D. Act - Supreme Court in State Bank had clearly laid down principle that only for computation of pre-existing right in terms of money jurisdiction of Lab our Court under Section 33-C(2) of I.D. Act is available and for computation in monetary terms on basis of a right flowing from pre-existing right jurisdiction of Lab our Court under this provision is not available - Right which flows from existing right on setting aside termination order has to be adjudicated in view of several principles as discussed herein above in other appropriate forum - Decision of Lab our Court subsequently in pursuance of impugned order passed by computing wages is not relevant or of any consequences to question of law involved in these appeals - Decision of Division Bench of this Court to effect that relief of back wages is implicit in setting aside dismissal order stands overruled impliedly by several Supreme Court decisions - Question as to whether employee working in supervisory and managerial capacity as Assistant Manager can be held as workman to seek for computation of back wages under provisions of Section 33-C(2) of I.D. Act has not been seriously contested - Writ appeals are allowed

Judgment

Satish K. Agnihotri, J.

1. Questioning the legality and validity of the common order dated 24.1.2011 passed in W.P. No. 22818 and 22819 of 2008, the instant intra-court appeals have been preferred by the Management of Atomic Energy Employees Consumer Cooperative Stores Ltd.

2. The facts leading to filing of these appeals, which arise from the same dispute, are :

The first respondent (hereinafter referred to as “employee”), while working as Assistant Manager, was terminated from service vide order dated 6.7.1991. Thereagainst, the employee preferred an appeal under Section 41(2) of the Tamil Nadu Shops and Establishment Act, 1947 (hereinafter referred to as “Shops Act”). The appellate authority, having noted the fact that the employer has failed to establish charges by evidence recorded at enquiry, has set aside the order of termination, without there being an order of reinstatement or grant of any consequential benefits. Thereagainst, a Writ petition was preferred by the Management in W.P.No.2050 of 1994, which was dismissed by the learned Single Judge on 18.8.2000. There against, an appeal being W.A. No. 871 of 2001 was preferred. A Division Bench of this court by judgment dated 6.11.2007, dismissed the appeal, observing as under :

“7. So far as backwages is concerned, the management had not taken any plea before the appellate authority or before learned single Judge that the respondent is not entitled for backwages, being in job in some other organisation during the intervening period. No such plea having been taken before the appellate authority or before the learned single Judge, or before this Court, we are not inclined to give any finding in this regard.”

3. It appears, in the meantime, that a petition under Section 33-C(2) of the Industrial Disputes Act, 1947 claiming computation of monetary benefits arising from the setting aside the order of termination for the period from 1990 to January, 1994, was filed on the file of the Principal Labour Court, Chennai, being Claim Petition No.190 of 1994. Similarly, the employee has also filed a claim petition in C.P.No.525 of 2001 seeking similar relief for the period from February, 1994 to August, 2001. Both claim petitions were dismissed by the Principal Labour Court by two separate orders dated 16.5.2006 observing as under :

“.....In the absence of specific direction, computation of money cannot be possible, since this court has to function as a executing court pursuant to the award or settlement. Hence, there is force in the argument of the counsel for the respondent that it is for the petitioner to establish the entitlement to claim backwages. The mere fact that the order of termination was set aside cannot be a ground to claim monetary benefits of backwages and other benefits of bonus, exgratia and other service benefits. Hence, the petitioner failed to establish the entitlement of benefits as claimed in the petition and the point is answered against the petitioner.”

4. Being aggrieved, the employee has come up with the instant writ petitions being W.P. Nos. 22818 and 22819 of 2008, questioning the validity and legality of the orders dated 16.5.2006 passed by the Principal Labour Court, Chennai in C.P. Nos. 190 of 1994 and 525 of 2001 respectively and the consequential direction to the employer to effect payment as per the claim petitions.

5. The learned Single Judge examined the case of the employee as well as the management and set aside both the orders and remitted back the matter to the learned Labour Court to commute the wages payable to the employee, holding that the employee has pre-existing right to invoke the provisions of Section 33-C(2) of the Industrial Disputes Act for grant of all benefits.

6. Feeling aggrieved, the Management has come up with these two writ appeals.

7. Mr. P. Anbarasan, learned counsel appearing for the appellant/management would submit that the grant of backwages is not automatic and as such, if there is no order to grant backwages, it amounts




































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