IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.M. SUBRAMANIAM, J.
P. Rajendran - Appellant
Versus
Tami Nadu State Transport Corporation Represented by its General Manager, Villupuram & Another - Respondent
W.P. No. 2335 of 2015 & M.P. No. 1 of 2015
Decided On : 22-07-2022
Recovery of Financial Loss - Service Conditions - 12(3) Settlement - Industrial Disputes Act - [LOSS OF TICKETS, FINANCIAL RECOVERY, NEGLIGENCE, DERELICTION OF DUTY] - The court discussed the relevance of the 12(3) Settlement and the Industrial Disputes Act in the recovery of financial loss caused to the Transport Corporation due to the loss of tickets. It emphasized the need for adjudication of disputed issues and facts by the Labour Court before approaching the High Court under Article 226 of the Constitution of India. The court held that the workman should exhaust the remedy provided under the Industrial Disputes Act before approaching the High Court directly.
Fact of the Case:
The petitioner, a conductor in the Transport Corporation, lost his bag containing tickets, leading to a financial loss to the corporation. The corporation issued a recovery order, which the petitioner challenged in the writ petition.
Finding of the Court:
The court found that the petitioner should approach the Labour Court for adjudication of the disputed issues and facts before seeking relief from the High Court. It held that the High Court cannot form an opinion on the responsibility for the financial loss without complete adjudication of facts.
Issues: The issues revolved around the loss of tickets, financial recovery, negligence, and dereliction of duty, and the applicability of the 12(3) Settlement and the Industrial Disputes Act in the recovery of financial loss.
Ratio Decidendi: The court emphasized the need for workmen to exhaust the remedy provided under the Industrial Disputes Act before approaching the High Court directly under Article 226 of the Constitution of India. It held that disputed facts cannot be adjudicated in a writ proceeding and should be resolved by the Labour Court.
Final Decision: The writ petition was disposed of, and the court held that the petitioner should approach the Labour Court for adjudication of the disputed issues and facts before seeking relief from the High Court. No costs were awarded, and the connected Miscellaneous Petition was closed.
JUDGMENT
(Prayer: Writ Petition filed under Article 226 of the Constitution of India for issuance of a Writ of Certiorari, to call for the records in K.Ku.No.27590/VTHA/TANA (V)/2014 dated 30.10.2014, on the file of the second respondent and quash the same as illegal, incompetent, unconstitutional and without jurisdiction. )
1. The order of recovery issued to make-up the financial loss to the Transport Corporation in proceedings dated 30.10.2014, is under challenge in the present writ petition.
2. The writ petitioner was appointed as Conductor in the respondents / Transport Corporation. He was allotted work in a Bus No.281/S, Vehicle No. TN32 N 3695 of Tamil Nadu State Transport Corporation (TNSTC). The bus halted at Kallakurchi Bus depot. The petitioner left his bag in the bus and went to time keepers' room to record the arrival of the Bus and also to attend to the call of nature. When he returned back to the bus, he found that the bag was missing and thereafter, he registered a complaint in CSR No.311 of 2014. The case was investigated and a Non-traceable Certificate was issued by the Police.
3. Regarding loss of the ticket, the Transport Corporation assessed the value and accordingly, issued the recovery order to recover the financial loss caused to the Transport Corporation. The said order is under challenge in the present writ petition.
4. The learned counsel for the petitioner mainly contended that as per the 12(3) Settlement, in the event of loss of ticket, the same cannot be recovered from the employee. However, as per Clause 72, where, the Corporation bus is involved in an accident and arising out of the accident, the conductor has been put to such condition that he could not save the unsold tickets, the present practice of collecting of value of the lost books shall be avoided. It is brought to the notice of this Court that Clause 72 incorporated in the 12(3) Settlement of the year 2005 and even as per the Clause, the accident alone is covered for exemption of recovery.
5. The learned counsel for the respondents / Transport Corporation made a submission that as per Clause 12(3) Settlement, which was in force during the relevant point of time, when the petitioner had lost the ticket books, the negligence on the part of the employees was not covered and those employees, who committed an act of negligence, lapses or dereliction of duty are liable to pay the financial loss caused to the Transport Corporation. At the outset, an act of bar including accident or natural calamities or otherwise are exempted from recovery and in respect of negligence, lapses or dereliction of duty, the financial loss is to be recovered from the employee concerned.
6. The said Clause incorporated in the 12(3) Settlement. These Clauses in various 12(3) settlements entered into between the Management and the employees, periodically has got certain relevance. The Management always agreed to exonerate the employees, only, if the tickets are lost during the accident or on certain circumstances, beyond the control of the employees. However, if there is a lapse, negligence or dereliction of duty is identified, then the financial loss is to be recovered. The said agreement seems to be sensible and further, protects the interest of the employees also.
7. In the present case, the petitioner says that he had lost the bag in the depot and he has registered a complaint and a Non-traceable Certificate was issued. Admittedly, he kept the bag inside the bus, which was in the depot and therefore, the authorities formed an opinion that the theft or loss occurred on account of the negligence and lapse on the part of the petitioner, who was on duty during the relevant point of time.
8. Loss of public property or financial loss, if any caused to the 'State', must be recovered from the officials, who all are responsible and accountable. If there is a financial loss to the Transport Corporation on account of negligence, lapses or dereliction of duty, then such employees are
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