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2022 Supreme(Mad) 3942

IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.M. Subramaniam, J.
The Management, Ponni Co-operative Supermarket - Petitioner
Versus
The Authority under Tamil Nadu Shop and Establishments Act 1947, (Deputy Commissioner of Labour) - Respondents
W.P.No.14200 of 2016 and W.M.P.No.12415 of 2016
Decided On : 17-10-2022

Advocates:
Advocate Appeared:
For the Petitioner: Mr. M.R. Raghavan
For the Respondent: Mr. S. John J. Raja Singh, Additional Government Pleader

The main legal point established is the requirement for participation in disciplinary proceedings and the need for fresh evidence before setting aside a punishment.

Headnote:

Certiorari - Employment Dispute - Tamilnadu Shop and Establishments Act 1947 - Section 41 - Section 2(A) of the Industrial Disputes Act - The court discussed the provisions of the Tamilnadu Shop and Establishments Act 1947, the Industrial Disputes Act, and the principles of natural justice in the context of an employment dispute. The court emphasized the importance of participation in the disciplinary proceedings and the requirement for fresh evidence before setting aside a punishment.

Fact of the Case:

The petitioner, a cooperative society, dismissed an employee for stock deficit and misappropriation. The employee challenged the dismissal under the Industrial Disputes Act and the Tamil Nadu Shops and Establishments Act. The first respondent set aside the dismissal without considering the management's evidence.

Finding of the Court:

The court found that the first respondent erred in setting aside the dismissal without the employee's participation in the disciplinary proceedings and without fresh evidence. The court held that the first respondent's decision was infirm and quashed the order.

Issues: The issues involved the validity of the dismissal under the Industrial Disputes Act and the Tamil Nadu Shops and Establishments Act, and the first respondent's decision to set aside the dismissal without considering the management's evidence.

Ratio Decidendi: The court emphasized the importance of participation in disciplinary proceedings and the requirement for fresh evidence before setting aside a punishment. The court held that procedural lapses should lead to a de novo enquiry rather than setting aside the punishment outright.

Final Decision: The court quashed the first respondent's order and allowed the writ petition.

ORDER :

Prayer : Writ Petition filed Under Article 226 of the Constitution of India, to issue a writ of Certiorari, to call for the records in Ka.Ni.Sa.06/2012 on the file of the Authority under Tamilnadu Shop and Establishments Act 1947 (Deputy Commissioner of Labour) Salem-636 001, the 1st respondent herein, to quash the order dated 30.11.2015 (received by the petitioner on 2.2.2016) passed therein.

The order passed by the Authority under Tamil Nadu Shop and Established Act, 1947 in proceeding dated 30.11.2015 is under challenge in the present writ petition.

2. The petitioner is the Management, Ponni Cooperative Supermarket, Salem District Consumer Co-operative Wholesale Stores Limited. The petitioner states that it is a Co-operative Society, registered under the provisions of the Tamil Nadu Co-operative Societies Act. The service conditions of the employees are governed under the special bylaws approved by the Competent Authorities under the provisions of the Cooperative Societies Act. The second respondent was employed as an Assistant Salesman in the Fair Price Shop. The second respondent Workman was responsible for the maintenance of stock of essential and non-essential commodities. During the course of employment, the second respondent committed a stock deficit in the Tamilarasu Party Shop as detailed below :

“Non controlled items

Shortage noted on 26.08.2001

Rs.11,391.35

Shortage noted on 25.11.2001

Rs. 17,059.50

Shortage noted on 14.12.2001

Rs. 1,581.00

Total

Rs. 30,031.85

Shortage of essential commodities

Shortage noted on 28.10.2001

Rs. 129.50

Shortage noted on 25.11.2001

Rs. .50

Total

Rs. 130.00

Other Items

Shortage noted on 14.12.2001

Rs. 5,820.00

The total amount of shortage thus amounted to Rs.35,981.85

    In so far as Mariamman Koil Fair price shop was concerned, the deficit recorded were as follows :

Essential commodities

Shortage noted on 04.12.2001

Rs. 1,404.00

Non controlled items

Shortage noted on 04.12.2001

Rs. 149.25

Other items

Shortage noted on 04.12.2001

Rs. 1,071.00

Total

Rs. 2,624,25

    The total shortage amounted to Rs.38,606.10 in both the shops. The said amount was misappropriated by the 2nd respondent.”

3. A charge sheet dated 04.02.2002 was issued to the second respondent calling upon to explain as to why the disciplinary action should not be proceeded against him. However, the second respondent did not send any reply. He has not submitted any explanation with reference to the allegations set out in the charge sheet. Thus, the Authorities appointed an Enquiry Officer, who in turn conducted the enquiry by affording the opportunity to the charged official. The Enquiry Officer sent various communications on 30.03.2002, 06.04.2002 and 20.07.2002 to the second respondent. In spite of the communications, the second respondent Workman has not responded to the enquiry proceedings. Thus, the Enquiry Officer proceeded with the ex-parte enquiry and submitted his findings on 30.08.2002.

4. The Enquiry Officer found that the charges are held proved against the second respondent Workman. Further, it is held that the charges of stock deficit led to misappropriation. Accordingly, the Disciplinary Authority imposed the penalty of dismissal from service on the second respondent on 20.03.2003.

5. The second respondent invoked Section 2(A) of the Industrial Disputes Act, challenging the order of dismissal from service. The petitioner Management participated in the conciliation proceedings and contended that the petitioner lost confidence in the second respondent Workman due to his act of causing stock deficit and misappropriation. The conciliation proceedings ended and a failure report was filed to the Government, and thereafter, the matter was not pursued by the Conciliation Officer.

6. Subsequently, the second respo

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