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1989 Supreme(Ori) 307

IN THE HIGH COURT OF ORISSA
D.P. Mohapatra, A. Pasayat, JJ.
HINDUSTAN AERONAUTICS EMPLOYEES` ASSOCIATION AND ANOTHER - APPELLANT
Versus
HINDUSTAN AERONAUTICS LIMITED AND ANOTHER - RESPONDENT
OJC Nos. 232 to 245 and 893 to 895 of 1989
Decided On : 22-12-1989

Advocates Appeared:
P. Palit, J. Patnaik and H.M. Dhal, for the Appellant; Y.S.N. Murty and K.T. Rao, for the Respondent

The simultaneous continuation of departmental proceedings and criminal investigation trial is not always impermissible. The decision to stay departmental proceedings pending the outcome of a criminal trial depends on the nature of the case and the potential prejudice to the employee's defense.

Headnote:

DEPARTMENTAL PROCEEDINGS - STAY - SIMULTANEOUS PROCEEDINGS - CRIMINAL TRIAL - WHEN PERMISSIBLE - STAY OF DEPARTMENTAL PROCEEDINGS PENDING CRIMINAL TRIAL - WHEN JUSTIFIED.

Fact of the Case:

The Petitioners, a Trade Union and an employee of Hindustan Aeronautics Limited (HAL), challenged the simultaneous continuation of departmental proceedings and criminal investigation trial against the employee. They argued that such parallel proceedings would cause irreparable prejudice to the employee's defense and impair their ability to disclose their defense in advance.

Finding of the Court:

The Court held that the simultaneous continuation of departmental proceedings and criminal investigation trial is not always impermissible. It recognized the employer's right to continue departmental proceedings notwithstanding the pendency of a proceeding before a Court of law.

Issues: 1. Whether departmental proceedings can be continued simultaneously with a criminal investigation trial? 2. Under what circumstances should departmental proceedings be stayed pending the completion of a criminal trial?

Ratio Decidendi: 1. The Court held that the decision to stay departmental proceedings pending the outcome of a criminal trial depends on the nature of the case and the potential prejudice to the employee's defense. 2. In cases involving grave allegations or complex facts and law, it is advisable to stay departmental proceedings to avoid prejudicing the employee's defense in the criminal case. 3. However, in cases where the nature of the case is simple, the employer may not be faulted for refusing to stay the departmental enquiry pending the Court's decision.

Final Decision: The Court directed that the departmental proceedings against the employee may continue, but no final orders shall be passed until the disposal of the criminal case by the learned Sub-divisional Judicial Magistrate. The Court also directed that the criminal case be disposed of expeditiously, not later than a specified date.

JUDGMENT :

A. Pasayat, J. - In all these writ applications, Petitioner No. 1 is a Trade Union espousing cause of employees of Hindustan Aeronautics Limited, Koraput Division functioning at Sunabeda in the district of Koraput (hereinafter referred to either as Hal' or employer') and Petitioner No. 2 is an employee. The Petitioners canvass the oft posed plea regarding, non-desirability and impropriety of simultaneously continuing departmental proceedings and criminal investigation trial. Since the points in dispute are identical, the writ applications were heard analogous and are disposed of by this judgment which shall govern all the cases, The factual averments are more or less undisputed except some amount of difference as to the subject-matter of adjudication in the departmental proceedings and criminal investigation trial.

2. The Petitioners claim that on false allegations of improper behaviour and misconduct of Petitioner No. 2 in each of the cases, F.I.R., was lodged and consequently investigation, by police authorities were set in motion. On the basis of a charge-sheet submitted, the matter is pending adjudication in G.R. Case No. 651 of 1988 in the Court of the learned Sub-divisional Judicial Magistrate. Koraput. On the self-same allegations relating to the same alleged incident, departmental proceedings have been initiated and the Petitioners have been required to show cause. According to the Petitioners, continuance of two parallel proceedings, one in the Court of law and another by way of disciplinary proceedings is unauthorised and would cause irreparable prejudice to the concerned employees. It is submitted that defence of the employees concerned will be greatly impaired and they may be required to disclose their defence in advance in departmental proceedings if the same are not stayed pending completion of the trial by the criminal Court. Strong reliance is placed on a decision of the Supreme Court in the case of Kusheshwar Dubey Vs. Bharat Coking Coal Ltd. and Others which according to the Petitioners highlights the desirability of keeping departmental proceedings frozen till disposal of the proceeding in the Court of law. On the other hand, the employer-HAL asserts that the Supreme Court never laid down that in all cases departmental proceedings are to be stayed notwithstanding the nature of allegation and the points involved for adjudication. On the other hand, it is submitted, the Court has recognised the rights of the employer to continue the departmental proceedings notwithstanding the pendency of a proceeding before a Court of law. It is also asserted that there is no basis for the employee concerned to claim that his defence shall be prejudiced as he has already submitted a reply in response to the show cause issued in the departmental proceeding. Further the subject-matters of dispute being different, the ratio of the decision in the case of Kusheshwar Dubey (supra) has no application. Reliance has been placed on the decision of various Courts in support of the contention that there, according to the Petitioners, after consideration of the aforesaid decision of the Supreme Court, it has been held that departmental proceedings can be continued.

3. On consideration of the rival contentions, the only question that emerges for adjudication is as to under what circumstances two proceedings can be continued simuluneously, and whether there ought to be a stay of the departmental proceeding until adjudication of other proceedings in the Court of law in all cases. In our view, if the case is of a grave nature or involves question of facts and law which are not simple, it would be advisable for the employer to await the decision of the trial Court so that the defence of the employee in the criminal case may not be prejudiced. Where, however, nature of the case is very simple, the employer cannot be faulted if it refused stay of departmental enquiry awaiting decision of the Court. Similar view was expressed by the Supr





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