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2023 Supreme(P&H) 1962

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
HARSH BUNGER, J.
The Karnal Central Cooperative Bank Limited – Petitioner
Versus
Presiding officer, Industrial Tribunal-Cum- Labour Court, Panipat & Ors. – Respondents
CWP-525, 591 of 2014 (O&M)
Decided On : 05-10-2023

Advocates Appeared:
Mr. C.R. Dahiya, Advocate; For the Petitioner
Mr. Naveen Daryal, Advocate for Respondents No.2 to 4.

The judgment establishes that an inquiry into dismissal must adhere to principles of natural justice, and failure to prove the basis of termination invalidates the outcome.

Headnote:(A) Constitution of India - Article 226 - Industrial Disputes Act, 1947 - Fairness in inquiries - The court reviewed the process of inquiry against a deceased workman and found it was neither fair nor proper, leading to quashing of termination - Legal heirs were entitled to full back wages and benefits - The Tribunal held lack of credible evidence to prove embezzlement charges against the workman. (Paras 20-21)

(B) Natural justice in domestic inquiries - The court emphasized the necessity of adherence to principles of natural justice and that prejudice in such inquiries warrants quashing. (Paras 20-21)

(C) Jurisdiction under Article 226 - The court reiterated that when a finding of fact is not supported by evidence, it constitutes an error of law within the ambit of high court’s jurisdiction. (Paras 24-25)

Facts of the case:
The petitioner sought to challenge two awards of the Industrial Tribunal regarding the dismissal of Rajbir Singh, wherein the Tribunal found that no fair inquiry was held. The workman had embezzled funds and was later dismissed, but the inquiry's legitimacy was questioned.

Findings of Court:
The court affirmed that the inquiry was void due to a lack of due process, and accordingly, the legal heirs were awarded back wages until the workman's death.

Issues: The main issues revolved around the fairness of the inquiry and the legal implications of not proving the termination was justified.

Ratio Decidendi: The court found that the inquiry was fundamentally flawed as it failed to allow for a proper defense and lacked necessary evidence.

Result: Both writ petitions dismissed.

Table of Content
1. inquiry process must ensure fairness and proper conduct. (Para 2 , 3)
2. fair procedure in employment termination. (Para 5 , 6 , 7 , 8 , 9 , 10 , 11)
3. establishment of fair inquiry process. (Para 14 , 15 , 20 , 22)
4. arguments on justification of termination. (Para 17 , 18 , 23)
5. findings must be supported by substantial evidence. (Para 21)
6. jurisdiction limits for writ of certiorari. (Para 24)

JUDGMENT

Harsh Bunger, J.

This order shall dispose of two writ petitions bearing CWP-525-2014 titled as The Karnal Central Cooperative Bank Limited, Karnal through its Chief Executive Officer v. Presiding Officer, Industrial Tribunal-cum-Labour Court, Panipat and others and CWP-591-2014 titled as The Karnal Central Cooperative Bank Limited, Karnal through its Chief Executive Officer v. Presiding Officer, Industrial Tribunal-cum-Labour Court, Panipat and others.

2. CWP-591-2014 titled as The Karnal Central Cooperative Bank Limited, Karnal through its Chief Execuitve Officer v. Presiding Officer, Industrial Tribunal-cum-Labour Court, Panipat and others, has been filed by petitioner-The Karnal Central Co-operative Bank Limited, Karnal (in short 'the Bank') seeking quashing of the impugned Award dated 12.10.2012 (Annexure P-6) passed by the learned Presiding Officer, Industrial Tribunal- cum-Labour Court, Panipat; holding that no fair and proper enquiry was conducted by the petitioner-Bank against the workman-Rajbir Singh (since deceased), who is now represented by his legal heirs (respondents No.2 to 4, herein).

3. Vide CWP-525-2014 titled as The Karnal Central Cooperative Bank Limited, Karnal through its Chief Executive Officer v. Presiding Officer, Industrial Tribunal-cum-Labour Court, Panipat and others, the petitioner-Bank seeks quashing of the final Award dated 27.11.2012 (Annexure P-6) passed by the learned Presiding Officer, Industrial Tribunal- cum-Labour Court, Panipat; whereby, it was held that termination of the services of the workman-Rajbir Singh (since deceased) was not justified and in order and since, he had died; accordingly, relief of re-instatement was not found admissible and the legal heirs of deceased-workman were held entitled to benefit of full back wages from the date of demand notice dated 03.09.2003, till the death of the said workman- Rajbir Singh. The legal heirs were further held entitled to all other benefits admissible to the deceased workman on the date of his superannuation.

4. For the sake of convenience, the facts are being extracted from CWP-525-2014 titled as The Karnal Central Cooperative Bank Limited, Karnal through its Chief Executive Officer v. Presiding Officer, Industrial Tribunal-cum-Labour Court, Panipat and others.

5. Briefly, the workman-Rajbir Singh (since deceased) was working as a Secretary with the Jalamana, Kurlan and Basdhara Cooperative Credit and Service Societies Limited. During his service, it was alleged that he had embezzled huge amount out of the funds of the said societies, for which, he was charge-sheeted under Rule 27 of the Common Cadre Rules, 1975.

A perusal of the paper-book would reveal that upon completion of the inquiry, the Board of Administrators of the Bank, in its meeting held on 15.12.1997, passed the following order :-

    "Considered and after going through the whole case of Sh. Rajbir Singh, Sec. U/S as well as hearing him in person it is decided that his three annual increments are stopped with cumulative effect. Further resolved that the suspension period from 25.9.95 to 5.12.95 is treated towards duty period for all intents and purposes but nothing shall be paid except subsistence allowance already paid to him. Employee is directed to furnish a landed tangible security one and half times of the embezzled amount. Further M.D. is authorized to make sure that all the amount including interest has been recovered from the employee."

6. It appears that thereafter, the Enquiry Officer was appointed and the enquiry proceedings were conducted on various d

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