SUPREME COURT OF INDIA
20th September 1957
BHAGWATI, S.K. DAS AND GAJENDRAGADKAR, JJ.
Martin Burn Ltd., Appellants
Versus
R. N. Banerjee, Respondent.
Civil Appeal No. 92 of 1957.
Advocates appeared
Mr. B. Sen, Senior Advocate (M/s. S. N. Mukherjee and B. N. Ghosh, Advocates, with him), for Appellants; M/s. D. L. Sen Gupta and Dipak Chaudhury, for Respondent.
INDUSTRIAL DISPUTES - Permission to discharge workman - Prima facie case - Standard of proof - Labour Appellate Tribunal's jurisdiction to review its own order - Industrial Disputes (Appellate Tribunal) Act, 1950 (48 of 1950), Ss. 9, 22 - Code of Civil Procedure, 1908 (5 of 1908), O. 41, R. 21.
Fact of the Case:
The appellant, a company, sought permission from the Labour Appellate Tribunal under S. 22 of the Industrial Disputes (Appellate Tribunal) Act, 1950 to discharge the respondent, a workman, on the ground of his negligence, disobedience, and insolence. The Tribunal granted permission ex parte, but later set aside the order and restored the application to its file on the respondent's application for review. The Tribunal then heard evidence and dismissed the application, holding that the appellant had failed to make out a prima facie case for terminating the respondent's service.
Finding of the Court:
The Supreme Court held that the Labour Appellate Tribunal had jurisdiction to review its own order under O. 41, R. 21 of the Code of Civil Procedure, 1908, as it had the same powers as a civil court when hearing an appeal. The Court also held that the Tribunal had correctly applied the standard of proof in determining whether a prima facie case had been made out, and that the evidence led by the appellant was insufficient to establish such a case.
Issues: 1. Whether the Labour Appellate Tribunal had jurisdiction to review its own order granting permission to the appellant to discharge the respondent? 2. Whether the Tribunal had correctly applied the standard of proof in determining whether a prima facie case had been made out? 3. Whether the evidence led by the appellant was sufficient to establish a prima facie case for terminating the respondent's service?
Ratio Decidendi: 1. The Labour Appellate Tribunal has the same powers as a civil court when hearing an appeal, including the power to review its own orders under O. 41, R. 21 of the Code of Civil Procedure, 1908. 2. The standard of proof required to establish a prima facie case is not proof beyond a reasonable doubt, but rather a case which can be said to be established if the evidence led in support of the same were believed. 3. The evidence led by the appellant was insufficient to establish a prima facie case for terminating the respondent's service, as it did not contain the contents of a crucial report on the respondent's work performance.
Final Decision: The Supreme Court dismissed the appeal, holding that the Labour Appellate Tribunal's decision refusing permission to the appellant to discharge the respondent was correct.
Judgment
BHAGWATI, J. : This appeal with special leave against the decision of the Labour Appellate Tribunal of India, Calcutta, arises out of an application made by the appellant under S. 22 of the Industrial Disputes (Appellate Tribunal) Act, 1950 (hereinafter referred to as "the Act") for permission to discharge the respondent.
2. The respondent had been appointed as a pay-clerk in the appellant s cash department on 30-4-1945, and had been confirmed in service with effect from 1-8-1945. Since the beginning of 1949, the Respondent was found to have become negligent and careless in his work and he was also disobedient and slow in the performance of the duties that were allotted to him. Repeated verbal and written warnings were given to him but they had no effect whatever. Consequently the Chief Cashier by his letter dated 24-10-1949, addressed to the Manager of the appellant, complained that he was very negligent and careless in his work, and habitually showed sulkiness, that he was also disobedient, and shirked the duties that were allotted to him and that recently, he was careless enough to keep the Company s money in an open drawer of a safe, and go home, without locking the same. The Management thereupon asked for his written explanation which he submitted on 28-10-1949, stating that if there was anything wrong on his part that was due to his ill health, hard work and mental anxiety. He, therefore, asked to be excused and stated that he would take much more care in future about his work. On 17-11-1949, the Chief Cashier again complained against the respondent stating that he had not only registered no improvement but was grossly negligent in his duties, in spite of repeated warnings, and was in the habit of absenting himself on flimsy grounds, and always tried to avoid duties that were entrusted to him and was very insolent in his behaviour and conduct. A charge-sheet was submitted to him on 18-11-1949, and he was suspended till the final disposal of the enquiry. On November 19, 1949, the respondent wrote a letter to the Managing Director of the appellant pleading not guilty to the charges framed against him and asking for an interview so that he may have a chance to represent his grievances personally. The respondent was granted an interview with the Manager of the appellant who investigated the case of the respondent and found him guilty of the charges framed against him. The respondent had admitted having been rude to his superior officer in a fit of temper but appeared to be repentant of his conduct and had tendered an apology to the Chief Cashier. He also submitted on 29-11-1949, a letter asking to be excused. Under the circumstances, the manager of the appellant recommended in his report dated 29-11-1949, that the respondent be given one more opportunity to prove himself of good behaviour but having regard to the request made by the respondent in that behalf suggested that he be transferred to the Mechanical Engineering Department. The Manager also stated at the end of the said report that he had warned the respondent that if he got any further adverse report about his work or conduct, his services would be terminated forthwith. Following upon that report a letter was addressed by the appellant to the respondent on the same day intimating that the appellant had decided to give him one more chance of working in the organization on the distinct understanding that should there be any further adverse report about his work or conduct his services would be terminated forthwith . He was directed on that understanding to report to Mr. Hooper of the M. E. Department, where he was being transferred with effect from the next day.
3. In spite of these chances being given to him the respondent did not improve and he was again found seriously neglecting his work. There were also complaints from the typists to the effect that the respondent s chatter interfered with their work. Mr. Hooper after giving him verbal warnings on several o
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