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2014 Supreme(SC) 1297

SUPREME COURT OF INDIA
T.S. Thakur, Vikramajit Sen, JJ.
Stanzen Toyotetsu India P. Ltd. - Appellant
Versus
Girish V. – Respondents
Civil Appeal Nos. 763, 768 of 2014, Arising out of S.L.P. (C) Nos. 30371, 30376 of 2012
Decided On : 21-01-2014

Advocate Appeared:
For the Appellant :S.S. Ramdas, Sr. Adv., Shanta Kumar Mahale, Rajesh Mahale, Pradip Sawakar and Kanakraj, Advocates.
For the Respondent:E.C. Vidya Sagar, Kheyali Sarkar and Ananthram, Advocates.

Headnote:

Indian Penal Code,1860 - Sections 143, 147, 323, 324, 356, 427, 504, 506, 114 read with Section 149 - Industrial Employees (Standing Orders) Act, 1946 - Disciplinary proceedings - Pending conclusion of the criminal case instituted against the Respondents - Appellants further case is that although had not sustained any injury, he was sent to hospital in the ambulance - Appellant-company and that instead of resuming work after alleged incident - Respondents stopped production activity and started abusing their superiors, damaged property of company and even assaulted senior managerial personnel - Indiscipline created an atmosphere of fear and tension in factory and brought the production activity to a grinding halt - Senior managerial personnel injured in the incident were – Appellant to report for work for about 15 days on account of assault on them – Held, Court may for that purpose adjourn the case for no more than a fortnight every time an adjournment is necessary - Court also expect the accused in the criminal case to co-operate with the trial Court for an early completion of the proceedings – Court say so because experience has shown that trials often linger on for a long time on account of non-availability of defence lawyers to cross-examine the witnesses or on account of adjournments sought by them on the flimsiest of the grounds - All that needs to be avoided - Trial is not completed within the period of one year from the date of this order, despite the steps - Trial Court has been directed to take disciplinary proceedings initiated against - Respondents shall be resumed and concluded by Inquiry Officer concerned - Impugned orders shall in case stand vacated upon expiry of period of one year – Appeal is allow

Judgement Key Points

There is no legal bar to the conduct of disciplinary proceedings and a criminal trial simultaneously against an employee in respect of the same incident. (!) [1000702290007][1000702290009][1000702290010][1000702290012][1000702290015]

Disciplinary proceedings may be stayed pending conclusion of the criminal trial only if the criminal charges are grave, involve complicated questions of law and fact, and their continuance would prejudice the employee's defence in the criminal case; gravity of charges alone is insufficient. (!) (!) (!) (!) (!) [1000702290012][1000702290015][1000702290016]

Courts must balance the need for a fair criminal trial against the employer's and employee's interest in expeditious conclusion of disciplinary proceedings, which cannot be stayed indefinitely or unduly delayed. (!) (!) (!) (!) [1000702290012][1000702290014][1000702290015][1000702290017]

Where criminal trials are likely to be prolonged (e.g., due to large number of accused/witnesses, slow pace, or adjournments), trial courts must expedite proceedings (e.g., conclude within one year, fortnightly adjournments, accused cooperation required), failing which disciplinary proceedings must resume and conclude without further stay.[1000702290017][1000702290018]


JUDGMENT :

T.S. Thakur, J.

Leave granted. The short question that falls for determination in these appeals is whether the High Court so also the Courts below were right in holding that the disciplinary proceedings initiated by the Appellant-company against its employees (Respondents herein) ought to remain stayed pending conclusion of the criminal case instituted against the Respondents in respect of the very same incident.

2. The Appellant company is engaged in the manufacture of automobile parts in the name and style of M/s. Stanzen Toyotetsu India Pvt. Ltd. while the Respondents are workmen engaged by the Appellant in connection with the said business. It is not in dispute that the employees of the Appellant-company including the Respondents are governed by Standing Orders certified under Industrial Employees (Standing Orders) Act, 1946.

3. The Appellant's case is that on 19th March, 2011 at about 10.30 p.m. the Respondents with the help of other Trade Union functionaries stage managed an accident making it appear as if an employee by the name of Mr. Kusumadhara had slipped and fallen in the press area. The incident was, it is alleged, used as a ruse by the Respondents who rushed to the place of alleged fall only to create a ruckus. Appellant's further case is that although Mr. Kusumadhara had not sustained any injury, he was sent to the hospital in the ambulance of the Appellant-company and that instead of resuming the work after the alleged incident, the Respondents stopped the production activity and started abusing their superiors, damaged property of the company and even assaulted senior managerial personnel. These acts of indiscipline created an atmosphere of fear and tension in the factory and brought the production activity to a grinding halt. Senior managerial personnel injured in the incident were, according to the Appellant, unable to report for work for about 15 days on account of assault on them.

4. Taking note of the incident and the acts of indiscipline which amounted to misconduct under several provisions of the Standing Order, the competent authority placed the Respondents under suspension and issued charge-sheets to them. The explanation submitted by the Respondents having been found unsatisfactory, a disciplinary enquiry was initiated and Enquiry Officers appointed to enquire into the allegations against the Respondents. The Presenting Officers have examined one witness in each one of the enquiries.

5. The incident in question was it appears reported even to the police by one of the employees of the Appellant-company who was a witness to the same, leading to the registration of Crime No. 173/2011 in Ramanagara Rural Police Station for offences punishable under Sections 143, 147, 323, 324, 356, 427, 504, 506, 114 read with Section 149 Indian Penal Code A charge-sheet was filed pursuant to the said report and investigation is pending in which the Respondents are accused of committing the offences mentioned above.

6. While the disciplinary enquiry and the criminal case were both pending, the Respondents filed Original Suits No. 326-331 of 2011 in which they prayed for a permanent injunction against the Appellant and the Enquiry Officers restraining them from proceeding with the enquiry pending conclusion of the criminal case. Interlocutory Applications seeking temporary injunctions in each one of the suits against the on-going enquiry were also filed in the said suits. The applications though opposed by the Appellant-company were allowed by the Principal Civil Judge and JMFC Ramanagara by an order dated 13th October, 2011 staying the domestic enquiry pending against the Respondents till the disposal of criminal case in C.C. No. 1005 of 2011.

7. Misc. Appeals No. 56/2011 and 61/2011 filed by the Appellant against the said order before the Principal Senior Civil Judge and CJM Ramanagara having failed, the Appellant filed Writ Petitions No. 8487-8491 of 2012 (GM-Code of Civil Procedure) and W.P. No. 9381 of 2012 (GM-Co

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