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Delhi District Court

Carnatic Co. Ltd. vs . Venkatayya "(1963) 2 Llj on 24 February, 2010

                            # 1 #

IN THE COURT OF MS. RENU BHATNAGAR
  PRESIDING OFFICER LABOUR COURT­X
               KARKARDOOMA, DELHI.


                Ref. No. :F. 24 (3908)/91­Lab/ 6383­85 
                              Dated : 1992 ( not legible)
                                       I.D. No. :2145/95


                     Between


           The Management of
            S. P. Engg. Products, (India),
            575/1, Village Mundka,
            Delhi­ 41        
                        &
               Its workmen :
                 (i)S/Sh. Chander Sain,
                (ii)Sh. Vashisht,
                (iii)Sh. Ajit Singh
               (iv)Sh. Chandrama Singh
               (v)Sh. Ram Lakhan
               C/o   Delhi   General   Udyog   Karamchari  
               Sangh,
               T­ 78, Milan Market, Karampura,
               Shivaji Marg, New Delhi­15


          Date of Institution of the case : 18.09.1992
     Date on which reserved for Award :29.01.2010
                            # 2 #

        Date on which Award is passed : 24.02.2010


A W A R D



         The   workman   Sh.   Chander   Sain,   Sh.

Vashishth, Sh. Ajit Singh, Sh. Chandrama Singh,

Ram   Lakhan   raised   an   industrial   dispute

regarding the termination of their services by the

management   of   M/s   S.P.   Engg.   Products.     The

appropriate Govt. on being satisfied regarding the

existence of industrial dispute between the parties,

made   a   reference   for   adjudication.     The   said

reference is as under : 




          "Whether     the   services   of


          S/Sh.        Chander           Sain,
                                  # 3 #

           Vashisht,               Ajit            Singh,


           chanderma   Singh   and   Ram


           Lakhan                 have                 been


           terminated   illegally   and/   or


           unjustifiably                  by            the


           management   if   so   to   what


           relief   are   they   entitled   and


           what          directions                     are


           necessary in this respect?"


          Thereafter,   statement   of   claim   was   filed

by   the   workman.     Out   of   5   workmen   only   two

workmen Chandrama Singh, Vashishth have filed

statement of claim in the Court.  It is stated  in the

statement   of   claim   filed     by   these   two   workmen,
                            # 4 #

namely,   Chandrama   Singh   &   Vashisth   that   they

were   working   as   shaperman   and   helper   w.e.f

05.10.1987 and 12.04.1986 and on the salary of Rs.

1104/­  and  Rs.  854/­   per month  respectively; that

the management was not providing legal facilities

to   the   workmen   due   to   which   all   the   workmen

formed   Union   and   became  member   of   the  Union,

namely, Delhi General Udhyog Karamchari Sangh;

that workmen made a complaint through Union on

11.3.1991   demanding legal facilities due to which

the management got annoyed and terminated them

w.e.f   12.03.1991;     that   the   management   and   its

men   picked   up   a   quarrel   with   the   workmen   on

11.03.1991   of   which   the   workmen   made   a

complaint to the local police but of no avail; that
                             # 5 #

the   management   had   terminated   the   workmen

without   any   notice,   charge­   sheet   and   without

holding   the   enquiry   and   without   payment   of   any

retrenchment          compensation          etc;       that,

thereafter,the workmen had sent demand notice on

08.04.1991 to the management but of no avail; that

the   workmen   are     unemployed   since   the   date   of

their   termination,   hence,   they     have   claimed

reinstatement   along   with   back   wages   and

continuity of service.  

          Notice of the filing of statement of claim

was sent to the management who had appeared in

the Court and contested the claim of the workman

and filed written statement on its behalf.   In the

written statement filed by the management it has
                              # 6 #

taken the preliminary objections that the workmen

have not reported for their duties of their own w.e.f

22.04.91 or  thereafter,  without any intimation or

prior   sanction   of   leave   and   that   despite   repeated

advices sent to them they have failed to report for

duties; that the management reiterates its offer to

Chandrama Singh and Vashishth to report back to

duties if they want to, leaving the question of back

wages   to   be   decided   by   the   Court;   that   on

consideration   of   the   demand   notice   dated

08.04.1991,   the   management   has   taken   a

sympathic view and revoked the termination vide

letter   dated   15.04.1991   and   recalled   them   to

resume   the   duties   w.e.f   22.04.1991   but   both   of

them have failed to resume their duties.  On merits
                             # 7 #

it   is   stated   that   the   date   of   joining   of   Sh.

Chandrama Singh is 1.08.1988 and of Vashishth is

06.09.1988; that  their took place a scuffle between

the   some   of   employees   in   which   the   concerned

workmen   were   jailed   bringing   bad   name   to   the

management.     It   is   denied   that   the   management

was   not   providing   legal   facilities;   that   the

management was never informed by the workmen

about their joining any union.  It is denied that  the

management   got   irritated   or   terminated   the

workmen   or   has   implicated   the   workmen   in   any

criminal   case.       It   is   also   denied   that   the

management or any of its person has ever picked

up   quarrel   with   the   workmen   on   11.03.1991   as

alleged;   that in fact some employees had entered
                               # 8 #

into his scuffle in the premises of the establishment

of the management and the police had to intervene

and both the sides were placed behind the bars and

that   the   two   sides   were   placed   under   suspension

vide   letter   dated   12.03.1991   and,   thereafter,

finding   that   their   explanation     not   satisfactory,

they   were   removed   vide   letter   dated   03.04.1991,

thereafter, the workmen raised the demand notice

on   08.04.1991,   the   demand   was   sympathically

considered,   the   removal   order   was   revoked   and

they   were   advised   to   report   for   duties   w.e.f

22.04.1991     but   they   failed   to   do   so.     All   other

allegations are denied.     Hence, it is prayed that

the statement of claim be dismissed.

           In   rejoinder   to   the   written   statement   of
                              # 9 #

the   management   all   the   averments   of   the

statement   of   claim   are   reaffirmed   and   that   of

written statement are denied by the workman.

           On the pleadings of the parties, vide order

dt. 22.04.1998, the following issues were framed by

the then Presiding Officer:­

1.

As per terms of reference.

However, again due to inadvertence, the Predecessor Court framed fresh issues on 21.10.1998 which are as follows:­

1. Whether workmen abandoned the job w.e.f 22.04.1999?

2. as per the terms of reference?

No other issue arose or pressed and the case was adjourned for evidence on behalf of the # 10 # workman.

In support of his case, the workman Chandrama Singh has appeared as WW 1 and filed the affidavit and substantiated all the averments of the statement of claim in his affidavit Ex. WW1/A. He has tendered in evidence the document Ex. WW1/A to WW1/H Workman Vashishth has appeared as WW2 and filed the affidavit and substantiated all the averments of the statement of claim in his affidavit Ex. WW2/A. He has tendered in evidence the document Ex. WW2/1 to WW2/6. After examining both the workmen, the evidence of workmen was closed.

In support of their defence, the # 11 # management has examined MW 1 Sh. Sukhvinder Singh partner of the management who has tendered his evidence by way of affidavit Ex. MW1/A. Sh. Omprakash, Manager, has appeared as MW2, who has tendered his evidence by way of affidavit MW2/A and tendered in evidence the carbon copy of the letter dated 15.04.1991 issued by the management to the workman.

Sh. B. N. Trivedi has appeared as MW3 who has deposed that he was working as Account Assistant with M/s Ventura Brass since 1997 and that the workman Chandrama Singh was working with M/s Ventura Bras from 1/03/2001 to 1/01/2005 and had left the management after taking his full # 12 # and final settlement, that he again joined on 02.06.2008, worked till 15­17th July, 2008 and left without intimation. He has produced in evidence the extracts of the salary register Ex. MW3/1, copies of ESI and PF declaration and nomination form Ex. MW3/2.

Sh. Dharmender MW2/4 has appeared from EPF Department, Haryana who has produced Form No­9 containing PF settlement of the workman Chandrama Singh from M/s Ventura Bras and exhibit the said document as Ex. MW4/A. He has tendered in evidence copy of the contribution made by M/s Ventura Bras Ex. MW4/V and audit sheet Ex. MW4/C. After examining MW 4, no further # 13 # evidence was produced by the management despite taking several adjournments and as such vide orders dated 7.12.2009 management evidence was closed.

I have heard the arguments as advanced by the ARs for both the parties and have perused the file. Due to inadvertence the issues in this case are framed two times by predecessor Court but as the issue which was framed on 22.04.1998 has been included in the issues framed on 21.10.1998, I shall decide the issues as framed on 21.10.1998.

My findings on the issues as framed on 21.10.1998 are as under :­ # 14 # Issue No. 1 :

The onus to prove this issue is upon the management. As per the case of both workmen Vashishth and Chandrama Singh they were working since 1986­ 1987 with the management and due to demand of legal facilities the management had terminated them on 12.03.1991 after implicating them in a false and frivolous case on the ground of some quarrel in the management premises on 11.03.1991, that as per the case of the management, both these workmen along with other workmen of the establishment of the management had picked up a quarrel on 11.03.1991 due to which police had to intervene in the matter, both the # 15 # parties were arrested whereafter these two workmen along with other were placed under suspension vide letter dated 12.03.1991 and, thereafter, finding their explanation not satisfactory they were removed from service on 3.04.1991. However, later on the workmen raised a demand for reinstatement through their demand notice dated 08.04.1991, and their demands were sympathetically considered and vide letter 15.04.1991 management had revoked their termination and advised them to report for duties w.e.f from 22.04.1991, but they failed to resume their duties and had abandoned the job.

In the present case, the relationship between the parties is admitted. It is also not in # 16 # dispute that both these workmen Chandrama Singha and Vashishth were suspended by the management on 12.03.1991, and thereafter, terminated on 03.04.1991. Now, the question arises whether the management had later on revoked the termination order dated 03.04.1991 and directed the workmen to report for duties w.e.f 22.04.1991 vide their letter dated 15.04.1991. The said letter dated 15.04.1991 has not been produced by the management in original in the Court and only a carbon copy of the same is produced by MW2 in his evidence for the first time in his evidence. However, no postal/ UPC receipt of the said letter is placed on record by MW­2 nor any record of the receipt or dispatch of the said letter Ex. MW1/1 is # 17 # produced by the management. As per the statement of MW2, the said letter of 15.04.1991 whereby the termination order was revoked by the management, was sent through post to the workers concerned. However, both the workmen have denied receiving of any such letter. In the absence of production of any postal receipt or its receiving by the workmen, it is held that the management has failed to prove that they had in fact dispatched any such letter on 15.04.1991 as alleged by management. Further, there is cutting in the date of this letter which also creates suspicion with regard to the authenticity of this document and for which it was necessary for the management to produce the original in the Court. Accordingly, # 18 # management has failed to prove that they had sent any letter on 15.04.1991 thereby calling upon workmen to resume their duties w.e.f 22.04.1991, and as such the defence of the management that the workmen have themselves not reported for duties w.e.f 22.04.1991, after receiving the letter on 15.04.1991 whereby the earlier termination order was revoked by the management, is without any substance.

The law on abandonment is very clear. Abandonment of duties depends upon the intention of the workmen to be gathered form surrounding circumstances. It is held by the Hon'ble Delhi High Court in "2004 LLR 1094" as under:

"Abandonment of workman # 19 # from his employment depends upon his intention."

Similarly it is held in Buckingham & Carnatic Co. Ltd. Vs. Venkatayya "(1963) 2 LLJ 638" by the Hon'ble Supreme Court as under :

"Abandonment or relinquishment of service is always a question of intention, and, normally, such an intention cannot be attributed to an employee without adequate evidence in that behalf."

# 20 # In GT Lad Vs. Chemicals and Fibres of India "(1979) Lab IC 290" it is held by the Hon'ble Supreme Court as under :

"However, the "intention may be inferred from the acts and conduct of the party'. The question as to whether the job, in fact has been abandoned or not, is a question of fact which is to be determined in the light of the surrounding circumstances of each case. It was further held that a # 21 # temporary absence from duty cannot be treated as abandonment, but it must be a permanent break intended by the workman."

In Dr. (Mrs.) Daksha Sankhla Vs. Jai Narain Vyas University Jodhpur and others, "2001 LLR 1071" by the Hon'ble Supreme Court as under

:
"There is distinction between retrenchment and abandonment from service. The termination contemplates an # 22 # act on the part of the employer which puts an end to service to fall within the definition of the expression retrenchment and in case the workman does not report for duty, it would amount to abandonment of services by the employee of his free will and the employer would have done nothing, whatsoever, to put an end to his employment and, therefore, the case does not fall within the meaning of retrenchment."

# 23 # Hence, from the facts it should be reflected that the workmen had any intention to sever their relationship with the management permanently. In this case, admittedly, the workmen were removed from services w.e.f 03.04.1991. The said order of removal is placed on record by the workmen as Ex. WW1/E. Perusal of the said order reveals that the said order of removal is penal in nature. After this order of 3rd April, 1991 the workmen had sent the demand notice on 08.04.1991 that is immediately after their termination. The said demand notice was admittedly received by the management and they say that in response thereto they have called back the workmen again for duties. The said averment # 24 # of management is not proved on record by production of the letter of 15.04.1991 as discussed by me above. Hence, it is clear that despite the receiving of the demand notice dated 08.04.1991, the management had not taken back the workmen on duty. As admitted by MW­2 in his cross examination that the Labour Inspector had visited the management and directed the management to take back the workmen on duty. Hence, it is also clear from his statement that even during conciliation the management was directed to take back the workmen on duty.

It is argued by Ld. AR for the management that the workmen had not reported for duties of their own since even during the # 25 # proceedings of this case they were directed to report for duties but they failed to do so. So far as this argument of Ld. AR for the management goes, it is pertinent to mention that in this regard there are allegations and counter allegations from both the sides one alleging that they were not allowed to resume their duties and the other contradicting the same stating that the workmen had not joined the duties despite directions but as per the record, it is clear that the workmen had approached the Labour Department immediately after their termination and had sent a demand notice immediately after their removal and as such it cannot be inferred by any stretch of imagination that the workmen had any intention to abandon their services or to # 26 # permanently sever their employment.

Accordingly, from the above discussion it is held that the management has failed to prove that the workmen have abandoned their services, Hence, this issue is decided against the management and in favour of the workmen. Issue No. 2 :

As per the case of the workmen they were removed by the management illegally without conducting any domestic enquiry and without issuing any charge­sheet etc. The defence of the management that the workmen have abandoned their duties has already been disbelieved by me in my findings on issue no­1. It is admitted case of # 27 # both the parties that no domestic enquiry was conducted by the management before issuing the said removal order of 3rd April, 1991. No charge­ sheet was given to the workmen. The said fact is admitted by MW1 in his cross examination. Perusal of the order of removal Ex. WW1/E shows that it was a penal discharge of the workmen for which it was necessary for the management to conduct an enquiry and without conducting the enquiry the said order is bad in law. I am supported in my view by iota of judgment on this point. Reference can be had to the case titled as MCD Vs. Praveen Kumar Jain and Others reported as 1998 SCC (L&S) 1222.
Accordingly, from above discussion, it is # 28 # proved that the management has illegally terminated the workmen and they are entitled to be reinstated.
On the point of back wages, the management has produced two witnesses MW3, MW4 to prove again full employment of one of the workman Sh. Chandrama Singh. MW3 is an official from Ventura Bras who had deposed that the workman Chandrama Singh who was present in the Court, was working in M/s Ventura Bras from 1st March, 2001 to 1st September, 2005 and, thereafter, from 2nd June, 2008 till 15­17 July , 2008 i.e. for about one and half months. However, this witness has produced the extracts from salary register. The management has also produced an # 29 # official from EPF Department Sh. Dharmender as MW4 who has produced the PF settlement record of Chandrama Singh and has stated that Sh. Chandrama Singh has worked with M/s Ventura Brass from 1st March, 2001 to 1st September, 2005 as per their record.
Though the salary record as produced by MW3 was never put to workman Chandrama Singh to admit or deny his signatures on the said document, however, during the cross examination of both these witnesses no suggestion is put to the witnesses that these documents are not related to the workman Chandrama Singh nor their authenticity was disputed by the workman. Accordingly, so far as the back wages are # 30 # concerned, in my considered opinion workman Chandrama Singh is not entitled for the back wages for the period from 1.03.2001 to 1st September, 2005 and from 2nd June, 2008 till 17th July, 2008. For rest of the period, the workman is entitled to 50 per cent back wages, seeing the facts and circumstances of the pendency of the case and also taking into consideration that the workman had in fact not served the management during this period. Accordingly, workman Chandrama Singh is granted reinstatement with 50 per cent back wages except for the period from 01.03.08 to 01.09.2005 and 2.06.08 to 17.07.08.

So far as other workman Vashishth is concerned, in his cross examination has deposed # 31 # that he is working with M/s Nirman Overseas as daily wager for the last two years. This statement was made on 18.05.2001, hence, it is clear that since two years prior to 18.05.2001 the workman Vashishth was working with M/s Nirmaan Overseas, hence, in view of this statement of the workman, in my considered opinion, instead of reinstatement, the ends of justice would be met if workman Vashishth is granted compensation Accordingly, in view of the above discussion workman Vashishth is granted compensation of Rs. 75,000/­.

# 32 # Reference is answered accordingly and the Award is passed. The Ahlmad is directed to send the Six copies of this Award to the appropriate Govt.

The file be consigned to record room. Announced in open Court on 24.02.2010.

(Renu Bhatnagar) Presiding Officer Labour Court­X Karkardooma Courts, Delhi