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[Cites 12, Cited by 0]

Gujarat High Court

Divisional Controller vs Labour Court on 22 March, 2018

Author: K.M.Thaker

Bench: K.M.Thaker

         C/SCA/2339/2015                                        JUDGMENT



            IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

              SPECIAL CIVIL APPLICATION NO. 2339 of 2015

FOR APPROVAL AND SIGNATURE:

HONOURABLE MR.JUSTICE K.M.THAKER                                      Sd/-

==========================================================

1     Whether Reporters of Local Papers may be allowed to             YES
      see the judgment ?

2     To be referred to the Reporter or not ?                         YES

3     Whether their Lordships wish to see the fair copy of the         NO
      judgment ?

4     Whether this case involves a substantial question of law         NO
      as to the interpretation of the Constitution of India or any
      order made thereunder ?

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                           DIVISIONAL CONTROLLER
                                    Versus
                                LABOUR COURT
==========================================================
Appearance:
MR GM JOSHI(370) for the PETITIONER(s) No. 1
MR PARITOSH CALLA(2972) for the RESPONDENT(s) No. 1
MS HARSHAL N PANDYA(3141) for the RESPONDENT(s) No. 2
==========================================================

    CORAM: HONOURABLE MR.JUSTICE K.M.THAKER

                               Date : 22/03/2018

                               ORAL JUDGMENT

1. Learned advocates for the petitioner and the  respondent are not present.

2. The petition is listed in the Cause List for  1 C/SCA/2339/2015 JUDGMENT Final   Hearing,   which   is   special   list   (for  Thursday)   the   matters   are   listed   specially   for  Final   Hearing.   According   to   the   note   /  instructions in the Roster, special instructions  are also issued in respect of the matters listed  for   final   hearing   in   special   cause   list   on  Thursday.   Therefore,   this   Court   is   not   inclined  to adjourn the hearing.  

3. In this petition, the petitioner has prayed,  inter alia, that: 

"7(A) This   Hon'ble  Court   be  pleased   to  issue  a  writ  of  certiorari or any other appropriate writ, order or  direction   in   the   form   of   certiorari   or   any   other  appropriate   writ,   order   or   direction   calling   for  the   records   and   proceedings   of   Reference   (LCS)  No.13   of   2010   and   after   perusing   the   same   be  pleased   to   quash   and   set   aside   the   award   of   the  tribunal dated 30/6/2014."

4. So   far   as   the   factual   background   is  concerned,   it   has   emerged   from   the   record   that  the   respondent   herein   raised   industrial   dispute  against   the   order   of   penalty   dated   20.2.2002.  Appropriate   government   referred   the   dispute   for  adjudication   to   the   learned   Labour   Court   at  Surat.    The learned  Labour  Court  registered  the  2 C/SCA/2339/2015 JUDGMENT reference as Reference (LCS) No.13 of 2010.  4.1 In   his   statement   of   claim,   the   respondent  (claimant / workman) alleged that he worked with  the   corporation   as   Conductor   since   1979.   The  workman   further   alleged   that   with   concocted  allegation, the corporation served a charge­sheet  dated   5.8.2001   and   in   pursuance   of   the   said  charge­sheet,  the  corporation  conducted  domestic  enquiry.   The   claimant   further   alleged   that   the  Enquiry   Officer   did   not   grant   sufficient  opportunity   of   hearing   and   defence   and  arbitrarily   closed   the   proceedings   by   depriving  him   from   the   opportunity   to   lead   evidence.   He  further   alleged   that   without   support   of   any  evidence,   the   Enquiry   Officer   held   that   the  allegations are proved and on the basis of such  incorrect   and   unjust   conclusion   by   the   Enquiry  Officer,   the   Disciplinary   Authority   arbitrarily  terminated   his   service   vide   order   dated  22.2.2002.   With   the   allegation   that   though   the  charge of misconduct is not proved, the employer  3 C/SCA/2339/2015 JUDGMENT illegally   terminated   his   service,   the   claimant  demanded that he should be reinstated in service  with backwages and other benefits.  

4.2 The   opponent   corporation   opposed   the  reference and the demand by the claimant.  In its  reply, the opponent corporation claimed that the  claimant   was   assigned   duty   on   5.8.2001   on   Bus  No.1805 which was en­route to Panchol from Vyara  and that the said bus was checked by the Checking  Squad. The Checking Squad found that the claimant  committed irregularity in issuing the tickets to  four   passengers   and   also   committed   irregularity  in preparing way bill.   The Checking Squad also  noticed that the claimant had not issued tickets  to the  passengers  according  to serial  number   of  the tickets in the block but had randomly issued  tickets.   According   to   the   corporation,   the  conduct of the claimant and the method and manner  in which he issued tickets resulted into loss of  fare   to   the   corporation   and   also   resulted   in  misappropriation of the fare. The Checking Squad  4 C/SCA/2339/2015 JUDGMENT reported   the   said   misconduct   ot   he   corporation.  Thereupon,   the   corporation   issued   charge­sheet  and conducted domestic enquiry in accordance with  the   applicable   Rules.     Upon   conclusion   of   the  domestic   enquiry,   the   Enquiry   Officer   submitted  the report with the findings and conclusion that  the   charge   and   allegations   against   the   workman  are proved.     The corporation   further  claimed   in  the reply that in view of the proved misconduct,  the competent authority considered appropriate to  terminate   the   service   of   the   claimant   and  therefore,   the   authority   passed   order   dated  22.2.2002 and terminated service of the claimant.  According   to   the   corporation,   there   is   no  illegality or error or arbitrariness in the order  The   corporation   also   claimed   that   the   reference  should be rejected. 

4.3 After   the   parties   completed   pleadings   and  closed   respective   evidence,   the   learned   Labour  Court heard rival submissions from the contesting  parties.  Upon conclusion of the proceedings, the  5 C/SCA/2339/2015 JUDGMENT learned   Labour   Court   passed   impugned   award  whereby   the   learned   Labour   Court   set   aside   the  penalty   order   passed   by   the   Disciplinary  Authority   and   directed   the   corporation   to  reinstate   the   claimant   with   continuity   of  service, however, without backwages.  4.4 Feeling  aggrieved  by  the  said  direction  and  the award dated 30.6.2014, the corporation filed  present petition.  

5. This  Court   admitted  the  petition  vide  order  dated 10.2.2015 and stayed the implementation and  operation of the impugned award.  

6. At   this   stage,   Mr.G.M.   Joshi,   learned  advocate   for   the   petitioner   and   Ms.Niyati  Vaishnav, learned advocate for Ms.Harshal Pandya,  learned   advocate   for   the   respondent   have  appeared.

7. Mr.Joshi, learned advocate submitted that the  learned   Labour   Court   exercised   jurisdiction  arbitrarily and with material irregularity.   The  6 C/SCA/2339/2015 JUDGMENT learned  Labour   Court  has not  taken  into account  the   decision   by   Hon'ble   Apex   Court   in   case   of  State of Haryana vs. Rattan Singh [(1977) 2 SCC   491] and the decision in case of U.P. State Road   Transport   Corporation   vs.   Suresh   Chand   Sharma  [(2010)   6   SCC   555]  and   only   on   the   ground   that  the   passengers   were   not   examined,   the   learned  Labour   Court   set   aside   the   order   of   penalty  passed   by   the   competent   authority.   According   to  the petitioner corporation, the premise on which  the   learned   Labour   Court   quashed   the   penalty  order  passed  by corporation,  is contrary  to the  decisions   by   Hon'ble   Apex   Court   and   the   legal  position   explained   by   Hon'ble   Apex   Court   and  that,   therefore,   the   award   deserves   to   be   set  aside. 

7.1 Ms.Niyati Vaishnav, learned advocate for the  respondent / claimant submitted that the learned  Labour Court has not committed any error and the  award is just and proper. She submitted that the  corporation   imposed   penalty   of   termination   from  7 C/SCA/2339/2015 JUDGMENT service   and   without   examining   the   passengers  reached  to  the conclusion  that  the  claimant  had  not   issued   tickets   and   to   certain   other  passengers   the   corporation   the   claimant   issued  tickets randomly and did not issue tickets as per  the serial number in the block of tickets issued  to   him.     Learned   advocate   for   the   respondent  workman   also   submitted   that   only   on   the   ground  that the excess amount was found in the hands of  the   claimant,   the   corporation   jumped   to   the  conclusion that the claimant had misappropriated  the   amounts.     Since   there   was   no   evidence   to  support such conclusion, the learned Labour Court  held that the conclusions recorded by the Enquiry  Officer   are   erroneous.     According   to   learned  advocate   for   the   claimant,   the   learned   Labour  Court   has   not   committed   any   error   in   recording  the   finding   or   in   the   final   decision.     Learned  advocate for the respondent would submit that the  petition deserves to be dismissed. 

8. I have heard rival submissions and considered  8 C/SCA/2339/2015 JUDGMENT the material available on record. 

9. At the outset, it is relevant and appropriate  to take into account the observations by Hon'ble  Apex Court in case of State of Haryana vs. Rattan   Singh   (AIR   1977   SC   1512),   wherein   Hon'ble   Apex  Court observed that: 

"4.   It   is   well   settled   that   in   a   domestic   enquiry   the  strict   and   sophisticated   rules   of   evidence   under   the  Indian   Evidence   Act   may   not   apply.   All   materials   which  are   logically   probative   for   a   prudent   mind   are  permissible.   There   is   no   allergy   to   hearsay   evidence  provided it has reasonable nexus and credibility. It is  true   that   departmental   authorities   and   administrative  tribunals must be careful in evaluating such material and  should not glibly swallow what is strictly speaking not  relevant   under   the   Indian   Evidence   Act.   For   this  proposition   it   is   not   necessary   to   cite   decisions   nor  text books, although we have been taken through case law  and   other   authorities   by   counsel   on   both   sides.   The  essence of a judicial approach is objectivity, exclusion  of extraneous materials or considerations and observance  of rules of natural justice. Of course, fairplay is the  basis   and   if   perversity   or   arbitrariness,   bias   or  surrender   or   independence   of   judgment   vitiate   the  conclusions   reached,   such   finding,   even   though   of   a  domestic   tribunals   cannot   be   held   good.   However,   the  courts below misdirected themselves, perhaps in insisting  that passengers who had come in and gone out should be  chased   and   brought   before   the   tribunal   before   a   valid  finding could be recorded. The 'residuum' rule to which  counsel for the respondent referred, based upon certain  passages from American Jurisprudence does not go to that  extent nor does the passage from Halbsbury insist on such  rigid   requirement.   The   simple   point   is,   was   there   some  evidence or was there no evidence ­ not in the sense of  the  technical   rules   governing   regular   court  proceedings  but in a fair commonsense way as men of understanding and  worldly   wisdom   will   accept.   Viewed   in   this   way,  sufficiency   of   evidence   in   proof   of   the   finding   by   a  domestic   tribunal   is   beyond   scrutiny.   Absence   of   any  evidence in support of a finding is certainly available  for the court to look into because it amounts to an error  of   law   apparent   on   the   record.   We   find,   in   this   case,  that the evidence of Chamenlal, Inspector of the flying  squad, is some evidence which has relevance to the charge  levelled against the respondent. Therefore, we are unable  to hold that the order in invalid on that ground.
9
C/SCA/2339/2015 JUDGMENT
5. Reliance  was placed,  as earlier   stated,  on the  non­ compliance   with   the   departmental   instruction   that  statements   of   passengers   should   be   recorded   by  inspectors. These are instructions of prudence, not rules  that bind or vitiate in the violation. In this case, the  Inspector tried to get the statements but the passengers  declined,   the   psychology   of   the   latter   in   such  circumstances   being  understandable,  although  may  not   be  approved. We cannot hold that merely because statements  of passengers were not recorded the order that followed  was invalid. Likewise, the re­evaluation of the evidence  on the strength of co­conductor's testimony is a matter  not for the court but for the administrative tribunal. In  conclusion, we do not think the courts below were right  in over­turning the finding of the domestic tribunal.
6.   No   actual   punishment   in   the   sense   of   dismissal   or  removal was inflicted and counsel for the State read out  the   order   finally   passed.   The   order   merely   states   that  the   services   were   terminated   and   the   State's   Counsel  agrees that there was no dismissal or removal or punitive  punishment as seen from the order. All that we guess is,  taking   the   words   used   in   the   order,   the   authorities  probably   had   regard   to   the   overall   circumstances  including  the  long  years  of service  (10 years)   and the  comparatively young age of the delinquent at the time of  termination of service (26) and relented in the matter of  final termination by simply telling him off from service  without   inflicting   any   of   the   punishments.   This   lies  within the power of the employers and it is not for us to  say   that   the   State   should   have   punished   him   in   a  particular manner. Therefore, while confirming the order  passed by the State and setting aside the decree of the  courts  below  we hold  that  the  consequences  of a  simple  termination   must   follow.   We,   therefore,   direct,   while  allowing   the   appeal,   that   the   State   shall   pay   the  respondent   all that  is  due to  him under  the  industrial  law   as   an   employee   when   his   services   are   terminated  without   penal   consequences   ­   apart   from   the   salary   for  the period he has worked after the recent reinstatement.  Counsel for the appellants has agreed that this direction  will be carried out as the State is bound to. With these  observations,   we   allow   the   appeal   but   the   parties   will  bear their costs throughout."

From   above   quoted   observations,   it   becomes  clear   that   (a)   merely   because   passengers'  statements   are   not   recorded   the   Labour   Court  cannot be, on that ground, discard or invalidate  the domestic  enquiry   or the findings  by Enquiry  10 C/SCA/2339/2015 JUDGMENT Officer   so   long   as   they   are   based   on   evidence  available   on   record;     and   (b)   the   quantum   of  penalty,   in the matter   of proved  misconduct,   is  in the realm of employer. 

9.1 In   this   context,   it   is   also   appropriate   to  take   into   consideration   observations   by   Apex  Court in case of J.D. Jain vs. The Management of  State   Bank   of   India   and   another   [AIR   1982   SC   673],   wherein   Hon'ble   Apex   Court   explained   the  concept of hearsay evidence and observed that: 

"7. In an application for a Writ of Certiorari under Art.  226   of   the   Constitution   for   quashing   an   award   of   an  Industrial Tribunal, the jurisdiction of the High Court  is limited. It can quash the award, inter alia, when the  Tribunal  has  committed   an error  of  law apparent  on the  face of the record or when the finding of facts of the  Tribunal is perverse. In the case before us, according to  the   Tribunal   as   Kansal   was   not   examined,   the   evidence  before it was hearsay and as such on the basis thereof  the appellant could not be legally found guilty. 
8.   Before   the   Enquiry   Officer,   the   respondent   examined  the following witnesses :­ Gupta   (Witness   1),   Vadhera,   the   Ledger­keeper   (Witness 
2),   Mahesh   Chander   who   was   in   charge   of   Savings   Bank  Account on 8­2­1971 (Witness 3), M. Ramzan, Agent of the  Bank   (Witness   4),   Sarkar   (Witness   5)   and   Bhardwaj  (Witness 6).

Bhardwaj   was   a   leader   of   the   employees'   union   of   the  respondent.   He   did   not   support   the   case   of   the  respondent. The other witnesses supported the case of the  respondent.  Witnesses Nos. 1, 2, 4 and 5 depose that a  verbal complaint was made by Kansal in their presence to  the   effect   that   he   had   authorised   the   appellant   to  withdraw Rs. 500.00 which sum was paid to him, but the  entries   showed   that   Kansal   had   withdrawn   Rs.   1500.00.  Witnesses   Vadhera,   Ramzan   and   Sarkar   also   deposed   that  the appellant had confessed before them that he had made  the alterations in the figure and in words of the sum.  The Tribunal after having made detailed references to the  11 C/SCA/2339/2015 JUDGMENT evidence of the above witnesses in fact found. "All that  this evidence thus, proves is that a complaint was made  by Shri Kansal and that the workman confessed that he had  altered   the   debit   authority'.   (emphasis   added).  Curiously, however it held, "This evidence, by no means  proved   that   the   workman   altered   the   debit   authority   to  defraud   or   that   he   actually   defrauded   or   that   he  misappropriated the amount of Rs. 1,000.00 after paying  Rs. 500­00 only to Mr. Kansal from the amount of Rupees  1,500.00   withdrawn   from   the   bank   by   him   as   it   was   not  direct evidence but was in the nature of hearsay evidence  since it was learnt through the medium of a third person  and   that   person   was   not   available."   It   further   held,  "There can be no hesitation, therefore, that the Enquiry  Officer   relied   on   hearsay   evidence   in   arriving   at   his  findings  and  it vitiated  the  enquiry."  It  went  on "All  this   could   be   enough   for   raising   a   suspicion   only.   In  order to be called 'proved' it needed evidence which was  not   there."   It   further   observed,   "But   the   question   was  whether it was done without the consent or knowledge of  Mr. Kansal. There was no evidence on the record to prove  it.   The   only   person   who   could   speak   about   it   was   Mr.  Kansal.   He   did   not   appear   before   the   inquiry   officer,  therefore, there was no direct evidence that the change  that   was   admittedly   made   by   the   workman   in   the   debit  authority was without Mr. Kansal's consent or knowledge  or that it was designed to defraud." (emphasis added). The positive findings of the Tribunal are:

(i)   Kansal   made   the   complaint   as   alleged   by   the  management,
(ii)   The   appellant   confessed   that   he   had   made   the  alterations charged with, as alleged by the management,
(iii) By implication it has also found that Rs. 1,000.00  in   excess   of   the   original   amount   of   Rs.   500.00   was  received by the appellant as a result of the alterations. 

But it has held that as Kansal was not examined fraud and  misappropriation on the part of the appellant cannot be  held to be proved, as the evidence was 'hearsay'.

9. The learned Tribunal, it appears, was oblivious of the  fact   that   it   was   examining   the   evidence   in   a   domestic  enquiry, and not the evidence in a criminal prosecution  entailing conviction and sentence.

In   a   case   like   the   one   before   us,   three   kinds   of  proceedings against the delinquent are possible :

(i) departmental proceedings and action,
(ii)   criminal   prosecution   for   forgery   and  misappropriation,
(iii)   civil   proceedings   for   recovery   of   the   amount  alleged to be misappropriated.

The respondent herein adopted course (i) and instituted  the   domestic   enquiry   in   which   the   principle   applied   by  the Tribunal is not applicable; in such an enquiry guilt  need not be established beyond reasonable doubt; proof of  misconduct may be sufficient.

  The   learned   Tribunal   has   committed   another   error   in  holding   that   the   finding   of   the   domestic   enquiry   was  based on "hearsay" evidence. The law is well­settled that  the   strict   rules   of   evidence   are   not   applicable   in   a  domestic enquiry. 

This   Court   in   the   case   of   State   of   Haryana   v.   Rattan  12 C/SCA/2339/2015 JUDGMENT Singh reported in AIR 1977 SC 1512 held (at p. 1513) :­ "It is well­settled that in a domestic enquiry the strict  and   sophisticated   rules   of   evidence   under   the   Indian  Evidence   Act   may   not   apply.   All   materials   which   are  logically probative for a prudent mind are permissible.  There is no allergy to hearsay evidence provided it has  reasonable nexus and credibility.

10. The next question is, is the evidence in the domestic  enquiry really hearsay, as held by the Tribunal?  The word 'hearsay' is used in various senses. Sometimes  it means whatever a person is heard to say; sometimes it  means whatever a person declares on information given by  someone else. (See Stephen on Law of Evidence).  The Privy  Council  in the  case  of Subramaniam  v.  Public  Prosecutor,  (1956)  1 WLR  965  observed  : "Evidence  of  a  statement made to a witness who is not himself called as  a witness may or may not be hearsay. It is hearsay and  inadmissible   when   the   object   of   the   evidence   is   to  establish   the   truth   of   what   is   contained   in   the  statement. It is not hearsay and is admissible when it is  proposed to establish by the evidence, not the truth of  the   statement   but   the   fact   that   it   was   made.   The   fact  that   it   was   made   quite   apart   from   its   truth,   is  frequently relevant in considering the mental state and  conduct thereafter of the witness or some other persons  in whose presence these statements are made."

11. In  the  instant  case,  the  alleged  misconduct  of the  appellant   was   that   he   forged   documents,   withdrew   Rs.  1,500.00 ­ Rs. 1,000.00  in excess of the amount he was  authorised to do and misappropriated the excess amount of  Rs.   1,000,00.   With   regard   to   the   fact   whether   the  appellant   manipulated   the   documents   withdrew   excess  amount   and   misappropriated   it,   there   is,   of   course,   no  direct evidence of any eye­witness except the appellant's  'confession'   referred   to   above.   The   evidence   on   which  reliance   has   been   taken   by   the   respondent   is   the  confession   and   circumstantial   evidence,   namely,   the  authority   letter   containing   the   admitted   interpolations  by the appellant in his own handwriting in different ink,  and   the   addition   of   the   digit   "1"   before   500.   The  evidence of Kansal would have been primary and material,  if the fact in issue were whether Kansal authorised the  appellant   to   make   the   alterations   in   the   authority  letter. But Kansal's complaint was to the contrary. For  the   purpose   of   a   departmental   enquiry   complaint,  certainly   not   frivolous,   but   substantiated   by  circumstantial   evidence,   is  enough.   What  the  respondent  sought   to   establish   in   the   domestic   enquiry   was   that  Kansal   had   made   a   verbal   complaint   with   regard   to   the  withdrawal of excess money by the appellant in presence  of the four witnesses, namely, Wadhera, Gupta, Ramzan and  Sarkar, aforesaid against his advice. On the complaint of  Kansal, the evidence of these four witnesses is direct as  the   complaint   is   said   to   have   been   made   by   Kansal   in  their   presence   and   hearing;   it   is,   therefore,   not  hearsay. As the respondent has succeeded in proving that  a   complaint   was   made   by   Kansal   on   the   evidence   of   the  above­named four witnesses, the respondent has succeeded.  No   rule   of   law   enjoins   that   a   complaint   has   to   be   in  writing as insisted by the Tribunal. 

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C/SCA/2339/2015 JUDGMENT

12.   The   learned   Tribunal   has   committed   yet   another  grievous error, in failing to appreciate the confessions  made by the appellant "in the presence of witnesses and  to the higher officer who appeared as witness" (as found  by   itself)   namely,   Wadhera,   Ramzan,   Gupta   and   Sarkar,  aforesaid.   The   confessions   of   the   appellant   before   the  said witnesses were to the effect that he had altered the  amount in figure and words in his own hand. The award of the Tribunal, therefore, has been vitiated  by misconception of the law involved in the case." 

10. A   profitable   reference   can   also   be   made   to  the observations by Hon'ble Apex Court in case of  U.P.   State   Road   Transport   Corporation   (supra),  wherein   Hon'ble   Apex   Court,   in   paras   12   to   20,  observed that: 

"12. The Labour Court recorded the findings of facts as  under: 
"As   far   as   the   question   of   conclusions   drawn   by   the  Enquiry officer is concerned, in the enquiry conducted in  respect   of   first   charge   sheet   dated   7.7.1988   Ext.E/2,  statement of Shri Atar Singh, Traffic Inspector has been  recorded wherein he has proved the report Ext.E/1 of Shri  Atar   Singh,   Traffic   Inspector.   Shri   Atar   Singh   had  checked the vehicle and 13 without ticket passengers have  been   found   travelling   from   whom   the   petitioner­workman  had already taken Rs..43/­ as fare. Shri Atar Singh has  accordingly  made  a remark  on  the way  bill  and obtained  the   signatures   of   petitioner­workman   also.   The  petitioner­   workman   did   not   ask   any   question   in   cross­ examination to this witness. The petitioner workman has  also   not   asked   any   question   in   cross­   examination   with  the   other   witness   Shri   Kailash   Chandra,   Traffic  Inspector." (Ephasis added) 
13. The Labour Court recorded a finding of fact that in  respect   of   both   the   mis­conducts   the   passengers   were  found   travelling   without   tickets   and   they   had   already  paid  fare to  the  employee/Conductor.  Thus,  it is  not  a  case where the said employee could not issue the ticket  and   recover   the   fare   from   the   travelling   passengers,  rather   the   finding   has   been   recorded   that   after  recovering the fare from the passengers, he did not issue  tickets   to   them.   Thus,   there   was   an   intention   to   mis­ appropriate   the   fare   recovered   from   the   passengers   who  were found travelling without tickets at both the times. 
14.   The   High   Court   dealt   with   the   matter   in   a   most  cryptic manner. Relevant/main part of the judgment of the  High Court reads as under: 
"5.....The   Inspector   in   the   cross­examination   has   also  14 C/SCA/2339/2015 JUDGMENT stated on oath that the cash was not checked. The learned  counsel   for   the   petitioner   further   submitted   that   when  the bus was checked, ten passengers were boarded on the  bus and they were drunk and they were also denying taking  the tickets. The learned Tribunal has not considered this  fact   at   all.   I   find   force   in   the   contention   of   the  learned counsel for the petitioner. The learned Tribunal  ought   to   have   considered   this   fact   that   neither   the  passengers   were   examined,   nor   the   cash   was   checked.  Therefore,   the   order   of   the   learned   Tribunal   cannot   be  sustained in the eye of law." (Emphasis added) 
15. The High Court has decided the Writ Petition only on  the ground that the passengers found without tickets, had  not been examined and the cash with the employee was not  checked. No other reasoning has been given whatsoever by  the Court. 
16. In   State   of   Haryana   &   Anr.   Vs.   Rattan   Singh   AIR  1977 SC 1512, this Court has categorically held that in a  domestic   enquiry,   complicated   principles   and   procedure  laid down in the Code of Civil Procedure,  1908 and the  Indian Evidence Act, 1872 do not apply. The only right of  a delinquent employee is that he must be informed as to  what   are   the   charges   against   him   and   he   must   be   given  full opportunity to defend himself on the said charges.  However, the Court rejected the contention that enquiry  report stood vitiated for not recording the statement of  the passengers who were found travelling without ticket.  The Court held as under: 
"We   cannot   hold   that   merely   because   statements   of  passengers were not recorded the order that followed was  invalid. Likewise, the re­evaluation of the evidence on  the strength of co­conductor's testimony is a matter not  for   the   court   but   for   the   administrative   tribunal.   In  conclusion,  we do  not think  courts   below  were right  in  over­turning the finding of the domestic tribunal." 

17. In view of the above, the reasoning so given by the  High Court cannot be sustained  in the eye of law. More  so,   the   High   Court   is   under   an   obligation   to   give   not  only the reasons but cogent reasons while reversing the  findings of fact recorded by a domestic tribunal. In case  the   judgment   and   order   of   the   High   Court   is   found   not  duly   supported   by   reasons,   the   judgment   itself   stands  vitiated.   (Vide   State   of   Maharashtra   Vs.   Vithal   Rao  Pritirao   Chawan,   AIR   1982   SC   1215;   State   of   U.P.   Vs.  Battan   &   Ors.   (2001)   10   SCC   607);   Raj   Kishore   Jha   Vs.  State   of   Bihar   &   Ors.   AIR   2003   SC   4664;   and   State   of  Orissa Vs. Dhaniram Luhar AIR 2004 SC 1794. 

18. In State of West Bengal Vs. Atul Krishna Shaw & Anr.  AIR   1990   SC   2205,   this   Court   observed   that   "giving   of  reasons   is   an   essential   element   of   administration   of  justice.   A   right   to   reason   is,   therefore,   an  indispensable part of sound system of judicial review." 

19. In State of Uttaranchal & Anr. Vs. Sunil Kumar Singh  Negi AIR 2008 SC 2026, this Court held as under: 

"Right   to   reason   is   an   indispensable   part   of   a   sound  judicial system; reasons at least sufficient to indicate  an   application   of   mind   to   the   matter   before   Court.  Another rationale is that the affected party can know why  the decision  has  gone against  him.  One of  the salutary  requirements of natural justice is spelling out reasons  15 C/SCA/2339/2015 JUDGMENT for the order made". 

17. In  Raj  Kishore  Jha  (supra),  this  Court  observed  as  under: 

"Before we part with the case, we feel it necessary to  indicate   that   non­reasoned   conclusions   by   appellate  Courts  are  not appropriate,  more  so,  when  views  of the  lower   Court   are   differed   from.   In   case   of   concurrence,  the need to again repeat reasons may not be there. It is  not so in case of reversal. Reason is the heartbeat of  every conclusion. Without the same, it becomes lifeless". 

18. In fact, "reasons are the links between the material,  the   foundation   for   these   erection   and   the   actual  conclusions. They would also administer how the mind of  the maker was activated and actuated and their rational  nexus   and   synthesis   with   the   facts   considered   and   the  conclusion   reached".   (vide:   Krishna   Swami   Vs.   Union   of  India & Ors. AIR 1993 SC 1407) 

20. Therefore, the law on the issue can be summarized to  the effect that, while deciding the case, court is under  an obligation to record reasons, however, brief, the same  may be as it is a requirement  of principles  of natural  justice.   Non­observance   of   the   said   principle   would  vitiate the judicial order.  Thus, in view of the above,  the judgment and order of the High Court impugned herein  is liable to be set aside."

11. From   above   quoted   observations,   it   becomes  clear that only on the ground that the passengers  were   not   examined   by   the   corporation   during  domestic   enquiry,   the   findings   by   the   Enquiry  Officer and/or order of penalty by the competent  authority cannot be interfered with and cannot be  faulted. 

12. Despite   such   legal   position     explained   by  Hon'ble Apex Court, the learned Labour Court, in  present   case,   declared     that   the   findings   and  report o the Enquiry are untenable on the ground  16 C/SCA/2339/2015 JUDGMENT that   the   corporation   did   not   examine   the  passengers.   The   learned   Labour   Court   has   held  that the finding by the Enquiry Officer cannot be  sustained because the said finding and conclusion  are recorded without examining the passengers.  

13. The   premise   on   which   learned   Labour   Court  proceeded and declared the finding of the Enquiry  Officer   are   unsustainable,   is   misconceived   and  contrary to the decision by Hon'ble Apex Court.

14. It   is   also   relevant   to   note   that  undisputedly,   the   cash   on   hand   of   the   claimant  was   examined   by   the   Checking   Squad   and   excess  amount   of   Rs.27.50   was   found   in   hands   of   the  claimant.  

15. Despite the said undisputed fact, the learned  Labour   Court   observed   that   merely   because   some  excess   amount   is   found   in   the   hands   of   the  claimant   the   corporation   can   not   jump   to   the  conclusion that the claimant misappropriated the  said amount. The said observation by the learned  17 C/SCA/2339/2015 JUDGMENT Labour   Court   is   also   misconceived   and  unjustified.   The learned Labour Court failed to  appreciate   that   the   excess   amount   found   in   the  hands   of   the   claimant   was   almost   equivalent   to  the   tickets   which   the   claimant   had   not   issued  tickets.     Besides   this   the   claimant   failed   to  offer any explanation with regard to said excess  cash on his hands.

16. From  the  observations  by  the  learned  Labour  Court   in   para   11,   it   emerges   that   the   learned  Labour   Court   has   proceeded   on   erroneous   and  misconceived   premise   with   regard   to   the   conduct  of the domestic enquiry as well as the material  and   evidence   which   would   indicate   and   establish  the misconduct. 

17. So far as the claimant's allegation that the  Enquiry   Officer   did   not   grant   sufficient  opportunity of hearing and defence is concerned,  it is relevant to note that though the claimant  raised   such   allegation   and   statement   of   claim,  however,   before   the   learned   Labour   Court,   he  18 C/SCA/2339/2015 JUDGMENT filed   a   purshis   and   declared   that   he   does   not  challenge legality and propriety of the enquiry. 

18. Thus,  it  was  established  before  the  learned  Labour   Court   that   legal   and   fair   enquiry   was  conducted. 

19. In view of the observations and findings by  the learned  Labour  Court  that  though  the  excess  amount   was   found   in   the   hands   of   the   claimant,  the   Enquiry   Officer   could   not   have   recorded  conclusion that the claimant misappropriated the  amount   and   also   in   view   of   the   observations   by  the   learned   Labour   Court   that   since   the  passengers were not examined, the Enquiry Officer  could not have reached to the conclusion that the  tickets   were   not   issued   and/or   tickets   were  issued in random manner (i.e. were not issued in  serial number) are unsustainable. The award based  on   such   observation   and   conclusion   cannot   be  sustained. 

20. From foregoing discussion it has emerged that  19 C/SCA/2339/2015 JUDGMENT the   award   is   not   sustainable.     However,   the  learned   Labour   Court   examined   the   material   not  only   from   very   limited   perspective   but   from  irrelevant and misconceived perspective viz. the  passengers   were   not   examined   but   the   learned  Labour   Court   did   not   examine   the   Enquiry  Officer's   findings   from   proper   and   relevant  perspective.   The   learned   Labour   Court   did   not  consider   the   extent   of   the   material   which   was  available   on   record   before   the   Enquiry   Officer  and/or the material on the basis of which Enquiry  Officer   reached   to   the   conclusion   against   the  workman.   It   is   pertinent   that   the   claimant   has  challenged the finding of the Enquiry Officer and  that,  therefore,  it was  necessary  for the  Court  to examine the findings of the Enquiry Officer in  light  of entire  evidence  available  on record   of  the   domestic   enquiry   and   to   ascertain   as   to  whether   the   findings   recorded   by   the   Enquiry  Officer are supported by appropriate evidence or  not.     However,   in   view   of   the   fact   that   the  material   related  to enquiry  is not  available   on  20 C/SCA/2339/2015 JUDGMENT record  of this  petition,  the  matter  deserves   to  be   remanded   to   learned   Labour   Court   for   fresh  consideration so that entire evidence of domestic  enquiry   can   be   considered   and   findings   by   the  Enquiry   Officer   can   be   examined   in   right  perspective and by keeping in focus observations  by Apex Court.

21. Therefore, following order is passed.  

22. The   learned   Labour   Court   shall   pass   fresh  award   after   granting   opportunity   to   the  corporation and the claimant.   After taking into  account   the   evidence   available   on   record,   the  learned   Labour   Court   shall   pass   fresh   award  without   being   influenced   by   the   impugned   award,  more particularly the observations by the learned  Labour   Court   in   paras   10,   11   and   12   of   the  impugned award. 

With   the   aforesaid   clarifications,  observations   and   directions,   the   petition   is  partly  allowed.  Impugned   award  is set aside  the  21 C/SCA/2339/2015 JUDGMENT case   is   remanded   to   the   learned   Labour   Court,  Surat   to   pass   fresh   award   in   light   of   the  material   available   on   record   of   Reference   (LCS)  No.13 of 2010. Rule is discharged.

   Sd/­ (K.M.THAKER, J) Bharat 22