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[Cites 13, Cited by 0]

Gujarat High Court

Divisional Controller vs Shri Vinayak Karmachari Mandal on 22 February, 2018

Author: K.M.Thaker

Bench: K.M.Thaker

         C/SCA/4331/2016                                        JUDGMENT




            IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

             R/SPECIAL CIVIL APPLICATION NO. 4331 of 2016


FOR APPROVAL AND SIGNATURE:


HONOURABLE MR.JUSTICE K.M.THAKER

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

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

2     To be referred to the Reporter or not ?                          No

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 ?

==========================================================
                          DIVISIONAL CONTROLLER
                                   Versus
                     SHRI VINAYAK KARMACHARI MANDAL
==========================================================
Appearance:
MR GM JOSHI for the PETITIONER(s) No. 1
RULE SERVED(64) for the RESPONDENT(s) No. 1,2
==========================================================

    CORAM: HONOURABLE MR.JUSTICE K.M.THAKER

                               Date : 22/02/2018
                               ORAL JUDGMENT

1. Heard   Mr.   Joshi,   learned   advocate   for   the  petitioner.

2. In   this   petition,   the   petitioner   Gujarat  Page 1 of 24 C/SCA/4331/2016 JUDGMENT State   Road   Transport   Corporation   has   challenged  award dated 04.09.2015 passed by learned Tribunal  at Rajkot in Reference (IT) No.19 of 2013 whereby  the   learned   Tribunal   at   Rajkot   set   aside   the  order   dated   03.07.1996   passed   by   the   reviewing  authority. 

2.1 The learned Tribunal, by impugned award also  issued further directions with regard to benefits  for intervening period. Said directions are also  under challenge. 

3. Feeling   aggrieved   by   the   said   award   the  corporation has taken out this petition.

4. So   far   as   the   factual   background   is  concerned, it has emerged from the record that in  connection   with   reported   misconduct   against  present   respondent   (workman),   a   chargesheet   was  issued. In pursuance to the chargesheet domestic  inquiry   was   conducted.   Upon   conclusion   of   the  domestic   inquiry,   the   inquiry   officer   submitted  his   findings   and   report   to   the   disciplinary  authority   wherein   he   held   that   the   charge   and  Page 2 of 24 C/SCA/4331/2016 JUDGMENT allegation against the workman are proved.  4.1   The   disciplinary   authority   concurred   with  the findings and report of the inquiry officer.  4.2 Having   regard   to   the   fact   that   charge   and  allegations are proved and also having regard to  the gravity of misconduct, disciplinary authority  passed   order   dated   06.2.1995   and   dismissed   the  workman from service.

4.3 The   petitioner   felt   aggrieved   by   the   said  order   dated   06.2.1995.   He   filed   first   appeal  before the appellate departmental authority.  4.4 The   appellate   authority   vide   order   dated  03.07.1996 modified the order dated 6.2.1995. The  said   authority   directed   that   the   workman   be  reinstated   in   service   without   backwages   and   the  period   between   the   date   of   dismissal   and   the  reinstatement   shall   be   treated   as   period   of  absence/   leave   without   wages   and   that   the  respondent   workman   will   not   be   entitled   to   the  benefits for the intervening period but it shall  be considered as notional pay. The said authority  substituted   the   penalty   with   order   for   stoppage  Page 3 of 24 C/SCA/4331/2016 JUDGMENT of   2   increments   with   future   effect   (instead   of  dismissal from service). 

4.5 Against  the  said  order   dated  03.7.1996,  the  workman, after gross delay of 17 years from the  date   of   order   by   first   appellate   authority,  raised industrial dispute.

4.6   Appropriate government referred the dispute  for adjudication to learned Tribunal at Rajkot. 4.7 Before   the   learned   Tribunal,   the   workman  filed  pursis  (Exh­33)  and declared  that  he does  not challenge  the  legality   and propriety  of the  inquiry. 

4.8. Thus,   the   dispute   with   regard   to  legality and propriety did not survive.  4.9   In   view   of   the   said   declaration   by   the  workman, the scope of the inquiry by the learned  Tribunal,   in   connection   with   the   penalty   order  passed  by the  employer,  was very  restricted  and  the   learned   Tribunal,   therefore,   was   obliged   to  proceed in the case and decide the matter on the  premise that the employer had conducted legal and  fair inquiry.

Page 4 of 24

C/SCA/4331/2016 JUDGMENT 4.10   Despite  the  limited  scope   of jurisdiction,  the   learned   Tribunal   entered   into   controversy  about   adequacy   of   evidence   and   propriety   and  sufficiency   of   the   reasons   recorded   by   the  reviewing authority.  

4.11  Learned   Tribunal   held   that   the   order  passed   by   the   reviewing   authority   whereby   the  penalty   came   to   be   enhanced,   is   without  sufficient reasons. 

4.12  On the said solitary ground, the learned  Tribunal   interfered   with   the   order   passed   by  reviewing   authority   (and   confirmed   by   second  appellate   authority)   and   passed   impugned   award  with above mentioned direction. 

5. While   assailing   the   award,   the   learned  advocate for the petitioner corporation submitted  that   since   the   dispute   was   raised   after   gross  delay of more than 17 years, the reference should  not   have   been   entertained   on   the   ground   of  inordinate   and   gross   delay   and   the   reference  should   have   been   rejected.   He   further   submitted  Page 5 of 24 C/SCA/4331/2016 JUDGMENT that the order of penalty was short of discharge  or   dismissal   and   that   therefore,   the   learned  Tribunal   could   not   have   interfered   with   such  order.   He   submitted   that   learned   Tribunal  exercised   jurisdiction   with   material  irregularity.   According   to   learned   advocate   for  the   petitioner   there   was   no   justification   to  substitute     the   penalty   determined   by   the  corporation.

6. Learned   advocate   Mr.   Rajyaguru   for   the  respondent   submitted   that   the   learned   Tribunal  has not  committed  any error  in  interfering  with  the order of the reviewing authority because the  reviewing   authority   exercised   the   authority  without sufficient reasons. According to learned  advocate for the respondent there is no error in  the award and that therefore the award may not be  disturbed. Any other submission is not urged.

7. I   have   considered   the   rival   submission   and  material available on record as well as impugned  Page 6 of 24 C/SCA/4331/2016 JUDGMENT award.

8. It is necessary and appropriate to take into  account certain relevant dates.

a. Disciplinary   authority   passed   the   order   of  penalty in February, 1995.

b. The  Appellate  authority  passed   the  order  in  July, 1996.

c. The   respondent   challenged   the   order   of  appellate authority in 2013 i.e. after gross and  inordinate delay of about 17 years.

8.1 Undisputedly, the claimant did not offer any  explanation   with   regard   to   inordinate   and   gross  delay   in   raising   industrial   dispute   against   the  order   dated   July,   1996   passed   by   the   reviewing  authority. 

8.2  Even before this Court, any explanation with  regard to such gross delay is not offered. 8.3 After passage of almost 17 years the dispute,  if   any,   with   regard   to   reviewing   authority's  order,  would  not  survive.  Thus,  actually  a dead  dispute   and   stale   claim   were   placed   before   the  Page 7 of 24 C/SCA/4331/2016 JUDGMENT learned Tribunal.

9. The said fact is the first ground against the  impugned   award.   The   learned   Tribunal   passed  impugned   award   without   considering   the   said  aspect or by ignoring the said aspect.

9.1   Another   ground   which   is   raised   against  impugned award is that the order of penalty was  short   of   discharge   or   dismissal   and   that  therefore   in   absence   of   any   evidence   about  victimisation   or   the   finding   that   fair   inquiry  was not conducted before imposing penalty and/ or  the penalty is shockingly disproportionate and it  hinges   on   verge   of   victimisation,   the   learned  Tribunal could not have interfered with the order  dated 03.07.1996.

10. So   far   as   the   first   ground   against   the  impugned   award  is concerned,  it is  necessary   to  note   that   the   workman   raised   the   dispute   after  gross   delay   of   17   years.   The   claimant   did   not  offer any explanation for the delay. The claimant  Page 8 of 24 C/SCA/4331/2016 JUDGMENT failed  to make  out  sufficient  cause  for raising  the dispute after such gross delay. 

10.1  Even if the Industrial Disputes Act does not  prescribe   period   of   limitation   for   raising  dispute, when the reference is placed before the  Court   after   such   gross   delay   of   17   years   (i.e.  when   the   dispute   is   raised   after   such   gross  delay)it   is   the   duty   and   obligation   of   the  workman  to  offer  explanation  for  such delay  and  laches and the workman would be under obligation  to at least satisfy the Court with regard to the  reason for not raising dispute within reasonable  time. 

10.2   The   dispute   which   is   brought   before   the  Court   after   such   gross   delay,   would   ordinarily,  amount to dead dispute and stale claim. Such dead  dispute and stale claim would, ordinarily, not be  entertained by the Court. 

10.3   Therefore,   to   breathe   life   in   such   stale  claim   and   dead   dispute   and   to   make   it  maintainable and to get it adjudicated on merits,  the   workman   should   at   least   offer   satisfactory  Page 9 of 24 C/SCA/4331/2016 JUDGMENT explanation   and   make   out   sufficient   cause.   The  Court   cannot   casually   and   lightly   ignore   such  gross and inordinate delay.

10.4   On this count, reference may be had to the  observations by Apex Court in case of   Prabhakar   vs.   Joint   Director,   Sericulture   Department  [(2015)   15   SCC   1]   wherein   Hon'ble   Apex   Court  observed that:­  "8. From the facts narrated above, it becomes clear that for a period  of   fourteen   years   no   grievance   was   made   by   the   petitioner   qua   his  alleged   termination.   Though   it   was   averted   that   the   petitioner   had  approached the Management time and again and was given assurance that  he   would   be   taken   back   in   service.   there   is   nothing   on   record   to  substantiate this. No notice was served upon the Management. There is  no assurance given in writing by the Management at any point of time.  Such assertions are clearly self­serving. Pertinently. even the Labour  Court has not accepted the aforesaid explanation anywhere and has gone  by   the   fact   that   the   dispute   was   raised   after   a   delay   of   fourteen  years. Therefore, keeping in mind the aforesaid facts, we would decide  the   issue   which   has   arisen,   namely,   whether   reference   of   such   a  belated claim was appropriate. 

9. It may be stated that the question is of utmost importance as it is  seen   that   many   times.   as   in   the   instant   case,   the   workers   raise  dispute after a number of years of the cause of action. Whether the  dispute can still be treated as surviving? Or whether it can be said  that the dispute does not exist when the workmen concerned after their  say termination kept quiet for a number of years and thus acquiesced  into the action?

20. At this stage, it may be pointed out that admittedly the law of  limitation does not apply to industrial disputes. The Limitation Act  does not apply to the proceedings under the Industrial  Disputes Act  and   under   the   Industrial   Disputes   Act   no   period   of   limitation   is  prescribed. This is now well settled by a series of judgments of this  Court. 

21.   On   the   reading   of   these   judgments,   which   are   discussed  hereinafter,   it   can   be   discerned   that   in   some   decisions   where   the  reference was made after a lapse of considerable period, the Court did  not set aside the reference but moulded the relief by either granting  reinstatement   but   denying   back   wages,   fully   or   partially,   or   else  granted   compensation,   denying   reinstatement.   On   the   other   hand,   in  some of the decisions, the Court held that even when there was no time  prescribed to exercise power under Section 10 of the Act, such a power  could not be exercised at any point of time to revive matters which  had since been settled or had to become stale. We would like to refer  to these judgments at this juncture. 

24. Again in Vazir Sultan Tobacco Co. Ltd. v. State of AR". the Andhra  Page 10 of 24 C/SCA/4331/2016 JUDGMENT Pradesh High Court held that reference made nearly six years after in: 

dispute amounted to being inordinate, unreasonable and unjustifiable. 

25. In Nedungadi Bank Ltd. v. KP. Madhavankutt'yl4 the Court cautioned  that   power   of   reference   should   be   exercised   reasonably   and   in   a  rational manner and not in a mechanical fashion.  It was specifically  observed   the   power   to   make   reference   cannot   be   exercised   to   revive  settled   matters   or   to   refer   stale   disputes   in   spite   of   absence   of  statutory  limitation  period.  The  Court  not  only  reiterated  that  the  courts   had   power   of   judicial   review.   though   to   limited   extent,   but  also made the following pertinent observations on delay: (SCC pp. 460­ 6l. Paras 6­8) "6. Law does not prescribe any time­limit for the appropriate  Government to exercise its powers under Section 10 of the Act.  It is not that this power can be exercised at any point of time  and to revive matters which had since been settled. Power is to  be exercised reasonably and in a rational manner. There appears  to us to be no rational basis on which the Central Government  has exercised powers in this case after a lapse of about seven  years of the order dismissing the respondent from service. At  the   time   reference   was   made   no   industrial   dispute   existed   or  could be even said to have been apprehended. A dispute which is  stale   could   not   be   the   subject­matter   of   reference   under  Section 10 of the Act. As to when a dispute can be said to be  stale would depend on the facts and circumstances of each case.  When the matter has become final, it appears to us to be rather  incongruous that the reference be made under Section 10 of the  Act in the circumstances like the present one. In fact it could  be said that there was no dispute pending at the time when the  reference in question was made. The only ground advanced by the  respondent was that two other employees who were dismissed from  service   were   reinstated.   Under   what   circumstances   they   were  dismissed   and   subsequently   reinstated   is   nowhere   mentioned.  Demand   raised   by   the   respondent   for   raising   an   industrial  dispute was ex facie bad and incompetent. 

7. In the present appeal it is not the case of the respondent  that   the   disciplinary   proceedings,   which   resulted   in   his  dismissal,   were   in   any   way   illegal   or   there   was   even   any  irregularity. He availed his remedy of appeal under the rules  governing his conditions of service. It could not be said that  in   the   circumstances   an   industrial   dispute   did   arise   or   was  even   apprehended   after   a   lapse   of   about   seven   years   of   the  dismissal   of   the   respondent.  Whenever   a   workman   raises   some  dispute   it   does   not   become   an   industrial   dispute   and   the  appropriate Government cannot in a mechanical fashion make the  reference   of   the   alleged   dispute   terming   it   as   an   industrial  dispute. The Central Government lacked power to make reference  both on the ground of delay in invoking the power under Section  10 of the Act and there being no industrial dispute existing or  even   apprehended.  The   purpose   of   reference   is   to   keep  industrial peace in an establishment. The present reference is  destructive to the industrial peace and defeats the very object  and purpose of the Act. The Bank was justified in thus moving  the   High   Court   seeking   an   order   to   quash   the   reference   in  question. 

8. It was submitted by the respondent that once a reference has  been   made   under   Section   10   of   the   Act   a   Labour   Court   has   to  decide the same and the High Court in writ jurisdiction cannot  interfere in the proceedings of the Labour Court. That is not a  correct   proposition   to   state.   An   administrative   order   which  does   not   take   into   consideration   statutory   requirements   or  travels outside that is certainly subject  to judicial  review,  limited   though   it   might   be.   The   High   Court   can   exercise   its  powers   under   Article   226   of   the   Constitution   to   consider   the  question   of   the   very   jurisdiction   of   the   Labour   Court,   In  Page 11 of 24 C/SCA/4331/2016 JUDGMENT National   Engg.   Industries   Ltd.   v.   State   of   Rajasthan"   this  Court observed: (SCC 13. 393, para 24)  '24. It will be thus seen that the High Court has jurisdiction  to entertain a writ petition when there is an allegation that  there is no industrial dispute and none apprehended which could  be   the   subject   matter   of   reference   for   adjudication   to   the  Industrial Tribunal under Section 10 of the Act, Here it is a  question   of   jurisdiction   of   the   Industrial   Tribunal,   which  could be examined by the High Court in its writ jurisdiction.  It   is   the   existence   of   the   Industrial   Tribunal   (sic   dispute)  which   would   clothe   the   appropriate   Government   with   power   to  make   the   reference   and   the   Industrial   Tribunal   to   adjudicate  it.   If   there   is   no   industrial   dispute   in   existence   or  apprehended the appropriate Government lacks power to make any  reference" 

29.   If   one   examines   the   judgments   in   the   aforesaid   perspective,   it  would  be easy  to  reconcile  all  the  judgments.  At  the  same time,  in  some cases the Court did not hold the reference to be bad in law and  the delay on the part of the workman in raising the dispute became the  cause for moulding the relief only. On the other hand, in some other  decisions, this Court specifically held that if the matter raised is  belated or stale that would be a relevant consideration on which the  reference should be refused. Which parameters are to be kept in mind  while taking one or the other approach needs to be discussed with some  elaboration,   which   would   include   discussion   on   certain   aspects   that  would be kept in mind by the courts for taking a particular view. We,  thus,   intend   to   embark   on   the   said   discussion   keeping   in   mind   the  central   aspect   which   should   be   the   forefront,   namely,   whether   the  dispute   existed   at   the   time   when   the   appropriate   Government   had   to  decide   whether   to   make   a   reference   or   not   or   the   Labour  Court/Industrial Tribunal to decide the same issue coming before it.
34. To understand  the  meaning  of  the word  "dispute",  it would  be  appropriate to start with the grammatical or dictionary meaning of the  term;
"Dispute'. to argue about, to contend for, to oppose by argument, to  call in question ­ to argue or debate (with, about or over) ­a contest  with words; an argument; a debate; a quarrel;" 

35.   Black's   Law   Dictionary,   5th   Edn.,   p.   424   defines   "dispute"   as  under: 

"Dispute­A conflict or controversy; a conflict of claims or rights; an  assertion of a right, claim, or demand on one side, met by contrary  claims   or   allegations   on   the   other.   The   subject   of   litigation;   the  matter for which a suit is brought and upon which issue is joined, and  in relation to which jurors are called and witnesses examined." 

36. Thus, a dispute or difference arises when demand is made by one  side (i.e. workmen) and rejected by the other side (i.e. the employer)  and vice versa. Hence an "industrial dispute" cannot be said to exist  until and unless the demand is made by the workmen  and it has been  rejected by the employer. How such demand should be raised and at what  stage may also be relevant but we are not concerned with this aspect  in the instant case. Therefore, what would happen if no demand is made  at all at the time when the cause of action arises? In other words,  like in the instant case, what would be the consequence if after the  termination   of   the   services   of   the   petitioner   on   1­4­1985,   the  petitioner does not dispute his termination as wrongful and does not  make any demand for reinstatement for a number of years? Can it still  be said that there is a dispute? Or can it be said that workmen can  make  such demand   after  a lapse  of several  years  and on  making  such  demand dispute would come into existence at that time.  It can always  be pleaded by the employer in such a case that after the termination  of the services when the workman did not raise any protest and did not  demand his reinstatement, the employer presumed that the workman has  accepted his termination and, therefore, he did not raise any dispute  Page 12 of 24 C/SCA/4331/2016 JUDGMENT about his termination. It can be said that workman, in such a case,  acquiesced into the act of the employer in terminating  his services  and, therefore, accepted his termination. He cannot after a lapse of  several years make a demand and then convert it into a "dispute" what  had otherwise become a buried issue. 

37.   Let   us   examine   the   matter   from   another   aspect   viz.   laches   and  delays and acquiescence. 

38.  It   is   now   a   well­recognised   principle   of   jurisprudence   that   a  right not exercised for a long time is non­existent. Even when there  is no limitation Period prescribed by any statute relating to certain  proceedings, in such cases Courts have coined the doctrine of laches  and   delays   as   well   as   doctrine   of   acquiescence   and   non­suited   the  litigants who approached the Court belatedly without any justifiable  explanation for bringing the action after unreasonable delay. Doctrine  of laches is in fact an application of maxim of equity "delay defeats  equities". 

39.   This   principle   is   applied   in   those   cases   where   discretionary  orders   of   the   court   are   claimed,   such   as   specific   performance,  permanent or temporary  lnjunction appointment of Receiver, etc. These  principles are also applied In the wit petitions tiled under Articles  32   and   226   of   the   Constitution   of   India   In   such   cases,   courts   can  still   refuse   relief   where   the   delay   on   the   petitioners   part   has  prejudiced the respondent even though the petitioner might have 3 Come  to court within the period preset abide by the Limitation Act

40. Likewise,  it  a patty  having  a tight  stands   by and  sees  another  acting in a manner inconsistent with that right and makes no objection  while   the   ac   is   in   progress   he   cannot   afterwards   complain   This  principle is based on the doctrine of acquiescence implying  that In  such a case the party who did not make any objection acquiesced into  the   alleged   wrongful   act   of   the   other   party   and,   therefore,   has   no  right to complain against that alleged wrong. 

41.   Thus,   in   those   cases   where   period   of   limitation   is   prescribed  within   Which   the   action   is   to   be   brought   before   the   court,   if   the  action   is   not   brought   within   that   prescribed   period   the   aggrieved  party loses remedy and cannot enforce his legal right after the period  of   limitation   is   over.   Likewise,   in   other   c   cases   even   where   no  limitation is prescribed,  but for a long period the aggrieved  party  does not approach the machinery provided under the law for redressal  of his grievance, it can be presumed that relief can be denied on the  ground of unexplained delay and laches and/or on the presumption that  such person has waived his right or acquiesced into the act of other.  As mentioned above, these principles as part of equity are based on  principles relatable to d sound public policy that if a person does  not   exercise   his   right   for   a   long   time   then   such   a   right   is   non­ existent.

11. In view of the facts mentioned above and in  light of above quoted observation by Hon'ble Apex  Court, it becomes clear that the learned Tribunal  exercised   the   jurisdiction   with   material  irregularity and that the impugned order suffers  Page 13 of 24 C/SCA/4331/2016 JUDGMENT from   material   and   substantial   error   of  jurisdiction by the learned Tribunal. 11.1   In   view   of   the   facts   and   circumstances   of  the   case,   the   learned   Tribunal   should   have  declined   to   entertain   reference   after   gross  delay,   more   so   when   the   workman   did   not   offer  any explanation about the cause, if any, for such  delay. 

11.2   Since,   learned   Tribunal   entertained   the  reference   in   absence   of   any   explanation   by   the  workman for the delay and without being satisfied  about   the   workman's   explanation   the   award  deserves to be set aside on that count. 

12. As mentioned above, it has also emerged from  the award that the workman had admitted legality  and propriety of the inquiry. 

12.1   The   said   declaration   of   the   workman  establishes   that   legal   and   fair   inquiry   was  conducted by the employer. 

12.2  In that view of the matter, the jurisdiction  of learned Tribunal was circumscribed.  Page 14 of 24

C/SCA/4331/2016 JUDGMENT 12.3  In this context, profitable reference can be  had to the recent decision by Hon'ble Apex Court  in case of Management of Bharat Heavy Electricals   Ltd.   v.   M.   Mani  [(2018)   1   SCC   285]   wherein  Hon'ble  Apex  Court  observed  and held  in Para­18  and 19 that:­ "18. In   our   opinion,   once   the   Labour   Court   upheld   the  departmental  enquiry  as  being  legal  and proper   then the  only  question   that   survived   for   consideration   before   the   Labour  Court was whether the punishment of "dismissal" imposed by the  appellant   to   the   respondents   was   legal   and   proper   or   it  requires any interference in its quantum.

19. In   other   words,   the   Labour   Court   should   have   then  confined its enquiry to examine only one limited question as to  whether   the   punishment   given   to   the   respondents   was,   in   any  way,   disproportionate   to   the   gravity   of   the   charge   levelled  against them and this, the Labour Court should have examined by  taking   recourse   to   the   provisions   of   Section   11­A   of   the  Industrial Disputes Act, 1947 (in short "the Act") and the law  laid down by this Court in Workmen v. Firestone Tyre & Rubber  Co.   of   India   (P)   Ltd.   It   was,   however,   not   done   thereby  rendering   the   order   of   the   Labour   Court   legally  unsustainable."(emphasis supplied) 12.4  On this count profitable reference can also  be had to the observations by Apex Court in case  of  General   Secretary,   South   Indian   Cashew  Factories   Workers   Union   vs.   Managing   Director,  Kerala State Cashew Development Corporation Ltd.  [(2006)   5   SCC   201],   where   Hon'ble   Apex   Court  observed that:

Page 15 of 24

C/SCA/4331/2016 JUDGMENT "16. The Labour Court had earlier held that the enquiry was   properly held and there was no violation of the principles   of natural justice and that the findings were not perverse.   The vitiating  facts  found  by  the Labour  Court  against  the   enquiry   are   erroneous   and   are   liable   to   be   set   aside.   If   enquiry   is   fair   and   proper,   in   the   absence   of   any   allegations of victimization or unfair labour practice, the   Labour Court has no power to interfere with the punishment   imposed.   Section   11A   of   the   Act   gives   ample   power   to   the   Labour   Court   to   reappraise   the   evidence   adduced   in   the   enquiry   and   also   sit   in   appeal   over   the   decision   of   the   employer   in   imposing   punishment.   Section   11A   of   the   Industrial  Disputes  Act is  only applicable   in the case  of   dismissal or discharge of a workman as clearly mentioned in   the Section itself. Before the introduction of Section 11A   in Indian Iron and Steel Co. Ltd. v. Their Workmen [(1958)   SCR 667] this Court held that the Tribunal does not act as   a Court of appeal and substitute its own judgment for that   of the Management and that the Tribunal will interfere only   when   there   is   want   of   good   faith,   victimisation,   unfair   labour practice, etc. on the part of the management. There   is   no   allegation   of   unfair   labour   practice,   victimisation   etc.   in   this   case.   The   powers   of   the   Labour   Court   in   the   absence   of   Section   11A   is   illustrated   by   this   Court   in   Workmen   of   Firestone   Tyre   and   Rubber   Co.   of   India   (Pvt.)   Ltd. v. The Management [(1973) 1 SCC 813]. When enquiry was   conducted fairly and properly, in the absence of any of the   allegations of victimisation or malafides or unfair labour   practice,  Labour  Court  has  no power  to interfere  with  the   punishment imposed by the management. Since Section 11A is   not applicable, Labour Court has no power to reappraise the   evidence   to   find   out   whether   thefindings   of   the   enquiry   officer   are   correct   or   not   or   whether   the   punishment   imposed   is   adequate   or   not.   Of   course,   Labour   Court   can   interfere   with   the   findings   if   the   findings   are   perverse.   But,   here   there   is   a   clear   finding   that   the   findings   are   not   perverse   and   principles   of   natural   justice   were   complied with while conducting enquiry."

13. In this context, it is also relevant to note  that   the   charge   and   allegation   against   the  respondent  who,  at the  relevant  time,  worked   as  driver,   was   about   negligence   in   performance   of  duty   which   resulted   into   and   caused   fatal  accident (death of a girl child).  

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        C/SCA/4331/2016                           JUDGMENT



13.1         Upon   conclusion   of   the   inquiry,   Inquiry 

Officer recorded the findings that the charge and  allegations are proved. 

13.2   The   disciplinary   authority   concurred   with  the   findings   of   the   Inquiry   Officer   and   passed  order dated 6.2.1995 of dismissal from service.  13.3 The   workman   felt   aggrieved   by   said  penalty   and   filed   appeal   before   the   first  appellate authority.

14.   When   the   workman   filed   appeal   before  appellate   authority,   the   appellate   authority  partly allowed the appeal with the direction that  the   order   of   termination   from   service   be   set  aside   and   the   workman   may   be   reinstated   in  service however without backwages and the period  between   dismissal   and   reinstatement   shall   be  treated   as   Leave   with   Pay.   The   appellate  authority also substituted the penalty with order  to stop 2 increments with future effect.  

15.   It   is   not   in   dispute   that   any   procedural  irregularities   or   any   other   irregularity   with  Page 17 of 24 C/SCA/4331/2016 JUDGMENT regard   to   the   proceedings/   domestic   inquiry  conducted   against   the   respondent   was   not   proved  before the Labour Court. 

16.  Actually   the   workman   admitted   legality   and  propriety of domestic inquiry by filing a pursis  before Labour Court.

17. In  that  view  of  the  matter   and  in light  of  observations   in   case   of   BHEL   &   South   Indian  Cashew   Factories   Workers'   Union,   the   Tribunal's  jurisdiction was restricted and it did not extend  to examining adequacy of evidence much less about  the driver's (workman's) intention.  

18. Despite   this   position,   the   learned   Tribunal  conducted   the   proceedings   as   if   the   learned  Tribunal   was   considering   appeal   against   the  decision of the authority. 

What   is   more   important   is   the   fact   that   on  one   hand   the   Court   acknowledged,   believed   and  held   that   the   allegation   and   charge   is   proved  Page 18 of 24 C/SCA/4331/2016 JUDGMENT however   on   the   other   hand   the   learned   Court  examined   the   case   by   imparting   principle   of  intention   in   the   matter   of   misconduct   and  domestic inquiry whereas the said issue is to be  decided in light of preponderance of probability  and   not   intention   to   commit   misconduct.   Having  accepted   that   the   charge   about   misconduct   is  proved, the Court ought to have appreciated that  in   such   cases   intention   of   the   employee   is   not  relevant   consideration.   Despite   this   position  learned   Court   assumed   that   the   driver   had   no  intention   to   commit   misconduct   (fatal   accident)  and that  therefore  said  penalty  should   not have  been imposed. Differently put, the learned Court  considered the quantum of penalty on the basis of  assumed   absence   of   intention   to   commit  misconduct. The issue about penalty in respect of  proved misconduct cannot be decided on assumption  about intention/ absence of evidence­ by applying  standard or principle of intention. 

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C/SCA/4331/2016 JUDGMENT

19. The learned Tribunal entered into the process  of   examining   intention   of   the   employee   without  appreciating   the   fact   that   said   aspect   is  irrelevant. 

19.1   By   conducting   proceedings   in   such   manner,  the   learned   Tribunal   committed   material  irregularity   i.e.   learned   Tribunal   travelled  beyond the boundary of its jurisdiction.  19.2 This aspect is born out from the record and  fortified   by   the   above   quoted   observation   by  Hon'ble   Apex   Court  in   case   of  Management   of   Bharat Heavy Electricals Ltd. v. M. Mani (Supra)  and the observation by Hon'ble Apex Court in case  of  General   Secretary,   South   Indian   Cashew  Factories   Workers   Union   vs.   Managing   Director,  Kerala State Cashew Development Corporation Ltd. (supra).

20. From   above   mentioned   facts   and   in   light   of  foregoing   discussion,   it   becomes   clear   that   the  learned  Tribunal  committed  material  irregularity  in   exercising   of   jurisdiction   and   in   disturbing  Page 20 of 24 C/SCA/4331/2016 JUDGMENT order   passed   by   departmental   authority   on   the  assumed absence of intention. 

21. The   learned   Tribunal   also   failed   to  appreciate that order which was challenged by the  claimant was an order of penalty which was short  of   discharge   or   dismissal.   The   learned   Tribunal  was concerned  with  the  penalty  order  other  than  order   of   discharge   or   dismissal   and   that  therefore the learned Tribunal was not justified  in interfering   with such  order  or penalty  (i.e.  which   is   short   of   discharge   or   dismissal)   in  absence   of   evidence   about   victimization   and  without   reaching   to   the   conclusion   and   without  holding   that     the   penalty   in   question   is  shockingly   disproportionate   or   in   nature   of  victimisation.   The   learned   Court   ought   not   have  interfered   with   and   disturbed   the   employer's  decision   as   regards   quantum   of   penalty   when  victimisation   is   not   proved   and   it   is   also   not  held that penalty is shockingly disproportionate  Page 21 of 24 C/SCA/4331/2016 JUDGMENT and   such   which   any   prudent   employer   would   not  impose.

22. While  examining  the  propriety  of  quantum  of  penalty, it is not within jurisdiction of learned  Tribunal   or   learned   Labour   Court   to   weigh   the  quantum   of   penalty   in   golden   scale.   It   is   also  not open and permissible to the learned Tribunal  or learned   Labour  Court  to examine   propriety   of  penalty   according   to   its   own   standards   or  opinion. 

22.1  The   determination  of   quantum   of   penalty  in   case   of   proved   misconduct   is   within   the  exclusive realm of employer's discretion. Learned  Tribunal   ought   to   keep   in   focus   the   fact   that  proved misconduct is antithesis of victimization.  22.2  Learned Tribunal or learned Labour Court  can interfere with the quantum of penalty only if  the quantum of penalty is found to be shockingly  disproportionate   and   order   of   penalty   is   such  which any prudent employer would not impose or if  Page 22 of 24 C/SCA/4331/2016 JUDGMENT it   indicates   victimization   or   in   case   where  absence of good faith in established. 

22.3  Even in such cases, learned Labour Court  or   learned   Tribunal   can   interfere   with   the  penalty   only   after   recording   conclusion   to   said  effect   and   reason   to   support   and   justify   such  conclusion.  In   absence   of   any   proof   and  conclusion   about   the   victimization   and   without  findings   and   conclusion   that   the   penalty  determined   by   the   reviewing   authority   was  shockingly disproportionate and it was in nature  of   victimization   the   order   passed   by   the  reviewing   authority   could   not   have   been  disturbed.  

23. In present case what is more important is the  fact  that on  account  of proved   misconduct  fatal  accident occurred which caused and which resulted  into death of a girl child. In this view of the  matter   the   learned   Court   should   not   have  interfered   with   the   employer's   decision   about  penalty so lightly and casually. 

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C/SCA/4331/2016 JUDGMENT

24. In   present   case   learned   Tribunal   failed   to  recognise   and   observe   said   limitations   and   in  absence   of   evidence   about   victimisation   and  without   recording   any   findings   and   satisfaction  about   above   mentioned   aspects,   the   learned  Tribunal   casually   and   lightly   disturbed     the  Penalty order passed by the reviewing authority.  In present case the Tribunal has not reached to /  not recorded such conclusion. 

25. In this view of the matter, the award passed  by the learned Tribunal is not sustainable. 

26. For   reasons   mentioned   above,   the   award  deserves to be set aside and is accordingly set  side. 

27. The   order   dated   3.7.1996   passed   by   the  appellate authority, therefore, stands restored.

28.     With   aforesaid   order,   the   petition   is  disposed of. 

(K.M.THAKER, J) saj Page 24 of 24