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duct, 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.

The International Labour Organisation, in its recommendation (No. 119) concerning termination of. employment at the initiative of the employer adopted in June 1963, has recommended that a worker aggrievad by the termination of his employment should be en7 titled, to appeal against the termination among others, to a neutral body such as an arbitrator, a court, an arbitration committee or a similar body and that the neutral body concerned should be empowered to examine the reasons given in the termination of employment and the other circumstances relating to the case, and to render a decision on the justification of the termination. The International Labour Organisation has further recommended that the neutral body should be empowered (if it finds that the termination of employment was unjustified) to order that the worker concerned, unless reinstated with unpaid wages, should be paid adequate com- pensation or afforded some other relief. In accordance with these recommendations, it is considered that the Tribunal's power in an adjudication proceeding relating to discharge or dismissal of a workman should not be limited and that the Tribunal should have the power in cases wherever necessary, to set aside the order of discharge or dismissal and direct reinstatement of the workman on such terms and conditions, if any, as it thinks fit or give such other relief to the workmen including the award of any lesser punishment in lieu of discharge or dismissal as the circumstances of the 5 9 2 case may require. For this purpose, a new section 11A is proposed to be inserted in the Industrial Disputes Act, 1947............... There is no controversy that in all the four appeals,, the reference had been-made long before the date of coming into force ,of section 11A and the industrial disputes were pending adjudication at the hands of the concerned authorities on 15-12-1971. In respect of such disputes the concerned labour court or Tribunal had to consider the question whether section 1 1 A applies to those proceedings and also the further question as to the powers to be exercised by them in respect of such disputes. On behalf of the companies, it appears to have been urged that the section does not apply to the disputes which had already been referred to for adjudication and that the management had a right to adduce evidence to justify the action taken against the workmen even though no enquiry had been held before the order of discharge or dismissal had been passed and also in cases where the enquiry held is found to be defective. This claim was resisted on behalf of 'the labour on the ground that the section applies to all proceedings which were pending as on 15-12-1971 and that the management, 'if it had not held any enquiry. or if the enquiry conducted by it was found to be defective, has no right to adduce, evidence before the authority to justify its action. Different views have been expressed by the Tribunals concerned as will be seen from what is stated below :-

The restrictions imposed upon the jurisdiction exercised by the Labour Tribunals in respect of disputes arising out of orders passed by way of dismissal or discharge, as laid down by this Court in a number of decisions over a period of years, have not been altered by the new section. The right of an employer to manage his affairs in his own way, provided he does not act arbitrarily is kept intact. The common law relationship of master and servant was recognised, except to the extent that it was modified by the decision of this Court in Indian Iron & Steel Co. Ltd. & Another v. Their workmen(1). An employer is expected to hold a domestic enquiry before an order of dismissal or termination is passed. He is also bound to follow, in such cases, the principles of natural justice and the procedure laid down by the relevant Standing Orders. The Tribunal will not interfere with the finding recorded by an employer in a proper enquiry merely on the ground that it would have come to a different conclusion. The punishment. to be noted out was entirely within the powers and jurisdiction of an employer and it was no part of the jurisdiction of a Tribunal to, decide whether the said punishment was justified except in very rare cases where the punishment imposed is grossly out of proportion, so as to suggest victimisation or unfair labour practices. This was the position vis-a-vis the management as on 15-12-1971. But under section 11A, after the Tribunal holds that the enquiry has been conducted properly by an employer and that the finding about misconduct is correct, it has jurisdiction to consider whether the punishment requires modification. If it holds that the punishment has to be modified, it has power to do so and award a lesser punishment. Section II A' comes into effect only at the time when the Tribunal consi- ders about the punishment to be imposed. While previously the Tribunal had no power to interfere with the punishment, it is now clothe with such a power. This is the only modification regarding the powers of the management that has been introduced by section 11 A. Neither the fact that no enquiry at all has been held by an employer nor the circumstance that the enquiry, if any (1) [1958] S.C.R. 667.

In its very early decision in Buckingham and Cernatic Com- pany Ltd, by its Managing Agents Binny & Co., Madras v. Workers of the Company represented by the Madras Labour Union and Madras, Textile Workers Union(1), the Labour Appel-

(1) [1952] Labour Appeal Cases 490.

-L761 Sup CI73 late Tribunal held that the decision of the Management in relation to charges against the employee will not prevail if

(a) there is want of bona fide, or

(b) it is a case of victimisation or unfair labour practice or violation of the principles of natural justice, or

In discussing the nature of the jurisdiction exercised by an Industrial Tribunal when adjudicating a dispute relating to dismissal or discharge, it has been emphasised by this Court in Indian Iron & Steel Co. Ltd.(2) as follows :

"Undoubtedly, the management of a concern has power to direct its own internal administration and discipline; but the power is not unlimited and when a dispute arises, Industrial Tribunals have been given the power to see whether the termination, of service of a workman is justified to give appropriate relief. In cases of dismissal on misconduct, the Tribunal does not, however, act as a Court of appeal and substitute its own judgment for that of the management. It will interfere (i) when there is want of good faith; (ii) when there is victimisation or unfair Labour practice, (iii) when the management has been guilty of a basic error or violation of a principle of natural Justice. and (iv) when on the materials the finding is completely baseless or perverse".