Judgment:
Civil Appeal No 2106 of 2007 Arising out of Special Leave Petition
(Civil) No. 5187 of 2005
C.K. Thakker, J
- Leave granted.
A Public Utility
Undertaking (Co-operative Bank) challenges in this appeal an order
passed by a Single Judge of the High Court of Judicature at Madras dated
September 18, 2000 in Writ Petition No. 11948 of 1993 and modified by
the Division Bench of the said Court on November 3, 2004 in Writ Appeal
No. 45 of 2001.
FACTUAL MATRIX
To appreciate in its proper perspective an important question raised in
the appeal, it is necessary to set out relevant facts.
The appellant is
Coimbatore District Central Co-operative Bank having its head office at
Coimbatore. It is having 17 branches in the Revenue District of
Coimbatore. It is the case of the appellant-Bank that the Coimbatore
District Central Bank Employees Association ('Union' for short) gave a
'strike notice' on March 31, 1972 which was received by the Management
on April 5, 1972 proposing to go on strike from April 14, 1972. The
reason for such notice and going on strike was suspension of certain
employees and withholding of their salary by the Management. Since the
strike-call was illegal and the notice was not in consonance with the
provisions of the Industrial Disputes Act, 1947 (hereinafter referred to
as "the Act"), the action of going on strike was unlawful.
The Union was
accordingly informed not to go on strike. The Labour Officer, Coimbatore
in the meanwhile commenced Conciliation Proceedings in connection with
certain issues raised by the Union. Despite proper advice by Labour
Officer, the employees commenced strike from April 17, 1972. The strike
was totally illegal and unlawful. On April 19, 1972, notice was issued
to the Union stating therein that the workmen should join duties by
April 22, 1972 by tendering unconditional apology. The employees
accepted it. A settlement had been arrived at between the Management and
the Union and 134 employees gave up 'strike call' and resumed work. 53
employees, however, refused to join duty and continued their illegal
strike and acts of misconduct.
The illegal acts of
employees affected the work of the Bank very badly. It was alleged that
not only the workmen did not join duty and continued illegal and
unlawful strike, but also prevented other employees from resuming duty
and threatened them with dire consequences if they returned for duty.
Disciplinary proceedings were, therefore, initiated against 53 workmen,
they were placed under suspension and inquiry was instituted. The
employees were intimated of the charges levelled against them, which
they denied. In spite of notices, the workmen did not participate in
disciplinary proceedings and remained absent.
The Management was,
therefore, constrained to proceed with the disciplinary inquiry ex parte
against them. By an order dated January 6, 1973, the workmen were held
guilty of the charges and an order of punishment was passed. By the said
order, two punishments were awarded on the workmen; (i) stoppage of
increment for 1-4 years with cumulative effect; and (ii) non-payment of
salary during the period of suspension. According to the Bank, the case
was an appropriate one to impose extreme penalty of dismissal from
service, but by taking liberal view, the extreme punishment was not
imposed on the employees and they were retained in employment by the
Bank. The workmen joined duty on January 17, 1973. They should have
accepted the order gracefully and appreciated the attitude adopted by
the Management. The workmen, however, did not do so. They preferred to
file appeal which was dismissed by the Executive Committee.
DECISION OF
LABOUR COURT
The workmen, being aggrieved by the decision, raised an industrial
dispute and the matter was referred to Labour Court, Coimbatore by the
Government under Section 10 of the Act. The Labour Court after extending
opportunity of hearing to both the sides and considering the evidence on
record framed the following two issues;
1. Whether the
punishment of stoppage of 1 to 4 increments with cumulative effect on
the 1 to 53 workers is justified?
2. Whether the 53
workmen are entitled to be paid wages for the period of suspension?
After considering the evidence in its entirety and relevant case law on
the point, the Court held that all the four charges levelled against the
workmen were proved. It also held the inquiry to be legal, valid and in
consonance with the principles of natural justice. The evidence
established that threat was administered by the employees.
The Labour Court
concluded;" Unlike criminal cases it is not necessary that the evidence
should be beyond doubt. Nevertheless, the witnesses have given clear
evidence to prove charges. Therefore, we have to accept them and hold
that charges 1 to 4 have been proved against all the 53 employees."
On the basis of the
above finding, the Labour Court held that it could not be said that the
action of the Management could be described as illegal, unlawful or
improper. Accordingly, the demands of the workmen were rejected and
reference was dismissed.
APPROACH OF HIGH
COURT
Being aggrieved by the award passed by the Labour Court, the Union
approached the High Court by filing a Writ Petition. The learned Single
Judge did not disagree with the findings recorded by the Labour Court
and held that the workmen were not entitled to wages for the period they
had not worked. As to the second punishment, however, the learned Single
Judge held that stoppage of 1 to 4 annual increments with cumulative
effect was 'harsh'. The penalty of stoppage of annual increments with
cumulative effect had far-reaching consequences. It would adversely
affect the workmen throughout their service and in retrial benefits to
be received by them. It would further affect their families. Imposition
of such punishment, according to the learned Single Judge, was 'not
valid in law' and liable to be set aside. The petition was, accordingly,
partly allowed confirming the withdrawal of wages for the period of
suspension, but by setting aside the order of punishment of stoppage of
increments. The Management was directed to pay the arrears in respect of
stoppage of increments to the workmen with 'interest at the rate of 12%
per annum' within sixty days from the date of receipt of the copy of the
order.
The Management was
aggrieved by the above order passed by the learned Single Judge and
preferred intra-court appeal before the Division Bench of the High
Court. The Division Bench rightly noted that it is settled law that the
question of choice and quantum of punishment is within the discretion of
the Management. "But, the sentence has to suit the offence and the
offender". If it is unduly harsh or vindictive, disproportionate or
shocks the conscience of the Court, it can be interfered with by the
Court. Then referring to a leading decision of this Court in Ranjit
Thakur v. Union of India & Ors., (1987) 4 SCC 611, the Division
Bench held that the order passed by the learned Single Judge required
modification. The Division Bench opined that proper punishment would be
stoppage of increment/increments without cumulative effect on all 53
employees would serve the ends of justice. The Division Bench also held
that the order passed by the learned Single Judge directing the
Management to pay interest was not proper and was accordingly set aside.
It is this order which is challenged by the Management in the present
appeal.
RIVAL SUBMISSIONS
We have heard the learned counsel for the parties. The learned counsel
for the appellant-Bank contended that both, the learned Single Judge as
well as the Division Bench of the High Court, were in error in
interfering with the order of punishment passed by the Management
particularly when the said action had been confirmed by a
well-considered and well-reasoned award made by the Labour Court,
Coimbatore. It was urged that once an inquiry has been held to be in
consonance with rules of natural justice, charges had been proved and an
order of punishment had been passed, it could not have been set aside by
a 'Writ-Court' in judicial review. The Labour Court recorded a finding
of fact which had not been disturbed by the High Court that principles
of natural justice were not violated. The inquiry was conducted in
consonance with law and all the charges levelled against the employees
were established. If it is so, the High Court was clearly wrong in
interfering with the award of the Tribunal. According to the counsel,
the High Court was neither exercising appellate power over the action
taken by the Management nor on quantum of punishment awarded.
The Court was also
not having appellate jurisdiction over the Labour Court. The
jurisdiction of the High Court under Article 226/227 of the Constitution
was limited to the exercise of power of judicial review. In exercise of
that power, the High Court could not substitute its own judgment for the
judgment/order/action of either the Management or the Labour Court. The
order of the High Court, therefore, deserves to be quashed and set
aside. It was also urged that even if it is assumed that the High Court
has jurisdiction to enter into such arena, then also, in the facts and
circumstances of the case and considering the allegations levelled and
proved against the workmen, it cannot be said that an order of stoppage
of increment/increments with cumulative effect could not have been made.
On the contrary, the matter was very serious which called for much more
severe penalty, but by taking liberal view, the Management had imposed
only a 'minor' penalty. Such reasonable order could not have been set
aside by the High Court.
The counsel
submitted that 'Banking service' is an 'essential service'. It has
public utility element therein and it was the duty of the employees
connected with such service to discharge their duties sincerely,
faithfully and whole-heartedly. In the instant case, not only the
workmen refused to join duty, but they prevented other employees who had
amicably settled the matter with the Management in discharging their
duties by administering threat and by successfully obstructing the
Management in the discharge of its obligations as Public Utility
Undertaking. Serious view, therefore, was called for. There was total
and complete misconception on the part of the High Court in holding that
the punishment was 'harsh'. It was, therefore, submitted on behalf of
the Management that the order passed by the learned Single Judge and
modified by the Division Bench deserves to be set aside by confirming
the action taken by the Management and approved by the Labour Court,
Coimbatore.
The learned counsel
for the respondent-Union, on the other hand, supported the order passed
by the Division Bench of the High Court. According to him, the learned
Single Judge was fully justified in partly allowing the petition
observing that the punishment imposed on the workmen was 'clearly harsh'
and in setting aside that part of the punishment by which
increment/increments was/were stopped. Since the punishment imposed by
the Management was grossly disproportionate, the learned Single Judge
was also right in directing the Bank Management to pay salary with 12%
interest. It is no doubt true, stated the learned counsel, that the
Division Bench partly set aside the direction of the learned Single
Judge by modifying the punishment permitting stoppage of
increment/increments of the workmen without cumulative effect and by
setting aside payment of salary with 12% interest, but as the said part
of the order passed by the Division Bench has not been appealed against
by the Union, it would remain. But no case has been made out by the Bank
Management to interfere with the order of the Division Bench and the
appeal deserves to be dismissed.
FINDINGS RECORDED
We have given our most anxious and thoughtful consideration to the rival
contentions of the parties. From the facts referred to above and the
proceedings in the inquiry and final order of punishment, certain facts
are no longer in dispute. A call for strike was given by the Union which
was illegal, unlawful and not in consonance with law. Conciliation
proceedings had been undertaken and there was amicable settlement of
dispute between the Management on the one hand and the Union on the
other hand. Pursuant to such settlement, 134 workmen resumed duty. 53
workmen, however, in spite of the strike being illegal, refused to join
duty. Their action was, therefore, ex facie illegal. The workmen were,
in the circumstances, placed under suspension and disciplinary
proceedings were initiated. In spite of several opportunities, they did
not co-operate with the inquiry and the Inquiry Officer was compelled to
proceed ex parte against them. Four allegations were levelled against
the workmen;
(i) The employees
did not come for work from April 17, 1972;
(ii) They took part in illegal strike from that date, i.e. April 17,
1972;
(iii) They prevented other employees who returned for work from joining
duty by administering threat to them; and
(iv) They prevented the employees who came to receive wages on April 17,
1972.
At the enquiry, all
the charges levelled against the employees were established. In the
light of the said finding, the Management imposed punishment of
(i) stoppage of increment of 1 to 4 years with cumulative effect; and
(ii) non-payment of salary during period of suspension. In our
considered opinion, the action could not be said to be arbitrary,
illegal, unreasonable or otherwise objectionable. When the Union
challenged the action and reference was made by the 'appropriate
Government' to the Labour Court, Coimbatore, the Labour Court considered
all questions in their proper perspective. After affording opportunity
of hearing to both the parties, the Labour Court negatived the
contention of the Union that the proceedings were not in consonance with
principles of natural justice and the inquiry was, therefore, vitiated.
It held that the inquiry was in accordance with law. It also recorded a
finding that the allegations levelled against the workmen were proved
and in view of the charges levelled and proved against the workmen, the
punishment imposed on them could not be said to be excessive, harsh or
disproportionate. It accordingly disposed of the reference against the
workmen. In our considered opinion, the award passed by the Labour Court
was perfectly just, legal and proper and required 'no interference'. The
High Court, in exercise of power of judicial review under Article
226/227 of the Constitution, therefore, should not have interfered with
the well-considered award passed by the Labour Court.
The learned counsel
for the Union, however, submitted that under the 'doctrine of
proportionality', it was not only the power, but the duty of the 'Writ
Court' to consider whether the penalty imposed on workmen was in
proportion to the misconduct committed by the workmen. Our attention, in
this connection, was invited by both the sides to several decisions of
English Courts as also of this Court.
DOCTRINE OF
PROPORTIONALITY
So far as the doctrine of proportionality is concerned, there is no
gainsaying that the said doctrine has not only arrived at in our legal
system but has come to stay. With the rapid growth of Administrative Law
and the need and necessity to control possible abuse of discretionary
powers by various administrative authorities, certain principles have
been evolved by Courts. If an action taken by any authority is contrary
to law, improper, unreasonable, irrational or otherwise unreasonable, a
Court of Law can interfere with such action by exercising power of
judicial review. One of such modes of exercising power, known to law is
the 'doctrine
of proportionality'.
'Proportionality' is
a principle where the Court is concerned with the process, method or
manner in which the decision-maker has ordered his priorities, reached a
conclusion or arrived at a decision. The very essence of decision-making
consists in the attribution of relative importance to the factors and
considerations in the case. The doctrine of proportionality thus steps
in focus true nature of exercise the elaboration of a rule of
permissible priorities.
de Smith states that
'proportionality' involves 'balancing test' and 'necessity test'.
Whereas the former ('balancing test') permits scrutiny of excessive
onerous penalties or infringement of rights or interests and a manifest
imbalance of relevant considerations, the latter ('necessity test')
requires infringement of human rights to the least restrictive
alternative. ['Judicial Review of Administrative Action'; (1995); pp.
601-605; para 13.085; see also Wade & Forsyth; 'Administrative Law';
(2005); p.366].
In
Halsbury's Laws of England, (4th edn.); Reissue, Vol.1(1); pp.144-45;
para 78, it
is stated;
"The court will quash exercise of discretionary powers in which there is
no reasonable relationship between the objective which is sought to be
achieved and the means used to that end, or where punishments imposed by
administrative bodies or inferior courts are wholly out of proportion to
the relevant misconduct. The principle of proportionality is well
established in European law, and will be applied by English courts where
European law is enforceable in the domestic courts. The principle of
proportionality is still at a stage of development in English law; lack
of proportionality is not usually treated as a separate ground for
review in English law, but is regarded as one indication of manifest
unreasonableness."
The doctrine has its genesis in the field of Administrative Law. The
Government and its departments, in administering the affairs of the
country, are expected to honour their statements of policy or intention
and treat the citizens with full personal consideration without abuse of
discretion. There can be no 'pick and choose', selective applicability
of Government norms or unfairness, arbitrariness or unreasonableness. It
is not permissible to use a 'sledge-hammer to crack a nut'. As has been
said many a time; "Where paring knife suffices, battle axe is
precluded".In the celebrated decision of Council of Civil Service
Union (CCSU) v. Minister for Civil Service, (1984) 3 All ER 935 :
(1984) 3 WLR 1174 : (1985) AC 374 (HL), Lord Diplock proclaimed;
"Judicial review has
I think developed to a stage today when, without reiterating any
analysis of the steps by which the development has come about, one can
conveniently classify under three heads the grounds on which
administrative action is subject to control by judicial review. The
first ground I would call 'illegality', the second 'irrationality' and
the third 'procedural impropriety'. This is not to say that further
development on a case by case basis may not in course of time add
further grounds. I have in mind particularly the possible adoption in
the future of the principle of proportionality' " (emphasis supplied)
CCSU has been reiterated by English Courts in several subsequent cases.
We do not think it necessary to refer to all those cases.
So far as our legal
system is concerned, the doctrine is well-settled. Even prior to CCSU,
this Court has held that if punishment imposed on an employee by an
employer is grossly excessive, disproportionately high or unduly harsh,
it cannot claim immunity from judicial scrutiny, and it is always open
to a Court to interfere with such penalty in appropriate cases.
In Hind Construction Co. v. Workmen, (1965) 2 SCR 85 : AIR 1965
SC 917, some workers remained absent from duty treating a particular day
as holiday. They were dismissed from service. The Industrial Tribunal
set aside the action. This Court held that the absence could have been
treated as leave without pay. The workmen might have been warned and
fined. (But) "It is impossible to think that any reasonable employer
would have imposed the extreme punishment of dismissal on its entire
permanent staff in this manner." The Court concluded that the punishment
imposed on the workmen was not only severe and out of proportion to the
fault, but one which, in our judgment, no reasonable employer would have
imposed. (emphasis supplied)
In Indian Chamber
of Commerce v. Workmen, (1972) 1 SCC 40 : AIR 1972 SC 763, the
allegation against the employee of the Federation was that he issued
legal notices to the Federation and to the International Chamber of
Commerce which brought discredit to the Federation the employer.
Domestic inquiry was held against the employee and his services were
terminated. The punishment was held to be disproportionate to the
misconduct alleged and established. This Court observed that "the
Federation had made mountain out of a mole hill and made a trivial
matter into one involving loss of its prestige and reputation."
In Ranjit Thakur
referred to eariler, an army officer did not obey the lawful command of
his superior officer by not eating food offered to him. Court Martial
proceedings were initiated and a sentence of rigorous imprisonment of
one year was imposed. He was also dismissed from service, with added
disqualification that he would be unfit for future employment. Applying
the doctrine of proportionality and following CCSU, Venkatachaliah, J.
(as His Lordship then was) observed:
"The question of the choice and quantum of punishment is within the
jurisdiction and discretion of the court-martial. But the sentence has
to suit the offence and the offender. It should not be vindictive or
unduly harsh. It should not be so disproportionate to the offence as to
shock the conscience and amount in itself to conclusive evidence of
bias. The doctrine of proportionality as part of the concept of judicial
review, would ensure that even on an aspect which is, otherwise, within
the exclusive province of the court-martial, if the decision of the
court even as to sentence is an outrageous defence of logic, then the
sentence would not be immune from correction. Irrationality and
perversity are recognized grounds of judicial review."
(Emphasis supplied)
DOCTRINE OF
PROPORTIONALITY : WHETHER APPLICABLE
From the above decisions, it is clear that our legal system also has
accepted the doctrine of proportionality. The question, however, is
whether in the facts and circumstances of the present case, the High
Court was justified in invoking and applying the doctrine of
proportionality. In our judgment, the answer must be in the negative.
Normally, when disciplinary proceedings have been initiated and finding
of fact has been recorded in such inquiry, it cannot be interfered with
unless such finding is based on 'no evidence' or is perverse, or is such
that no reasonable man in the circumstances of the case would have
reached such finding. In the present case, four charges had been
levelled against the workmen. An inquiry was instituted and findings
recorded that all the four charges were proved.
The Labour Court
considered the grievances of the workmen, negatived all the contentions
raised by them, held the inquiry to be in consonance with principles of
natural justice and findings supported by evidence. Keeping in view the
charges proved, the Labour Court, in our opinion, rightly held that the
punishment imposed on workmen could not be said to be harsh so as to
interfere with it.In our opinion, therefore, the High Court was not
right in exercising power of judicial review under Article 226/227 of
the Constitution and virtually substituting its own judgment for the
judgment of the Management and/or of the Labour Court. To us, the
learned counsel for the appellant-Bank is also right in submitting that
apart from charges 1 and 2, charges 3 and 4 were 'extremely serious' in
nature and could not have been underestimated or underrated by the High
Court.In this connection, it is profitable to refer to a decision of
this Court in Bengal Bhatdee Coal Co. v. Ram Prabesh Singh & Ors.,
(1964) 1 SCR 709 : AIR 1964 SC 486. In that case, the respondents were
employees of the appellant. A strike was going on in the concern of the
appellant. The respondents obstructed loyal and willing trammers from
working in the Colliery and insisted those workmen to join them in the
obstruction. A charge-sheet was served on the respondents and
disciplinary inquiry was instituted. They were found guilty and were
dismissed from service. Since another reference was pending, approval of
the Industrial Tribunal was sought which was granted. In a reference,
however, the Industrial Tribunal held that penalty of dismissal was
uncalled for and amounted to victimization. The Management approached
this Court.
Allowing the appeal,
setting aside the order of the Tribunal and upholding the order of
dismissal, this Court stated;
Now there is no doubt that though in case of proved misconduct, normally
the imposition of a penalty may be within the discretion of the
management there may be cases where the punishment of dismissal for the
misconduct proved may be so unconscionable or so grossly out of
proportion to the nature of the offence that the tribunal may be able to
draw an inference of victimisation merely from the punishment inflicted.
But we are of opinion that the present is not such a case and no
inference of victimisation can be made merely from the fact that
punishment of dismissal was imposed in this case and not either fine or
suspension. It is not in dispute that a strike was going on during those
days when the misconduct was committed. It was the case of the appellant
that the strike was unjustified and illegal and it appears that the
Regional Labour Commissioner, Central, Dhanbad, agreed with this view of
the appellant. It was during such a strike that the misconduct in
question took place and the misconduct was that these thirteen workmen
physically obstructed other workmen who were willing to work from doing
their work by sitting down between the tramlines. This was in our
opinion serious misconduct on the part of the thirteen workmen and if it
is found as it has been found proved, punishment of dismissal would be
perfectly justified. (emphasis supplied)
In M.P. Electricity Board v. Jagdish Chandra Sharma, (2005) 3 SCC
401, this Court held that dismissal for breach of discipline at
workplace by employee could not be said to be disproportionate to the
charge levelled and established and no interference was called for on
the ground that such punishment was shockingly disproportionate to the
charge pleaded and proved.
As observed by this
Court in M.P. Gangadharan & Anr. v. State of Kerala & Ors.,
(2006) 6 SCC 162, the constitutional requirement for judging the
question of reasonableness and fairness on the part of the statutory
authority must be considered having regard to the factual matrix in each
case. It cannot be put in a straight-jacket formula. It must be
considered keeping in view the doctrine of flexibility. Before an action
is struck down, the Court must be satisfied that a case has been made
out for exercise of power of judicial review. The Court observed that we
are not unmindful of the development of the law that from the doctrine
of 'Wednesbury unreasonableness', the Court is leaning towards the
doctrine of 'proportionality'. But in a case of this nature, the
doctrine of proportionality must also be applied having regard to the
purport and object for which the Act was enacted.
It was then
contended on behalf of 53 workmen that if the objectionable act on the
part of the workmen was going on strike, all workmen ought to have been
treated equally and even-handedly. The Management was not right in
reinstating 134 employees immediately by depriving similar benefit to 53
employees. It was, therefore, submitted that in the facts and
circumstances of the case, the High Court was right in considering that
aspect. Keeping in view the fact that they (134 workmen) had joined work
and resumed duty, they were paid wages also. Since other employees (53
workmen) had not joined duty, the action of the Management of
non-payment of salary may not be interfered with. But if they would be
visited with other penal consequences of stoppage of
increment/increments, the action would be arbitrary and unreasonable.
We are unable to
uphold the contention. In our considered opinion, 53 employees cannot be
said to be similarly situated to 134 employees who had entered into
amicable settlement with the Management and resumed duty in 1972. It is
settled law that equals must be treated equally and unequal treatment to
equals would be violative of Article 14 of the Constitution. But, it is
equally well-established that unequals cannot be treated equally. Equal
treatment to unequals would also be violative of 'equal protection
clause' enshrined by Article 14 of the Constitution. So far as 134
employees are concerned, they accepted the terms and conditions of the
settlement and resumed work. 53 workmen, on the other hand, did not
accept the settlement, continued with the strike which was declared
illegal and unlawful and in departmental inquiry, they were found
guilty. Moreover, they resorted to unlawful actions by administering
threat to loyal workers. 53 workmen, therefore, in our judgment, cannot
be said to form one and the same class in which 134 employees were
placed. 53 employees, therefore, cannot claim similar benefit which had
been granted to 134 employees.
In Union of India
v. Parma Nanda, (1989) 2 SCC 177, a similar mistake was committed by
the Central Administrative Tribunal which was corrected by this Court.
In that case, P, an employee was chargesheeted alongwith other two
employees for preparing false pay bills and bogus identity card. All of
them were found guilty. A minor punishment was imposed on two employees,
but P was dismissed from service since he was the 'mastermind' of the
plan. P approached the Central Administrative Tribunal. The Tribunal
modified the punishment on the ground that two other persons were let
off with minor punishment but the same benefit was not given to P. His
application was, therefore, allowed and the penalty was reduced in the
line of two other employees. The Union of India approached this Court.
It was urged that the case of P was not similar to other employees
inasmuch as he was the principal delinquent who was responsible for
preparing the whole plan was a party to the fraud and the Tribunal was
in error in extending the benefit which had been given to other two
employees. Upholding the contention, this Court set aside the order
passed by the Tribunal and restored the order of dismissal passed by the
Authority against him.
The principle laid
down in Parma Nanda has been reiterated recently in Obettee (P) Ltd.
V. Mohd. Shafiq Khan, (2005) 8 SCC 47. In Obettee, M instigated the
workers of the factory to go on strike. He did not allow the vehicles
carrying the articles to go out of the factory and also administered
threat to co-workers. Proceedings were initiated against three
employees. Two of them tendered unconditional apology and assurance in
writing that they would perform their duties diligently and would not
indulge in strike. The proceedings were, therefore, dropped against
them. M, however, continued to contest the charges levelled against him.
He was held guilty and was dismissed from service. The Tribunal upheld
the action. The High Court, however, held that the distinction made by
the Tribunal between M and other two workmen was 'artificial' and
accordingly granted relief to M similar to one granted to other two
employees.
Setting aside the
order of the High Court, upholding the action taken against him and
restoring the order of the Tribunal, this Court observed that the cases
of other two employees stood on a different footing and the High Court
failed to appreciate the distinctive feature that whereas the two
employees tendered unconditional apology, M continued to justify his
action. The order of the High Court was, therefore, clearly
unsustainable. It, therefore, cannot be said that the cases of 53
employees were similar to 134 employees and 53 employees were also
entitled to claim similar benefit as extended by the Management to 134
employees.
The net result of
the above discussion would be that the decision rendered by the learned
Single Judge and modified by the Division Bench of the High Court must
be set aside. Certain developments, however, were brought to our notice
by the learned counsel for the Union. It was stated that though in the
departmental proceedings the workmen were held guilty, their services
were not terminated. They were not paid wages for intervening period for
which they had not worked, but were allowed to join duty and in fact
they resumed work in the year 1973. This was done before more than three
decades. The Labour Court did not grant any relief to them. Though the
learned Single Judge allowed their petition and granted some relief, the
order was modified by the Division Bench. 53 employees are now
performing their functions and discharging their duties faithfully,
diligently and to the satisfaction of the appellant-Bank. No proceedings
have been initiated against them thereafter. 'Industrial peace' has been
restored. If at this stage, some order will be passed by this Court
after so long a period, it may adversely affect the functioning of the
Bank. It was further submitted that the grievance of the Bank has been
vindicated and correct legal position has been declared by this Court.
The Court in the peculiar facts and circumstances of the case,
therefore, may not interfere with a limited relief granted by the
Division Bench of the High Court.
In our considered
view, the submission is well founded and deserves acceptance. Hence,
even though we are of the view that the learned Single Judge was not
right in granting benefits and the order passed by the Division Bench
also is not proper, it would not be appropriate to interfere with the
final order passed by the Division Bench. Hence, while declaring the law
on the point, we temper justice with mercy. In the exercise of plenary
power under Article 142 of the Constitution, we think that it would not
be proper to deprive 53 workmen who have received limited benefits under
the order passed by the Division Bench of the High Court.For the
foregoing reasons, we hold that neither the learned Single Judge nor the
Division Bench of the High Court was justified in interfering with the
action taken by the Management and the award passed by the Labour Court,
Coimbatore which was strictly in consonance with law. In peculiar facts
and circumstances of the case and in exercise of power under Article 142
of the Constitution, we do not disturb the final order passed by the
Division Bench of the High Court on November 3, 2004 in Writ Appeal No.
45 of 2001.
The appeal is
accordingly disposed of in the above terms. In the facts and
circumstances of the case, there shall be no order as to costs.
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