High CourtDivision BenchAppeal dismissed; compensation awarded in lieu ...

Management of Aurofood Pvt. Ltd. v. S. Rajulu

Case / Petition Number:Civil Appeal No. 4735 of 2006
Neutral Citation:[2008] 5 S.C.R. 1080

Case Details & Bench

Court
High Court
Hon'ble Judges
  • Tarun Chatterjee
  • Harjit Singh Bedi
Judgment Date
2008-04-03
Court Decision / Holding
Appeal dismissed. In lieu of reinstatement, the respondent is awarded Rs. 10,00,000 as compensation in full and final settlement of all claims; no costs.
Final Disposition
Appeal dismissed; compensation awarded in lieu of reinstatement; no costs.

Parties to the Case

Appellants / Petitioners

  • Management of Aurofood Pvt. Ltd.

Respondents

  • S. Rajulu

Legal Representation & Advocates

Counsels for Petitioners

  • • R. Sundaravaradan
  • • R.N. Keshwani
  • • Ramlal Roy
  • • Sumeera Raheja

Counsels for Respondents

  • • S. Gurukrishna Kumar
  • • S.R. Setia

Case Synopsis & Summary

This appeal concerns the dismissal of S. Rajulu, a Packer employed by the Management of Aurofood Pvt. Ltd., following a domestic enquiry that found him guilty of serious misconduct, including using foul language toward superiors and misbehaving with a lady officer. Suspended in 1981, he faced a charge sheet, a second charge, and a full enquiry which led to dismissal under the company’s Standing Orders. The Labour Court later referred the matter for adjudication and the Labour Court’s award upheld the enquiry. A High Court Single Judge then directed reinstatement with full back wages on grounds that the misconduct, even if proved, was trivial and that the punishment of dismissal was excessive, especially since antecedents were considered without an opportunity to rebut. The Division Bench of the High Court affirmed the Single Judge’s view. The appellant challenged the high court rulings under Article 136, arguing, among other points, that the enquiry was properly conducted, there was no justification to interfere with the punishment, and that the authorities were correct in considering antecedents. The Supreme Court ultimately held that the questions of fact decided by the High Court require no interference, noting the long lapse since 1981 and the strained relationship between the parties. It dismissed the appeal and replaced reinstatement with a compensation of Rs. 10 lakh as full and final settlement, with no costs.

Provisions of Law Cited

Industrial Disputes Act, 1947Constitution of India, Article 136Constitution of India, Article 226Standing Orders (company)

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contended that the domestic enquiry was properly conducted and that the High Court erred in interfering with the quantum of punishment under Article 226. It argued that the High Court’s finding that taking into account the respondent’s antecedents without affording him an opportunity to rebut was incorrect, and that the gravity of the charges, including misconduct amounting to abuse of authority, justified dismissal. It urged deference to the enquiry and the punishing authority, and argued that the writ court should not substitute its own assessment for the adjudicator’s.

Contentions of Respondents

The respondent contended that the enquiry was biased; the enquiry officer preferred the supervisor’s testimony over the respondent’s, indicating a lack of fair hearing. He claimed he was not given a fair opportunity to rebut punitive considerations, including his antecedents. He pressed that the Division Bench did not support the High Court’s findings, and that reinstatement with back wages was warranted under the writ jurisdiction.

Cited Precedents (3)

Case NameCitationTreatmentExplanation
Mahindra and Mahindra Ltd. v. N.B. Narawade2005) 3 SCC 134Mentioned OnlyCited by counsel; the Court stated that these judgments do not adequately meet the issues raised and thus were not controlling in the decision.
State Bank of India & Ors. v. Ramesh Dinkar Punde2006) 7 SCC 212Mentioned OnlyCited by counsel; not relied upon to decide the central issues; treated as not controlling in this case.
State of Orissa v. Bidyabhushan Mohapatra1963 SCR 648Mentioned OnlyCited by counsel; the judgments do not adequately address the issues; hence listed as mentioned only.

Diagnostic Tool

Beta

Does this judgment govern your specific facts?

Don't risk relying on a distinguishable precedent. Enter your facts or proposition below. We will test it against Management of Aurofood Pvt. Ltd. v. S. Rajulu and instantly map out authorities that support, challenge, or govern your position.

Extracted Judgment Text

Exact text extracted from official judgment records.

[2008] 5 S.C.R. 1080 Ir- ' 8 A MANAGEMENT OF AUROFOOD PVT. LTD. _v._ S. RAJULU (Civil Appeal No. 4735 of 2006) APRIL 3, 2008 **(TARUN CHATIERJEE AND HARJIT SINGH BEDI, JJ.)** t • _Labour Laws:_ _Industrial Disputes Act, 1947:_ c - _Misconduct Workman allegedly misbehaved and used_ - _filthy language against superiors including a lady officer_ - - - _Dismissed from service Correctness of Held: Correct Even the High Court has found the charges proved, though_ D _[trivial ][-There ][exists bitter relations between the parties ]_[-] _Incumbent has not been reinstated in service in terms of the orders of the High Court and not in service since 1981_ - _Under the circumstances, it would be inappropriate to foist a cantankerous and abrasive workman on appellant-company_ - _Appellant directed to make payment of Rupees ten lacs as_ E _compensation to workmen in full and final settlement of the_ - _claim Directions issued._ E -; ~ - _Constitution of India -Article 136 Scope of- Discussed._ **Respondent was working as a Packer with the** F **appellant-company. He was put under suspension allegedly for not discharging duties properly and also for misbehaving with the superiors. A charge-sheet was served upon him alleging the charges of misconduct, however, he continued to use foul and filthy language and** G **threatened the senior officers of dire consequences if any adverse report was made against him. He was also served a second charge-sheet for allegedly misbehaving with a lady Officer. A domestic enquiry was conducted against him, which indicted him on both the charges. The** H 1080 H 'f _<'._ 1081 MANAGEMENT OF AUROFOOD PVT. LTD. _v._ S.RAJULU ~ management accepted the findings of the enquiry officer A and took a tentative decision to impose the punishment of dismissal in terms of the Standing Orders. A showcause notice was also served to him. The reply furnished by the delinquent was found unsatisfactory and he was dismissed from service. The Government declined to refer B the dispute for adjudication. The respondent thereafter moved a representation and the matter was referred to the Labour Court. The Labour Court passed an award holding the finding of enquiry Officer justified. Aggrieved, the delinquent filed a writ petition in the High Court. Single c Judge of the High Court observed that the misconduct, even if held to be proved, really amounted to the use of "unparliamentary language" and was trivial in nature and the punishment of dismissal was not justified alid the punishing authority had without notice to the respondent D workman, taken his antecedents into account. Single Judge of the High Court directed the reinstatement of the respondent with full back wages. An appeal filed thereagainst by the appellant was dismissed by the Division Bench of the High Court Hence the present appeal. E E Appellant-employer contended that the Single Judge having found the domestic enquiry against the workman was properly conducted and that the workman indeed was guilty of misbehaviour, there was no justification in F interfering with the quantum of the punishment by the High Court in exercise of the writ jurisdiction under Article 226 _'1_ of the Constitution of India; that the High Court was wrong in its finding that the punishing authority was not justified in taking into account the antecedents of the workman respondent as he had not been given the opp~rtunity to[G ] rebut the allegations; and that very grave charges had been levelled against the respondent which included the . ~ use of filthy language in the presence of a lady supervisor and no interference ought to have been made in the writ jurisdiction. H SUPREME COURT REPORTS [2008) 5 S.C.R. 1082 ...... A Respondent-employee submitted that the enquiry conducted against him was a biased one as the observation of the enquiry officer that the evidence given by the supervisor was to be preferred vis-a-vis the evidence given by respondent workman was, on the face B[of ][it, unacceptable as each piece ][of ][evidence had to be ] examined as per its merit; and that the observation clearly pointed to the fact that the respondent had not been given a fair hearing and in this view of the matter, no interference with the impugned order was called for. c Dismissing of the appeal, the Court l HELD: 1.1 The questions of fact which have been decided by the High Court call for no interference by this Court under Article 136 of the Constitution. (Para - 5) D[[1085-G-H] ] 1.2 The workman has been out of employment since the year 1981 and despite succeeding before the Single Bench of the High Court he has not yet been reinstated in service because of the interim order passed in this E[litigation. Accordingly ][it ][was suggested that on account ] of the situation as existed, it would, perhaps, be appropriate that the respondent be given a compensation package rather than an order of reinstatement. (Para -5) [1086-A-B] F 1.3 Consequent upon the bitter relations between the parties and as even the High Court has found the charges proved though 'trivial' and the fact that the respondent has not been on duty with the appellant-management since the year 1981, it would be inappropriate to foist a G cantankerous and abrasive workman on it. Accordingly, it is directed that instead of reinstatement, the respondent would be entitled to the payment of Rs.10,00,000/- as compensation as full and final settlement with respect to his entire claim. (Para - 5) [1086-D-E] i • _"(_ H 1083 ~ # MANAGEMENT OF AUROFOOD PVT. LTD. _v._ S. RAJULU [HARJIT SINGH BEDI, J.] CIVIL APPELLATE JURISDICTION : Civil Appeal No. 4735 of 2006. A From the final Judgment and Order dated 18.4.2005 of the High Court of Judicature at Madras in W.A. 491/2001 R. Sundaravaradan, R.N. Keshwani, Ramlal Roy and Sumeera Raheja for the Appellant. B S. Gurukrishna Kumar and S.R. Setia for the Respondent. The Judgment of the Court was delivered by **HARJIT SINGH BEDI, J.** 1. The facts leading to the filing[c ] of this appeal are as under: y 2. The respondent, who was working as a Packer with the appellant company was put under suspension vide order dated 26th April 1981. A charge-sheet dated 28th April 1981 was D thereafter served upon him alleging that on 24th April 1981 he had been found wasting his time eating biscuits near the store room and on being questioned by his superior, had answered insolently and told him that he too was dishonest and that he was not afraid to face the consequences. The respondent was E then taken to one Moses, a senior officer, but he continued to use foul and filthy language and threatened Moses that if he made a report against him, he would break his legs. The respondent was also served a second charge-sheet on 11th August 1981 for another misconduct on the allegation that on F 10th August 1981 he had misbehaved with one Mrs. Sasireka and used filthy language against her. A domestic enquiry was thereafter held against the respondent which indicted him on both charges. The management accepted the findings of the enquiry officer and took a tentative decision to impose the punishment of dismissal under the Standing Orders. A showG cause dated 13th October 1981 (Annexure P-3) was also issued to him calling upon to show cause as to why the aforesaid punishment should not be imposed on him. The respondent furnished his reply which was found unsatisfactory and vide order dated 5th November 1981 he was dismissed from service on H F G H SUPREME COURT REPORTS 1084 [2008] 5 S.C.R. F H A account of the gravity of misconduct and for having used abusive language, vide order appended as Annexure P-4. The respondent thereafter raised an industrial dispute. The Government declined to refer the dispute for further adjudication by its order dated 23rd August 1982. The respondent thereafter 8 moved a representation before the Government on 1st September 1986 and the matter was referred to the Labour Court vide order dated 10th August 1987. The Labour Court rendered its award on 30th March 1993 holding that the· disciplinary action initiated against the respondent was not an c act of victimization, that the charges raised against the' respondent stood proved and that the finding of the enquiry officer was justified ( a copy of the award has been appended as Annexure P-5). The respondent thereupon filed a writ petition in the High Court. The learned Single Judge in his judgment 0[and ][order ][dated ][9th ][February ][2001 ][observed ][that ][the ][misconduct ] even if held to be proved really amounted to the use of "unparliamentary language" and was trivial in nature and as the punishment of dismissal had shocked "the conscience of the Court" and as the punishing authority had without notice to the respondent workman, taken his antecedents into account, he E directed the reinstatement of the respondent with full back wages (a copy of this order has been appended asAnnexure P-7). An appeal filed by the appellant-management to the Division Bench was also dismissed vide order dated 1 ath April 2005. The present appeal has been filed as a consequence thereof. 3. While issuing notice in this matter on 19th October 2005, an ad-interim stay was also granted to the appellant. Mr. R.Sundravardhan, the learned senior counsel for the appellant has raised three basic arguments before us in the course of the - G hearing (1) the learned Single Judge having found that the domestic enquiry against the workman was properly conducted and that the workman indeed was guilty of misbehaviour, there was no justification in interfering with the quantum of the punishment in the writ jurisdiction under Article 226 of the Constitution of India, (2) that the High Court was wrong in its MANAGEMENT OF AUROFOOD PVT. LTD. _v._ 1085 1 ~ 4 . ) ## S. RAJULU [HARJIT SINGH BEDI, J.] finding that the punishing authority was not justified in taking A into account the antecedents of the workman respondent as he had not been given the opportunity to rebut these allegations, and (3) very grave charges had been leveled against the respondent which included the use of filthy language in the presence of a lady supervisor and no interference ought to have B been made in the writ jurisdiction. In support of the various pleas raised by him, Mr. Sundravardhan has relied upon (2005) 3 SCC 134 **Mahindra and Mahindra Ltd. v. N.B.Narawade,** (2006) 7 SCC 212 **State Bank of India & Ors. v. Ramesh Dinkar Punde** and (1963) (S) 1 SCR 648 **State of Orissa v.** c **Bidyabhushan Mohapatra.** • _r_ _1_ 4. Mr. S.Guru Krishna Kumar, the learned counsel for the respondent has, however, supported the judgment of the High Court and has pointed out that the enquiry conducted against the respondent was a biased one as the observation of the D enquiry officer that the evidence given by the supervisor was to be pr~ferred vis-a-vis the evidence given by respondent workman was, on the face of it, unacceptable as each piece of evidence had to be examined as per its merit. He has accordingly urged that the observation clearly pointed to the fact E that the respondent had not been given a fair hearing and in this view of the matter, no interference was called for. 5. We have heard the learned counsel for the parties and gone through the record. The Division Bench has held that the F . workman had not been given the requisite material that was required by him to prepare his defence more particular as his antecedents had been taken into account depicting him as incorrigible, though he had not been given any opportunity to rebut these charges. The High Court has also found that the allegations against the workman even if taken to be true were G trivial and.could not justify an order of dismissal from service. The judgments cited by the learned counsel do not adequately meet the issues raised by the High Court. The questions of fact which have been decided by the High Court call for no interference by this Court under Article 136 of the Constitution. H [2008] 5 S.C.R. SUPREME COURT REPORTS 1086 A We also find that the workman has been out of employment since the year 1981 and despite succeeding before the single bench of the High Court on 9th February 2001 he has not yet been reinstated in service because of the interim order passed in this litigation. We had accordingly and at the very outset, B suggested to Mr. Sundravardhan that on account of the situation as now existed, it would, perhaps, be appropriate that the respondent be given a compensation package rather than an order of reinstatement. The learned counsel stated that the management was willing to give no more than Rs.5,00,000/C towards that package. The respondent, on the othe'r hand who was present in Court, insisted that he was not interested in the compensation and would prefer that the orders of the High Court be implemented in letter and spirit. We are of the opinion that consequent upon the bitter relations between the parties and as even the High Court has found the charges proved though 0 'trivial' and the fact that the respondent has not been on duty with the appellant-management since the year 1981, it would be inappropriate to foist a cantankerous and abrasive workman on it. We accordingly dismiss the appeal but direct that instead of reinstatement the respondent would be entitled to the payment E of Rs.10,00,000/- as compensation as full and final settlement with respect to his entire claim. _1_ • 6. There will be no order as to costs. S.K.S. Appeal dismissed. F _{ .._