High CourtDivision BenchAppeal allowed

North West Karnataka Road Transport Corporation v. H. H. Pujar

Case / Petition Number:Civil Appeal No. 4520 of 2008
Neutral Citation:[2008] 10 S.C.R. 1149

Case Details & Bench

Court
High Court
Hon'ble Judges
  • Dr. Arijit Pasayat
  • P. Sathasivam
Judgment Date
2008-07-18
Court Decision / Holding
The appeal is allowed; the order of dismissal passed by the North West Karnataka Road Transport Corporation is to operate. The Labour Court and the High Court orders setting aside the dismissal and directing reinstatement with back wages are set aside. The decision reaffirms that the correctness of the domestic enquiry and fairness—especially where the employee admitted not issuing tickets—outweighs the non-examination of some passengers.
Final Disposition
Appeal allowed

Parties to the Case

Appellants / Petitioners

  • North West Karnataka Road Transport Corporation

Respondents

  • H. H. Pujar

Legal Representation & Advocates

Counsels for Petitioners

  • • R. S. Hegde
  • • Chandra Prakash
  • • J. K. Nayyar
  • • Ashwani Garg
  • • E. Rahul Tyagi
  • • P. P. Singh

Case Synopsis & Summary

The case concerns the dismissal of a bus conductor for not issuing tickets to 20 of 136 passengers on a bus operated by the North West Karnataka Road Transport Corporation. Following a domestic enquiry, the conductor was dismissed. The Labour Court found the domestic enquiry fair but set aside the dismissal and directed reinstatement with full back wages, contending that the cash bag and the unissued tickets’ passengers were not checked. The High Court, in a writ appeal, upheld the Labour Court’s view but declined to grant back wages. The appellant contended that the Labour Court’s motive for invalidating the dismissal rested on the non-examination of ticketless passengers, which was immaterial since the conductor admitted not issuing tickets to 20 passengers and the fairness of the proceedings was conceded. It argued that the corporation should be allowed to maintain the dismissal order, and relied on established Indian jurisprudence that in domestic enquiries the strict evidentiary rules of the Indian Evidence Act may not apply and that the sufficiency of evidence is primarily an evaluative, administrative matter. The Supreme Court allowed the appeal, holding that non-examination of the passengers was inconsequential given the admitted facts and fairness of the proceedings, and set aside the Labour Court and High Court orders, directing that the dismissal order operate.

Provisions of Law Cited

Industrial Disputes Act, 1947, s. 10(4-A)

Legal Doctrines & Maxims

  • Residuum rule
  • Fair play as the basis for domestic enquiries; objective approach and exclusion of extraneous materials
  • Sufficiency of evidence in domestic tribunals is beyond scrutiny

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant submitted that the primary reason for the Labour Court’s finding of fault with the dismissal was the alleged non-examination of passengers to whom tickets were not issued. It was argued that the respondent himself admitted not issuing tickets to 20 passengers, and hence the non-examination of those passengers was inconsequential. The appellant noted the fairness of the domestic enquiry and contended that reliance on prior punishments or systemic reform measures was misplaced. It asserted that the High Court’s conclusions were contrary to law and that, following Rattan Singh and Mane, the order of dismissal should be allowed to operate rather than being overturned by the Labour Court or High Court.

Contentions of Respondents

The respondents’ arguments are not explicitly stated in a separate section of the document; however, the High Court upheld the Labour Court’s finding that the domestic enquiry was fair and directed reinstatement with back wages. They contended that the integrity and fairness of the domestic enquiry should be preserved and that the Labour Court’s conclusions should stand, with the administrative tribunal’s evaluation governing the sufficiency of evidence rather than strict evidentiary rules.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
State of Haryana and Anr v. Rattan Singh1977 (2) SCC 491PositiveUsed to support the proposition that, in domestic enquiries, strict Evidence Act rules do not apply and that fair play, objectivity, and reasonable probative materials govern the inquiry.
Divisional Controller KSRTC (NWKSRTC) v. A. T Mane2004 (8) SCALE 308PositiveReiterated the standard that fairness of the domestic inquiry matters and that the sufficiency of evidence is a matter for administrative tribunals, reinforcing the decision to set aside certain labour-court findings.

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Extracted Judgment Text

Exact text extracted from official judgment records.

[2008] 10 S.C.R. 1149 A NORTH WEST KARNATAKA ROAD TRANSPORT CORPN. _V._ ## H.H. PUJAR (Civil Appeal No.4520 of 2008) JULY 18, 2008 B [DR. ARIJIT PASAYAT AND P. SATHASIVAM, JJ.] _y_ _Labour Laws_ - _Dismissal from service_ - _Of bus conductor_ - _For the misconduct of not issuing tickets to some pas-_ c _sengers_ - _Labour court_ as _well as High Court setting aside order of dismissal on the ground that ticket-less passengers were not examined_ - _On appeal, held: Order of dismissal justified_ - _Non-examination of_ passengers is _inconsequential in view of the facts that proceedings of domestic enquiry were_ 0 _fair and that the conductor admitted having not issued the tickets_ - _Industrial Disputes Act, 1947_ - s. _10 (4-A)._ The bus, on which the respondent-conductor was commissioning, was intercepted by the checking staff. It was fond that the respondent had not issued tickets to E 20 out .of 136 passengers. In domestic _enquiry he was found guilty and consequently dismissed from service. Labour Court though held that the domestic enquiry was fair, set aside the order of dismissal and direct his rein• statement with conformity of service and back wages, on F the ground that cash bag of the respondent and the ticketless passengers were not checked. Single Judge of High Court confirmed the order except the direction for payment of back wages. Writ appeal was dismissed as not maintainable. Hence the present appeal. F G Allowing the appeal, the Court ,, HELD: Since fairness of the proceedings was conceded and the respondent admitted that he had not is- H 1149 1150 SUPREME COURT REPORTS [2008] 10 S.C.R. A sued tickets to 20 passengers, non-examination of the passengers is really of no consequence·. The order of dismissal passed by the Corporation is to operate. [Paras 9 and 10] [1153-E,F & G] _State of Haryana and Anr v. Rattan Singh_ 1977 (2) SCC B. 491; _Divisional Controller KSRTC (NWKSRTC) v. A. T Mane_ 2004 (8) S~ALE 308- relied on . . .. Case Law Reference 1977 (2) SCC 491 Relied on Para 7 C· 2004 (8) SCALE 308 Relied on Para 8 CIVILAPPELLATE JURISDICTION: Civil Appeal No. 4520 of.2008. From the final Order and Judgment dated 21.10.2005 and 0 21.6.2006 of the High Court of Karnataka at Bangalore in W.P. No. 17519/2000 (L-KSRTC) and W.A. No. 3830/2005 (LKSRTC) respec!ively R.S. Hegde, Chandra Prakash, J.K. Nayyar., Ashwani Garg,_ E Rahul Tyagi and P.P. Singh for the Appellant. }he Judgmentofthe Court was delivered by · Dr. ARIJIT PASAYAT, J. 1. Leave granted. 2. ·challenge in this appeal·is to the judgment of a Division F Bench of the Karnataka High Court in the writ appeal no.3830/ 2005 dismissing appeal against the order of learned Sing!e Judge in Writ Petition No.17519/2000. The writ appeal was dismissed as not maintainable and, therefore, the challenge in the present is essential to the order of learned Single Judge. ~ G 3. Background facts in a nutshell are as follows: Respondent-Conductor was commissioning as such in Bus No. F-16 on 15.9.1993 when the bus was intercepted by the checking staff. It was found that the respondent had not issued H tickets to 20 out of 136 passengers. Appellant conducted do- NORTH WEST KARNATAKA ROAD TRANSPORT 1151 CORPN. _v._ H.H. PUJAR [DR. ARIJIT PASAYAT, J.] ~ _-r_ , _;k_ mestic enquiry which found him guilty. Consequently, he was ·A dismissed from service vide order dated 3.4.1995. The same was challenged by the respondent before the Labour Court invoking Section 10(4-A) of the Industrial Disputes Act, 194 7 (in short the 'Act'). The Labour Court held that the domestic inquiry was fair and proper on the basis of the memorandum filed B by the respondent conceding to the fairness of the domestic inquiry. However, the Labour Court set aside the order of dismissal and directed reinstatement of respondent with full back wages, continuity of service and other consequential benefits. The basis for this order was non-checking of cash bag of the respondent and non-examination of ticketless passengers. The[c ] order was challenged before the High Court. By order dated 21.10.2005, the learned Single Judge held that the order was correct so far as setting aside dismissal order is concerned, direction for reinstatement and continuity of service and consequential benefits. However, the direction relating to back wages[D ] was set aside. The writ appeal as noted above, was dismissed on the ground that the same was not maintainable ... _)._ 4. In support of the appeal learned counsel for the appellant submitted that the primary reason indicated by the Labour Court to hold that the order of dismissal was bad, was the alleged nonexamination of the passengers to whom the respondent had not issued the tickets. It also did not find any substance in the stand of the Corporation that earlier also on 12 occasions for similar charges punishments were awarded but the respondent did not improve his conduct. The High Court found that the conclusions of the Labour Court were correct. It was noted that if more passengers were carried within the permissible limit, it was fault of the Corporation who did not took timely reformative and remedial m'easures. · E F 5. Learned counsel for the appellant submitted that the view G expressed by the High Court is clearly contrary to the law laid down by this Court. Further, when the respondent himself conceded to the fairness of the proceedings and the fact that he had not issued tickets to twenty passengers, their non-examination is of no consequences. H H SUPREME COURT REPORTS [2008] 10 S.C.R. 1152 A 6. There is no appearance on behalf of the respondent in spite of service of notice. 7. In _State of Haryana and Anr. v. Rattan Singh_ (1977 (2) sec 491), it was, inter alia, held as follows: B "4. It is well settled that in a domestic enquiry the strict and ,,.._ sophisticated rules of evidence under the Indian Evidence Act may not apply. All materials which are logically probative for a prudent mind are permissible. There is no allergy to hearsay evidence provided it has reasonable c nexus and credibility. It is true that departmental authorities and Administrative Tribunals must be careful in evaluating such material and should not glibly swallow what is strictly speaking not relevant Linder the Indian Evidence Act. For this proposition it is not necessary to cite decisions nor text books, although we have been taken through case-law and D other authorities by counsel on both sides. The essence of "' a judicial approach is objectivity, exclusion of extraneous materials or considerations and observance of rules of natural justice. Of course, fairplay is the basis and if perversity or arbitrarine.ss, bias or surrender of E independence of judgment vitiate the conclusions reached, such finding, even though of a domestic tribunal, cannot be held good. However, the courts below misdirected themselves, perhaps, in insisting that passengers who had come in and gone out should be chased and brought before F the tribunal before a valid finding could be recorded. The _., 'residuum' rule to which counsel for the respondent referred, based upon certain passages from American Jurisprudence does not go to that extent nor does the passage from Halsbury insist on such rigid requirement. The simple point G is, was there _some_ evidence or was there _no_ evidence - not in the sense of the technical rules governing regular court proceedings but in a fair commonsense way as men of understanding and worldly wisdom will accept. Viewed in this way, sufficiency of evidence in proof of the finding by H a domestic tribunal is beyond scrutiny. Absence of _any_ ,,.._ ' NORTH WEST KARNATAKA ROAD TRANSPORT 1153 CORPN. _v._ H.H. PUJAR [DR. ARIJIT PASAYAT, J.] _evidence_ in support of a finding is certainly available for the A court to look into because it amounts to an error of law apparent on the record. We find, in this case, that the evidence of Chamanlal, Inspector of the Flying Squad, is _some_ evidence which has relevance to the charge levelled against the respondent. Therefore, we are unable to hold B that the order is invalid on that ground. .. 5. Reliance was placed, as earlier stated, on the noncompliance with the departmental instruction that statements of passengers should be recorded by inspectors. These are instructions of prudence, not rules that bind or vitiate in C the violation. In this case, the Inspector tried to get the statements but the passengers declined., the psychology of the latter in such circumstances being understandable, although may not be approved. We cannot hold that merely because statements of passengers were ·not recorded the D order that followed was invalid. Likewise, the re-evaluation of the evidence on the strength of co-conductor's testimony is a matter not for the court but for the Administrative Tribunal. In con- clusion, we do not think the courts below were right in overturning the finding of the domestic tribunal." E E 8. The view was reiterated in _Divisional Controller KSRTC_ . _(NWKSRTC) v. A. T Mane_ (2004 (8) SCALE 308). 9. As rightly contended by the appellant since fairness of ,i.. the proceedings was conceded and the respondent admitted that he had not issued tickets to 20 passengers, their non-examination is really of no consequence. F > 10. In view of what has been stated by this Court in _Rattan Singh's_ case (supra) and in _A. T Mane's_ case (supra) award of the Labour Court and impugned order of the High Court cannot G be maintained and are set aside. The order of dismissal passed · by the Corporation is to operate. 11. The appeal is allowed without any order as to costs. K.K.T. Appeal allowed. H