High CourtDivision BenchAppeal allowed; Labour Court’s award reversed (...

Oriental Textile Finishing Mills, Amritsar v. Labour Court, Jullundur & Ors.

Case / Petition Number:Civil Appeal No. 1071 of 1966
Neutral Citation:[1972] 1 SCR 490

Case Details & Bench

Court
High Court
Hon'ble Judges
  • G. K. Mitter
  • C. A. Vaidalingam
  • P. Jagannmohan Reddy
Judgment Date
2026-03-12
Court Decision / Holding
Appeal allowed; the Labour Court’s Award directing reinstatement of Respondents 2–24 is set aside; Surat Singh’s reinstatement award (due to lack of standing orders) is maintained; there will be no order as to costs.
Final Disposition
Appeal allowed; Labour Court’s award reversed (except Surat Singh’s reinstatement which is maintained); no costs.

Parties to the Case

Appellants / Petitioners

  • Oriental Textile Mills, Amritsar

Respondents

  • Labour Court, Jullundur
  • Respondents Nos. 2 to 24 (workmen)
  • Surat Singh (Respondent No. 16)

Legal Representation & Advocates

Counsels for Petitioners

  • • A. B. Sinha
  • • B. P. Maheshwari

Counsels for Respondents

  • • Hardev Singh

Case Synopsis & Summary

During pendency of a reference under Section 10 of the Industrial Disputes Act, 1947, Oriental Textile Mills terminated the services of 31 workmen who had gone on strike. The management had attempted to persuade the workers to rejoin, issued several notices, and finally struck off their names from the muster rolls, but no domestic inquiry into alleged misconduct was conducted. The Labour Court later held that the termination was not improper and that the workmen should be reinstated, despite the absence of a domestic inquiry and the fact that there were no standing orders applicable to the appellant. The appeal to the Supreme Court addressed whether termination without inquiry was justified. The Court reaffirmed core industrial-principle dicta: workers may strike to press demands without severing the employer–employee relationship, and a strike (even if illegal) does not automatically validate dismissal. However, it held that where misconduct is proven on evidence, the Tribunal may uphold the employer’s action even in the absence of a formal inquiry; the absence of standing orders makes a difference only insofar as it affects the validity of the action, not the necessity of proving misconduct. Ultimately, the Court allowed the appeal in part and restrained reinstatement, holding Surat Singh’s case—where there were no standing orders—retained, while the rest of the Labour Court’s reinstatement order was set aside.

Provisions of Law Cited

Industrial Disputes Act, 1947 - Section 10Industrial Disputes Act, 1947 - Section 23(b) (read with 24(1))Industrial Disputes Act, 1947 - Section 33AConstitution of India - Article 226 (referenced in Express Newspapers case cited within)Standing Orders (Industrial Establishments)

Legal Doctrines & Maxims

  • Workmen may strike to press for demands without snapping the employer–employee relationship.
  • A strike, even if illegal, does not automatically justify termination; there must be a domestic inquiry into misconduct.
  • In the absence of a standing order, termination can still be justified if the management proves misconduct before the Tribunal with adequate evidence.
  • Mala fides, bad faith, victimisation, unfair labour practices or violations of natural justice can justify Tribunal interference in a domestic enquiry.
  • Even where there is no domestic enquiry, the management can justify its action by producing satisfactory evidence of misconduct before the Tribunal.
  • Evidence before the Tribunal should be such as to satisfy that the order of termination is proper, though not as stringent as required in a court of law.

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant argued that, in the absence of standing orders, the management had the right to justify the termination of employees by showing misconduct to the Labour Court. Notices were issued urging the workers to resume duty; they failed to respond; their names were struck off after deadlines. Since there were no domestic inquiries, the management contended that it could still substantiate its actions before the Tribunal with evidence, including documentary proof and correspondence, and that the strike, though illegal, did not automatically invalidate the termination. The absence of an inquiry did not render the action improper because the management had acted in good faith to keep the factory running and to recruit fresh hands where necessary, particularly given the workers’ persistent refusal to join duty after repeated opportunities.

Contentions of Respondents

The respondents contended that termination without a domestic inquiry violated basic principles of natural justice and the absence of standing orders should have triggered a proper inquiry. They emphasized that the strike was a legitimate expression of grievance and that the employer’s action to remove them from muster rolls on the basis of a strike, even if illegal, required adjudication with due process. They argued that the evidence presented, and the absence of a formal inquiry, did not establish misconduct, and that reinstatement while not properly justified would be inappropriate.

Cited Precedents (5)

Case NameCitationTreatmentExplanation
Express Newspapers (P) Ltd. v. Michael Mark & Anr.[1963] 3 S.C.R. 405PositiveCited to illustrate that even where a strike is illegal, a domestic enquiry must be held before terminating employees; the case was followed in reasoning.
India General Navigation & Railway Co. Ltd. v. Their Workmen[1960] 2 S.C.R. 1PositiveCited to support that mere participation in an illegal strike does not automatically justify dismissal; enquiry or evidence can justify termination.
Punjab National Bank Ltd. v. Its Workmen[1960] 1 S.C.R. 806PositiveCited to illustrate that employer can justify dismissal on merits with evidence in lieu of an enquiry in certain circumstances.
Workmen of Motipur Sugar Factory (P) Ltd. v. Motipur Sugar Factory[1965] 3 S.C.R. 588PositiveCited to acknowledge that the presence of misconduct (go-slow) can justify discharge even when the enquiry is lacking, in appropriate factual settings.
Hindustan General Electrical Corporation Ltd. v. Bishwanath Prasad & Anr.CA No. F 2167/66 dt. 17-8-71PositiveCited to emphasize that a labour tribunal can adjudicate the merits and accept evidence to justify termination when there is no proper enquiry.

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Extracted Judgment Text

Exact text extracted from official judgment records.

490 ORIENTAL TEXTILE FINISHING MILLS, AMRITSAR _v._ LABOUR COURT, JULLUNDUR & ORS. Augus~ 31, 1971 [G. K. MITTER, C. A. VAIDIALINGAM AND P. 1AGANMOHAN - REDDY, JJ.] _Industrial_ _Displlfe-Discharge_ _of_ _lVOrk1nen_ _1vithout_ _do1nestic_ _inquiry-_ _Misconduct_ _of_ _discharged_ _i.vorkn1en_ _proved before Labour_ Court-Pro~ _priety_ _of_ _ter1nination_ _of_ _fervices._ While a reference was pending before the Labour Court the respondent workmen went on strike because some workmen were suspended. The Labour Officer as well as the n1anage111cnt tried to persuade the workers to rejoin duty, but the respondents made it a condition of their joining duty that the suspended workmen should also be taken back. The management thereafter gave the respondents notices on different dates asking them to join duty by a date specified in the notices and subsequently, by another letter. called upon them to justify their absence, failing which, the respondents were informed, that their names would be struck off from the muster roll. Notwithstanding those notices and the willingness of management to take them back the respondents gave no reply but continued the strike and they were informed by letters that their names were removed from the muster roll. No don1estic inquiry however, was held into the misconduct of the respondents. The Labour Court, to which the dispute was referred directed reinstatement of the respondents. In appeal to this Court, on the question whether the termination of the employment of the respondents, in the circumstances of the case, without a.n inquiry, ·was justified. HELD : (1) It is an accepted principle of industrial adjudication that workmen can resort to strike in order to press for· their demands without snapping the relationship of employer and employee.. Equally, the managea.It have the right to carry on work, in f urtherence of which, they could <•!!plOy other workmen and justify their action on merits in any adjudication of the dispute arising therefrom. [497 C-E] (2) Merely because workmen go on strike, even where the strike is illegal, it does i:tot justify the management in terminating their services without a domestic inquiry. [497 CJ A B ##### c D E F (3) In the case of a domestic inquiry where misconduct is held to be G proved, the industrial tribunal or labour court can only interfere with that order if there is _n1ala fide,_ or want of good faith or there was victimisation or unfair labour practice or the management has been guilty of basic errors or violation of principles of natural justice or if on the materia1s, the finding is completely baseless or perverse. If, however, the management does not hold an inquiry, or the inquiry is, due to some omission or deficiency, not valid. the management can nonetheless support the order of discharge, termination or dismissal when the matter is referred for indus- H trial adjudication by producing satisfactory evidence and proving misconduct of the concerned workmen. The evidence to substantiate and justify the action taken against the workmen is not as stringent as that A B ##### c **D** E ORIENTAL TEXTILE _V._ LABOUR COUR:i; 491. _(Jaganmohan Reddy,_ _l.)_ which is required in a court of law, but should be such as would satisfy the tribunal that the order of termination was proper. In such a case, there is no difference between a reference under s. 10 of the Industrial Disputes Act and a dispute raised under s. 33A of the Act, and no distinction. can be made between cases where the domestic inquiry is invalid and those where no inquiry has, in fact, been held. That is, the management can justify and substantiate its action on evidence duly place before the Tribunal., [498 E-G; 499 E-F; 500 C-D; 501 A-BJ . ( 4) In the present case, there were no Standing Orders applicable to the appellant-company. A domestic inquiry should have been held in order **to** **entitle** **the** **management** **to** **dispense with** **the** **services** **of its workmen** **on..** the ground of !Jlisconduct. [498 A-BJ (5) But the management had proved before the Labour Court that there was persistent and obdurate refusal by the workmen to join duty notwithstanding the fact that the management had done everything possible to persuade them and gave them opportunities to come back to work; and that the respond•onts had. without any sufficie.nt cause refused to do. The **strike was iilegal and** **it** **was not necessary for the management to prove** that the respondents were guilty of overt acts of intimidation, incitement or· Yiolence. There is nothing to justify the allegation that the management **\\** **[1]** **anted to terminate to their services under some pretext with a view to re-** cruit them afresh and deprive them of accrued benefits.. The notices clearly mentioned that the workmen would be free to join duty by a ccr-· tain date, and it was only after that date the management was willing to **entertain them only** **as** **new entrants.** **Therefore, though no domestic, in-** **quiry** **was** **held, the management had proved the misconduct** **of the respon-** **dents before the Labour Court** **and** **hence the termination** **of** **their services** **was not improper.** **and** **the're** **was no justification** **for** **directing** **their** reinstatement. [501 C-GJ ## I _Express Newspapers_ (P) _Ltd._ v. _Michael Mark_ & _Anr.,_ [1963] 3· S.C.R. 405, _India General Navigation_ & _Railway_ _Co._ _Ltd,_ v. _Their Work-_ _men,_ f1960] 2 ~.C.R., 1, _Punjab National Bank Ltd._ v. _Its Workmen,_ (1960] 1 S.C.R. 806, _Workmen_ _of_ _Motipur Sugar Factory_ '(P) _.Ltd._ v. _Motipur Sugar Factory,_ (1965] 3 S.C.R. 588 and _Hindustan Generar_ _Electrical Corporation Ltd._ v. _Bishwanath Prasad_ & _Anr._ C.A. No. F 2167 /66 dt. 17-8-71; followed, CML APPELLATE JURISDICTION :--Civil Appeal No. 1071 of 1966. Appeal by special leave from the Award dated September 10, 1965, of the Labour Court, Jullundur in Refere,n'ce No. 157 of G 1959. _A._ _B._ _Sinha,_ and _B._ _P._ _Maheshwari,_ for the appellant. _Hardev Singh,_ for respondents Nos. 2 to 24. **H** The Judgment of the Coul't was delivered by **P.** **Jaganmohan** **Reddy,** **J** While referenre No 150 of 1958 was pending in respect of an Industrial dispute between the appellant and its workmen relating to bonus, casual leave and sick -492 SUPREME COURT REPORTS ( 1972] l S,C.R, leave etc., and .after the management had suspended six: of its A workmen on certain charges of misconduct for hav~ng refused to .operate some machines, another worker Shri Darshan Singh, a Helper of a Blowing Machine also refused on 25-1-59 when called upon by the management to work the machine in the abse.nce ·Of Shri Daulat Ram, Machineman a,nd was accordingly suspended the same day. On hearing this news the workmen went to sec B .one of the partners of the appellant and demanded tha't the order -0f suspension passed against Shri Darshan Singh should be can celled and he be reinstated as a Helper. As !}le management was not agreeable to reinstate the Helper workman, the workers went on a lightening strike. Since the workmen came on strike con##### ciliation efforts were made but in spit:e of the persuasion of the c Labour Officer, M.W. 2, the Labour Inspector MW 4 and by the management, Respondents 2 to 24 along with other did not report for duty although it is stated the Appellant was willing to employ them. Certain charge-sheets were served on the workmen towards the end of January to which replies were given. There·after notices were sent to the Respondtiu'ts 2. to 15 and 17 to 24 'asking them to resume work by certqin spec'ified dates and when D they did not resume work other notices -were sent requiring the said Respqndents \o show why their names should not be struck off and asked them to submit their reply by a certain date:· In so far as Respondent-16 is concerned a notice was served on him on 4-3-59 in which it was meintioned that he was absent since 13-2-59 without any leave and that he should resume duty by E 6-3-59. He was further asked to explain by 8-3-59 why his name should not be struck off. None of the Respon dents Nos. 2 to 24 either acknowledged these notices nor sent a reply .. The management thereafter by letters dated 23-2-59, 4-3-59 and 17-3-59 informed the aforesaid Respondents that since they were no longer interested in the employment their F names were struck off from the muster rolls. It is ·alleged that from 25-1-59 till their names were struck oft'. from the muster # I rolls, the Respondents sat outside the Mill gate and in spite of persuasion by the Labour Officer as well as by the management who -were genuine1y desirous of their resuming work, they did not join ·duty and as a consequence the management was compelled to employ others in order to keep the mill going. It is also stated G that during this period those workmen who wanted to join duty were permitted to do so, and •their services were entertained. It ·is also the case of the management that the strike fizzled out after the striking workmen failed to get rations and thereafter they had abandoned the service. On 19-3-59 a demand notice on behalf of the workmen was served on the management as a result. of H .whiCh the conciliation proceedings commenced. But even then acoording to the report of the Conciliation Officer while the mun11gement W¥ willing to employ the workmen, the Respondents ORIENTAL TEXTILE MILLS _v._ LABOUR COURT 493 A _(Jaganmohan Reddy,_ J.) were not willing to resume work till the suspended workmen **were** also allowed to resume duty. Ultimately on 26-8-59 the matter was referred 10 the Labour Court at Juliundur under Sec. 10 of the Industrial Disputes Act, 1947 (hereinafter referred to as 'the Act'), to determine whether **B** the termination of srevices of 31 workmen whose names were mentioned therein was justified. It may be mentioned here that out of these 31 workmen 8 workmen had resumed their duties and were no longer interested in the proceedings. The. Labour Court after receiving the statement of claim and recording the evidence Qn behalf of both the management and the workmen ##### c passed an: Award on 31-10-61 which was published in the GaL:ette of 8-12-61. By this Award the claim of the workmen was reject#### ed on the ground inter-a/ia : (a) that they had resorted. to illegal strike; **D** E **F** (b) that the management did not in fact terminate the services of the workmen concerned in the case and never meant to take action agaitnSt them for having gone on strike. On the other hand management was ;ilways prepare to take them back and was requesting them through the Labour I<11spector and the Labour Officer to end the strike and to resume duty but the workers went on insisting that the suspension orders passed on their co-workmen should first be cancelled; ( c) that the workme,n were adamant and as such there was no alternative for the management except _to_ terminate their services and take fresh hands who are still continuing in its service; and (cl) that no evidence was produced by the workmen to prove that any of them ever requested the management to resume duty or that the managemt;nt had turned down any such· request. Against this Award of the Labodt Court a Writ Petition was G filed by the Respondents in the High Court of Punjab. A Sing:e Bench of that Court by its Judgment dated 6-12-64 held that in law the plea that the workers had abandoned the services of the Appellant could not be sustained, but on the other hand it was the management which had terminated their services. In this view the case was remanded to the Labour Court for a fresh deci-**H** sio~. A .Lette~s. Patent App~al was. fil~d by the management agamst this dec1s1on but later 1t was dismissed as withdrawn. On remand the Labour Court by an Award dated 10-9-65 which was, published in the Gazette on 1-10-65 held' that the plea of the 13-L 1340 Sup Cl/71 / 494 SUPREME COURT REPORTS [1972] 1 S.C.R. workmen that there was a lock out by the management was not .substantiated, on the other hand it was they who had gone on strike; that the strike was illegal because of the proceedings pending before the Labour Court in Reference No. 150 of 1958; that the question as to whether the managementhad terminated the .services of the concerned workmen or not was not a matter which A was _res-integra_ in view of the judgment of the Punjab .High Court, B in the Writ Petition referred to above; and in the alternative as the termination took p~ace by virtue of letters dated 23-2-59, 4-3-59 and 17-3-59 without holding an enquiry, it was not valid. In the result the Labour Court directed reinstatement of Respondents 2 to 24. In so far as Surat Singh Respondent No. 16 was ##### concerned, it was found that there were no standing orders in c force applicable to the Appellant, as such it was not justified in dismissing him for absence without leave. ft was also held th3t the Respondents were not entitled to wages .from 25-1-59 to 17-3-59. They would however only be entitled to half the back wages from 18-3-59 to the date on which the Award would bec~me enforceable and from that date till the date of their reinstatement. Respondents Nos. 2 to 24,would be given full back wages. D Against the said Award this Appeal has been filed by Special Leave. ##### c D The short question for our consideration is whether the termination of employment of the Respondents in the circumstances of the case without an enquiry was justified. There. is no doubt E that it has been conceded at the very outset that there being no standing orders applicable to the Appellant, the termination of the services of Shri Surat Singh, Respondent No. 16 is not valid and the Award pertaining to his reinstatement cannot be assailed. fo so far as the validity of the action of the management in terminating the employment of the other Respondents is c.eiucerned a F great deal would depend on whether "the management was able to justify its action before the Tribunal. It would be useful to set •Out at the outset certain undisputed facts namely : (1) that the Respondents went on a strike on 25-1-59; (2) (3) that as there was a reference pending before the La·bour Court that strike would be i!legal, under Chapter V of the Industrial Disputes Act 1947; that both the Labour Officers as well as the management tried to persuade the workers to join duty and after the demand notice dated 19-3-59 conciliation efforts were made but they did not resume work and made it a condition of their joining duty that the suspended workmen also ~hould 'be taken back; G H A Il ###### c ORIENTAL TEXTILE MILLS _v._ LABOUR COURT 495 _(Jaganmohan Reddy,_ _J.)_ ( 4) that the management gave workers on strike notices on different dates asking them to join duty by a date specified therein and subsequently by another letter called upon them to justify their absence failing which they were informed that their names would be struck off from the muster roll; ( 5) that notwithstanding those notices and the willingness of the mijnagement to take them back the Respondent gave no reply and continued the strike till they were informed by letters dated 25-2-59, 4-3-59 and 17-3-59 that their names were removed from muster roll; and ( 6,) that no domestic enquiry was held into the misconduct of the Respondents. On these admitted facts it is soueht to be contended O!l behalf of the Appellant that the Manage111ent took every possible step to get the workmen back into their factory but they were adamant in continuing the strike. In these circumstances they could J,J 0 nothing else but to terminate their services and take in fresh hando· in order to keep the factory going. It may be mentioned that the managment immediately after the strike served charge-sheets calling upon· them to show cause why proper legal action should not be taken against them. In those charge-sheets they had alleged that the Respondents had indulged ~n intimidation, unjustiE fied slogan mongering and inciting the workers to remain on strike. The workmen by their letters denied the allegations against t\1em. Thereafter the management seem to have dropped these charges and tried to persuade them to join work. It would be useful to examine the correspondence of a typical case. On 5-2-59 by Ex. A3 the management served a notice and wrote to Amar Nath F son of Brijlal, as follows : G 11 "Please take notice that from the afternoon of 25-1-59 you are on strike, which is illegal due to the pendency of proceedings before the }'unjab Labour Court, AP"itsar in reference No. 150 of 1958. This strike of) .urs is wholly unjustified. In spite of the various persuasive attempts by the managem~nt and the Labour Department, Amritsar, you have failed to resume work. If you will not come to duty on 8th Feb. '59 the management would employ fresh hand in your stead as the management can ill-afford to keep the work at a stand_still. You will have in t_hat event no claim to any remstatement or compensatton. Management is however prepared to consider you as one of the new entrants, s~ould you be selected for appointment. This applicallon should reach in writing by 9th Feb. '59". r 496 SUPREME COUR,T REPORTS [1972] l S.C.R. A copy of this letter was given to the Labour Commissioner, A Ambala Cantt. as well as Labour Inspector and Labour Officer, Amritsar. When this workman did not join his duty the management by Ex. A4 wrote ruiother letter to him on 21-2-59. It said: "You were served with a registered notice on 5-2-59 that you since the afternoon of 25th Jan. '59 are on illegal and unjustified strike along with other workers. You were given an opportunity to report for duty upto 8-2-59. But upti! today you did not report yourself for du!Y by whkh it is clearly patent .that you do not want to work in the factory. Therefore show cause as to why your name be not struck off from the muster roll of the factory. The factory management also gave you a chance that you can jom on new ~rvices, but you did not do even that, which clearly shows that your stand is totally illegal and baseless. Factory cannot be closed in any event, thus your coming on duty was necessary. _H_ you will not give any satisfactory reply then your name will be struck off from the muster roil of the factory. Your reply should reach upto 25-2-59". Copies of this letter were also given to the L? bour Officer referred to above. When no reply was received to this letter the management terminated the services by Ex. A 7 dated 4-3-59 which is as follows : "For your continued absence since the afternoon of 25-1-59 and in spite of repeated requests to come and join duty you have failed to resume work. You have also failed to show cause in pursuaalce to our letter dt. 21-2-59 as already intimated for your abandonment of service and/or illegal strike. In view of your these illegal activities the management has struck off your name from the muster roll of the Mills w.e.f. 4-3-59". The Respondent's advocate while not denying these letters B. ###### c D E as above contends that the earlier letters had charged them with incitement and • stay in strike and intimidation etc. but the management gave the go by to it and have terminated the service G for merely going on a peaceful strike and by subsequent letters it was made clear that the object of the management v:as to employ the -Workmen afresh and deprive them of the past benefits which had accrued to them. He further submits that merely because warkmen have gone on a strike which is a weapon for obtaining their redress, the relationship of employer and employee· does H not come to an end and if the workmen have behaved in a violent manner or inci1ed or intimidated other workmen, even then the management cannot terminate their services without holding an A ORIENTAL TEXTILE MILLS _v._ LABOUR COURT 497 _(Jaganmohan Reddy, J.)_ enquiry into the alleged misconduct but as no such enquiry was held the termination is illegal. The question however would be whether before the services of the workmen, who are on strike, are terminated, is an enquiry into their ruisconduct obligatory and would an omission to compB ly with this requirement, make the order of termination illegal? It appears to us that merely because workmen go on strike it does not justify the management in tenninating cheir services. In any case if allegations of misconduct have been made against them those allegations have to be enquired into by charging them with specific acts of misconduct and giving them an opportunity ###### c to defend themselves at the enquiry. Even where a strike is ille gal it does not justify the management from terminating their services merely on that ground, though if it can be shown on an enquiry that the conduct of the workmen amounted to miscon duct it can do so. While it is an accepted principle of industrial adjudication that workmea can resort to strike in order to press D for their demands without snapping the relationship of employer and employee, it is equally a well accepted principle that the work of the factory cannot be paralysed and brought to a standstill by an illegal strike, in spite of legal steps being taken by the management to resolve the conflict. The management have the right in those circumstances to carry on the work of the factory in furtherence of which it could employ other workmen and justify E its action on merits in any adjudication of the dispute arising, the reform. ### I In _Express Newspapers_ _(P)_ _Ltd._ v. _Michael Mark_ _&_ _Anr.,_ (') where certain employees who had indulged in illegal strike did not join their duty in spite of notices given by the F management and their places were filled up by others, applied for relief under the Payment of Wages Act but the application was dismissed. The workers moved the High Court under Art. 226 and their Wrrt Petitions were allowed. This Court in Appeal held that the Standing Orders contemplated termination of employment by the employer and in those cases there could be no G doubt that the Appellant had terminated the employment of th.~ Respondents by removing their names from the muster roll without giving them any notice of such removal. It was also held that _if employees absent themselves from work because of strike in enforcement of !!heir demands, there can be no question of abandonment of employment by them and that if H t~e strike. was in. fact illegal, the Appellant could take disciplmary action agamst the employees under the Standing Order and dismiss them. (I) [1963] 3 ~~S.C.R.~~ _405._ SUPREME COURT REPORTS (1972] l S.C.R. This case merely illustrates what has been stated by us that even where the strike is illegal a domestic enquiry must be held. In the case before us admittedly there were no Standing Orders applicable to the appellant. Nonetheless a domestic enquiry should have been held in order to entitfo the management to dispense with the services of its workmen on the ground of misconduct. This view of ours is also supported by another case of this Court in _India General Navigation_ & _Railway Co._ _Ltd._ v. _Their Workmen(')_ where it was held that mere taking part in an illegal strike without anything further would not necessarily justify the dismissal of all the workers taking part A B in the strike and that if the employer, before dismissing a workman, gives him sufficient opportunity of explaining his C .conduct and no question of _mala-fides_ or vicitimisation arises, it is not for the Tribunal in 'adjudicating th~ propriety of such cjismissal, to look into the sufficiency or otherwise of the evidence led before the 'enquiring officer or insist on the same degree of proof as is required in a Court of Law, as if it was sitting in appeal over the decision of the employer. It may D ~ mentioned that in the case of a domestic enquiry where misconduct is held to be proved the Tribunal can only interfere wilh that order if there is _mala_ _fides_ or want of good faith, there was victimisation or unfair labour practice or the management has been guilty of basic error or violation of the principles D of natural justice or on the materials the finding is completely baseless or pervew~. If however the management does not hold E such an enquiry or the enquiry is due to some omission or deficiency not valid it can nonetheless support its order oi discharge, (ermination or dismissal when •the malter is referred for ludustrial adjudication by producing satisfactory evidence and proving misconduct. Even in such cases the evidence which is produced to substantiate and justify the action tak>;m against the workmen is not F as stringent as that which is required in a Court of Law. At itnY rate 'the evidence should be such as would satisfy the Tribunal that the order of termination is proper. The Appellant before us on the evidence produced before the Tribunal seeks to justify its order removing the names of the Respondents from the muster roll. In the _Punjab National_ _!Jank Ltd._ v. _Its_ _Workmen,(')_ 'though there_ was no enquiry held by the management it sought to justify the action of termination of services of its employees before the Industrial Tribµnal. The employees of the Appellant Bank had commenced ~11 down strikes which were followed by general strike pend. i11g l!rbitratio11 of an industrial dispute between them. Oii the intervention of the Govt. the Bank reinstated all the employees -m!l96()]2 ~.C.R. I. (2) [19601 I S.C.R. _806._ G H A B ##### c D E F G H ORIENTAL TEXTILE MILLS _v._ LABOU.R COURT 49~ _(Jaganmohan Reddy,_ /.) except 150 against whom it had positive objection and It is in respect of those workmen that a dispute was referred under Section 10 of the Act for adjudication. One of the two issues that was referred to the Tribunal was whether 150 ·employees had been wrongly dismissed. The Tribunal did no.t hear )ny evidence and by its final award held that the strike was illegal, the Bank was, on that ground alone, justified in dismissing the employees. On Appeal the Labour Appellate Tribunal · held that even though the strikes were illegal under Sec. 23 (b) read with 24( 1) of the Act, the Bank had by entering into the agreement with the Govt. of India, waived its right to take penal action against its employees for joining the illegal strikes and that therefore, an enquiry should be held on additional evidence to decide the disputes on m~ri'ts. Against this interlocutory order the Bank appealed to this Court which held that while the strikes were no doubt illegal under Sec. 23 (b) of the Act, the orders of dismissal passed by the Bank were no less so under Sec. 3 3 of the Act and it dismissed the Appeal. The Appellate Tdbun11l thereafter, heard the cases. on merits, c(irected the reinstatement of 136 of the said employees, but refused to reinstate the rest whom it found guilty of issuing posters and circulars subversive of the credit of the Bank. Both the Bank and the workers appealed to this Court. It was held that under Sec. 33A o~ the Act as construed by this Court the jurisdiction of the Tribunal was not limited to an enquiry as to the contravention of Sec. 33 of the Act. Even if such confravention was proved, the employer could still justify the impugned dismissal on merits and there wiis no difference in this regard between a reference under Sec. 10 of the Act and a dispute raised under Sec. 33A of tfie Act. In _Workmen of Motipur Sugar Factory_ (P) _Ltd.,_ v. _Motipur_ _Sugar Factory,(')_ the workers of the Respondent started a go slow in its Sugar Factory. Therefore the Respondent issued a general notice to those workmen and individually to each workman notifying that unless he recorded his willingness to discharge his duties faithfully and diligently so as to give a certain minimun1 output, he will be no longer employed and the willingness ):Je was required to record was to be dohe within a certain time failing which he was notified that he would be discharged without further notice. Respondents held no enquiry as required by the Standing Orders before dispensing with the services of the Appellant. A general strike followed resulting in a joipt application by both the parties to the Govt. and the Govt. referred the question to the Tribunal. In the notice given by the Respondent~ ###### it was stated that the go slow tactics was likely to injure tM (!) [1965] 3 S.C.R. 588. 500 SUPREME COURT REPORTS [1972] l S.C.R. factory resulting in a major breakdown of the machinery. The Tribunal came to the conclusion that there was go slow during •the period and consequently held that the discharge of the workmen wa·s fully justified. It was contende'! before this Court that what the Tribunal had to concern itself was whether the discharge of the workmen for not giving an undertaking was justified or not and that it was no part of its duty to decide that there was go slow which would justify the order of discharge and that since the Respondents held no enquiry as required by the Standing Orders it could not justify the discharge before the Tribunah. It was pointed out in that case that this Court had consis~ently held that if the domestic enquiry is irregular, invalid or improper the Tribunal may give an opportunity to the employer to prove his case and in doing so the Tribunal tries the merits itself and that no distinction can be made between cases where the domestic enquiry is invalid and those where no enquiry has in fact been held. It was observed at page 603 : "Looking at the matter in this broad way-and that is all that we are prepared to do, for we are examining a finding of fact of the tribunal-we cannot say that its conclusion that there was go-slow between November 27 and December 15 is not justified .... But as we have already indicated, the charge in the notice of December 15 was that the workmen had been going slow from November 27 and they were asked to give an undertaking to improve and the -respondent was apparently willing to overlook the earlier lapse. Even assuming that the demand of an undertaking w·as unjustified, it does appear that the attitude· of the workmen was that they would do no better; and in those circumstances they Were discharged on December 17, 1960, on the basis of misconduct consisting of go-slow between November 27 and December 16, 1960. That misconduct has been held proved by the Tribunal and in our opinion that decision of the Tribunal cannot be said to be wrong. In the circumstances the Tribunal was justified in coming to the conclusion that the discharge was fully justified." In a recent _case-the_ _Hindustan General Electrical Corporation_ _Ltd._ v. _Bishwanath Prasad_ & _Anr.,_ (1) while considering this aspect of the matter we had held that even though no enquiry was held or there was contravention of the provisions of Sec. 33 of the Act, in a dispute referred under Sec. 10 the Labour Court had to adjudicate upon the dispute which was referred to it with regard to the Respondent and had to go into the question (J) Civil Aoo'11 N>. 2167of1956-Judgment delivered on 17-8-71. A B ##### c D E F G H A B ###### c D E F G ORIENTAL TEXTILE MILLS _v._ LABOUR COURT 501 _(.Jaganmohan Reddy,_ _J.)_ as to whether he had been properly dismissed. In other words the management can justify and substantiate its action on evidence duly placed before the Tribunal. The learned Advocate for the Respondents however urges that even where the strike is illegal in order to justify the dismissal or the order terminating the services of workmen on the ground of misconduct the management must prove that they were guilty of some overt-acts such as intimidation, incitement or violence. We do not think that in every case the proof of such overt acts are necessary pre-requisite. In this case there is a persistent and obdurate refusal by the workmen to join duty notwithstanding the fact that 'the management has done everything possible to persuade them and give them opportunities to come back to work but they have without any sufficient cause refused, which in our view would constitute misconduct and justify the termination of their services. The workmen as spoken to by the Labour Officers and also as is evidenced by the documentary evidence to which we have referred, ~re unwilling to join duty till the workmen who were suspended were also taken back. There is nothing to justify the allegation that the management wanted to terminate their sMvices under some pretext with a view to recruit them afresh and deprive them of accrued benefits. The notices clearly mention that the workmen would be free to join duty by a certain date and only after that date 1he management was prepared to entertain them a:; new entrants if they were to apply by the date specified in the notices. It appears to us therefore that management has proved misconduct and the stand taken by it was reasonable. There was,nothing that it could do further in view of the unjustified attitude taken by the workers by staying away from work particularly after they were given over a month's timy, within which to commence work. In the view we take the order terminating their services was not improper. The Tribunal was not justified in directing their reinstatement and payment of wages merely on the ground that no domestic enquiry was ~eld. The appeal is accordingly allowed except for the Award m respect of Surat Singh, which is maintained. Having regard to the circumstances of the case there will be no order as to costs. V.P.S. _Appeal allowed._