High CourtDivision BenchAppeal Allowed; Dismissal order restored; Labou...

Tata Engineering and Locomotive Company Ltd v. N.K. Singh

Case / Petition Number:Civil Appeal No. 685 of 2006
Neutral Citation:2006 SCR (Supp.) 8

Case Details & Bench

Court
High Court
Hon'ble Judges
  • Arijit Pasayat
  • S.H. Kapadia
Judgment Date
2006-11-08
Court Decision / Holding
Appeal allowed; the orders of the Labour Court and the High Court are set aside and the order of dismissal from service stands restored; no order as to costs.
Final Disposition
Appeal Allowed; Dismissal order restored; Labour Court/High Court orders set aside; no costs as to the decision.

Parties to the Case

Appellants / Petitioners

  • Tata Engineering and Locomotive Company Ltd

Respondents

  • N.K. Singh

Legal Representation & Advocates

Counsels for Petitioners

  • • Sanjeev Sen
  • • Nandini Gore
  • • Praga Singh
  • • Jayant Mohan
  • • Manik Karanjawala

Counsels for Respondents

  • • A.N. Deo
  • • A. Janani
  • • T.V. George

Case Synopsis & Summary

The appeal arises from a dispute concerning disciplinary action taken against the respondent, who served as Assistant Store Keeper and occupied a company quarter unlawfully. A decree in a civil suit for eviction preceded a separate criminal case in which the respondent was accused of assaulting the Town Warden and others during execution proceedings; the police filed an FIR under IPC sections 311 and 307 read with 34. In the domestic inquiry conducted by the appellant, the respondent was found guilty of misconduct and dismissed from service. A reference under Section 10(1)(c) of the Industrial Disputes Act, 1947 was made, and the Labour Court held the misconduct proved but deemed the dismissal disproportionate, directing reinstatement with half back wages. The appellant challenged this award, and the High Court (Letters Patent Appeal) partly allowed the petition by directing half back wages from the date of the award. On appeal to the Supreme Court, it was held that the misconduct was of grave nature, the inquiry fair and proper, and that leniency would foster indiscipline. The Court found the Labour Court and High Court findings unaltered on the core issue of misconduct, and accordingly, set aside the reinstatement with back wages and restored the original dismissal order. The appeal was allowed with no cost.

Provisions of Law Cited

Industrial Disputes Act, 1947, s. 10(1)(c)Indian Penal Code, 1860, ss. 307, 311 read with s. 34

Legal Doctrines & Maxims

  • Principles of natural justice
  • Discipline and proportionality in punishment
  • Leniency in disciplinary actions may encourage indiscipline

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that the High Court gravely erred in setting aside the order of dismissal and directing reinstatement with 50% back wages; that the respondent was guilty of serious misconduct; the Labour Court rightly found the inquiry fair and proper, and the High Court failed to notice the gravity of the charges. It is urged that the R.P. Singh decision, cited in support of reinstatement, is distinguishable on facts and cannot govern this case; hence the dismissal should stand.

Contentions of Respondents

The respondent contends that the Labour Court and High Court rightly treated the misconduct as grave, and that reinstatement with back wages was disproportionate. It is argued that the acquittal in the criminal case on lack of evidence does not negate the misconduct found in the domestic inquiry; the High Court’s practical approach to the punishment in proportion to the misconduct should be upheld.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
R.P. Singh's case/DistinguishedThe Court distinguished this case on facts, noting that R.P. Singh was an instigator, whereas the respondent here was the actor; thus not controlling in the present matter.

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Extracted Judgment Text

Exact text extracted from official judgment records.

_MIS._ TATA ENGINEERING AND LOCOMOTIVE COMPANY LIMITED - _v._ ## N.K. SINGH NOVEMBER 8, 2006 [ARIJITPASAYAT ANDS.H.KAPADIA,JJ.] _Labour Laws:_ _Industrial Disputes Act, I947:_ c > _Workman-Allegation of misconduct and assault against-FIRDomestic inquiry-Dismissed from service-Dispute-Labour Court held that though the charge of misconduct levelled against the workman established but order of his dismissal from service was disproportionate to the charge proved-It directed reinstatement of the workman with payment of half of the_ D _back wages-Challenge to--Modifying the Award, Single Judge of High Court directing payment of half of the back wages from the date of the award-Letters Patent Appeal dismissed by the High Court-On appeal, Held: Misconduct as alleged was of very grave nature-Labour Court found inquiry to be fair and proper-Both the Courts below have not found the misconduct of any minor nature-Finding on facts establishing the charge_ E _of misconduct not disturbed by the Labour Court-Under the circumstances, leniency shown by the Labour Court directing reinstatement of the delinquent would in fact encourage indiscipline and also not supported by reason,_ > _hence, unwarranted-Order of dismissal from service as passed in the_ > _disciplinary proceedings stand restored-Penal Code, 1860;_ F _Section 307 rlw Section 34 ·and Section 311._ The respondent-workman, working as Assistant Store Keeper, was in unauthorized occupation of quarter belonging to the appellant-company. A suit for eviction filed by the appellant-company was decreed in its favour. When the Town Warden went to execute the decree along with Nazir of Civil Court, G he was allegedly assaulted ~y the respondent. First Information Report was also lodged with the Police against the respondent alleging commission of offences punishable under Sections 311and307 read with Section 34 of the Indian Penal Code, 1860. In the domestic inquiry the respondent was found guilty of misconduct and was dismissed from service. A dispute was raised by 755 II 756 SUPREME COURT REPORTS (2006] SUPP. 8 S.C.R. A the respondent and reference was made by the State Government under Section lO(l)(c) of the Industrial Disputes Act, 1947. In the meantime, the respondent was acquitted in the criminal case on the ground of lack of evidence. The Labour Court held that the domestic inquiry was fair, proper and in accordance with the principles of natural justice. An award was passed by the Labour B Court holding that though the charge of misconduct levelled against the respondent was established, the order of dismissal was disproportionate to the charge proved. Hence, it directed reinstatement of the workman with payment of half of the back wages. Appellant-company filed a writ petition before the High Court. The Single Judge partly allowed the petition directing that half of the back wages was to be paid from the date of award. Letters C Patent Appeal filed by the Company was dismissed by the High Court. Hence the present appeal. The appellant contended that the High Court has fallen into grave error by setting aside the order of dismissal and directing reinstatement of the Workmen and payment of 50% back wages; that the respondent was guilty D of misconduct; that the Labour Court having found that the domestic inquiry was fair, proper and in accordance with the principles of natural justice should not have interfered with the order of dismissal; and that the High Court clearly missed to notice that the charges were serious in nature. E F Allowing the appeal, the Court HELD:l.1. The Labour Court has found the inquiry to be fair and proper. The conduct highlighted by the management and established in inquiry was certainly of very grave nature. The Labour Court and the High Court have not found that misconduct was of any minor nature. On the contrary, the finding on facts that the acts complained of were established has not been disturbed. That being so, the leniency shown by the Labour Court is clearly unwarranted and would in fact encourage indiscipline. Without indicating any reason as to why it was felt that the punishment was disproportionate, the Labour Court should not have passed the order in the manner done. (759-D-E) G 1.2. The case of another workman as taken into consideration by the Court was not on the similar footing as the incumbent in that case was one of the persons instigating whereas the respondent in the present case was the person who committed the acts. Therefore, the orders of the Labour Court as affirmed by the High Court cannot be sustained and are set aside. The order of dismissal from service in the disciplinary proceedings stands restored. H ~~ TATAENGINEERINGANDLOCOMOTIVECOMPANYLTD. _v._ N.K. SINGH[PASAYAT,J.] 757 CIVIL APPELLATE JURISDICTION : Civil Appeal No. 685 of 2006. From the final Judgment and Order dated 22.9.2004 of the High Court of Jharkhand at Ranchi in Letters Patent Appeal No. 232/2004. Sanjeev Sen, Nandini Gore, Praga Singh, Jayant Mohan and Manik Karanjawala for the Appellant. A.N. Deo, A. Janani and T.V. George for the Respondent. The Judgment of the Court was delivered by **ARIJIT PASAYAT, J.** Appellant calls in question legality of the judgment C rendered by a Division Bench of the Jharkhand High Court dismissing Letters Patent Appeal filed by the appellant. Background facts as projected by appellant in a nutshell are as follows: The respondent who was working as Assistant Store Keeper, was in **D** unauthorized occupation of quarter belonging to the appellant-company. A suit for vacation was filed by the appellant •vhich was decreed in his favour. When the Town Warden (Sri A.K. Banerjee) went to execute the decree along with Nazir of Civil Court he was assaulted by fists and bricks. Shri A.K. Banerjee, suffered serious injuries. In the domestic inquiry the respondent was found guilty of misconduct and was dismissed from service. With reference E to alleged incident on 17 .10.1984, First Information Report was lodged alleging commission of offences punishable under Sections 311 and 307 read with Section 34 of the Indian Penal Code, 1860 (in short the 'IPC'). Allegation was that the respondent as well as others on his instigation assaulted Shri A.K. Banerjee and he was also threatened with dire consequences. On 23.10.1984 F charge sheet-cum-notice of inquiry was issued and served on the respondent under the Works Standing Orders of the appellant, particularly under Standing Order 24, sub Clauses (xvi) and (xxxii) asking him to show cause to furnish his explanation and appear at the inquiry. Said Sub-clauses of Clause 24 read as under: G "Without prejudice in the general meaning of the 'misconduct' ....... (xvi) Drunkernns fighting or riotous or disorderly or indecent behaviour or any acts subversive of discipline or efficiency' (xxxii) Threatening or intimidating any employees". The respondent submitted his explanation on 27 .10.1984. After **H** 758 SUPREME COURT REPORTS [2006] SUPP. 8 S.C.R. A considering the explanation to be unsatisfactory, domestic inquiry was held and at the conclusion of the domestic inquiry, Inquiry Officer submitted a report holding the respondent to be guilty of misconduct. After perusal of the report and inquiry proceedings, the General Manager of the appellant-company ordered dismissal of the respondent from service of the company w.e.f. B 25.10.1984 i.e. the date of issue of charge-sheet in terms of Standing Orders. A dispute as raised by the respondent and reference was made by the State Government under Section lO(l)(C) of the Industrial Disputes Act, 1947 (in short the 'Act'). The terms of reference were as follows: c "Whether the termination of services of Shri. N.K. Singh ticket No. 9956/08843/l workman of Tata Engineering of Locomotive Company ·Ltd., Jameshedpur is justified? If not, whether he is entitled to reinstatement and for any reliefs?" D That on the notice in the reference case, the petitioner and respondent workman submitted their respective claims. In th.e meanwhile, the application was filed by the petitioner to decide the validity of the domestic enquiry as preliminary issue." The appellant and the respondent submitted their respective claim. An application was filed by the appellant to decide the preliminary issue as to E the validity of the domestic inquiry. On 6.3.1987 the respondent was acquitted in the criminal case on the ground of Jack of evidence. By order dated 17 .6.1995 the Labor Court decided the validity of the domestic inquiry conducted and held that same was fair, proper and in accordance with the pr-inciples of natural justice. By order dated 5.1.1996 F award was passed by the Labor Court setting aside the order of dismissal and directing respondent's reinstatement with full back wages. Though it was held that the charge of misconduct levelled against the respondent was established, the order of dismissal was disproportionate to the charge proved. Therefore, reinstatement with payment of half of the back wages was directed. Appellant filed a writ petition before the High' Court. Learned Single Judge partially G allowed the writ petition directing that half of the back wages was to be paid from the date of award. As noted supra, Letters Patent Appeal was dismissed. It was noted that one R.P. Singh who stood on identical footing was directed . to be reinstated with half back wages. H In support of the appeal learned counsel for the appellant submitted TATAENGINEERINGANDLOCOMOTIVECOMPANYLTD. _v._ N.K. SINGH[PASAYAT,J.] 759 that the High Court has fallen into grave error by setting aside the order of A dismissal and directing reinstatement and payment of 50% back wages. _R.P. Singh 's_ case is distinguishable on facts. The facts on record clearly_ show that the respondent was guilty of misconduct. The Labour Court having found that the domestic inquiry was fair, proper and in accordance with the principles of natural justice should not have interfered with the order of B dismissal. The High court clearly missed to notice that the charges were serious in nature. Learned counsel for the respondent on the other hand submitted that the High Court has taken a practical and reasonable view and the order of dismissal was clearly disproportionate to the alleged misconduct. C We find that the Labour Court has found the inquiry to be fair and proper. The conduct highlighted by the management and established in inquiry was certainly of very grave nature. The Labor Court and the High Court have not found that misconduct was of any minor nature. On the contrary, the finding on facts that the acts complained of were established has not been D •. , disturbed. That being so, the leniency shown by the Labour Court is clearly unwarranted and would in fact encourage indiscipline. Without indicating any reason as to why it was felt that the punishment was disproportionate, the Labor Court should not have passed the order in the manner done. The case of _R.P. Singh_ was not on a similar footing. He was one of the persons E instigating whereas the respondent was the person who committed the acts. Therefore, the orders of the Labour Court as affirmed by the High Court cannot be sustained and are set aside. The order of dismissal from service in the disciplinary proceedings stand restored. The appeal is allowed with no order as to costs. F S.K.S. Appeal allowed.