The President, Anickad Regional Farmer's Service Co-operative Bank Limited v. Benny Thomas

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR. JUSTICE ALEXANDER THOMAS** ## **&** ## **THE HONOURABLE MR.JUSTICE C. JAYACHANDRAN** **FRIDAY, THE 7[TH] DAY OF JULY 2023/16TH ASHADHA, 1945** **WA NO.1538 OF 2022** **AGAINST THE JUDGMENT DATED 30.08.2022 IN WP(C) 4049/2012 OF HIGH** **COURT OF KERALA** ## **APPELLANTS/PETITIONERS:** 1 THE PRESIDENT, ANICKAD REGIONAL FARMER'S SERVICE COOPERATIVE BANK LIMITED NO.3867, PALLIKKATHODE, ANICKAD P.O, KOTTAYAM, PIN – 656503. 2 THE SECRETARY, ANICKAD REGIONAL FARMER'S SERVICE CO-OPERATIVE BANK LIMITED NO.3867 PALLIKKATHODE, ANICKAD PO, KOTTAYAM., PIN - 656503 BY ADVS. T.C.KRISHNA P.RAMAKRISHNAN PREETHI RAMAKRISHNAN C.ANIL KUMAR ASHA K.SHENOY PRATAP ABRAHAM VARGHESE ## **RESPONDENTS/RESPONDENTS:** 1 BENNY THOMAS, ANCHANICKAL, ANICKAD.P.O., PALLIKKATHODE, ANICKAD P.O., KOTTAYAM, PIN – 656503. 2 INDUSTRIAL TRIBUNAL, PEERUMEDU, IDUKKI, PIN - 685531 BY ADV SHAJI THOMAS ## **OTHER PRESENT:** SRI. B. UNNIKRISHNA KAIMAL-SR. GP THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 07.07.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: **ALEXANDER THOMAS & C. JAYACHANDRAN, JJ. --------------------------------------------------------------------W.A.No.1538 of 2022 --------------------------------------------------------------------Dated this the 7[th] day of July, 2023** ## **JUDGMENT** ## **C. Jayachandran, J.** The president and Secretary respectively of a Co-operative Society are the appellants herein. They are aggrieved by the judgment of the learned Single Judge dated 30.8.2022 in W.P.(C)No.4049/2012, which dismissed a challenge against Ext.P5 award dated 24.11.2011 of the Industrial Tribunal, Idukki. The subject matter pertains to an alleged misconduct on the part of the 1[st] respondent herein, who was serving as a Clerk in the Co-operative Society. Ext.P1 enquiry report found all the charges enumerated against the delinquent and in favour of the management and he was dismissed from service as per proceedings dated 15.1.2007, with retrospective effect from 19.11.2006. An industrial dispute arose before the Tribunal as I.D.No.23/2008 challenging the findings in the enquiry and the consequent order of dismissal. The Tribunal by Ext.P4 preliminary award concurred with the findings of guilt on all the seven charges alleged against the 1[st] respondent/delinquent. W.A.No.1538/2022 -: 2 :- However, vide Ext.P5 award dated 24.11.2011, the Tribunal found that the punishment of dismissal from service is highly disproportionate to the degree of guilt proved, amounting to victimization of the delinquent in law. On such finding, the Tribunal interfered with the punishment imposed by the management and modified the same as withholding one annual increment with cumulative effect. The Tribunal also directed reinstatement of the 1[st] respondent/delinquent to service, together with 50% of the back wages from the date of suspension, till reinstatement. As already indicated, the learned Single Judge repelled the challenge against Ext.P5 award vide the impugned judgment, holding that the decision of the Tribunal cannot be said to be patently perverse, warranting an interference under Article 226 of the Constitution. **2.** Heard Sri.P.Ramakrishnan, learned counsel for the appellant/management and Sri.Shaji Thomas, learned counsel on behalf of the 1[st] respondent. Perused the records. W.A.No.1538/2022 -: 3 :- **3.** Having heard the respective counsel, this Court will first address the factual aspects. The seven charges levelled against the 1[st] respondent/delinquent, as taken note of in Ext.P1 enquiry report, are extracted here below:- ## " Delinquent -ന്ന നൽകകിയ കുറ്റപതത. 1. ഒരു ബബാങന് ജജീവനകബാരൻ എന്ന നകിലയകിൽ ഇടപബാടുകബാരരബാടന് മബാനന്യമബായകി പപരുമബാറുവബാൻ ബബാദന്യതപപ്പെട്ട തബാങൾ ഇടപബാടുകബാരരബാടന് ധകികബാരപരമബായത അവഗണനബാ മരനബാഭബാവരതബാടു കൂടകിയത പുച്ചരതബാടുകൂടകിയത പപരുമബാറകി. 2. നകിങ്ങളുപട ധകികബാരപരമബായ പപരുമബാറ്റത മൂലത ഇടപബാടുകബാർകന് മബാനസകിക ബുദകിമുടത ബബാങകിരനബാടന് തബാൽപരന്യക്കുറവത സതഭവകിച്ചകിരകിക്കുന. 3. മബാനന്യമബായ ഭബാഷയകിൽ ഇടപബാടുകബാരരബാടന് സതസബാരകിക്കുവബാൻ പൂമതലപപ്പെട നകിങ്ങൾ ഇടപബാടുകബാരരബാടന് പ് **ര** തന്യകകിച്ചന് സജീകരളബാടന് ആ നകിലയന് സതസബാരകിക്കുവബാൻ കൂട്ടബാക്കുന്നകില. 4. തബാങപള എൽപകിച്ച രജബാലകികൾ കൃതന്യസമയതന് പചെയബാപത ഇടപബാടുകബാർകന് ബുദകിമുടണബാക്കുന. 5. നകിങ്ങളുപട രമൽ വകിവരകിച്ച പ്രകബാരമുള്ള പ്രവൃതകികൾ മൂലത ഇടപബാടുകബാർകകിടയകിൽ ബബാങകിപനകുറകിച്ചന് അവമതകിപ്പെന് ഉണബാക്കുന. 6. വകിശശ്വസ്തനബായ ഒരു ബബാങന് ജജീവനകബാരൻ എന്ന നകിലയകിൽ ഉതരവബാദകിതശ്വരതബാടുകൂടകി നകിയമബാനുസരണത ചുമതല നകിർവഹകിരകണ നകിങ്ങൾ അപ്രകബാരത പ്രവർതകികബാപത ബബാങന് നകിങ്ങളകിൽ അർപ്പെകിച്ച വകിശശ്വബാസത നഷ്ടപപ്പെടുതകി ഉതമ വകിശശ്വബാസ രഹകിതമബായകി പ്രവർതകിച്ചന് -: 4 :- W.A.No.1538/2022 തബാങൾ ബബാങകിപന്റെ തബാൽപരന്യതകിനന് വകിരുദമബായകി പ്രവർതകിച്ചകിരകിക്കുന. 7. രമൽ വകിവരകിച്ചന് തരതകിലുള്ള പ്രവൃതകികൾ മൂലത നകിങ്ങപള ബബാങന് വകിശശ്വസകിച്ചന് ഏൽപകിച്ചകിടള്ള ഉതരവബാദകിതശ്വതകിൽ നകിങ്ങൾ വജീഴ വരുതകി.” **4.** It could be seen from the above that the hallmark of the allegation against the delinquent is only with respect to the behaviour of the delinquent to customers. As already indicated, by virtue of Ext.P4 preliminary award dated 19.9.2011, the Tribunal concurred with the findings of the enquiry officer that all the charges stood proved against the delinquent/1[st] respondent. The justifiability or otherwise of the punishment was considered vide Ext.P5 award, the relevant findings of which are extracted here below:- _"9. ............................................................................................. In my considered view all the charges proved against the workman are minor misconducts. For giving extreme punishment of dismissal from service there should be cogent reasons for the management. The workman did not cause monetary or any other loss to the management. There is no allegation of loss of confidence against the workman. Moreover management did not adduce any evidence to establish that the past service record of the workman is_ W.A.No.1538/2022 -: 5 :- _blemished. On a verification of the records it is seen that the management was made another illegality by dismissing the workman with retrospective effect. The workman was dismissed from service on 15/1/2007 vide memo No.655/2007 giving retrospective effect from 19/11/2006 ie the date of suspension. The settled position of law as per the decision of our Hon'ble High Court reported in 1996 Lab IC 2029 the Division Bench held that the employer cannot impose punishment with retrospective effect and even if it is made retrospectively it will have only prospective operation. On a meticulous and judicious consideration of the facts and evidence on record I find that punishment imposed by the management is too harsh, discriminatory, unreasonable and highly disproportionate to the degree of guilt proved. There is very reason to hold that the punishment of dismissal imposed is not in good faith and it is by way of colorable exercise of the employer's right and the management has victimized the workman by giving extreme punishment which is an unfair labour practice as per schedule V item a & b of the Industrial Dispute Act. That clause squarely attracts as it amounts to legal victimization. If a workman is made to suffer some exceptional treatment it would amount to victimization and the management should suffer the consequences of that victimization. For the proved minor misconduct I find withholding of one annual increment of the workman with cumulative effect would be adequate and sufficient punishment for the workman. So I set aside the order of the Management No.655/2007 dated 15/1/2007_ W.A.No.1538/2022 -: 6 :- _dismissing the workman from service and remit the punishment to that of withholding one annual increment of the workman with cumulative effect.”_ **5.** On the question of back wages, the Tribunal found that the 1[st] respondent/delinquent had officiated as a member of the Grama Panchayat concerned during the period of suspension and hence back wages was limited to 50%. Accordingly, reinstatement was directed, with 50% back wages from the date of suspension till reinstatement. **6.** In the impugned judgment, the learned Single Judge referred to several pronouncements of the Hon'ble Supreme Court, as also, of this Court and culled out the contours of jurisdiction of the Industrial Tribunal under Section 11A of the Industrial Disputes Act, and that of this Court under Article 226 of the Constitution. Applying the principles so culled out, the learned Single Judge found that Ext.P5 award is not vitiated. It was taken note of that the Tribunal gave adequate reasons in support of its finding that the punishment W.A.No.1538/2022 -: 7 :- awarded by the Management is shockingly disproportionate to the gravity of the misconduct proved. It was also found that the decision of the Tribunal cannot be said to be patently perverse, warranting interference under Article 226 of the Constitution. **7.** We cannot but endorse the findings of the learned Single Judge and reject this appeal for reasons more than one. Primarily, we notice that Section 11A of the I.D. Act gives ample power to the Labour Court or Industrial Tribunal as the case may be, to set aside the order of discharge or dismissal on such terms, if it is satisfied that such order of discharge or dismissal was not justified. The parameter for such interference is the justifiability component of the order of punishment, as could be seen from the language employed, "the order of discharge or dismissal was not justified." Way back in 1973, the Hon'ble Supreme Court held in **Workmen of M/s.Firestone Tyre and Rubber Co. of India (P) Ltd. and others v. Management and others** [(1973) 1 SCC 813] that the Labour Court has power of re-appraisal of evidence, whereas a similar power is not available to W.A.No.1538/2022 -: 8 :- the High Court under Article 226 of the Constitution. The legal position was reiterated in **M.P. Electricity Board v. Jagdish Chandra Sharma** [(2005) 3 SCC 401]. The findings of the Hon'ble Supreme Court in this regard are as follows:- “8................................................................................. _The jurisdiction under S.11A of the Act to interfere with punishment when it is a discharge or dismissal can be exercised by the Labour Court only when it is satisfied that the discharge or dismissal is not justified. Similarly, the High Court gets jurisdiction to interfere with the punishment in exercise of its jurisdiction under Art.226 of the Constitution of India only when it finds that the punishment imposed, is shockingly disproportionate to the charge proved. These aspects are well settled...............”_ **8.** It is necessary to bear in mind that the question of punishment is essentially one for the management to decide as held in **Eastern Electric Trading Company v. Baldev Lal** [AIR 1975 SC 1892]. It was further held in **Firestone Tyre** (supra) that, once the misconduct is proved, the Tribunal cannot interfere with the punishment, except in cases where the punishment is so harsh as to W.A.No.1538/2022 -: 9 :- suggest victimization. In **Mahindra and Mahindra Ltd. v. N.B. Narawade** [(2005) 3 SCC 134] the Hon'ble Supreme Court observed thus as regards the scope of interference in the matter of punishment by the Tribunal:- _“22.........................................................................................._ _The discretion which can be exercised under S.11A is available only on the existence of certain factors like punishment being disproportionate to the gravity of misconduct so as to disturb the conscience of the Court, or the existence of any mitigating circumstances which requires the reduction of the sentence, or the past conduct of the workman which may persuade the Labour Court to reduce the punishment. In the absence of any such factor existing, the Labour Court cannot by way of sympathy alone exercise the power under S.11A of the Act and reduce the punishment................................”_ **9.** As regards the requirements to give reasons by the Tribunal to its finding that the punishment is shockingly disproportionate, the following are the authorities on the point:- ## 1) **Regional Manager, UPSRTC Etawah and others v. Hoti Lal and another** - - [(2003) 3 SCC 605] W.A.No.1538/2022 ## -: 10 :- 2) **LIC of India v. R.Dhandapani** - [(2006) 13 SCC 613] **10.** On the scope of interference by the High Court under Article 226 of the Constitution to the conclusions arrived at by the Tribunal, a Bench decision of this Court in **David.T.K. v. Kuruppumpady Service Co-operative Bank and others** [2015 (2) KHC 301 : 2015 ## (2) KLT SN 36 (C.No.44)] expatiated the legal position thus:- _"4. The proposition that can be deduced from the law laid and settled by the Apex Court is that the scope and extent of interference with the factual findings of the Tribunal are exceptionally limited. The jurisdiction of the High Court in a writ petition filed under Art.226 and Art.227 of the Constitution of India challenging the findings of a Tribunal is supervisory and not appellate. Unless the High Court finds that there are manifest errors or that the findings are patently unreasonable or tainted with perversity, the writ jurisdiction would not be invoked to unsettle such factual findings. Where the Tribunal exercises a discretion giving valid reason, no interference is called for. Even if another view is possible, interference under the writ jurisdiction is not justified, unless the decision impugned is palpably perverse or patently_ W.A.No.1538/2022 -: 11 :- _unreasonable, as wholly unavailable on record, or in direct conflict with settled principle of law. If the High Court comes to a conclusion that the Tribunal has committed manifest error by misconstruing certain documents or the materials on record to such an extent to which a reasonably prudent person could not have come to the conclusions reached by the Tribunal or that the Tribunal has ignored the relevant materials or had taken into consideration any inadmissible material, the High Court would be justified in interfering with the findings of the Tribunal."_ **11.** Having thus understood the scope of the jurisdiction of the Tribunal under Section 11A of the Industrial Disputes Act and also that of the High Court under Article 226 of the Constitution, this Court is of the definite opinion that exercise of the discretion by the Tribunal in the given facts is just and proper, wherefore, we can only affirm the judgment impugned, which refused interference with the findings of the Tribunal. Essentially, we notice from the charges against the delinquent (already extracted above) that there is no allegation of any misappropriation or falsification of the funds of the Society. The only allegation is with respect to the improper behaviour W.A.No.1538/2022 -: 12 :- of the delinquent to the customers. There is neither any allegation, nor any conduct proved against the delinquent which would erode the position of trust, where honesty and integrity are inbuilt requirements. There is no allegation of any action beyond the delinquent's authority. Nor is there any allegation of any loss caused to the Society on account of the improper behaviour of the delinquent. It is one thing to say that an employee of a Society/Bank is expected to deal with and behave properly to the customers, especially, in an era of hectic competition between banks/financial institutions and any short-coming in this regard would impact the business interests of the bank adversely. However, the pivotal question is whether such an improper conduct to the customers, by itself, would warrant the capital punishment of dismissal from service, that too with retrospective effect. The answer can only be in the negative, which precisely was the finding of the Tribunal, which stood approved by the learned Single Judge vide the impugned judgment. We affirm the finding of the Tribunal, confirmed by the learned Single Judge, that the punishment imposed was shockingly W.A.No.1538/2022 -: 13 :- disproportionate to the degree of guilt proved. As rightly found by the learned Single Judge, it cannot be found that the decision of the Tribunal in interfering with the punishment cannot be said to be patently perverse or as one which no person in his senses would take. We find no ground for interference with the well considered judgment of the learned Single Judge. This appeal fails and the same is therefore dismissed. We are informed that the 1st respondent retired from service upon superannuation on 30.03.2023, wherefore, we direct that the 1st respondent shall be paid subsistence allowance from the date of suspension (23.01.2006) till the date of dismissal from service (15.01.2007). Further, he shall be paid 50% of the back wages from the date of dismissal (15.01.2007) till the date of superannuation (30.03.2023), together with all retirement benefits to which he is entitled to, as per law. We hold that the 1 st respondent would have been entitled to reinstatement in service, but for his superannuation, wherefore, we direct that his entire period of service till date of superannuation shall be reckoned for the purpose of computation of W.A.No.1538/2022 -: 14 :- retirement benefits. The above referred payments due to the 1 st respondent namely the subsistence allowance, 50% of the back wages and retirement benefits, shall be disbursed within a period of two months from the date of receipt of a copy of this judgment. Sd/- **ALEXANDER THOMAS, JUDGE** Sd/- skj **C. JAYACHANDRAN, JUDGE** ## W.A.No.1538/2022 -: 15 :- ## **APPENDIX OF WA 1538/2022** |PETITIONERS' EXHIBITS|PETITIONERS' EXHIBITS| |---|---| |ExhibitP-1|TRUE COPY OF THE ENQUIRY REPORT| |Exhibit P -2|TRUE COPY OF CLAIM STATEMENT| |Exhibit P-3|TRUE COPY OF THE WRITTEN STATEMENT| |Exhibit P-4|TRUE COPY OF THE PRELIMINARY AWARD DATED| ||19/9/2011| |Exhibit P-5|TRUE COPY OF THE AWARD DATED 24/1/2011| |Exhibit R-1 (a)|TRUE COPY OF GO (RT) 515/2005/COOP DATED| ||02/09/2005| |Exhibit R-1 (b)|TRUE COPY OF COMPLAINT DATED 23/01/2006| ||OF SRI. SABU MM AND HIS DEPOSITION| ||BEFORE THE ENQUIRY OFFICER.| |Exhibit R-1 (c)|TRUE COPY OF MASS PETITION| |Exhibit R-1 (d)|TRUE COPY OF DEPOSITIONS OF| ||V P RAMACHANDRAN NAIR AND ANISH S| |Exhibit R-1 (e)|TRUE COPY OF COMPLAINT DATED 21/01/2006| |Exhibit R-1 (f)|TRUE COPY OF NOTARISED AFFIDAVIT OF| ||SRI.AYYAKUTTY CHETTIYAR T K| |Exhibit R-1(g)|TRUE COPY OF CHARGE SHEET DATED| ||16/03/2006.|