High Court of KeralaDivision BenchDismissed

The President, Kunnathukal Service Co-operative Bank Ltd. No.1101, Kunnathukal P.O. v. Sukumaran Nair and The Industrial Tribunal, Kollam

Case / Petition Number:RP No. 983 of 2014 in WA 530/2014

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • P.B. Suresh Kumar
  • V.G. Arun
Judgment Date
2018-12-18
Court Decision / Holding
The review petition is dismissed. The court held that in references under Section 10 of the Industrial Disputes Act, where leave to lead additional evidence was not sought at the earliest opportunity, the management cannot adduce such evidence. Lakshmidevamma’s para 45 does not alter this position; it addresses general powers of Tribunals and must be harmonized with the majority view, not to broaden this particular right in s.10 references. The writ appeal’s decision to remit for fresh adjudication based on the vitiated domestic enquiry remains correct.
Final Disposition
Dismissed

Parties to the Case

Appellants / Petitioners

  • The President, Kunnathukal Service Co-Operative Bank Ltd. No.1101, Kunnathukal P.O.

Respondents

  • Sukumaran Nair
  • The Industrial Tribunal, Kollam

Legal Representation & Advocates

Counsels for Petitioners

  • • Adv. Sri. B.S. Swathy Kumar

Counsels for Respondents

  • • Adv. SMT. A.K. Preetha (R1)

Case Synopsis & Summary

This is a Kerala High Court review petition (RP No. 983 of 2014 in WA 530 of 2014) arising from a writ appeal challenging an order related to a domestic enquiry and the subsequent industrial tribunal award concerning the dismissal of an employee (the first respondent) by the management (the petitioner bank). The writ appeal had held that the domestic enquiry was vitiated due to non-compliance with fundamental principles of natural justice and remitted the matter to the Industrial Tribunal for fresh adjudication. The petitioners sought a review to clarify whether, where leave to adduce further evidence on the charges was not sought in the written statement, the Tribunal could still permit such evidence if necessary to prove the charges. The review court analyzed governing law from Apex Court decisions, notably Shambu Nath Goyal and Karnataka State Road Transport Corporation v. Lakshmidevamma. The court concluded that, in references under Section 10 of the Industrial Disputes Act, if leave to adduce further evidence was not sought at the earliest opportunity, the management does not have a right to introduce such evidence. While Lakshmidevamma is discussed, the court harmonizes it with the majority view and finds no merit in the review petition. The petition was dismissed, upholding the earlier position that the evidence must be sought at the correct stage and that the settled law governs this outcome.

Provisions of Law Cited

Industrial Disputes Act, 1947Section 33Section 10

Legal Doctrines & Maxims

  • Principles of natural justice
  • Ends of justice
  • Strict rules of evidence are not applicable to Labour Courts/Tribunals (but natural justice applies)
  • Power of Labour Courts/Tribunals to call for evidence at any stage to meet ends of justice

Submissions & Arguments

Contentions of Appellants / Petitioners

The applicant-bank contended that even if leave to adduce further evidence to prove the charges was not sought in the written statement, the Tribunal could still permit the management to lead such evidence, and the review petition sought a clarificatory declaration on this point. It was argued that Lakshmidevamma’s observations should be read harmoniously with the majority decision, and that the Tribunal’s discretion to permit evidence should not be constrained to a rigid requirement. The review petition aimed to obtain a declaration that the right to adduce evidence could be exercised if necessary to meet ends of justice.

Contentions of Respondents

The respondents argued that the point was not raised in the writ appeal and that the settled law, particularly Shambu Nath Goyal, governs: in references under Section 10, if leave to adduce evidence was not sought at the earliest opportunity, the management has no right to lead further evidence. They supported the position that Lakshmidevamma’s para 45 cannot be read to overrule or dilute this settled law and that the review petition has no merit.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
Shambu Nath Goyal v. Bank of Baroda and others1984 (1) SCR 85PositiveEstablished that in a reference under Section 10, management must seek leave to adduce further evidence at the earliest opportunity; applied as controlling authority in the present context.
Karnataka State Road Transport Corporation v. Lakshmidevamma2002 KHC 247Partly Overruled / LimitedCited for discussion on a general power to admit evidence; the court harmonizes it and clarifies that its para 45 does not apply to the specific context of Section 10 references, thus limiting its applicability.

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Extracted Judgment Text

Exact text extracted from official judgment records.

# **IN THE HIGH COURT OF KERALA AT ERNAKULAM** **PRESENT** **THE HONOURABLE MR. JUSTICE P.B.SURESH KUMAR** **&** **THE HONOURABLE MR.JUSTICE V.G.ARUN** **TUESDAY ,THE 18TH DAY OF DECEMBER 2018 / 27TH AGRAHAYANA, 1940** **RP.No. 983 of 2014 IN WA. 530/2014** **AGAINST THE JUDGMENT IN WA 530/2014 of HIGHCOURT DATED** **01-09-2014** ## **REVIEW PETITIONER/APPELLANT:** **THE PRESIDENT, KUNNATHUKAL SERVICE CO-OPERATIVE BANK LTD.NO.1101, KUNNATHUKAL P.O.** ## **BY ADV. SRI.B.S.SWATHY KUMAR** ## **RESPONDENTS/RESPONDENTS:** **1 SUKUMARAN NAIR, ROHINI, VARATTAYAM, KUNNATHUKAL P.O., THIRUVANANTHAPURAM, PIN-695 004. 2 THE INDUSTRIAL TRIBUNAL, KOLLAM, PIN-691 001. BY ADV. SMT.A.K.PREETHA (R1)** ## **OTHER PRESENT:** **SRI.P.M.SATHEESH GP** **THIS REVIEW PETITION HAVING BEEN FINALLY HEARD ON 18.12.2018, THE COURT ON THE SAME DAY PASSED THE FOLLOWING:** RP 983 of 2014 in WA 530 of 2014 2 ## **O R D E R** ## **P.B.Suresh Kumar, J.** The appellant seeks review of the judgment in the writ appeal. 2. The writ petition from which the writ appeal arose was one instituted by the first respondent challenging an award of the Industrial Tribunal in an industrial dispute. The first respondent was the workman involved in the dispute. The issue referred for adjudication to the Tribunal was as to whether the dismissal of the first respondent by the appellant from their establishment was justifiable. The dismissal of the first respondent was based on the findings arrived at in a domestic enquiry conducted on certain charges of misconducts levelled against him. Having regard to the materials on record, this court held that the domestic enquiry conducted by the appellant was vitiated for non-compliance of the principles of natural justice. Consequently, this court set aside the impugned award upholding the domestic enquiry and remitted the dispute to the Tribunal for fresh adjudication. It was also ordered that if the appellant had requested for permission to adduce evidence in support of the charges in the written statement filed by them before the Tribunal, they shall be given an opportunity to prove the charges against the first respondent. The appellant though sought review of the decision in the writ petition on RP 983 of 2014 in WA 530 of 2014 3 the ground that the Industrial Tribunal has jurisdiction to permit the management to let in evidence to prove the charges levelled against the delinquent workman even if permission is not sought in the written statement, the review petition on that ground was dismissed. Thereupon, the decision in the writ petition was challenged in the writ appeal. This court dismissed the writ appeal taking the view that the materials on record do not warrant interference in the decision in the writ petition. The appellant seeks review of the said judgment. 3. The learned counsel for the appellant submitted that the point urged on behalf of the appellant at the time of admission of the appeal was that even in a case where leave of the Tribunal to let in evidence to prove the charges is not sought at the time of filing the written statement, the Tribunal can certainly permit the management to let in evidence to prove the charges and that point has not been dealt with in the judgment. In short, the case set out in the review petition is that though the appellant had not sought leave of the Tribunal to adduce evidence to establish the guilt of the workman, they are entitled to do so if the Tribunal permits. According to the learned counsel, the review petition is filed for a clarification to that effect in the judgement. 4. The materials on record do not indicate that the point aforesaid was one raised by the counsel at the time of hearing of the RP 983 of 2014 in WA 530 of 2014 4 writ appeal. Nevertheless, with a view to give a quietus to the dispute, we deem it appropriate to deal with the said point in this review petition. 5. The law on the point has been settled by the Apex Court in **Karnataka State Road Transport Corporation** v **Lakshmidevamma** [2002 KHC 247]. The majority judgment in the said case as contained in paragraph 19 is that the law laid down by the Apex Court in **Shambu Nath Goyal** v. **Bank of Baroda and others** [1984 (1) SCR 85] is the correct law on the point. The ratio in **Shambu Nath Goyal** as contained paragraph 16 of the judgment in the said case has been reproduced in paragraph 15 of the judgment in **Lakshmidevamma.** Paragraph 16 of the judgment in **Shambu Nath Goyal** reads thus : “16. We think that the application of the management to seek the permission of the Labour Court or Industrial Tribunal for availing the right to adduce further evidence to substantiate the charge or charges framed against the workman referred to in the above passage in the application which may be filed by the management during the pendency of its application made before the Labour Court or Industrial Tribunal seeking its permission under s.33 of the Industrial Disputes Act, 1947 to take a certain action or grant approval of the action taken by it. The management is made aware of the workman's contention regarding the defeat in the domestic enquiry by the written statement of defence filed by him in the application filed by the management under s.33 of the Act. Then, if the management chooses to exercise its right it must make up its mind at the earliest stage and file the application for that purpose without any unreasonable delay. But when the question arises in a reference under s.10 of the Act after the RP 983 of 2014 in WA 530 of 2014 5 workman had been punished pursuant to a finding of guilt recorded against him in the domestic enquiry there is no question of the management filing any application for permission to lead further evidence in support of the charge or charges framed against the workman, for the defeat in the domestic enquiry is pointed out by the workman in his written claim statement filed in the Labour Court or Industrial Tribunal after the reference had been received and the management has the opportunity to look into that statement before it files its written statement of defence in the enquiry before the Labour Court or Industrial Tribunal and could make the request for the opportunity in the written statement itself. If it does not choose to do so at that stage it cannot be allowed to do it at any later stage of the proceedings by filing any application for the purpose which may result in delay which may lead to wrecking the morale of the workman and compel him to surrender which he may not otherwise do.” A reading of the extracted portion of the judgment of the Supreme Court in **Shambu Nath Goyal** makes it abundantly clear that in a case where a reference is made under Section 10 of the Industrial Disputes Act, if leave of the court is not sought at the earliest opportunity at the time of filing the written statement, the party has no right to adduce evidence to prove the guilt of the delinquent employee. The present case being a case involving a reference under Section 10 of the Industrial Disputes Act, the issue is therefore covered against the appellant in terms of the decision of the Apex Court in **Shambu Nath Goyal.** 6. The learned counsel for the review petitioner, placing reliance on paragraph 45 of the judgment in **Lakshmidevamma,** RP 983 of 2014 in WA 530 of 2014 6 submitted that the Apex Court has clarified in the said case that the ratio therein would not preclude the Tribunal from permitting the parties to lead evidence in the proceedings. According to the learned counsel, even after the decision of the Apex Court in **Lakshmidevamma** , the Tribunal has discretion in the matter of permitting the parties to adduce evidence. 7. We are unable to accept the said argument of the learned counsel for the review petitioner. True, paragraph 45 of the judgment is part of the judgment, written by one of the learned Judges endorsing the view expressed by the majority. Paragraph 45 of the judgment reads thus : It is consistently held and accepted that strict rules of evidence are not applicable to the proceedings before labour court / tribunal but essentially the rules of natural justice are to be observed in such proceedings. Labour courts / tribunal have power to call for any evidence at any stage of the proceedings if the facts and circumstances of the case demand the same to meet the ends of justice in a given situation. We reiterate that in order to avoid unnecessary delay and multiplicity of proceedings, the management has to seek leave of the court / tribunal in the written statement itself to lead additional evidence to support its action in the alternative and without prejudice to its rights and contentions. But this should not be understood as placing fetters on the powers of the court / tribunal requiring or directing parties to lead additional evidence including production of documents at any stage of the proceedings before the year concluded if on facts and circumstances of the case it is deemed just and necessary in the interest of justice. Paragraph 45 of the judgment being written by one of the learned Judges concurring with the majority view in the matter, the view RP 983 of 2014 in WA 530 of 2014 7 expressed therein will have to be understood harmoniously with the view expressed by the majority. If one understands paragraph 45 of the judgment harmoniously with the view expressed by the majority as held in paragraph 19 of the judgement, there is no difficulty in coming to the conclusion that it deals only with the general power of the Tribunal and not with reference to the right of the management to adduce evidence to establish the charges against the workman in cases where the Tribunal holds, in references under Section 10 of the Industrial Disputes Act, that the domestic enquiry is vitiated. There is, therefore, no merit in the review petition and the same is, accordingly, dismissed. **Sd/-** ## **P.B.SURESH KUMAR, JUDGE.** **Sd/-** ## **V.G.ARUN, JUDGE.** tgs RP 983 of 2014 in WA 530 of 2014 8