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Smart Summary

Comprehensive Summary of the Opinion

Factual and Procedural Background

The revision-petitioner is Indian Oxygen Ltd., Madras. On 7 April 1988 the company served a charge memo and placed the respondent (an employee) under suspension; the respondent replied on 11 April 1988. Sri Madhavaiah was appointed as enquiry officer; the enquiry concluded on 2 December 1988 and the officer submitted a report. On the basis of that report a show-cause notice was issued proposing dismissal. The respondent filed Original Suit No. 188 of 1989 in the Court of the District Munsiff, Poonamallee, seeking a declaration and injunction, and filed I.A. No. 393 of 1989 where an ad interim injunction was granted and subsequently made absolute after the completion of the enquiry. The company challenged that order by way of this civil revision petition.

Legal Issues Presented

  1. Whether the civil Court had jurisdiction to entertain the respondent's suit challenging the charge-sheet, appointment of an enquiry officer, the enquiry proceedings and report where the pleadings alleged those acts were contrary to the company's standing orders (i.e., whether the matters fall within items (1) and (2) of the Second Schedule to the Industrial Disputes Act, 1947).
  2. Whether the order of the civil Court granting and making absolute an injunction restraining disciplinary proceedings (I.A. No. 393 of 1989) was without jurisdiction and therefore a nullity such that the High Court should set it aside in revision under Section 115, Civil Procedure Code and/or under its superintendence jurisdiction under Article 227 of the Constitution.
  3. Whether the existence of an appellate remedy (appeal to the District Judge against the impugned order) precludes the High Court from exercising revisional jurisdiction under Section 115 in circumstances where the trial Court's order is alleged to be without jurisdiction or an abuse of process.

Arguments of the Parties

Revision-Petitioner's (Appellant's) Arguments

  • The respondent's pleadings demonstrate that his grievance centres on alleged contravention of the company's standing orders by the domestic enquiry; such matters fall within items (1) and (2) of the Second Schedule to the Industrial Disputes Act, 1947 and therefore the civil Court's jurisdiction is barred.
  • The order of the civil Court (granting and making absolute the injunction) was passed without jurisdiction and is an abuse of process; it is therefore a nullity that should be quashed by this Court in exercise of revisional powers under Section 115 CPC and supervisory jurisdiction under Article 227 of the Constitution.

Respondent's Arguments

  • The reliefs sought by the respondent (declaration and injunction) are not grantable under the fora constituted under the Industrial Disputes Act, and consequently the respondent was justified in invoking the jurisdiction of the civil Court.
  • Even if this Court finds that the civil Court lacked jurisdiction, the impugned order is an appealable order (appeal lies to the District Judge), and therefore Section 115 revision should not be used to set aside the order — the District Judge as appellate forum is the appropriate forum to challenge it.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Premier Automobiles Ltd. v. Kamlakar Shantaram Wadke [1976-1 L.L.N 1] Principles delineating the civil Court's jurisdiction in relation to industrial disputes: (1) disputes not industrial go to civil Court; (2) where dispute arises out of general/common law, civil jurisdiction is alternative; (3) if dispute enforces rights created under the Act, remedy is under the Act; (4) rights created under Chapter V-A enforced by methods specified in the Act. The Court adopted these principles to determine whether the respondent's reliefs fell within the scope of the Act (i.e., whether the civil Court's jurisdiction was ousted).
National and Grindlays Bank Employees' Union v. I. Kannan [1978-I L.L.N 431] Distinction between industrial disputes enforcing rights under the Act (ousting civil jurisdiction) and disputes enforcing rights under general/common law (civil jurisdiction not ousted); ouster principle where Act creates the obligation and prescribes the enforcement mechanism. Reinforced the Court's approach that if pleadings seek enforcement/construction of standing orders (matters under the Second Schedule), civil jurisdiction is ousted.
Amarnath v. Jhandhu Lal [A.I.R. 1983 P. & H. 291] Where a Court misuses, exceeds or withholds jurisdiction and its order does not conform to legal mandates, revisional power lies to restore jurisdiction; availability of an appellate remedy does not automatically preclude revisional jurisdiction. Supported the proposition that High Court may exercise revisional jurisdiction under Section 115 to set aside an order passed without jurisdiction despite an available appellate remedy.
S. Sundaram Pillai v. P. Govindaswami [A.I.R. 1985 Mad. 199] The High Court in revisional jurisdiction can interfere with interlocutory orders (including injunctions) that are patently erroneous, perverse, or obtained by suppression of material facts; the availability of an appeal against interlocutory orders should not prevent revision where abuse of process is shown. Used to justify interference with the trial Court's injunction order in revision rather than compelling the respondent to first seek relief in the trial Court.
Vaishnav College for Women v. Smt. Aleyamma Thomas [1971 (1) M.L.J 76] Where the petitioner has an appeal only to the District Court (and not to the High Court), the High Court may still entertain revision under Section 115; admitting revision and exercising jurisdiction can be proper even where an appeal lies to a lower appellate forum. Supported the Court's view that the availability of an appellate remedy (to the District Judge) did not bar the High Court from entertaining the revision petition under Section 115 in appropriate circumstances.
Official Receiver, Guntur v. Seshayya [1940 (2) M.L.J 860] Principle that once a revision petition is entertained and admitted, it is not proper to dismiss it on the ground of maintainability alone; the High Court may call for records even without application where interference is necessary. Referred to in support of the proposition that revisional jurisdiction can be exercised notwithstanding existence of other remedies in specific circumstances.
Hindustan Antibiotics Ltd. v. Ramdas Trimbak Deshmukh [1977-I L.L.N 240] Where a civil Court is not competent to grant the substantive relief (e.g., specific enforcement of personal service) it cannot grant a lesser prohibitory relief (injunction) to restrain statutory/disciplinary proceedings; injunction is preventive relief only where irreparable harm not compensable by money exists; granting injunction in such contexts is an abuse of Order 39 CPC. The Court applied these observations directly to hold that the ad interim injunction in the present case was misconceived; the trial Court had thereby abused its powers and its order was a nullity.

Court's Reasoning and Analysis

The Court proceeded in two interconnected stages: (1) an examination of the pleadings to determine whether the matters the respondent sought to raise in the civil suit fell within the exclusive domain of fora constituted under the Industrial Disputes Act; and (2) an assessment of whether the High Court could exercise revisional jurisdiction under Section 115 CPC and supervisory jurisdiction under Article 227 to set aside the impugned interlocutory order.

On the first stage the Court closely scanned the plaint and the supporting affidavit. The plaint (concluding paragraph 10) specifically sought a declaration that the "charge-sheet issued to him, the appointment of an enquiry officer, the enquiry proceedings and the enquiry report are illegal, inoperative and without jurisdiction contrary to the standing orders of the company" and for a permanent injunction restraining dismissal. The affidavit (para. 14) asserted that the show-cause notice was vague and not in conformity with the company's standing orders, and the affidavits reiterated that the enquiry proceedings violated standing orders.

The Court observed that items (1) and (2) of the Second Schedule to the Industrial Disputes Act expressly cover "the propriety and legality of an order passed by the employer under the standing orders" and "the application and interpretation of the standing orders." Given that the substance of the respondent's claim challenged the propriety, legality, application and interpretation of standing orders, the Court concluded the reliefs sought were matters falling squarely within the jurisdiction of the statutory fora under the Act and thus ousted the civil Court's jurisdiction in this case.

On the second stage the Court considered the submission that the High Court should not exercise revisional jurisdiction because an appeal lay to the District Judge. The Court reviewed authority (Amarnath, S. Sundaram Pillai, Vaishnav College, Official Receiver, Guntur) establishing that where a subordinate Court has acted without jurisdiction, misused or exceeded jurisdiction or produced an order that is a nullity, the High Court in revision under Section 115 (and under Article 227) may intervene notwithstanding the availability of an appellate remedy. The Court found those principles applicable here.

The Court also relied on Hindustan Antibiotics to emphasise that injunction is a preventive remedy for irreparable harm and cannot be granted where substantive relief is not justiciable by the civil Court; thus prohibiting an employer from proceeding with disciplinary proceedings by injunction in such circumstances is impermissible and amounts to an abuse of Order 39 CPC. Applying that reasoning, the Court held the ad interim injunction (and its subsequent confirmation) were misconceived because the civil Court lacked jurisdiction to grant such relief in respect of matters falling within the Second Schedule of the Act.

Holding and Implications

Holding: The revision succeeds. The High Court allowed the civil revision petition, set aside the order of the Court below and dismissed I.A. No. 393 of 1989. The Court made no order as to costs.

Implications: The direct effects of the decision are:

  • The interlocutory order of the trial Court granting and making absolute an injunction restraining the employer from proceeding with the disciplinary enquiry was held to be without jurisdiction and is set aside.
  • I.A. No. 393 of 1989 (the interlocutory application for injunction) is dismissed.
The opinion does not purport to lay down a novel or broader precedent beyond applying established principles regarding the ouster of civil jurisdiction by the Industrial Disputes Act and the supervisory/revisional jurisdiction of the High Court. The Court's decision is therefore limited in effect to the facts before it (i.e., the civil Court's lack of jurisdiction to grant the reliefs claimed in this case and the resulting nullity of the injunction order).

    Indian Oxygen, Ltd. (Electro Factory, Industrial Estate), Madras v. Ganga Prasad

    1. The revision-petitioner is Indian Oxygen, Ltd., Madras, under whom the respondent herein is an employee. On 7 April 1988 the petitioner-company served a charge memo and placed the respondent under suspension for certain misconduct on his part, to which he sent a reply on 11 April 1988. Thereafter one Sri Madha-vaiah was appointed as enquiry officer. On completion of the enquiry on 2 December 1988, he submitted a report and on the basis of that report, a show-cause notice had been issued as to why he should not be dismissed from service. At this stage, he filed Original Suit No. 188 of 1989 on the file of learned District Munsiff, Poonamallee, for the relief of declaration and injunction. He also filed I.A No. 393 of 1989 and obtained ad interim injunction. After enquiry ad interim injunction granted earlier was made absolute. It is this order that is being challenged in this civil revision petition.

    2. Learned counsel appearing for the revision-petitioner would make a scathing attack as to the sustainability of this order made by the Court below by urging the following points for consideration:

    (1) The pleadings of the respondent in the plaint, if scanned with a little bit of care and caution, would point out that the grievance or complaint, if any he had against the petitioner-company, was that the domestic enquiry instituted against him is contrary to the standing orders of the company and in that view of the matter, it will fall within the ambit and scope of items (1) and (2) of Second Schedule to the Industrial Disputes Act, 1947, for short the Act, and consequently, the civil Court's jurisdiction is barred.

    (2) The order passed as such by the Court below is clearly without jurisdiction tantamounting to abuse of process of law and, therefore, such an order, which is a nullity, cannot be allowed to stand and the interests of justice require this Court, in exercise of the powers of revision under S. 115 of the Code of Civil Procedure as well as in exercise of the power of superintendence over all subordinate Courts under Art. 227 of the Constitution of India, to interfere and set at naught the consequence flowing from such an order.

    3. Learned counsel appearing for the respondent would repel the submissions as above and couch his point of view in the form of proposition as hereunder:

    (1) The reliefs prayed for by the respondent are not grantable in any of the forums constituted under the provisions of the Act and, therefore, it is recourse has to be had invoking the jurisdiction of the civil Court.

    (2) If for any reason this Court comes to the conclusion that the civil Court is not having the requisite jurisdiction, even then the order passed by the Court below cannot be set at naught by this Court exercising its powers under S. 115 of the Code of Civil Procedure in view of the fact that the order of the Court below is an appealable order and appeal lies to the District Judge, who alone will be having requisite power to interfere with the same.

    4. Before embarking upon a discussion on the submissions made by learned counsel appearing on both sides, quite proper it is to refer to the decision of the apex of the judicial administration of the country as well as the decisions rendered by this Court expounding the principles governing the jurisdiction of the civil Court and the forms constituted under the provisions of the Act.

    5. In Premier Automobiles, Ltd. v. Kamlakar Shantaram Wadke [1976-1 L.L.N 1], the Supreme Court enunciated the principles thus in Para. 23, at page 12:

    “… The principles applicable to the jurisdiction of the civil Court in relation to an industrial dispute may be stated thus:

    (1) If the dispute is not an industrial dispute, nor does it relate to enforcement of any other right under the Act, the remedy lies only in the civil Court;

    (2) If the dispute is an industrial dispute arising out of a right or liability under the general or common law and not under the Act, the jurisdiction of the civil Court is alternative, leaving it to the election of the suitor concerned to choose his remedy for the relief which is competent to be granted in a particular remedy.

    (3) If the industrial dispute relates to the enforcement of a right or an obligation created under the Act, then the only remedy available to the suitor is to get an adjudication under the Act.

    (4) If the right which is sought to be enforced is a right created under the Act such as Chap. V-A then the remedy for its enforcement is either S. 33-C or the raising of an industrial dispute, as the case may be.”

    6. In National and Grindlays Bank Employees' Union v. I. Kannan [1978-I L.L.N 431], a learned Judge of this Court has held as follows in Paras. 11 and 12, at page 435:

    “… A clear distinction has been made between an industrial dispute for enforcing any right, obligation or liability created under the Act and such a dispute for the purpose of enforcing any right, obligation or liability under the general law or common law. If the dispute is of the former category, the civil Court has no jurisdiction. But if the industrial dispute is of the latter category, namely, for enforcing any right, obligation or liability under the general law or the common law, surely the aggrieved party can go to civil Court and the jurisdiction of the Court is not ousted.

    12. The ouster of the civil Court's jurisdiction is based on the principle that where an Act created an obligation and enforces the performance in a specified manner, the rule is that performance cannot be enforced in any other manner…”

    7. In the backdrop of the principles enunciated by the aforesaid two decisions, an approach may be made to resolve the tangle in the instant case, in the sense of arriving at a conclusion as to whether the reliefs prayed for by the respondent would fall within the domain of the forums created under the provisions of the Act or other wise it would fall within the exclusive jurisdiction of the civil Court. For determination of this question, a scanning of the pleadings set out by the respondent in his plaint as well as in the affidavits filed in support of the interlocutory application for the relief of injunction is necessary. In the concluding Para. 10 of the plaint, it is specifically averred as follows:

    “Hence the plaintiff is obliged to file this suit for a declaration that the charge-sheet issued to him, the appointment of an enquiry officer, the enquiry proceedings and the enquiry report are illegal, inoperative and without jurisdiction contrary to the standing orders of the company and for a permanent injunction restraining the defendant management from dismissing the plaintiff from services.

    [emphasis supplied]

    8. The opening sentence in Para. 14 of the affidavit filed is couched in the following terms:

    “I submit that the show-cause notice issued is very vague and is not in conformity with the standing orders of the company.”

    This line of thinking gets further reinforced in the concluding Para. 9 therein reiterating the portion as extracted in present Para. 7.

    9. The sum and substance, so, to say, of the essence of the pleadings as above would tantamount to saying that the enquiry proceedings, etc., had been conducted in flagrant violation of the standing orders of the company. Worthy it is to note at this juncture, items (1) and (2) of the Second Schedule to the Act. They are:

    “Item (1): The propriety and legality of an order passed by the employer under the standing orders; and

    item (2): The application and interpretation of the standing orders.”

    10. Looking at the crux of the pleadings and items (1) and (2) of the Second Schedule to the Act as stated above, it is fluidly clear that the reliefs prayed for by the respondent would fall within the domain of the forums constituted under the Act, thereby ousting the jurisdiction of the civil Court. Once this conclusion is arrived at, the order passed by the Court below is clearly without jurisdiction and a nullity, which cannot be allowed to stand.

    11. The second facet of the argument of learned counsel for the respondent as reflected above deserves anxious consideration. Though this submission looks attractive on the face of it, yet its untenability would get exposed by the trend of the authorities on this aspect of the matter, which can now be considered.

    12. In Amarnath v. Jhandhu Lal [A.I.R 1983 P. & H. 291], a learned Judge of the Punjab and Haryana High Court observed as follows regarding the exercise of power of revision by High Court:

    “… When jurisdiction is misused, exceeded or withheld by a Court and the product of its deliberations do not conform even to a sembalance of the order envisaged under the provisions of law, then the power is there with the revisional Court to put that Court back to its jurisdiction. The availability of the appellate remedy in such circumstances cannot be a clog to the exercise of the revisional jurisdiction.”

    13. In S. Sundaram Pillai v. P. Govinda-swami [A.I.R 1985 Mad. 199], M.N Chandurker, C.J, as he then was, observed as follows:

    “Now it is true that the Division Bench has held in Abdul Shukor case [A.I.R 1976 Mad. 350], that no appeal lies against an order of ad interim injunction. But, to accept the contention of the plaintiff in the present case that the defendants should first appear before the trial Court and move the trial Court for setting aside the injunction, would really have the effect of permitting the plaintiff to have the benefit of an order which is patently erroneous and to say the least, perverse and has been obtained by suppressing material facts. In any case, the High Court in the exercise of its revisional jurisdiction under S. 115 of Civil Procedure Code cannot allow an order, which amounts to an abuse of the powers vested in the trial Court to stand once such an order comes to the notice of the High Court.”

    14. In Vaishnav College For Women v. Smt. Aleyamma Thomas [1971 (1) M.L.J 76], a learned Judge of this Court has observed as follows:

    “In this case, against the order in question, the petitioner has no right of appeal to this Court, directly or indirectly. He has only a remedy by way of an appeal to the District Court without any further right of appeal to this Court. In view of this position, I am of the view that there is no bar in entertaining this revision petition under S. 115 of the Code. Even otherwise, as pointed out by the Division Bench in Official Receiver, Guntur v. Seshayya [1940 (2) M.L.J 860], the revision having been entertained and admitted, it is not proper to dismiss it on the ground that it should not have been admitted. I am not inclined to dismiss the revision petition as not maintainable at this stage even if I were to hold that the revision is not normally to be entertained in cases where a remedy by way of an appeal is available, to the petitioner. It is well settled that where interference is found necessary in any particular case, the High Court may of its own motion call for the record even without an application by the aggrieved party. I therefore, proceed on the basis that the revision is maintainable.”

    15. On the face of the observations as above, it is futile for learned counsel for the respondent to contend that this Court cannot exercise the powers of revision to set at naught, in the sense of setting aside the order passed by the Court below, which was one passed without jurisdiction. Pertinent it is to refer at this juncture the decision in Hindustan Antibiotics, Ltd. v. Ramdas Trimbak Deshmukh [1977-I L.L.N 240]. In that case, a domestic enquiry regarding certain misconduct was instituted against certain workmen. While the enquiry was in progress, they filed a suit in a civil Court seeking to declare that the appointment of the enquiry officer and the disciplinary proceedings were bad in law, inoperative and not binding on the workmen as they were grounded on mala fides. The civil Court issued an ad interim injunction under Order 39 of the Civil Procedure Code restraining the employer from proceeding with the demestic enquiry. Taking up the question of jurisdiction as a preliminary issue, the trial Court held that the question of bona fides or mala fides of the employer could be decided only by a civil Court and hence it had jurisdiction to try the suit. On appeal by the aggrieved employer, learned Judge held as follows:

    “Courts must grant relief of injunction only in situations which so clearly call for it as to make its refusal work real and serious hardship and injustice. Injunction is a preventive relief against irremediable mischief. An injury is deemed to be irreparable and mischief is said to be irremediable where damage apprehended from the threatened act cannot be compensated with money. If a right being assailed is not justiciable, no relief in the form of injunction, temporary or perpetual, can be granted. In this case, the workmen had founded their suit on an anticipated breach of contract of personal service the performance of which could not be specifically enforced under S. 41(a) of the Special Relief Act, 1963. When the Court was not competent in the case of dismissal of the employee to pass a decree requiring the employee to be treated as being in employment, it would not have jurisdiction to grant a lesser relief of prohibiting the employer from proceeding with the disciplinary proceeding against the employees. Therefore, the order of ad interim injuntion was entirely misconceived and the trial Court had abused powers vested under Order 39, Code of Civil Procedure.”

    The observations extracted above are applicable on all fours to the facts of the present case.

    16. In view of what has been stated above, the revision deserves to be allowed.

    17. In the result, the civil revision petition is allowed; the order of the Court below is set aside and I.A No. 393 of 1989 is dismissed. However, in the circumstances of the case, I make no order as to costs.

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    Indian Oxygen, Ltd. (Electro Factory, Industrial Estate), Madras v. Ganga Prasad
    (Dec 8, 1989)