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  • Section 33 (2) (b) of the Industrial Disputes Act, 1947 (hereinafter referred
  • Section 33 (2) (b)
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  • Section 33 (2) (b) of the Industrial Disputes Act, 1947 (hereinafter referred
  • Section 33 (2) (b)
Smart Summary

Summary of Opinion — Mukul Mudgal, J.

Factual and Procedural Background

This writ petition was taken up for final hearing with the consent of the parties. The petitioner sought a direction to respondent No.1 (DTC) to reinstate him with continuity of service relying on an Order of the Industrial Tribunal dated 4 May 2001 which declined the application made by respondent No.1 under Section 33(2)(b) of the Industrial Disputes Act, 1947. It was not disputed that the Tribunal's order of 4 May 2001 had not been challenged by respondent No.1. Respondent No.1's defence in the writ petition was that the petitioner had subsequently challenged a dismissal by raising an industrial dispute which was pending before the Industrial Tribunal.

Legal Issues Presented

  1. Whether, where the Industrial Tribunal has rejected an employer's application under Section 33(2)(b) of the Industrial Disputes Act, 1947, the employer is nevertheless bound to treat the employee as continuing in service and grant consequential benefits.
  2. Whether a subsequent industrial dispute raised by the employee and pending before the Industrial Tribunal can lawfully prevent reinstatement where the Tribunal has already refused approval under Section 33(2)(b) and that refusal has not been challenged by the employer.

Arguments of the Parties

Petitioner's Arguments

  • The petitioner relied on the judgment of the Hon'ble Supreme Court in M.D Tamil Nadu State Transport Corporation v. Neethivilangan Kumbakonam, 2001 LAB. I.C 1801, to contend that when the Tribunal refuses an employer's application under Section 33(2)(b), the employer must treat the employee as continuing in service and provide all consequential benefits. The petitioner sought reinstatement with continuity of service and consequential benefits on that basis.

Respondent's (DTC) Arguments

  • The DTC's defence was that the petitioner had subsequently raised an industrial dispute challenging a later dismissal and that the matter remained pending before the Industrial Tribunal; accordingly, DTC contended reinstatement should not be granted in the present writ petition.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
M.D Tamil Nadu State Transport Corporation v. Neethivilangan Kumbakonam, 2001 LAB. I.C 1801 The court quoted Para 16: "From the conspectus of the views taken in the decisions referred to above the position is manifest that while the employer has the discretion to initiate departmental inquiry and pass an order of dismissal or discharge against the workman the order remains in an inchoate state till the employer obtains orders of approval from the Tribunal.... In a instant case where the Tribunal refuses to accord approval to the action taken by the employer and rejects the petition filed under Section 33 (2) (b) of the Act on merit the employer is bound to the treat the employee as continuing in service and give him all the consequential benefits.... If the employer refuses to grant the benefits to the employee the latter is entitled to have his right enforced by filing a petition under Article 226 of the Constitution." The court applied this principle to hold that the employer (DTC) was bound to treat the petitioner as continuing in service and to grant consequential benefits because the Tribunal had refused approval under Section 33(2)(b) and that refusal had not been challenged by DTC.

Court's Reasoning and Analysis

The court noted as undisputed that the Industrial Tribunal's Order dated 4 May 2001, which declined respondent No.1's application under Section 33(2)(b) of the Industrial Disputes Act, 1947, had not been challenged by respondent No.1. The court found respondent No.1's reliance on a subsequently filed industrial dispute by the petitioner (contesting a later dismissal) to be no ground for denying reinstatement. The court observed that the subsequent industrial dispute had become infructuous because the employer had not challenged the Tribunal's refusal of approval under Section 33(2)(b).

The court relied on the Supreme Court's decision in M.D Tamil Nadu State Transport Corporation v. Neethivilangan Kumbakonam (2001 LAB. I.C 1801), particularly Para 16 of that judgment, which establishes that an order of dismissal or discharge remains inchoate until the Tribunal accords approval under Section 33(2)(b), and where the Tribunal refuses approval the employer must treat the employee as continuing in service and grant all consequential benefits. Applying that precedent to the present facts, the court concluded that the petitioner was entitled to reinstatement with continuity and consequential benefits.

The court also recorded the petitioner's counsel's statement that the subsequent industrial dispute would be withdrawn within eight weeks from the date of the hearing, and imposed a timeline for compliance by respondent No.1.

Holding and Implications

Writ petition allowed.

Consequent orders and effects:

  • The respondent No.1 (DTC) was directed to reinstate the petitioner workman with continuity of service, full backwages and all other consequential benefits within six weeks from the date of the order.
  • The petitioner stated that the subsequent industrial dispute about the dismissal/preferred by the petitioner would be withdrawn within eight weeks from the date of the hearing.
  • The petition stands disposed of accordingly.

The opinion does not discuss broader precedential implications beyond applying the cited Supreme Court authority; the direct effect is the reinstatement and awards of backwages and consequential benefits to the petitioner.

    Rajinder Singh v. Delhi Transport Corporation And Others

    Mukul Mudgal, J.:— Rule.

    2. With the consent of the parties, the writ petition is taken up today for final hearing.

    3. This writ petition seeks a direction to the respondent No. 1 DTC in prayer (b) to reinstate the petitioner with continuity of service in view of the Order of the Industrial Tribunal dated 4th May, 2001 which declined the application made by the respondent No. 1 under Section 33 (2) (b) of the Industrial Disputes Act, 1947 (hereinafter referred to as ‘the Act’).

    4. It is not in dispute that the said Order dated 4th May, 2001 has not been challenged by the respondent No. 1.DTC. The only defence taken by the DTC in the present writ petition is that subsequent dismissal was challenged by the petitioner by raising an industrial dispute and the matter is still pending before the Industrial Tribunal. In my view this is no ground to deny reinstatement to the petitioner. In fact the industrial dispute raised subsequently by the petitioner has really become infructous as the dismissal of the application under Section 33 (2) (b) of the Act has not been challenged bv the DTC.

    5. Learned counsel for the petitioner has relied upon the judgment of the Hon'ble Supreme Court in M.D Tamil Nadu State Transport Corporation v. Neethivilangan Kumbakonam, 2001 LAB. I.C 1801 to contend that whether or not the application under Section 33 (2) (b) has been accorded approval, the employer is bound to treat the employee as continuing in service and give him all consequential benefits. The relevant position of law laid down in Para 16 of the aforesaid judgment which reads as under:

    “From the conspectus of the views taken in the decisions referred to above the position is manifest that while the employer has the discretion to initiate departmental inquiry and pass an order of dismissal or discharge against the workman the order remains in an inchoate state till the employer obtains orders of approval from the Tribunal. By passing the order of discharge or dismissal de facto relationship of employer and employee may be ended but not the de jure relationship for that could happen only when the Tribunal accords its approval. The relationship of employer and employee is not legally terminated till approval of discharge or dismissal is given by the Tribunal. In a instant case where the Tribunal refuses to accord approval to the action taken by the employer and rejects the petition filed under Section 33 (2) (b) of the Act on merit the employer is bound to the treat the employee as continuing in service and give him all the consequential benefits. If the employer refuses to grant the benefits to the employee the latter is entitled to have his right enforced by filing a petition under Article 226 of the Constitution. There is no rational basis for holding that even after the order of dismissal or discharge has been rendered invalid on the Tribunal's rejection of the prayer for approval the workman should suffer the consequences of such invalid order of dismissal or discharge till the matter is decided by the Tribunal again in an industrial dispute. Accepting this contention would render the bar contained in Section 33 (1) irrelevant. In the present case as noted earlier the Tribunal on consideration of the matter held that the employer had failed to establish a prima facie case for dismissal/discharge of the workman, and therefore, dismissed the application filed by the employer on merit. The inevitable consequence of this would be that the employer was duty bound to treat the employee as continuing in service and pay him his wages for the period, even though he may be subsequently placed under the suspension and an enquiry initiated against him.”

    6. In view of the aforesaid judgment of the Hon'ble Supreme Court which fully applies to the facts of the present case, the petitioner is entitled to succeed in the present writ petition. Learned counsel for the petitioner states that the subsequent industrial dispute about the dismissal/preferred by the petitioner shall be withdrawn within eight weeks from today.

    7. Accordingly, the writ petition is allowed and the respondent No. 1 is directed to reinstate the petitioner workman with continuity of service, full backwages and all other consequential benefits within six weeks from today and the petition stands disposed of accordingly.

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    Comments

    Rajinder Singh v. Delhi Transport Corporation And Others
    (May 9, 2003)