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Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
Judges
Acts
  • S. 11-A of the Industrial Disputes Act, 1947 (for short the Industrial Disputes Act).
  • S. 11-A of the Industrial Disputes Act
  • S. 33(2) of the Industrial Disputes Act.
  • S. 10 of the Industrial Disputes Act
  • INDUSTRIAL DISPUTES ACT
  • Act 45 in S. 3
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
Judges
Acts
  • S. 11-A of the Industrial Disputes Act, 1947 (for short the Industrial Disputes Act).
  • S. 11-A of the Industrial Disputes Act
  • S. 33(2) of the Industrial Disputes Act.
  • S. 10 of the Industrial Disputes Act
  • INDUSTRIAL DISPUTES ACT
  • Act 45 in S. 3
Smart Summary

Structured Summary of the Provided Legal Opinion

Factual and Procedural Background

The petitioner challenged an award dated 28 September 1983 of the learned Judge, Labour Court, Kota (the Judge). The petitioner also challenged the vires of S. 11-A of the Industrial Disputes Act, 1947, but that challenge did not survive because the same petitioner had earlier challenged S. 11-A in the case of Delhi Cloth and General Mills Company, Ltd. v. Shriram Fertilizers Karamchari Union, which was held valid by a Division Bench of this Court (1989 — I L.L.N 992). Consequently, the present challenge to the award was confined to whether there was an error apparent on the face of the Labour Court's award.

The undisputed factual background is as follows: the workman, Radha Kishan (also called Radha Kishan Sharma), employed in the Pilot Plant of Shriram Rayons (a unit of Delhi Cloth and General Mills, Ltd., Kota) for over 12 years and posted as supervisor in 1979, was absent on multiple dates in January, February, March and April 1979. Under the standing orders absence without leave or overstaying leave constituted misconduct. A charge-sheet dated 7 May 1979 alleged repeated absences without leave; earlier charge-sheets (from 1972–1977) had resulted in suspensions on three separate occasions. An inquiry held the 1979 absences proved and the competent authority imposed the penalty of removal from service.

The workman, through his union (respondent 2), raised an industrial dispute; conciliation failed and the State Government referred the dispute to the Judge, Labour Court under S.10 of the Industrial Disputes Act. At one point the management applied for approval under S.33(2), but ultimately the parties agreed to a reference to the Labour Court under S.10. The Labour Court examined fairness of the domestic inquiry, allowed the employer to prove the misconduct, heard evidence from both sides, and issued an award dated 27 September 1983: it found certain absences excused (sufficient cause or holiday/illness) but found many other absences to be without leave; it held the charges proved and, instead of upholding removal, substituted a punishment of stoppage of two annual grade increments without cumulative effect, ordered reinstatement without back-wages. Later proceedings in this Court resulted in an order dated 21 March 1986 vacating an earlier stay and directing reinstatement with back-wages; the workman was reinstated and continued in service thereafter.

Legal Issues Presented

  1. Whether the challenge to the vires of S. 11-A of the Industrial Disputes Act survives in view of an earlier decision holding S. 11-A valid.
  2. Whether there is any error apparent on the face of the Labour Court's award dated 27 September 1983.
  3. Whether, having found misconduct, the Labour Court had jurisdiction and could properly exercise its discretion under S. 11-A (and prior legal principles) to substitute the punishment of removal with a lesser punishment (stoppage of two annual grade increments) and order reinstatement without back-wages.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Delhi Cloth and General Mills Company, Ltd. v. Shriram Fertilizers Karamchari Union (Division Bench of this Court) [1989 — I L.L.N 992] Held that S. 11-A of the Industrial Disputes Act contains sufficient guidelines to exclude arbitrariness and is not violative of Article 14 of the Constitution. The court treated this earlier decision as dispositive of the vires challenge: the petitioner's attack on S. 11-A did not survive in the present petition because the same challenge had already been rejected in that earlier case.
East India Hotels v. Their Workmen (Supreme Court) [1974 — I L.L.N 159] Explained that a Tribunal (pre-S.11A or generally) may interfere with an employer's punishment only in cases where the punishment is harsh and oppressive; Tribunals had power to examine whether punishment was just. The court used this principle to explain the scope of the Labour Court's discretion to substitute punishment: while the Tribunal/Labour Court has jurisdiction to examine and, in appropriate cases, reduce punishment, such discretion must be exercised reasonably and not arbitrarily; in habitual-absence cases interference is ordinarily not warranted.

Court's Reasoning and Analysis

The court proceeded in a sequence of legal and factual determinations strictly guided by the material in the opinion:

  1. Vires challenge: The court first disposed of the challenge to the vires of S.11-A by relying on the earlier Division Bench decision in Delhi Cloth (1989 I.L.L.N 992) which had held S.11-A valid and not arbitrary. Because that issue had been adjudicated against the petitioner previously, the present challenge to S.11-A was held not to survive.
  2. Findings of fact: Certain facts were treated as undisputed — the workman's long service, his supervisory posting in 1979, the enumerated dates of absence, and that absence without leave is misconduct under standing orders. Prior disciplinary history (three punishments involving suspensions) was established by earlier charge-sheets. An inquiry in respect of the 1979 absences was held to prove many of the charged absences; the competent authority removed the workman from service.
  3. Labour Court's role and award: The Labour Court first considered whether the domestic enquiry was fair; finding deficiencies it allowed the management to re-prove the misconduct. After evidence, the Labour Court's award (27 September 1983) found some absences excused (sickness, holiday) but held other absences proved and substituted the employer's removal penalty with stoppage of two annual grade increments without cumulative effect, reinstating the workman but denying back-wages.
  4. Challenge to Labour Court findings: The court noted the respondent workman's counsel attempted to challenge the Labour Court's findings but, as a respondent in the writ, could not be allowed to do so; moreover, the findings could not be characterized as perverse. Thus, the factual finding that the workman was absent without sanction on certain dates stands.
  5. Jurisdiction to substitute punishment and applicable standard: The court addressed whether the Labour Court could substitute removal with a lesser punishment and order reinstatement without back-wages. It reviewed pre-S.11-A jurisprudence (East India Hotels) which recognized tribunal authority to test the justness of punishment, and then examined S.11-A's statutory language which permits the Labour Court, in adjudication proceedings, to set aside discharge/dismissal if satisfied that the order was not justified and to direct reinstatement on such terms, including awarding lesser punishment.
  6. Discretion must be reasonable: The court emphasized that any discretion under S.11-A must be exercised reasonably and not arbitrarily. Applying that standard, the court observed that the workman had been punished three times previously for similar absences and had been a habitual absentee (including an occasion of 46 days absence as referenced in the opinion). Ordinarily, these antecedents would make interference with removal unjustified.
  7. Equitable consideration and ultimate decision not to interfere: Despite concluding that the Labour Court perhaps did not properly take the earlier misconduct history sufficiently into account (and that the substituted punishment was not appropriate to the misconduct proved), the court considered subsequent events: an order dated 21 March 1986 vacated an earlier stay and directed reinstatement with back-wages; the workman was reinstated and had continued in service since that reinstatement with no material showing further misconduct. In light of the reinstatement, continued employment, and absence of further misbehavior, the court declined to deprive the workman of his service. Therefore, even though the exercise of discretion might not have been ideal, the court would not interfere with the Labour Court's award.

Holding and Implications

Holding: The writ petition challenging the award of the Judge, Labour Court, Kota is dismissed and the court declined to interfere with the Labour Court's award; there are no orders as to costs.

Implications:

  • The earlier adjudication upholding the validity of S.11-A was treated as binding for the purposes of the vires challenge in the present petition; therefore the constitutional challenge to S.11-A did not succeed in this proceeding.
  • While the Labour Court possesses jurisdiction under S.11-A (and under pre-S.11-A principles) to substitute or moderate employer-imposed punishments, that discretion must be exercised reasonably and with regard to the employee's disciplinary history. In the court's view, habitual absenteeism with prior punishments typically militates against interference with removal, yet equitable circumstances (such as reinstatement and continued regular service) may counsel non-interference in specific cases.
  • The direct effect of this decision is that the Labour Court's award — substituting removal with stoppage of two annual grade increments, ordering reinstatement without back-wages (as per the Labour Court's terms) — stands as applied in the facts of this case and the writ petition is dismissed. The opinion does not purport to set a new legal precedent beyond applying existing authorities and principles.

This summary is strictly limited to and derived from the content of the provided opinion. No information has been added beyond what appears in the opinion text.

    D.C.M, Ltd., And Another v. Labour Court, Kota, And Others

    1. In this petition, the petitioner besides challenging the award, dated 28 September, 1983, of the learned Judge, Labour Court, Kota, Rajasthan (for short the Judge), his also challenged the vires of S. 11-A of the Industrial Disputes Act, 1947 (for short the Industrial Disputes Act). So far as the challenge to the vires of S. 11-A of the Industrial Disputes Act is concerned, it may be stated that the challenge does not survive because earlier also by the same petitioner, Delhi Cloth and General Mills Company, Ltd. v. Shriram Fertilizers Karamckari Union, Chhawani, Kota, had been challenged and the same was held to be valid. A Division Bench of this Court in the case of Delhi Cloth and General Mills Company, Ltd v. Shriram Fertilizers Karamchari Union [1989 — I L.L.N 992], said that sufficient guidelines are provided under S. 11-A of the Industrial Disputes Act to exclude arbitrariness and the aforesaid S. 11-A is not violative of Art. 14 of the Constitution. The challenge, therefore, to the aforesaid award is now confined to the limited extent as to whether there is error apparent on the face of the award of the learned Judge, Labour Court, Kota, or not?

    2. Some facts are no longer disputed and they are these:

    The workman, Sri Radha Kishan, who is represented by respondent 2, Shriram Rayons Karamchari Sangh, Kota, was an employee in the Pilot Plant of Shriram Rayons, a unit of Delhi Cloth and General Mills, Ltd., Kota. He was employed for more than 12 years and during the year 1979, he was posted as supervisor in the said unit. He was absent from duty on 19. 20, 21 and 26 January, 1979, 9, 12, 28 February, 1979, 2, 2, 5, 8, 15 16, 17, 18, 19, 23, 30 and 31 March, 1979 and on 1, 2, 3 April, 1979. There is no dispute between the parties that in accordance with the relevant standing orders to be absent without leave or overstaying after extension of leave is a misconduct. A charge-sheet, dated 7 May, 1979, was given to Radha Kishan Sharma wherein it was clearly stated that without any permission or without getting his leave sanctioned, he remained absent as a result of which the normal functioning of the plant is affected. Besides giving the aforesaid dates on which the workman was absent without sanctioning the leave, it was also stated in the chargesheet that on earlier occasions also he was absent without leave and chargesheets were given to him. The first of the chargesheet was given to him for absence for a period of 7 days from May 1972 to October 1973. After enquiry the charge was held proved and the punishment of suspension for a period of three days was inflicted upon him under order, dated 21 February, 1974. The second charge was for the absence of 3 days during the period from August 1974 to October 1974 and proceeded on leave without sanction. The workman accepted the charge and penalty of suspension for two days was inflicted on him on 27 February, 1974. The last of the aforesaid three charges was for the absence of 6 days in the month of November 19 77 and an enquiry was held against the workman which was held proved and the workman Radha Kishan Sharma was given a penalty of suspension for six days. It was also stated in the changesheet that despite the aforesaid three punishments on earlier occasions, the workman did not improve himself and be remained absent during the dates of which reference has already been made earlier. The workman filed reply to the aforesaid charges and the enquiry officer under a detailed report held that his absence without sanction of leave has been proved on all the dates of January, February, March and April 1979. The competent authority indicted a penalty of removal from service on the petitioner.

    3. The workman, Radha Kishan Sharma, raised an industrial dispute through the sangh (respondent 2), the conciliation proceedings failed and the State Government made a reference of the dispute under S. 10 of the Industrial Disputes Act to the Judge, Labour Court, Kota. It appears that some matter was pending before the Tribunal or the Judge, Labour Court and, therefore, the management took a decision to file an application for approval under S. 33(2) of the Industrial Disputes Act. Later on both the parties agreed to make a reference to the Judge, Labour Court and the reference was made under 10 of the Industrial Disputes Act to the Judge, Labour Court.

    4. The learned Judge examined the question as to whether a domestic enquiry for the alleged misconduct of the workman was in accordance with the standing orders and was fair or not and came to the conclusion that it was not fair and gave an opportunity to the employer to prove the misconduct. Both the parties led their evidence, the management was to prove the charges of misconduct and thereafter the workman to rebut it. The learned Judge, Labour Court, under its award, dated 27 September, 1983, held that the absence of the workman for three days, i.e, on 19, 20 and 21 January, 1979, was for sufficient cause, though initially he had proceeded on leave without sanction. The learned Judge also came to the conclusion that 23 March, 1979 was holiday and, therefore, the workman cannot be said to be absent on that day. For 30 March, 1979 to 3 April, 1979, the learned Judge held that the workman remained absent as a result of having fallen ill and it was sufficient cause but so far as absence of 26 January, 1979. 9, 14 and 20 February, 1979 and 2, 5 and 8 March, 1979 and 15 to 19 March, 1979 is concerned the workman remained absent without leave and he could not furnish any good or sufficient cause for his absence. The Judge, Labour Court, therefore, held that the charges are proved and instead of approving the action of the management imposing a penalty of removal from service for the alleged misconduct the learned Judge, ordered that a punishment of stoppage of two annual grade increments without cumulative effect shall meet the ends of justice. He also ordered that two annual grade increments shall be withhel after reinstatement of the workman and so far as back-wages are concerned, the learned Judge said that he would not be entitled for any back wages.

    5. The learned counsel for the respondent workman tried to challenge the finding arrived at by the learned Judge, but he cannot be as a respondent allowed to challenge the finding and that apart the finding arrived at by the learned Judge cannot be said to be perverse. Therefore, the finding that the workman, Radha Kishan Sharma, had remained absent without sanction of leave for the aforesaid periods has to be taken as correct.

    6. Taking the finding of misconduct as correct, the question is as to whether the learned Judge could in exercise of his powers substitute the punishment of removal from service to one of stoppage of two annual grade increments without cumulative effect and could order reinstatement without back-wages 7 Even before S. 11-A was brought on the statute book, by insertion of Act 45 in S. 3 with effect from 15 December, 1971, the Courts were taking a view that power and jurisdiction is vested in Judge, Labour Court or the Tribunal to substitute or alter the punishment inflicted on a delinquent workman by the employer. The Supreme Court in the case of East India Hotels v. Their workmen [1974 — I L.L.N 159], examined the question in respect of the powers of the Industrial Tribunal to interfere in the decision of the management in the matter of punishment. The Court said “once misconduct is proved, either in the enquiry conducted by the employer or by the evidence placed before the Tribunal for the first time, the punishment imposed cannot be interfered with by the Tribunal except in cases where the punishment is harsh and oppressive. In my opinion even before S. 11-A of the Industrial Disputes Act the Tribunal could be said to have had the powers to examine as to whether the punishment inflicted by the employer is just or not. The present is the case when S. 11-A had been brought on the statute book in the year 1971 and the misconduct is alleged to have taken place in the year 1979. A look at S. 11-A of the Industrial Disputes Act will show that only in case of adjudication proceedings the Labour Court is satisfied that the order of discharge or dismissal was not justified, it may, by its award, set aside the order of discharge or dismissal and direct reinstatement of workman on such terms and conditions, if any, as it thinks fit, or give such other relief to the workman including the award of any lesser punishment in lieu of discharge or dismissal as the circumstances of the case may require. Therefore, only if the Labour Court comes to the conclusion that the removal was not justified, it could have had a jurisdiction to interfere so far as punishment is concerned, bike all discretions, discretion and jurisdiction under S. 11-A of the Industrial Disputes Act has to be exercised reasonably and properly and cannot be exercised arbitrarily. In a case of present nature besides the absence without sanction of leave or without permission, during the months of January, February, March and April 1979, the workman had even remained absent on three occasions and had been punished thrice and on each occasion a punishment of suspension was inflicted on him for few days, he appears to be a habitual absentee and appears to have developed a habit to proceed on leave without sanction and of overstaying of leave without sanction of leave or even without sending his applications generally and ordinarily the Court should not have interfered. In all industries, workmen are employed in accordance with the need of the establishment and if a workman remains absent without sanction of leave or even without information, the work of the industry or at least machine or unit on which the workman is employed is likely to suffer and the chargesheet which was served on the petitioner will show that it is clearly mentioned in it that the petitioner was absenting without sanction of leave as a result of which there was obstruction in the efficient functioning of the industry. There may be cases where there is a single act of absence without sanction of leave or after proceeding on leave overstaying without extension of leave and in such a case lenient view may be called for, but in case where a workman is chronic defaulter a chronic absentee and in a habit of absenting himself without sanction of leave or overstaying without extension of leave, in my opinion, cannot be said that under S. 11-A of the Industrial Disputes Act it will be a sound, proper and reasonable exercise of discretion or jurisdiction for any interference in the punishment of removal from service of a workman. To me it appears that the learned Judge, Labour Court has not even taken into consideration as to whether the workman having been punished thrice on the identical charges and on one occasion he had remained absent as many as 46 days whether he deserves any leniency. Perhaps if he would have taken earlier conduct of the petitioner into consideration which was also subject to the chargesheet, the learned Judge might have come to a different conclusion and in my opinion though the punishment inflicted by the learned Judge, Labour Court, is not appropriate to the nature of misconduct found proved against the workman but it is not in every case where this Court interferes under Art. 226 of the Constitution. In the instant case it appears that his Court had vacated the stay order granted earlier and under its order, dated 21 March, 1986, the Court vacated the earlier stay order, rejecting the stay application and directed that the workman Radha Kishan Sharma shall be reinstated within one month and shall be paid back-wages from the date of the award to the date of reinstatement within three months. There is no dispute that the workman was reinstated and is continuing since 21 March, 1986 or immediately thereafter. There is no material that thereafter he has again remained absent and it will not be proper to deprive the workman of his service and, therefore, taking into consideration that the stay order was not given and he was reinstated and is continuing in service, 1 am of the opinion that the discretion was though not properly exercised by the learned Judge, under S. 11-A of the Industrial Disputes Act, I will not like to interfere in the award of the learned Judge, Labour Court.

    7. I have said earlier about the powers of the Industrial Tribunal and so in future the Labour Court may take this into consideration, but for the reasons as aforesaid, still I will not like to interfere in the award.

    8. Consequently, I would not like to interfere in the award, the writ petition is hereby dismissed with no orders as to costs.

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    D.C.M, Ltd., And Another v. Labour Court, Kota, And Others
    (Dec 6, 1990)