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Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • the Act (U.P Industrial Disputes Act, 1947)
  • Section 4(k) of the U.P Industrial Disputes Act, 1947
  • Section 6(2-A) of the Act
  • Section 11-A of the Industrial Disputes Act
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • the Act (U.P Industrial Disputes Act, 1947)
  • Section 4(k) of the U.P Industrial Disputes Act, 1947
  • Section 6(2-A) of the Act
  • Section 11-A of the Industrial Disputes Act
Smart Summary

Factual and Procedural Background

The petitioner-employer terminated the services of the respondent workman after three separate domestic enquiries held on charge-memos dated 23-3-1981, 30-4-1981 and 21-7-1981. Although all the charges were proved and the enquiries were found to be fair, the Labour Court, in a reference under Section 4(k) of the U.P. Industrial Disputes Act, 1947, exercised its powers under Section 6(2-A) of that Act to set aside the termination and ordered reinstatement with 75 per cent back wages.

Aggrieved, the employer filed Writ Petition No. 2305 of 1986 in the High Court of Allahabad seeking to quash the award. The workman independently filed Writ Petition No. 6769 of 1986 claiming full back wages. The High Court heard both matters together and, by a common order, dismissed them, thereby upholding the Labour Court’s award.

The present special leave petition was filed by the employer challenging the High Court’s dismissal of WP No. 2305 of 1986. The respondent workman did not challenge the dismissal of his own writ petition. After notice, the Supreme Court heard both sides and delivered the instant order.

Legal Issues Presented

  1. Whether the Labour Court, after affirming the validity of the domestic enquiries and the findings of misconduct, could nevertheless set aside the order of termination and direct reinstatement with partial back wages under Section 6(2-A) of the U.P. Industrial Disputes Act.
  2. Whether the High Court erred in treating the termination as arising from a single order when, according to the petitioner, separate termination orders were based on each of the three enquiries.
  3. Whether the High Court misconstrued the Certified Standing Orders by holding that distribution of an “offensive pamphlet” outside factory premises did not attract clause 14.2(13) and whether clause 14.2(20) ought to have been applied instead.

Arguments of the Parties

Petitioner's Arguments

  • The High Court erroneously assumed there was only one termination order, whereas separate orders were allegedly passed pursuant to each enquiry.
  • It incorrectly concluded that clause 14.2(13) of the Certified Standing Orders was inapplicable because the alleged distribution of an offensive pamphlet occurred outside the factory, even though the conduct fell within clause 14.2(20).
  • Having upheld the fairness of the enquiries, the Labour Court acted non-judicially and beyond its power in substituting the punishment of termination with reinstatement and partial back wages.

Respondent's Arguments

The opinion does not detail the respondent's specific legal arguments.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Supreme Court found no merit in any of the petitioner’s three contentions:

  • Single vs. multiple termination orders: The order of termination referred only to clause 14.2(13) of the Certified Standing Orders; hence the High Court’s approach could not be faulted.
  • Misapplication of Standing Orders: After examining the charge-sheets and findings, the Court held that the High Court had not committed a serious error in its factual observations.
  • Exercise of power under Section 6(2-A): The Court emphasized that Section 6(2-A), analogous to Section 11-A of the Industrial Disputes Act, confers wide discretion on the Labour Court to substitute a lesser punishment. The Labour Court had balanced the proved misconduct with considerations of mercy and the possibility of reform, and its reasoning could not be termed arbitrary.

Consequently, the Supreme Court concluded that the High Court was correct in refusing to interfere with the Labour Court’s award and that no ground existed for Supreme Court intervention under its special leave jurisdiction.

Holding and Implications

The special leave petition was DISMISSED.

The dismissal leaves intact the Labour Court’s award of reinstatement with 75 per cent back wages to the respondent workman. The decision affects only the parties to this dispute and does not announce any new legal principle beyond reaffirming the breadth of the Labour Court’s discretionary powers under Section 6(2-A) of the U.P. Industrial Disputes Act.

    Scooters India Limited, Lucknow v. Labour Court, Lucknow And Others

    Order

    1. The special leave petition is directed against the dismissal of Writ Petition No. 2305 of 1986 filed by the petitioner in the High Court of Allahabad against the award of the Labour Court in a reference made to it under Section 4(k) of the U.P Industrial Disputes Act, 1947 (hereinafter “the Act”) in favour of the respondent employee and substituting the order of termination of service of the respondent by an order of reinstatement together with 75 per cent back wages. The respondent too had filed a writ petition i.e WP No. 6769 of 1986 to challenge the Labour Court's award insofar as it provided only for 75 per cent back wages instead of full back wages. The High Court heard both the writ petitions together and by a common order dismissed both the petitions. This special leave petition is directed against the dismissal of WP No. 2305 of 1986 and there is no challenge by the respondent against the dismissal of his writ petition WP No. 6769 of 1986.

    2. Notice was ordered on the special leave petition and the respondent appeared in person and has filed his affidavit in reply. We have heard the learned counsel for the petitioner as well as the respondent and after a careful consideration of the matter we find that the order of the High Court declining to quash the award passed by the Labour Court does not call for any interference at our hands.

    3. It is true that the respondent was issued charge memos on three different occasions viz. 23-3-1981, 30-4-1981 and 21-7-1981, and separate enquiries were held in respect of the charges contained in each of the three charge memos. It is equally true that the charges framed against the respondent pertained to acts of major misconduct. All the charges were held proved in the respective enquiries and the Presiding Officer of the Labour Court has held that the enquiries conformed to the statutory prescriptions and the principles of natural justice and were not vitiated in any manner and as such the findings rendered by the Inquiry Officer and accepted by the Disciplinary Authority were not open to challenge. Even so the Presiding Officer of the Labour Court held as follows:

    “Having regard to all these circumstances and the reasons given above I would hold that the order of termination was not justified in the circumstances of this case. I would therefore set aside the order of termination of service and direct that the workman shall be reinstated within one month of the award becoming enforceable. The workman has unfortunately to blame himself for much of the bad blood which has developed between him and the management and therefore his conduct, motivated by ideals which are not relevant has been far from satisfactory. Insofar as it was rough, bordering on rudeness and with highly exaggerated sense of his duties. In these circumstances it will meet the ends of justice if back wages to the extent of 75 per cent are allowed to the workman. I would make my award accordingly but there shall be no order as to costs.”

    4. The High Court, while sustaining the award passed by the Labour Court, adverted to Section 6(2-A) of the Act which is analogous to Section 11-A of the Industrial Disputes Act and pointed out that the section confers wide powers on the Labour Court to interfere with an order of discharge or dismissal of a workman and to direct the setting aside of the discharge or dismissal and ordering the reinstatement of the workman on such terms and conditions as it may think fit, including the substitution of any lesser punishment for discharge or dismissal as the circumstances of the case may require and as such the Labour Court was well within its jurisdiction in setting aside the order of termination of services of the respondent and instead ordering his reinstatement together with 75 per cent back wages.

    5. Mr Manoj Swarup, learned Counsel for the petitioner contended before us that the order of the High Court suffers from three errors viz. (1) the High Court has proceeded on the basis that there was only one order of termination of service passed against the respondent in respect of all the three enquiries whereas an order of termination of service has been passed on the findings rendered in each one of the three enquiries; (2) the High Court was in error in taking the view that since the distribution of an offensive pamphlet by the respondent on 19-3-1981 had taken place outside the factory premises para 14.2(13) of the Certified Standing Orders would not be attracted because it refers to distribution or exhibition of offensive handbills, pamphlets etc. inside the factory premises whereas the subversive act complained of would clearly fall under Section 14.2(20) of the Certified Standing Orders; and (3) when the Labour Court had found that the enquiry proceedings had been conducted fairly and they were not vitiated in any manner and as such the findings did not call for any interference, the Labour Court could not be said to have exercised its powers under Section 6(2-A) of the Act in a judicial manner.

    6. Insofar as the first contention is concerned, we do not find any merit in it because the order of termination of service refers only to clause 14.2(13) of the Certified Standing Orders and not to clause 14.2(20) of the Standing Orders. With reference to the second contention, the High Court has referred in detail in its order to all the three charge-sheets and the findings rendered on those charges and as such the High Court cannot be said to have committed a serious error by mistakenly stating in its judgment as follows:

    “The Labour Court after analysing the evidence found that the order of dismissal of the workman was passed on the basis of the first charge-sheet. Separate orders were not passed in regard to the other charge-sheets though the record of other charge-sheets also finds place in the dismissal order.”

    7. The High Court has considered at length the nature of the powers conferred on the Labour Court by Section 6(2-A) of the Act for setting aside an order of discharge or dismissal of a workman and substituting it with an order of lesser punishment and as such it cannot be said that the High Court has failed to consider the facts in their entirety. As regards the third contention, we may only state that the Labour Court was not unaware of the nature of the charges framed against the respondent or the findings rendered by the Inquiry Officer and the acceptance of those findings by the Disciplinary Authority. The Labour Court has observed as follows:

    “The workman has unfortunately to blame himself for much of the bad blood which has developed between him and the management and therefore his conduct, motivated by ideals which are not relevant has been far from satisfactory. Insofar as it was rough, bordering on rudeness and with highly exaggerated sense of his duties. In these circumstances it will meet the ends of justice if back wages to the extent of 75 per cent are allowed to the workman. I would make my award accordingly but there shall be no order as to costs.”
    It cannot therefore be said that the Labour Court had exercised its powers under Section 6(2-A) of the Act in an arbitrary manner and not in a judicial manner. The Labour Court has taken the view that justice must be tempered with mercy and that the erring workman should be given an opportunity to reform himself and prove to be a loyal and disciplined employee of the petitioner company. It cannot therefore be said that merely because the Labour Court had found the enquiry to be fair and lawful and the findings not to be vitiated in any manner, it ought not to have interfered with the order of termination of service passed against the respondent in exercise of its powers under Section 6(2-A) of the Act.

    8. For the aforesaid reasons, the special leave petition fails and will stand dismissed. No order as to costs.

    9. Before parting with the matter, we would however like to observe that we hope and trust that the respondent will conduct himself in future in such a manner as to prove himself to be a dedicated and worthy employee of a public sector concern. It will not only be in the interests of the respondent but in the interests of all the workers as well as the petitioner company if the respondent and all the workers like him perform their duties in such a manner as to promote the interests and welfare of a public sector concern like the petitioner company.

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    Scooters India Limited, Lucknow v. Labour Court, Lucknow And Others
    (Sep 30, 1988)