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  • rule 60 of the Industrial Disputes (Central) Rules, 1957
  • S. 33(2)(b) of the Industrial Disputes Act, 1947,
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  • rule 60 of the Industrial Disputes (Central) Rules, 1957
  • S. 33(2)(b) of the Industrial Disputes Act, 1947,
Smart Summary

Structured Summary of the Opinion

Factual and Procedural Background

The petitioner is a workman who was dismissed from service on 27-1-1967 while an Industrial Dispute was pending. Before the Tribunal before which the dispute was pending, an application for approval under the proviso to S.33(2)(b) of the Industrial Disputes Act, 1947, was filed on 17-1-1967. The Tribunal granted approval by order Ext. P3. The petitioner impugned that order by filing this writ petition.

Counsel for the petitioner advanced three primary grounds challenging Ext. P3: (1) non-compliance with S.33(2)(b), (2) the Tribunal failed to properly consider the petitioner's plea of victimisation, and (3) the Tribunal exceeded its jurisdiction by analysing the evidence.

Legal Issues Presented

  1. What is the scope and applicability of S.33(2)(b) of the Industrial Disputes Act, 1947, read with the proviso thereto — in particular, whether payment (or an offer of payment) of one month's wages must precede an application for approval under the proviso when the application is filed before dismissal.
  2. Whether the Tribunal properly considered the plea of victimisation and lack of bona fides raised by the petitioner.
  3. Whether the Tribunal exceeded its jurisdiction by referring to and analysing the evidence in reaching its decision.

Arguments of the Parties

Petitioner's Arguments

  • S.33(2)(b) of the Industrial Disputes Act and its proviso had not been complied with because the application for approval was made on 17-1-1967 although no payment or offer of payment had been made before that date.
  • The normal and proper sequence, it was contended, is: pay or offer payment of one month's wages, then dismiss, then apply for approval; if an employer applies prior to dismissal, the payment or at least an offer must nevertheless precede the application.
  • Reliance was placed on rule 60 of the Industrial Disputes (Central) Rules, 1957 and the Form thereunder to argue that the application should state that payment has been made, making it impossible to comply if payment occurs after the application.
  • The petitioner also alleged victimisation and lack of bona fides by the management (see Ext. P4, paragraph 3) and argued that the Tribunal failed to properly consider this contention.
  • Finally, it was argued that the Tribunal exceeded its jurisdiction by analysing the evidence, which, according to the petitioner, was beyond its remit when considering an application under the proviso.

Respondent's Arguments

This opinion does not contain a detailed account of the respondent's legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Lord Krishna Textile Mills v. Workmen (1961-I L.L.J 211) Establishes the principle that payment of one month's wages, dismissal, and the application under the proviso to S.33(2)(b) must be simultaneous as part of the same transaction. The Court relied on it as one of the well-known authorities supporting the simultaneity requirement between payment, dismissal and application.
Strawboard Manufacturing Company v. Gobind (1962-I L.L.J 420) Affirms the same general principle regarding simultaneity of payment, dismissal and application under the proviso. Used alongside Lord Krishna to show the settled approach that the three acts form part of the same transaction.
Tata Iron and Steel Company Ltd. v. Modak (1965-II L.L.J 128) Contains a passage stating generally that the employer must either pay or offer one month's wages before passing an order of discharge and must apply for approval at the same time or within a reasonably short time to form the same transaction. The Court considered the passage but emphasized its context (it concerned continuation of an application after the underlying dispute was disposed of) and noted the passage speaks in terms of "general" practice rather than laying down an absolute sequence contrary to other binding decisions.
Kannan Devan Hill Produce Co. Ltd. v. Miss Aleyamma Varughese (1962-II L.L.J 158) Referenced as reflecting a view with which the Court in Modak agreed. Mentioned to show the consistency of certain judicial views on the sequence and treatment of applications under the proviso.
State Bank, Bikaner v. Balai Chander Sen (AIR 1964 S.C. 732) Decided the specific question whether an application under the proviso could be made before the dismissal; held that nothing prevented the employer from making the application before dismissal. The Court treated this Supreme Court decision as conclusively answering that an application can be made before dismissal and relied on it to reject the petitioner's contention that payment/offering must precede the application in every case.
Calicut Wynad Motor Service (P.) Ltd. v. Industrial Tribunal, Calicut (1969 KLT. 910) Mathew J. followed the State Bank Bikaner decision in holding an application could be made before dismissal. The Court noted Mathew J.'s reliance on State Bank Bikaner and observed that a subsequent appeal (Ittoop) was dismissed, reinforcing that an application can precede dismissal.
Ittoop v. Calicut Wynad Motor Service Ltd. (1970 KLT. (SN.) 27) Affirmed on appeal the view that an application filed before dismissal was permissible (appeal dismissed by Division Bench). The Court cited dismissal of the appeal as further support that an application may be made before dismissal.
Presidency Talkies (Pvt.) Ltd. v. Labour Court, Madras (1969 I LLJ 90) Considered whether payment was necessary or an offer sufficient, and the timing of an offer; observed the offer should be simultaneous with or prior to the application depending on facts. The Court discussed the decision but held it was not authority for the proposition that an offer must always precede the application when the application is made before dismissal because the facts there differed (application was simultaneous with dismissal in that case).
Saran Motors (Pvt.) Ltd. v. Vishwanath (1964 II L.L.J 139) Holds that an enquiry is not vitiated merely because the employer's lawyer conducted it. The Court applied this principle to reject the petitioner's contention that the enquiry was invalid merely because a lawyer conducted it, concluding that such an enquiry need not be set aside for that reason alone.

Court's Reasoning and Analysis

The Court began by framing the central question: the scope and applicability of S.33(2)(b) read with its proviso. It recognized a long line of judicial decisions, including two well-known Supreme Court authorities (Lord Krishna Textile Mills and Strawboard Manufacturing), that treat payment, dismissal and the application under the proviso as forming part of the same transaction.

The petitioner argued that where the application was made before dismissal (as in this case), the payment or at least the offer of payment must nevertheless precede the application. The Court examined the decisions relied upon by the petitioner, including a passage from Tata Iron & Steel Co. Ltd. v. Modak which described the "general" sequence of events, but the Court emphasized the contextual facts of Modak (which concerned continuation of an application after disposal of the underlying dispute) and observed that the passage was couched in general terms.

The Court treated State Bank, Bikaner v. Balai Chander Sen as dispositive on the narrower question whether an application may be filed before dismissal; that case held that an application can indeed be made before dismissal. The Court noted subsequent cases (Calicut Wynad Motor Service and the dismissal of the appeal in Ittoop) that followed or reinforced that position. From this, the Court drew the distinction that the payment obligation is related to the dismissal itself rather than being a prerequisite to the making of an application when the application is filed earlier than the dismissal.

Regarding the petitioner's contention of victimisation (set out in Ext. P4), the Court examined the Tribunal's order Ext. P3 and found that the Tribunal had specifically considered delay, lack of bona fides and victimisation in paragraphs 5 and 6 of its order. The Tribunal concluded there was no victimisation because the management acted upon prima facie evidence of misconduct. The Court accepted that an enquiry conducted by a lawyer is not rendered invalid by that fact, applying Saran Motors v. Vishwanath.

On the complaint that the Tribunal exceeded its jurisdiction by analysing evidence, the Court held that the Tribunal's reference to evidence was appropriate and necessary to decide whether there was material before the management/enquiry authority to justify the conclusion that misconduct had been established. The Court found no overreach beyond what was necessary to test the bona fides and victimisation plea.

Holding and Implications

Holding: The writ petition is DISMISSED.

Consequences and immediate effects:

  • The Tribunal's order Ext. P3 granting approval under the proviso to S.33(2)(b) is upheld.
  • The Court determined, applying Supreme Court authority (State Bank, Bikaner), that an application under the proviso may be made before dismissal and that the payment or offer of payment is related to the dismissal (i.e., no binding authority requires payment or its offer to precede an application that is filed earlier than the dismissal).
  • The Tribunal did not err in addressing the petitioner's allegations of victimisation and lack of bona fides, nor did it exceed its jurisdiction by referring to evidence to test those allegations.
  • The parties are directed to bear their respective costs.

The opinion relied on and applied existing precedent; it does not purport to lay down a new departure from the settled law described in the cited authorities.

    N. Rarichan v. R.K Venu Nair

    1. The question that arises for decision in this Original Petition has been the subject matter of judicial decisions for nearly a decade now and has been pronounced upon by the Supreme Court in several decisions. The question is about the scope and applicability of S. 33(2)(b) of the Industrial Disputes Act, 1947, read with the proviso thereto. The petitioner before me is a workman who has been dismissed from service on 27-1-1967 during the pendency of an Industrial Dispute. An application for approval as envisaged by the proviso to S. 33(2)(b) of the Industrial Disputes Act, 1947 was filed before the Tribunal before whom the dispute was pending on 17-1-1967. The approval has been granted by the order Ext. P3. It is this order that is impugned before me. Counsel on behalf of the petitioner took three points before me:

    (1) that S. 33(2)(b) has not been complied with,

    (2) that the plea of victimisation advanced by the petitioner bad not been adverted to, or at least not considered by the Tribunal in the manner in which it should have been considered, and

    (3) that the Tribunal exceeded its jurisdiction in that it analysed the evidence in the case.

    2. Elaborating on the first point, counsel has taken me through a number of decisions. Without adverting to all those decisions I may briefly state that his contention specifically was that the application for approval, having been made on 17-1-1967 and admittedly there having been no payment or offer for payment before that date, was not sustainable. He contended that the normal procedure is to pay the wages or to offer the payment, then to dismiss and then to make the application for approval. If an employer chose to apply before the dismissal, he must nevertheless pay before the application or at least make the offer for payment before the application. He invited my attention to rule 60 of the Industrial Disputes (Central) Rules, 1957 and Form thereof and contended that the application should state that payment has been made and it is impossible of compliance if the payment is subsequent to the application.

    3. It is now well settled that the payment of one month's wages, the dismissal and the application under the proviso to S. 33(2)(b) of the Industrial Disputes Act, 1947 must be simultaneous in the sense that they must form part of the same transaction. It is needless to refer to more cases than the two well-known cases of the Supreme Court in Lord Krishna Textile Mills v. Workmen (1961-I L.L.J 211) and in Strawboard Manufacturing Company v. Gobind (1962-I L.L.J 420).

    4. Counsel has however referred me to a passage from the decision of the Supreme Court, in Tata Iron and Steel Company Ltd. v. Modak, (1965-II L.L.J 128 at p. 132). The passage relied on reads as follows:—

    “It is now well-settled that the requirements of the proviso have to be satisfied by the employer on the basis that they form part of the same transaction; and stated generally, the employer must either pay or offer the salary for one month to the employee before passing an order of his discharge or dismissal, and must apply to the specified authority for approval of his action at the same time, or within such reasonably short time thereafter as to form part of the same transaction.”

    5. Counsel contended that the above extract from the judgment of the Supreme Court would clearly show that there should be payment of wages or at least offer of payment of wages before the application is made. Then only will the sequence mentioned in the judgment be satisfied. It must however be stated that those observations were made by the Supreme Court in a case where the only question that arose for decision was whether an application under S. 33(2)(b) should be continued after the dispute pending which it was filed had itself been disposed of. The view was taken that the application must be dealt with agreeing with the view expressed by this Court in Kannan Devan Hill Produce Company Ltd., Munnar v. Miss. Aleyamma Varughese (1962-II L.L.J 158). What is more important is the statement itself shows that the sequence of events mentioned therein are of “normal or general” application. This is clear from the use of the word “generally” at the beginning of the statement. It is too much to expect that the Supreme Court by this passage intended to strike a different note from that expressed by the Supreme Court in State Bank, Bikaner v. Balai Chander Sen (AIR. 1964 S.C 732). Therein the specific question arose as to whether an application made before the dismissal was proper or not, and the view was expressed that, nothing prevented the employer from making the application even before the dismissal. The specific point arose for decision in the case and it has been ruled by the Supreme Court that an application can be made before the dismissal. In view of this decision, I think the matter is concluded against the petitioner. I must however also refer to the Madras High Court decision in Presidency Talkies Private), Ltd. v. Labour Court, Madras, (1969 I LLJ. 90) which too was relied on by counsel on behalf of the petitioner. Two points arose for decision therein. The first question was whether a payment was necessary to satisfy the previse to S. 33(2)(b) or whether an offer for payment was sufficient and the second question was the point of time at which or prior to which such offer should have been made. Dealing with the second aspect, their Lordships of the Madras High Court observed as follows:—

    “The second point is what is the precise point of time at which, or prior to which such an offer should have been made, for the offer to be considered as compliance with the law? This, again, is answered by the same observations of the Supreme Court that we have just referred to. As will be clear from those remarks, the offer should have been made simultaneously with the application or prior thereto, depending on the facts of each case.”

    6. Relying on this passage counsel contended that there is a clear enunciation of the law that the payment or offer for payment must be before the application. Literally read, the passage would mean what counsel contended for. But it must be borne in mind that the question as to whether an application could be made before the dismissal and in such cases whether there should be an offer for payment before such an application did not arise for decision in that case. The application in that case was simultaneous with the dismissal and the question was whether there was a simultaneous offer for payment with the dismissal. It was found that there was, and the dismissal of the application by the Tribunal was set aside by the appellate Bench which heard the appeal from the decision of the single Judge which dismissed the writ application. The case cited cannot therefore be an authority for the proposition.

    7. The question whether an application can be made before the dismissal is now concluded by the decision of the Supreme Court in State Bank Bikaner v. Balai Chander Sen (AIR. 1964 SC. 732). Mathew, J., followed that decision in Calicut Wynad Motor Service (P.) Ltd. v. Industrial Tribunal, Calicut, Calicut (1969 KLT. 910). There was an appeal from this decision and the appeal has been dismissed by a Division Bench of this Court in Ittoop v. Calicut Wynad Motor Service Ltd. (1970 KLT. (SN.) 27). So an application can be made before dismissal. What the section contemplates as decided by the Supreme Court is that simultaneous with the dismissal, there most be an application and there must be a payment or offer for payment. The payment is related to the dismissal and not to the application. The Supreme Court now having found that a dismissal can be anticipated by an earlier application before the Tribunal, it must be taken that the application can be made before the dismissal. But no decision has held that in such cases where an application had been filed earlier than the dismissal, the payment must also be before the dismissal and before the application. I am unable to accept this contention.

    8. The second point urged is based on the contention that the petitioner has raised in paragraph 3 of the objection that he took to the application under the proviso to S. 33(2)(b). That objection is Ext. P4 and the relevant paragraph is in these terms:—

    “The action of the management it motivated and without any bona fide. It also amounts to victimisation and unfair labour practice. The enquiry was concluded some six months ago and this respondent has been working in the firm with the expectation that there would be no action at all. It is submitted that this belated action of the management is with a view to cow down the legitimate trade union activities of this respondent who happened to be the Secretary of the Employees Union.”

    9. It is not correct to say that the case of victimisation had not been dealt with by the Tribunal in his order Ext. P3. Both the question of delay in dismissing the petition after the conclusion of the enquiry and the case of lack of bona fides have been specifically dealt with by the Tribunal in paragraphs 5 and 6 of the order Ext. P3. The Tribunal has referred to all the aspects of the case, and on a reading of the whole of the order Ext. P3, it is clear that it came to the conclusion that there has been no victimisation as the action of the management was based on evidence which prima facie showed that the misconduct alleged had been established. The fact that the enquiry was conducted by a lawyer does not make it an invalid enquiry. A lawyer must normally be presumed to be a man who can act with a sense of detachment and without bias or prejudice as he is trained in law and the view has been taken by the Supreme Court in the decision in Saran Motors (Private) Ltd., New Delhi v. Vishwanath (1964 II L.L.J 139) that an enquiry cannot be said to be vitiated by the mere fact that the employer's lawyer conducted the enquiry. I negative this contention as well.

    10. Finally it was argued that the Tribunal had exceeded its jurisdiction in that it had gone into the evidence in the case which it was not entitled to. I do not think that this contention is justified from what the Tribunal has really done. It did advert to the evidence in the case. This was necessary to determine whether the contention of lack of bona fides and victimisation was justified or not. The Tribunal was trying to find out whether there was material before the management or the enquiry authority to come to the conclusion that the misconduct had been established. This the Tribunal is entitled to enquire into and more than this, I am unable to find in the order Ext. P3.

    11. The result is that this writ petition has to be dismissed. But before I dismiss it, I would like to say that Mr. Bharathan who argued this case dealt with all the aspects in detail and referred me to the relevant decisions and to the relevant passages in the decisions and was of much assistance. I dismiss this petition but I direct the parties to bear their respective costs.

    12. Dismissed.

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    Comments

    N. Rarichan v. R.K Venu Nair
    (Nov 2, 1971)