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Supreme Court of India

DISTRICT TRANSPORT MANAGER (ADMN.) O.S.R.T.C., ORISSAversusDILIP KUMAR NAYAK AND ANR.

Citation
1996 INSC 1414
Decided
29 November 1996
Disposal
Disposed off

Holding

Zones of the corporation are independent units; a pending industrial dispute in one zone does not bar dismissal of an employee in another zone, and leave under Section 33‑A is not required.

Summary

The respondent, a conductor employed in the Baripada zone of the Orissa State Road Transport Corporation, was dismissed for misconduct while an industrial dispute involving an employee in the Bhadrak zone was pending before the Industrial Tribunal. The respondent sought relief under Section 33(1)(a) of the Industrial Disputes Act, claiming that dismissal required prior leave of the Tribunal under Section 33‑A because of the pending dispute. The Tribunal rejected the application, but the Orissa High Court set aside the dismissal, holding it illegal. On appeal, the Supreme Court observed that the corporation’s zones operate independently and are not a single integrated unit for the purposes of Section 33‑A. Consequently, a pending dispute in one zone does not bar disciplinary action against an employee in another zone, and no leave from the Tribunal is required. The Court reversed the High Court’s decision and disposed of the appeal, confirming the validity of the dismissal.

Issues considered

  • Whether dismissal of an employee in one zone of a transport corporation requires prior leave of the Industrial Tribunal under Section 33‑A when a dispute concerning an employee in another zone is pending before the Tribunal.
  • Whether the multiple zones of the corporation constitute a single integrated unit for the purposes of Section 33‑A of the Industrial Disputes Act.

Legislation cited

Subjects

Industrial Disputes ActSection 33-Adisciplinary dismissaltransport corporation zonespending industrial disputefunctional integrityleave of tribunal

Judgment

A    DISTRICT TRANSPORT MANAGER (ADMN.) O.S.R.T.C., ORISSA
                                            v.                                      ....
                       DILIP KUMAR NAYAK AND ANR.

                                NOVEMBER 29, 1996

B                 [K. RAMASWAMY AND G.T. NANAVATI, JJ.]

            Industrial Disputes Act, 1947: Sections 33( J)(a) and 33-A.

            Transport Corporation-Several zones created for efficient transaction
C of business and coordinated se1vices of transport-Each zone independent of
  its operational efficacy-Respondent-conductor working in a zone-Dismissal
  for misconduct-Challenge on the ground that his se1vices could not be
  tenninated without approval of Jndust1ial Tribunal as dispute relating to an
  employee in other zone was pending adjudication before the Industrial
   Tribunal-Rejection of claim by Tlibunal-High Cowt holding that order of
D dismissal was bad in /aw-Appeal-Held, all the zones are not an integral
  part or parcel of coordinated transport se1vice as a single unit-Therefore, the
  decision of the High Couit that all the zones would be considered to be an
  integral unit of the Co1poration and pendmcy of industrial dispute in respect
  of one employee of a different zones would be a bar for the management to
E take disciplinary action against an employee in that pa1ticular zone is clearly
  wrong-Jn such a case there is no need for the management to seek and
  obtain leave of the Industrial T1ibunal under Section 33-A of the Act.

           Isha Steel Treatment, Bombay v. Association of Engi.lieering Workers
    Bombay & Anr., [1987] 2 SCC 203 and Workmen v. Straw Board Manufac-
F   turing Co. Ltd., [1974] SCC 681, relied on.

            CIVIL APPELLATE JURISDICTION : Civil Appeal No. 15606 of
    1996.

       From the Judgment and Order dated 19.7.91 of the Orissa High
G Court in O.J.C. No. 1970 of 1989.
            A.K. Panda for the Appellant.

            Ms. Sharda Devi for the Respondents.

H           The following Order of the Court was delivered :
                                        380
        DISIT. TPT. MANAGER (ADMN.) O.S.R.T.C. v. DK NAYAK                381

      Delay condoned                                                             A
      Leave granted.

       This appeal by special leave arises from the judgment of the Division
Bench of the Orissa High Court in CJC No. 1970/89 dated 19th July, 1991.
The respondent No. 1 was a conductor in the appellant-Corporation. While         B
he was posted in the District of Baripada, he committed misconduct.
Disciplinary enquiry was conducted against him and on proof of his mis-
conduct, he was dismissed from service, while Industrial Dispute Case No.
25of1981 under Section 10 (l)(d) of the Industrial Disputes Act, 1947 (for
short, the "Act") was pending decision. The respondent filed an application      C
under Section 33 ( 1) (a) of the Act contending that since the dispute
relating to an employee in Bhadrak zone was pending adjudication in the
Industrial Tribunal, without the leave of the Tribunal under Section 33-A
his service could not be terminated. The Tribunal dismissed the petition
but in the writ petition, the Division Bench in the impugned judgment has
set aside that order and held that the order of dismissal is bad in law. It is   D
now admitted that pending this appeal, the respondent was reinstated in
September 1993 on his undertaking that he will not claim any back-wages.

      The question is : whether the view taken by the High Court is correct
in law? It is not in dispute that for administrative convenience, efficacy and   E
coordinated transport operation and transaction of business, the Corpora-
tion by its resolution created divisions, zones and special zones, with regard
to the area of its operation under the Motor Vehicles Act. The respondent
is working in Baripada Zone, while the pending dispute in the Industrial
Dispute case relates to the employee working in Bhadrak Zone.
                                                                                 F
       It is seen that this Court in Isha Steel Treatment, Bombay v. Associa-
tion of Engineering Workers, Bombay & Anr., [1987) 2 SCC 203, had con-
sidered a similar question whether there was functional integrity between
the office at the Church gate and the factory at Trombay. It was held that
in the absence of any functional integrity, separate offices could be created G
as independent units and they cannot be deemed as one unit. In support
thereof, this Court had relied on an earlier judgment in Workmen v. Straw
Board Manufacturing Co. Ltd., [1974) SCC 681. The same ratio applies to
the facts of this case. As stated earlier, for efficient transaction of the
business and coordinated services of the transport operations, several
zones have been created by the Corporation and each zone is independent H
    382                   SUPREME COURT REPORTS (1996) SUPP. 9 S.C.R.
A   of its operational efficacy. Therefore, all the zones are not an integral part
    or parcel of coorc\inated transport service as a single unit. In these cir-
    cumstances, the decision of the High Court that all the zones would be
    considered to be an integral unit of the Corporation and pendency of
    industrial dispute in respect of one employee of a different zones would be
B   a bar for the management to take disciplinary action against an employee
    in that particular zone is clearly wrong. We are of the opinion that in such
    a case there is no need for the management to seek and obtain leave of
    the Industrial Tribunal under Section 33·A of the Act.

          The appeal is accordingly disposed of. However, in view of the
C   understanding between the appellant and the workmen and as he has
    already been reinstated without any back-wages, this order would not stand-"
    as an impediment in the way of the respondent to continue to be in. service.
    ~~                                                                  /      .

    T.N.A.                                                   Appeal disposed of.


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