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Supreme Court of India

MANAGEMENT OF AUROFOOD PVT. LTD.versusS. RAJULU

Citation
2008 INSC 451
Decided
3 April 2008
Disposal
Dismissed

Holding

The appeal is dismissed and the respondent is entitled to Rs.10,00,000 as compensation in lieu of reinstatement.

Summary

The respondent, S. Rajulu, was employed as a packer by Aurofood Pvt. Ltd. and was suspended in 1981 for alleged misconduct, including insolent and filthy language towards superiors and a lady supervisor. A domestic enquiry found him guilty on two charges and the employer dismissed him after an unsatisfactory show‑cause reply. The Labour Court upheld the dismissal; however, the High Court Single Judge reinstated him with back wages, deeming the misconduct trivial and the dismissal excessive, and the Division Bench dismissed the employer’s appeal. The employer appealed to the Supreme Court, arguing that the High Court erred in interfering with factual findings and in its assessment of the enquiry’s fairness. The Supreme Court held that the factual findings of the High Court are not open to interference under Article 136, noted that the respondent had been out of work since 1981, and considered reinstatement inappropriate, directing a compensation of Rs.10,00,000 as full and final settlement. The appeal was dismissed.

Issues considered

  • Whether the Supreme Court can interfere with factual findings of the High Court under Article 136 of the Constitution.
  • Whether dismissal for the alleged misconduct (use of unparliamentary language) was justified under the Industrial Disputes Act, 1947.
  • Whether the domestic enquiry was fair, given that antecedents were considered without an opportunity to rebut.
  • Whether reinstatement after a prolonged period of unemployment is appropriate, or compensation is a suitable remedy.

Legislation cited

Subjects

industrial disputemisconductdismissaldomestic enquiryreinstatementcompensationArticle 136Article 226fair hearing

Judgment

                        [2008] 5 S.C.R. 1080

                                                                    Ir-
A          MANAGEMENT OF AUROFOOD PVT. LTD.                               '
                              v.
                          S. RAJULU
               (Civil Appeal No. 4735 of 2006)
                          APRIL 3, 2008
8
    (TARUN CHATIERJEE AND HARJIT SINGH BEDI, JJ.)                   t
                                                                             •

        Labour Laws:
        Industrial Disputes Act, 1947:
c
         Misconduct - Workman allegedly misbehaved and used
  filthy language against superiors including a lady officer -
  Dismissed from service - Correctness of - Held: Correct -
  Even the High Court has found the charges proved, though
  trivial -There exists bitter relations between the parties -
D
  Incumbent has not been reinstated in service in terms of the
                                                                             ~
  orders of the High Court and not in service since 1981 - Under    -;
  the circumstances, it would be inappropriate to foist a
  cantankerous and abrasive workman on appellant-company
  - Appellant directed to make payment of Rupees ten lacs as
E compensation to workmen in full and final settlement of the
  claim - Directions issued.
        Constitution of India -Article 136 - Scope of- Discussed.
        Respondent was working as a Packer with the
F appellant-company. He was put under suspension
  allegedly for not discharging duties properly and also for
  misbehaving with the superiors. A charge-sheet was                    'f
  served upon him alleging the charges of misconduct,
  however, he continued to use foul and filthy language and
G threatened the senior officers of dire consequences if any
  adverse report was made against him. He was also served
  a second charge-sheet for allegedly misbehaving with a
  lady Officer. A domestic enquiry was conducted against                <'.
  him, which indicted him on both the charges. The
H                            1080
          MANAGEMENT OF AUROFOOD PVT. LTD. v.                  1081
                      S.RAJULU

      management accepted the findings of the enquiry officer          A
      and took a tentative decision to impose the punishment
      of dismissal in terms of the Standing Orders. A show-
      cause notice was also served to him. The reply furnished
      by the delinquent was found unsatisfactory and he was
      dismissed from service. The Government declined to refer         B
      the dispute for adjudication. The respondent thereafter
tJ    moved a representation and the matter was referred to
      the Labour Court. The Labour Court passed an award
      holding the finding of enquiry Officer justified. Aggrieved,
      the delinquent filed a writ petition in the High Court. Single
      Judge of the High Court observed that the misconduct,
                                                                       c
      even if held to be proved, really amounted to the use of
      "unparliamentary language" and was trivial in nature and
      the punishment of dismissal was not justified alid the
      punishing authority had without notice to the respondent
      workman, taken his antecedents into account. Single              D
      Judge of the High Court directed the reinstatement of the
 ~
      respondent with full back wages. An appeal filed
      thereagainst by the appellant was dismissed by the
      Division Bench of the High Court Hence the present
      appeal.                                                          E
            Appellant-employer contended that the Single Judge
      having found the domestic enquiry against the workman
      was properly conducted and that the workman indeed
      was guilty of misbehaviour, there was no justification in
      interfering with the quantum of the punishment by the High F
      Court in exercise of the writ jurisdiction under Article 226
 '1   of the Constitution of India; that the High Court was wrong
      in its finding that the punishing authority was not justified
      in taking into account the antecedents of the workman
      respondent as he had not been given the opp~rtunity to G
      rebut the allegations; and that very grave charges had

.~
      been levelled against the respondent which included the
      use of filthy language in the presence of a lady supervisor
      and no interference ought to have been made in the writ
      jurisdiction.                                                 H
    1082       SUPREME COURT REPORTS             [2008) 5 S.C.R.

                                                                            ......
A       Respondent-employee submitted that the enquiry
  conducted against him was a biased one as the
  observation of the enquiry officer that the evidence given
  by the supervisor was to be preferred vis-a-vis the
  evidence given by respondent workman was, on the face
B of it, unacceptable as each piece of evidence had to be
  examined as per its merit; and that the observation clearly           l
  pointed to the fact that the respondent had not been given
  a fair hearing and in this view of the matter, no interference
  with the impugned order was called for.
c          Dismissing of the appeal, the Court
         HELD: 1.1 The questions of fact which have been
    decided by the High Court call for no interference by this
    Court under Article 136 of the Constitution. (Para - 5)
    [1085-G-H]
D
        1.2 The workman has been out of employment since            i •
  the year 1981 and despite succeeding before the Single
  Bench of the High Court he has not yet been reinstated in
  service because of the interim order passed in this
E litigation. Accordingly it was suggested that on account
  of the situation as existed, it would, perhaps, be
  appropriate that the respondent be given a compensation
  package rather than an order of reinstatement. (Para -5)
  [1086-A-B]
F        1.3 Consequent upon the bitter relations between the
  parties and as even the High Court has found the charges         y
  proved though 'trivial' and the fact that the respondent
  has not been on duty with the appellant-management
  since the year 1981, it would be inappropriate to foist a
G cantankerous and abrasive workman on it. Accordingly,
  it is directed that instead of reinstatement, the respondent
  would be entitled to the payment of Rs.10,00,000/- as
  compensation as full and final settlement with respect to        "(       .
  his entire claim. (Para - 5) [1086-D-E]
H
        MANAGEMENT OF AUROFOOD PVT. LTD. v.                  1083
           S. RAJULU [HARJIT SINGH BEDI, J.]

        CIVIL APPELLATE JURISDICTION : Civil Appeal No.             A
    4735 of 2006.
         From the final Judgment and Order dated 18.4.2005 of
    the High Court of Judicature at Madras in W.A. 491/2001
        R. Sundaravaradan, R.N. Keshwani, Ramlal Roy and            B
    Sumeera Raheja for the Appellant.
         S. Gurukrishna Kumar and S.R. Setia for the Respondent.

         The Judgment of the Court was delivered by
         HARJIT SINGH BEDI, J. 1. The facts leading to the filing   c
    of this appeal are as under:
          2. The respondent, who was working as a Packer with the
    appellant company was put under suspension vide order dated
    26th April 1981. A charge-sheet dated 28th April 1981 was
                                                                      D
    thereafter served upon him alleging that on 24th April 1981 he
    had been found wasting his time eating biscuits near the store
~   room and on being questioned by his superior, had answered
    insolently and told him that he too was dishonest and that he
    was not afraid to face the consequences. The respondent was
                                                                      E
    then taken to one Moses, a senior officer, but he continued to
    use foul and filthy language and threatened Moses that if he
    made a report against him, he would break his legs. The
    respondent was also served a second charge-sheet on 11th
    August 1981 for another misconduct on the allegation that on
    10th August 1981 he had misbehaved with one Mrs. Sasireka F
    and used filthy language against her. A domestic enquiry was
    thereafter held against the respondent which indicted him on
    both charges. The management accepted the findings of the
    enquiry officer and took a tentative decision to impose the
    punishment of dismissal under the Standing Orders. A show- G
    cause dated 13th October 1981 (Annexure P-3) was also issued
    to him calling upon to show cause as to why the aforesaid
y    punishment should not be imposed on him. The respondent
    furnished his reply which was found unsatisfactory and vide order
     dated 5th November 1981 he was dismissed from service on H
    1084      SUPREME COURT REPORTS                  [2008] 5 S.C.R.


A account of the gravity of misconduct and for having used abusive
   language, vide order appended as Annexure P-4. The
   respondent thereafter raised an industrial dispute. The
   Government declined to refer the dispute for further adjudication
   by its order dated 23rd August 1982. The respondent thereafter
8 moved a representation before the Government on 1st
  September 1986 and the matter was referred to the Labour
  Court vide order dated 10th August 1987. The Labour Court
  rendered its award on 30th March 1993 holding that the·
  disciplinary action initiated against the respondent was not an
c act of victimization, that the charges raised against the'
  respondent stood proved and that the finding of the enquiry
  officer was justified ( a copy of the award has been appended
  as Annexure P-5). The respondent thereupon filed a writ petition
  in the High Court. The learned Single Judge in his judgment
  and order dated 9th February 2001 observed that the misconduct
0
  even if held to be proved really amounted to the use of
  "unparliamentary language" and was trivial in nature and as the
  punishment of dismissal had shocked "the conscience of the
  Court" and as the punishing authority had without notice to the
  respondent workman, taken his antecedents into account, he
E directed the reinstatement of the respondent with full back wages
  (a copy of this order has been appended asAnnexure P-7). An
  appeal filed by the appellant-management to the Division Bench
  was also dismissed vide order dated 1ath April 2005. The
  present appeal has been filed as a consequence thereof.
F
         3. While issuing notice in this matter on 19th October 2005,
  an ad-interim stay was also granted to the appellant. Mr.
  R.Sundravardhan, the learned senior counsel for the appellant
  has raised three basic arguments before us in the course of the
G hearing - (1) the learned Single Judge having found that the
  domestic enquiry against the workman was properly conducted
  and that the workman indeed was guilty of misbehaviour, there
  was no justification in interfering with the quantum of the
                                                                        <1
  punishment in the writ jurisdiction under Article 226 of the
  Constitution of India, (2) that the High Court was wrong in its
H
                  MANAGEMENT OF AUROFOOD PVT. LTD. v.                   1085
                     S. RAJULU [HARJIT SINGH BEDI, J.]
......__,    finding that the punishing authority was not justified in taking A
             into account the antecedents of the workman respondent as he
             had not been given the opportunity to rebut these allegations,
             and (3) very grave charges had been leveled against the
             respondent which included the use of filthy language in the
             presence of a lady supervisor and no interference ought to have B
             been made in the writ jurisdiction. In support of the various pleas
1~ 4         raised by him, Mr. Sundravardhan has relied upon (2005) 3 SCC
             134 Mahindra and Mahindra Ltd. v. N.B.Narawade, (2006)
             7 SCC 212 State Bank of India & Ors. v. Ramesh Dinkar
             Punde and (1963) (S) 1 SCR 648 State of Orissa v.                 c
             Bidyabhushan Mohapatra.
                   4. Mr. S.Guru Krishna Kumar, the learned counsel for the
             respondent has, however, supported the judgment of the High
             Court and has pointed out that the enquiry conducted against
             the respondent was a biased one as the observation of the D
             enquiry officer that the evidence given by the supervisor was to
    •r       be pr~ferred vis-a-vis the evidence given by respondent
             workman was, on the face of it, unacceptable as each piece of
             evidence had to be examined as per its merit. He has
             accordingly urged that the observation clearly pointed to the fact E
             that the respondent had not been given a fair hearing and in this
             view of the matter, no interference was called for.
                     5. We have heard the learned counsel for the parties and
              gone through the record. The Division Bench has held that the
            . workman had not been given the requisite material that was F
              required by him to prepare his defence more particular as his
       1      antecedents had been taken into account depicting him as
              incorrigible, though he had not been given any opportunity to
              rebut these charges. The High Court has also found that the
              allegations against the workman even if taken to be true were G
              trivial and.could not justify an order of dismissal from service.

     . )
              The judgments cited by the learned counsel do not adequately
               meet the issues raised by the High Court. The questions of fact
              which have been decided by the High Court call for no
               interference by this Court under Article 136 of the Constitution. H
    1086        SUPREME COURT REPORTS                   [2008] 5 S.C.R.


A We also find that the workman has been out of employment
  since the year 1981 and despite succeeding before the single
  bench of the High Court on 9th February 2001 he has not yet
  been reinstated in service because of the interim order passed
   in this litigation. We had accordingly and at the very outset,
B suggested to Mr. Sundravardhan that on account of the situation
  as now existed, it would, perhaps, be appropriate that the
  respondent be given a compensation package rather than an
  order of reinstatement. The learned counsel stated that the
  management was willing to give no more than Rs.5,00,000/-
C towards that package. The respondent, on the othe'r hand who
  was present in Court, insisted that he was not interested in the
  compensation and would prefer that the orders of the High Court
  be implemented in letter and spirit. We are of the opinion that
  consequent upon the bitter relations between the parties and
  as even the High Court has found the charges proved though
0
  'trivial' and the fact that the respondent has not been on duty
  with the appellant-management since the year 1981, it would
                                                                          1•
  be inappropriate to foist a cantankerous and abrasive workman
  on it. We accordingly dismiss the appeal but direct that instead
  of reinstatement the respondent would be entitled to the payment
E of Rs.10,00,000/- as compensation as full and final settlement
  with respect to his entire claim.
           6. There will be no order as to costs.
    S.K.S.                                          Appeal dismissed.
F




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