Full Judgment Text
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 10
PETITIONER:
MANAGEMENT OF RITZ THEATRE (P) LTD.
Vs.
RESPONDENT:
ITS WORKMEN
DATE OF JUDGMENT:
27/07/1962
BENCH:
GAJENDRAGADKAR, P.B.
BENCH:
GAJENDRAGADKAR, P.B.
GUPTA, K.C. DAS
MUDHOLKAR, J.R.
CITATION:
1963 AIR 295 1963 SCR (3) 461
CITATOR INFO :
RF 1972 SC1031 (21,44,47,56)
R 1973 SC1227 (20)
R 1975 SC1900 (10,11)
R 1978 SC1380 (8)
R 1979 SC1652 (16,28)
R 1981 SC1626 (10)
D 1987 SC1629 (14)
ACT:
Industrial Dispute-Termination of relation of master and
servant--Procedure--Domestic enquiry--Additional evidence
before Tribunal--Powers of Tribunal regarding merits of
case--Scope of--Procedure of departmental
enquiry--Industrial Disputes Act, 1947 (14 of 1947).
HEADNOTE:
The appellant is a company which carries on the business of
exhibiting cinema films in its theatre’ The respondents Jai
Jai Ram and Mohd. Mia, were its employees for the past many
years. Charge-sheets were served on them and the charges
were enquired into by the Enquiry Officers appointed by the
appellant. At the enquiry, the appellant
462
led evidence, both oral and documentry. Eleven witnesses
were examined on behalf of the appellant and an equal’
number of witnesses was examined on behalf of the respon-
dents. The Enquiry Officer considered all the evidence led
before him and came to the conclusion that the charges
framed against the respondents had been fully established.
He recommended that the services of the respondents be
dispensed with for misconduct. He also recommended the
making of certain payments to the respondents. The
appellant accepted the report of the Enquiry Officer and jai
jai Ram was dismissed on 15th January, 1959, and Mohd. Mia
on 1st May, 1959.
The Delhi Administration referred the matter to the
Industrial Tribunal for adjudication whether the respondent&
should be re-instated with full back wages or whether they
were entitled to any other relief. When the case was heard
before the Tribunal, the appellant asked for an opportunity
to adduce additional evidence and the Tribunal allowed both
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 2 of 10
the parties to lead further evidence. The decision of the
Tribunal was that the dismissal of Jai jai Ram was not
justified and the findings recorded against him at the
departmental enquiry were baseless. As regards Mohd. Mia.
the Tribunal held that no order of dismissal had been served
on him, and hence it could not be said that his services had
been duly terminated by an order of dismissal. On these
grounds, the Tribunal ordered the reinstatement of both the
respondents. The appellant came to this Court by special
leave.
Held, that the order of dismissal passed against jai jai
Ram was proper and valid. As regards Mohd. Mia, the
appellant had failed to prove that the order of dismissal
was served on him as required by law. The relationship of
employer and employee can be effectively terminated not
merely by the decision of the employer to terminate the
employee’s services but by the communication of the said
decision to the employee, and that was not done in this
case. Therefore, the appellant was directed to pay to Mohd.
Mia the wages to which he would have been entitled if he had
been In actual employment from December 1, 1958, to July 27,
1962, the date of the decision.
As regards the scope of the powers of the Tribunal it wag
held that it is only where the Tribunal is satisfied that a
proper enquiry has not been held or that the enquiry having
463
been held properly the findings recorded at such an enquiry
are perverse, that the Tribunal has jurisdiction to deal
with the merits of the dispute. The employer may rely on
the domestic enquiry in the first instance, and
alternatively and without prejudice to his plea that the
said enquiry is proper and binding, may seek to lead
additional evidence. By adopting such a course, the
employer does not give up his plea that the enquiry was
proper and the Tribunal cannot go into the merits of the
dispute for itself If the view of the Tribunal was accepted
that as the appellant sought permission to lead additional
evidence it was open to it to consider the merits of the
dismissal of the employees for itself in the light of the
whole of the evidence before it, it will lead to the anamoly
that the employer would be precluded from justifying the
dismissal of his employees by leading additional evidence
unless he took the risk of inviting the Tribunal to deal
with the merits for itself. The true and correct legal
position is that if the employer seeks to lead evidence in
addition to the evidence adduced at the departmental enquiry
and the employees are also given permission to lead
additional evidence it is necessary for the Tribunal to
first consider the preliminary issue as to the validity of
the domestic enquiry and then proceed to deal with the
merits in case the preliminary issue is decided against the
employer.
Bharat Sugar Mills Limited v. Jai Singh (1961)2 L.L.J. 644
and Anglo-American Direct Tea Trading Co. Ltd. v. Workmen of
Nahortali Tea Estate, (1961) 2 L.L.J. 625. referred to.
JUDGMENT:
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 111 of 1962.
Appeal by special leave from the Award dated February 9.
1960 of the Industrial Tribunal at Delhi in I.D. No. 601 ’of
1959.
S.N. Andley, P.L. Vohra and Rameshwar Nath for the
appellant.
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 3 of 10
A.V. Viswanatha Sastri and G. Gopalakrishna, for the
respondents.
1962. July 27. Judgment of the Court was delivered by
GAJENDRAGADKAR, J An industrial dispute between the
appellant, the Management of Ritz
464
Theatre (Private) Ltd.. and the respondents, its, Workmen,
from which this,appeal arises was referred for adjudication
to the- Industrial Tribunal at Delhi by the Delhi
Administration on November 13, 1959. The dispute was in
’regard to the termination of services of two of the
appellant’s employees, Jai Jai Ram and Mohd. Mia and the,
question referred for adjudication’ was whether the said two
workmen should be reinstated with full back wages and to
what relief they were entitled,.
The appellant is a company, which carries on the business of
exhibiting cinema films in its theatre, the Ritz Cinema, and
the two workmen had, been its employees for several years
past., it’ appears that in August, 1958, charg sheets were,
served on the two workmen. Against Jai Jai Ram, four
charges were framed. The first charge was that on 1st
August, 1958, ’he along with Mohd. Mia had given a beating
with slaps and fist blows, while on duty to Moot Krishan
Nigam another employee at about 6 P. M. during the Matinee
show of ’Nausherwane-Adil"; the second, charge was that he
had misappropriated carbons belonging to the management; the
third was that he had run Reel No. 9 on the picture "Bhabi"
upside down on 19th August, 1958, during the 6-30 P. M.,
show; and the last charge was that he had run over the Film
Print of picture "Mother India" and thereby damaged the film
print.
Against Mohd. Mia, three charges were framed. The first
was in regard to the incident which took place on 1st
August,, 1958 in which he and Jai -Jai Rain had acted
together in ’seating with slaps and fist blows Moot Krishan
Nigam; the second was that on 25th August, 1958, at about 3
P. M. during the show, he had threatened Ramesh Chandra
another employee and had abused him and pushed him out of
the cabin; and the third
465
was that on 23rd August, 1958, while on duty he had left his
cabin for half an hour without leave or permission or even
without giving any information and was found taking tea in
the restaurant during duty hours.
These charges were enquired into by the Enquiry Officer
appointed by the appellant. At the enquiry, the appellant
led evidence, both oral and documentary. Eleven witnesses
were examined on behalf of the appellant whereas eleven
witnesses were examined on behalf of the workmen. The
Enquiry Officer examined the evidence adduced before him by
the respective parties, considered their rival contentions
and came to the conclusion that the charges firamed against
both the workmen bad been fully established. Accordingly,
the Officer recommended that the services of both the
workmen should be dispensed with for misconduct. He added
that in case his recommendation for dismissing the employees
was accepted, certain payments should be made to them as
indicated in the report. The appellant’s case is that the
report made by the Enquiry Officer was accepted by it and in
accordance with the recommendation made by the said report,
Jai Jai Ram and Mobd. Mia were dismissed on 15th January,
1959, and 1st May, 1959 respectively.
In the present dispute, the respondents’ case was that the
departmental enquiry instituted by the appellant against the
two workmen was unfair, unjust and inequitable and so it was
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 4 of 10
urged that the termination of services of both the workmen
was not justified. In regard to Mohd. Mia, the respondents
took an additional specific plea that the said workman had
not been dismissed but had continued to be under suspension
from 11th September, 1958 and on this additional plea,
reinstate-
466
ment of Mohd. Mia was claimed. Both them allegations were
denied by the appellant; it urged that the departmental
enquiry held by its Officer was fair and just and that
fullest opportunity had, been given to the employees to
explain their position, and meet the charges framed against
them. In regard to Mohd. Mia, it was averred that after
the management decided to terminate his services, the order
of dismissal was in fact- served on him on let May, 1959.
it is in the light of these pleadings that the Tribunal
proceeded to deal with the dispute referred to it for its
adjudication. It appears that when the trial began before
the Tribunal, an application was made by the appellant
&eking for permission to lead additional evidence. In this
application the appellant stated that some additional
evidence had- come to its knowledge since the holding of the
enquiry and so production of the said additional evidence
may be allowed. Thereupon, the respondents urged that they
should also be allowed an opportunity to adduce additional
evidence and on the 27th January 1960, the Tribunal ordered
that as both parties desired to lead further evidence,
permission was granted; and in accordance with this order,
evidence had been led before the Tribunal both by the
appellant and the respondents. In addition to the evidence
thus led, the appellant produced before the Tribunal all the
papers of the departmental enquiry containing evidence
recorded therein and the report made by the Officer.
The Tribunal has held that since the appellant sought for
permission to lead additional evidence, it’ was open to it
to consider the merits of the dismissal of the two employees
for itself in the light of the whole of the evidence before
it. it took the view that since the appellant wanted. to
cite further evidence before it, the jurisdiction of
467
the Tribunal to deal with the merits of the dispute became
wider; and considering the evidence from this point of view,
it came to the conclusion that the dismissal of Jai Jai Ram
was not justified and that the findings recorded against him
at the departmental enquiry were baseless. In regard to the
termination of Mohd. Mia’s services, the Tribunal held that
no order of dismissal had been served on him and so it could
not be said that his services had been duly terminated by an
order of dismissal at all. On these grounds, the Tribunal
ordered reinstatement of both the employees and gave them
additional consequential reliefs. It is against this order
that the appellant has come to this Court by special leave.
The first point which Mr. Andley has raised before us is
that in dealing with the dispute on the merits, the Tribunal
has exceeded its jurisdiction. Industrial disputes arising
from orders passed by employers terminating the services of
their employees have frequently come to this court in appeal
and the principles which govern the limits, and the due.
scope, of the exercise of the Industrial Tribunals
jurisdiction in respect of such dispute have been examined
by this Court on several occasions. It is well-settled that
if an employer serves the relevant charge or charges on his
employee and holds a proper and fair enquiry, it would be
open to him to act upon the report submitted to him by the
Enquiry Officer and to dismiss the employee concerned. If
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 5 of 10
the enquiry has been properly held, the order of dismissal
passed against-the employee as a result of such an enquiry
can be challenged if it is shown that the conclusions rea-
ched at the departmental enquiry were perverse or the
impugned dismissal is vindictive or mala fide, and amounts
to an unfair labour practice. In such an enquiry before the
Tribunal, it is not open to the Tribunal to sit in appeal
over the findings
468
recorded at the domestic enquiry. This Court has held that
when an proper enquiry has been held, it would be open to-
the Enquiry Officer holding the domestic enquiry to deal
with the matter on the merits bona fide and come to his own
conclusion.
It has also been held that if it appears that the
departmental enquiry held by the employer is not fair in the
sense that proper charge had not been served on the employee
or proper or full opportunity had not been given to the
employee to meet the charge, or the enquiry has been
affected by other grave irregularities vitiating it, then
the position would be that the Tribunal would be entitled to
deal with the merits of the dispute as to the dismissal of
the employee for itself. The same result follows if no
enquiry has been held at all. In other words, where the
Tribunal is dealing with a dispute relating to the dismissal
of an industrial employee, if it is satisfied test no
enquiry has been held or the enquiry which has been held is
not proper or fair or that the findings recorded by the
Enquiry Officer are perverse, the whole issue is at large
before the Tribunal. This position also is wellsettled.
In regard to cases falling under this last category of
cases, it is however open to the employer to adduce
additional evidence and satisfy the Tribunal that the
dismissal of the employee concerned is justified. And in
such a case, the Tribunal would give opportunity to the
employer to lead such evidence, would give an opportunity to
the employee to meet that evidence, and deal with the
dispute between the parties in the light of the whole of the
evidence thus adduced before it. There can be little doubt
even about this position.
Mr. Sastri however contends that there can be an
intermediate class of oases where the emp-
469
loyer no doubt rests his case on the fact that an enquiry
has been held, but apprehensive about the validity, of the
enquiry, he seeks for permission to lead evidence to justify
his action before the Tribunal and he contends that whenever
the employer seeks:, to adduce additional evidence before
the Tribunal after having produced the papers in regard to
the enquiry proceedings, it should he held that the
Tribunal is entitled to deal with the merits of the dispute
for itself, because the course adopted by the employer in
seeking to adduce additional evidence should by itself
justify an inference that the concedes that the enquiry has
not been proper. That is’ the view which apparently the
Tribunal has taken in the present proceedings and Mr. Sastri
naturally seeks to suppot it.
We do no think that this view can be accepted as correct.
In enquiries of this kind, the first question which the
Tribunal has to consider is whether a proper enquiry has
been held or not. Logically, it is only where the Tribunal
is satisfied that a proper enquiry has not been held or that
the enquiry having been held properly the finding recorded
at such an enquiry are perverse, that the ,Tribunal derives
jurisdiction to deal with the merits of the dispute. It, is
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 6 of 10
quite conceivable, and in fact it happens in many cases,
that the employer may rely on the enquiry in the first
instance and alternatively and without prejudice to his plea
that the enquiry is proper and binding, may seek to lead
additional evidence. It would, we think, be unfair to hold
that merely by adopting such a course, the employer gives up
his plea that the enquiry was proper and that the Tribunal
should not go into the ’merits of the dispute for itself’.
If the view taken by the Tribunal was held to be correct, it
would lead to this anamoly that the employer ,would be
precluded from justifying the dismissal of his employee by
leading . additional evidence
470
unless he takes the risk of inviting the Tribunal to deal
with the merits for itself, because as soon as he asks for
permission to lead additional evidence it would follow that
he gives up his stand bowed an the holding of the domestic
enquiry. Otherwise :it may have to be held that in all such
came no evidence should be led on the merits unless the
issue about the enquiry is tried as,& preliminary issue. If
the finding on that preliminary issue is in favour of the
employer, then, no additional need be cited by the employer;
if the finding on the said issue is against him, permission
will have to be given the employer to cite additional
evidence,instead of following such an elaborate and somewhat
cumbersome procedure. if the employer seeks to lead evidence
in addition to the evidence adduced at the departmental
enquiry and the employees are also given an opportunity to
lead additional evidence, it would be open to the Tribunal
first to consider the preliminary issue and then to proceed
to deal with the merits in case the preliminary issue is
decided against the employer. That, in our opinion, is the
true and correct legal position in this matter.
Mr. Sastri however contends that there are two decisions
which support the view which has been accepted by the
Tribunal in the present case. In that connection, he has
invited our attention to the decision of this court in
Bharat Sugar Mills Ltd. v. Jai Singh (1). We do not think
that this decision supports Mr. Sastri’s contention at all.
The argument which was urged before this Court in that case,
and which the court projected, was that in an enquiry before
a Tribunal in respect of the dismissal of an industrial
employee it would not be open to the employer to adduce
additional evidence and justify the dismissal on the merits
apart from the enquiry. And this court hold that it would
be open to the employer to adduce additional evidence,
(1) [1961] 2 L.L.J, 644.
471
It was observed in the course of the judgment that "where
there has been a proper enquiry by the management itself,
the Tribunal, it has been settled by a number of decisions
of this Court, has to accept the finding arrived at in
that.,enquiry unless it is perverse and should give the
permission asked for unless it has reason to believe that
the management is guilty of victimisation or has been guilty
of unfair labour practice or is acting mala fide." Then this
court proceeded to add that "the more fact no enquiry has
been held or that the enquiry has not been properly
conducted cannot absolve the Tribunal of its duty to decide
whether the case that the work.man has been guilty of the
alleged misconduct has been made out. The proper way for
performing this duty where there has not been a proper enqu-
iry by the management is for the Tribunal to take evidence
of both sides in respect of the alleged misconduct." It
would thus be seen that this decision lays down the
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 7 of 10
principle that even if no enquiry has been held and an
industrial employee has been dismissed, where a dispute is
referred to the Industrial Tribunal for its adjudication,
the failure to hold the enquiry would not necessarily be
fatal to the employer’s case and it would be open to him to
justify the dismissal by citing evidence before the Tribunal
in support of his that the employee was guilty of misconduct
which justified his dismissal. This conclusion cannot by
any stretch of imagination support Mr. Sastri’s contention
that as soon as evidence is led by the employer, the plea
raised by him on the ground of the enquiry held by him prior
to the dismissal of the employee is not available to him and
that the Tribunal is at liberty to examine the question and
decide it on the merits for itself.
The other decision on which Mr. Sastri has relied is a
judgment delivered by this court in the AngloAmerican Direct
Tea Trading Company Ltd. v.
472
Workmen of Nahortoli Tea Estate (1). In that case, it
appears that all that had happened in the Course of the
departmental enquiry held by the employer was that certain
questions were put to the employee Dhaneawar to which he
gave. answers. When he was asked to sign the statement, he
refused to ’do so. Thereafter, no further enquiry was held
and it did not appear that Dhaneawar refused to take Dart
-in the enquiry. Before the Tribunal, the sought to justify
the dismissal by adducing evidence. It is in the light of
these facts that this court observed that from the fact;
that evidence was led, "it was practically accepted before
the Industrial Tribunal that there was no proper managerial
enquiry and it was left to the Industrial Tribunal to decide
for itself whether the dismissal of Dhaneswar was
justified." Mr. Sastri reads this sentence literally and
contends that it lays down the principles that whenever the
employer seeks to lead evidence before the Tribunal, it
should be held that he -accepts the position that there was
no proper managerial .enquiry. We are satisfied that this
literal, and so what mechanical way of reading this solitary
sentence in the judgment from 1 its context not justified.
Therefore we do not think that there is any authority for
the proposition that wherever : the employer seeks to lead
additional evidence -before the Tribunal in support of the
dismissal of his employee, it must necessarily follow that
he has given up his stand based on the previous departmental
enquiry and the Tribunal is entitled to examine,the dispute
on the merits for itself; and on principle of fair play and
justice the said proposition is unsound. That is why we
held that the Tribunal was in error in proceeding to examine
the evidence for itself in coming to the conclusion that the
dismissal of Jai Jai Ram was not justified on the merits.
It is true. that the Tribunal has observed that the findings
recorded
(1) (1961) (2) L.L.J. 625,
473
at the departmental enquiry were baseless, but that clearly
is the result of its appreciation of the whole of the
evidence adduced before it and this course should not have
been adopted by the Tribunal.
It appears from the award that no attempt was made before
the Tribunal by the respondents to justify their plea that
the enquiry was improper or unfair. In fact, as we have
already indicated, the Tribunal took the view that because
evidence was led by the employer the scope of the enquiry
automatically became wider, However, we have heard Mr.
Sastri in support of his argument that in fact the enquiry
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 8 of 10
was unfair. In dealing with this point, it may be necessary
to recall that the enquiry in the present case has been very
elaborate. As we have already pointed out, eleven witnesses
each were examined by both the parties, and documentary
evidence was also adduced; and the enquiry Officer has made
an elaborate and well-considered report. He has examined
the oral evidence cited before him, considered the documents
to which his attention was drawn and has also examined the
probabilities in the case. Therefore prima facie, it would
be difficult to entertain the plea that the enquiry was
unfair or that the conclusions reached by the Enquiry Offi-
cer were baseless. The record of the enquiry shows that all
the witnesses examined by the employer were cross examined
by the respondents either to test the record does not show
that any opportunity was refused to the respondents either
to test the employer’s evidence or to lead their own
evidence.
Mr. Sastri however contends that soon after the enquiry
commenced, an application was made by the Secretary of the
Union to which the two workmen belonged setting forth in
detail their objections to the course adopted by the Enquiry
Officer (Ex. M/20 dated September 30, 1958). It
474
is true that in this application ten separate grounds had
been set out alleging irregularities committed at the said
enquiry. But it is significant that no attempt has been
made before the Tribunal to justify these allegations. The
Secretary who signed that document has given evidence in
this case., but he has no personal knowledge about the said
allegations and he has said nothing about them. Mohd. Mia
has also given evidence but he has also not said anything
about those allegations. Jai Jai Ram has not given evidence
before the Tribunal. Therefore it is quite clear that on
the record before the Tribunal, there is no evidence
whatever to justify the several allegations made in the
document on which Mr. Sastri relies. That is why we think
this ground of attack against the propriety or the fairness
of the enquiry must be rejected.
Mr. Sastri has then contended that a fair opportunity was
not given to the respondents when the Enquiry Officer
obtained a statement about the actual verification of the
carbon consumption. It appears that the Enquiry Officer
wanted an actual verification of carbon consumption and go
he directed that a sort of mathematical stipulation should
be submitted by the management in that behalf That brings
out clearly the thorough manner in which the Enquiry Officer
conducted the enquiry. The report shows that whilst this
material was being prop-.red, the workmen did not cooperate
and Mr. Sastri’s grievance is that they were not given an
opportunity to cooperate in this matter. This contention is
not justified by the record at all. It appears that Jai Jai
Ram wanted that he should work the machines when the said
material was being collected, and that request was naturally
not accepted by the Enquiry officer; but the fact that this
request was turned down did not justify Jai Jai Ram’s non-
cooperation when
475
the calculations were made and documents were prepared in
that behalf. Therefore it seems to us, that the Enquiry
Officer was justified in criticising the employees for not
cooperating with the employer when the said statement was
prepared. The argument that, a proper opportunity was not
given to the employee in that behalf must there fore be
rejected. The result is that the grievance made by Mr,
Sastri before us that the enquiry was unfair or otherwise
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 9 of 10
improper cannot be sustained. If that be, the true
position,, it follows that the order of dismissal passed
against Jai Jai Ram must be sustained.
That takes us to the case of Mohd, Mia. The Tribunal has
found that no order of dismissal had been served on him. We
have already noticed that this was the specific plea made by
the respondents in their statement before the ’Tribunal and
that had been specifically traversed by the appellant. In
support of its plea that the order of dismissal had been
served on the employee, the appellant had examined certain
witnesses and before deciding the question as to whether the
finding of the Tribunal is based on any evidence or not, it
may be necessary to consider that evidence broadly. It does
appear that a document bad been produced by the appellant
(Ex. M/8) which purports to be the order of dismissal and
which purports to bear the signature of Mohd. Mia. Mohd.
Mia took oath before the Tribunal that signature was not his
and that in fact no order had been served on him. He has
not been cross-examined on this point. But apart from this
aspect of the matter, the evidence given by the appellant in
sup. port of its case, that the order of dismissal has been
served on Mohd. Mia is so completely discrepant that it
must be discarded as worthless. Om Bahl who is the Manager
of the Ritz Theatre Stated that when, he received the. order
of dismissal of
476
Mohd. Mia. from the Managing Director’s Head Office at
Delhi, he gave it to the Assistant Manager to be served on
the employee. He no doubt purported to say that it
contained the signature of Mohd. Mia; but he knew nothing
about-the actual service and so his evidence is not of much
assistance. Om Parkash, the Assistance Manager stated that
he in his trun gave the order of dismissal to his staff to
get it served on Mohd. Mia. He frankly stated that Mobd.
Mia did not put his signature on the order in his presence,
and so his evidence also does not help. It would be noticed
that the evidence of Om Bahl and Om Parkash makes it clear
that neither of them was present when the order was alleged
to have been served on Mohd. Mia. Now, when we come to the
evidence of Kundan Lal, he stated that the order was given
by Mr. Om Parkash to Mohd. Mia in his presence. In other
words, the evidence of this witness purports to show that
the order of dismissal was served on Mohd. Mia by the
Assistant Manager in the presence of this witness, and that
clearly is inconsistent with the testimony of Om Prakash
himself. Similarly, Bhagwati Prasad stated that Om Prakash,
Om Bahl and Kundan Lal were all present when the order was
served, so that this witness went one step further when he
stated that not only the Assistant Manager but the Manager
was also present when the order was served. Having regard
to the nature of this evidence there is no difficulty in
appreciating how the tribunal came to the conclusion that
the appellant had failed to prove its allegation that the
order of dismissal had been served on Mohd. Mia. It is to
be regretted that the appellant should have taken this plea
and should have sought to support it by such discrepant and
worthless evidence.
That takes up to the question as to the proper order which
should be passed in respect of
477
Mohd. Mia. The grievance made by the respondents before
the Tribunal was that Mohd. Mai had been suspended from
September 11, 1958, and had continued under suspension ever
since. That is why they claimed that be was entitled to
reinstatement ’Mr. Andley contends that though it may not
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 10 of 10
be Possible for him to rely on the evidence led by the
appellant in support of its plea that the order of dismissal
had in fact been served on Mohd. Mia. it would be open to
him to contend that atleast on the date of reference Mohd.
Mia had; notice -,that he had been dismissed and so the
relationship of master and servant should be deemed to have
been terminated from that date in any event. We are not
prepared to accept this argument, particularly when we are
satisfied that the appellants has taken a different plea and
sought to support it by evidence which it should not have
done of the employer and the employee can be effectively
terminated in such a case not merely by the decision of the
employer to terminate the employee’s services but by the
communication of the said decision to the employee; and as
it happened, such a communication had not been made even
till the date when the award was pronounced. We are told by
Mr. Andley to-day, and Mr. Sastri concedes, that effective
steps have now been taken by the employer to terminate the
services of Mohd. Mia and that from to-day in any case he
is not an employee of the appellant. That being so, the
further question which we have to consider is the amount
which we should direct the appellant to pay to Mohd. Mia.
Mr. Andley has fairly conceded that in the model standing
orders usually a provision is made that if an industrial
employee is suspended pending an enquiry into his misconduct
the period of suspension should not extend beyond a
fortnight. There are no standing orders in the appellant’s
concern and Mr. Andley
478
has therefore requested us to hold that the suspension of
Mohd. Mia was reasonable for the period of the enquiry
before he is held entitled to claim his wages from the
appellant. We are inclined to, accept this argument
partially; because in the circumstances of this case, we
think it would be fair to hold that the order of suspension
passed on, Mohd. Mia on September 11, 1958 was justified
until December 1, 1958; and so we direct that from December
1. 1958 until to-day the appellant should, pay Mohd. Mia
the wages to which, he would have, been entitled if he had
been in the, actual employment of the appellant and had been
working in its concern from day to day.
The result is the appeal partially succeeds. The order of
reinstatement passed by the Tribunal in favour of Jai Jai
Ram is set aside and his dismissal is affirmed; and an order
is made against the appellant to pay Mohd. Mia wages as
indicated. Mohd. Mia would not be entitled to
reinstatement. There would be no order as to costs.
Appeal allowed in part.
479