Full Judgment Text
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PETITIONER:
BABULAL NAGAR AND ORS.
Vs.
RESPONDENT:
SHREE SYNTHETICS LTD. & ORS.
DATE OF JUDGMENT04/05/1984
BENCH:
DESAI, D.A.
BENCH:
DESAI, D.A.
REDDY, O. CHINNAPPA (J)
VARADARAJAN, A. (J)
CITATION:
1984 AIR 1164 1984 SCR (3) 772
1984 SCALE (1)884
ACT:
Madhya Pradesh Industrial Relations Act 1960-Sections
61 and 66-Order of dismissal or removal from service made
against an employee-Jurisdiction of Labour Court to
interfere in an application under Section 61-Labour Court
entitled to examine the propriety or impropriety of the
order-Jurisdiction of Industrial Court to interfere with the
order of Labour Court-Industrial Court can come to a
different conclusion on same set of facts.
Words and Phrases-"As it thanks fit"-Legality"-Meaning
of-Madhya Pradesh Industrial Relations Act, 1960, section
66(1).
HEADNOTE:
The appellants were workmen employee, of the first
respondent company. It was alleged that they assaulted
another workman as a result of which he sustained bleeding
injuries on his head. A chargesheet was drawn up by the
management was served on the appellants, which was followed
by a composite domestic enquiry at the end of which all of
them were dismissed from service.
The appellants moved five different applications before
the Labour Court questioning the validity of the domestic
enquiry as also the legality and propriety of the orders
terminating their services. The Labour Court finding that
the domestic enquiry was held according to the relevant
rules, and that there was evidence in support of the alleged
misconduct, held that the management was justified in
imposing the penalty of dismissal from service.
The appellants filed five Separate revision petitions
before the Industrial Court under sections 66 and 67 of the
Madhya Pradesh Industrial Relations Act, 1960. The President
of the Industrial Court finding that the entire approach of
the Inquiry Officer-Manager in arriving at the findings of
mis conduct in the domestic enquiry appeared to be biased
and unfair and that the conclusions neither fair nor
reasonable, held that the dismissal could not be sustained.
All the revision petitions were therefore allowed, and the
orders of the Labour Court dismissing the applications were
set aside, and
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the matters were remanded for a fresh decision after giving
the parties due opportunity to adduce evidence in respect of
the alleged misconduct.
The respondent-company filed writ petitions before the
High Court questioning the correctness of the order of the
Industrial Court and a Division Bench held that the
Industrial Court exceeded its jurisdiction by interfering
with the findings of facts, and as this was an error
apparent on the face of the award, quashed the decision of
the Industrial Court.
Allowing the appeals to this Court,
^
HELD: 1. (i) Times without number, it has been pointed
out that Art. 226 is a device to secure and advance justice
and not otherwise. [787E]
Sadhu Ram v. Delhi Transport Corporation, [1983] 4 SCC
156, referred to.
(ii) ordinarily, the Courts exercising extraordinary
jurisdiction is loathe to interfere with an order remanding
the matter to the authority directed to investigate facts.
[787F]
D.P. Maheshwari v. Delhi Administration and Ors.,
[1983] 4 SCC 293, referred to.
In the instant case, the Industrial Court had made an
order of remand. The High Court was not justified in
interfering with the same. By this uncalled for
interference, it has merely prolonged the agony of the
unemployed workmen and permitted the jurisdiction of the
High Court under Art. 226 to he exploited by those who can
well afford to writ to the detriment of those who can ill-
afford to wait by dragging the latter from court to court
for adjudication of peripheral issues more vital to them.
[787F-G]
2. (i) Dismissal from a service is an order made under
the relevant standing orders. A relief against such an order
can be obtained by making an application under section 61 to
the Labour Court. Against the order made by the Labour Court
under section 61, a revision would lie under section 66 to
the Industrial Court. [779H; 780C]
(ii) If and when an application under section 61 is
made the Labour Court will have jurisdiction to decide the
legality and propriety of the order of dismissal or removal
from service. When jurisdiction is conferred upon the Labour
Court, not only to examine the legality of the order as also
the propriety of the order, the Labour Court can in exercise
of the jurisdiction examine the propriety or impropriety of
the order. [781C]
3. (i) The main part of Sec. 66 clearly spells out the
jurisdiction of the Industrial Court to pass any order in
reference to the case brought before it as it thinks fit’.
The expression ’as it thinks fit; confers a very
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wide jurisdiction enabling it to take an entirely different
view on the same set of facts: The expression ’as it thinks
fit’ has the same connotation, unless the context otherwise
indicates ’as he deems fit’. [785B-C]
Raja Ram Mahadev Paranjype and ors. v. Aba Maruti Mali
and ors., [1962] Suppl. 1 SCR 739; referred to.
(ii) Sub-cl. (c) of the first proviso to Section 66 (1)
will permit the Industrial Court to interfere with the order
made by the Labour Court, if the Labour Court has acted with
material irregularity in disposal of the dispute before it.
If the finding recorded by the Labour Court is such to which
no reasonable man can arrive, the Industrial Court in
exercise of its revisional jurisdiction would be entitled to
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interfere even if patent jurisdictional error is not pointed
out. [785E-F]
4. The expression propriety is variously understood;
one meaning assigned to it being ’justice’. Amongst various
shades of meaning assigned to the expression, the dictionary
sets out; ’fitness, appropriateness; aptitude; suitability
etc.’ as some of them. [781D-E]
5. If the justice or the justness in relation to a
legal proceeding where evidence is led is questioned and the
authority is conferred with jurisdiction to examine the
propriety of the order or decision that authority will have
the same jurisdiction as the original authority to come to a
different conclusion on the same set of facts. If any other
view is taken, the expression ’propriety’ would lose all
significance. The expression ’legality and propriety’ has
been used in various statutes where appellate or revisional
jurisdiction is conferred upon a superior authority.
[781E-G]
Raman and Raman Ltd. v. The State of Madras and Anr.,
[1956] S.C.R. 256, Moti Ram v. Suraj Bhan and Ors., [1960] 2
S.C.R. 896, Awdesh Kumar Bhatnagar v. The Gwalior Rayon Silk
Mfg. (Weaving) Co. Ltd and Anr. [1972] Lab. and IC. 842;
referred to.
In the instant case, the Industrial Court while hearing the
revision petitions found that the petitioners were trade-
union workers and that three of them were office-bearers of
the union, and that a material place of evidence clearly
pointing to the contrary was wholly overlooked by the
inquiry officer. The Industrial Court also pointed out that
report (Ex D/18) purporting to have been made by the
assaulted worker to the factory Manager on the day following
the date of occurrence when properly scanned appeared to be
highly suspicious evidence because: ’it was not dated and
did not bear the endorsement of the officer to whom it was
presented. After referring to other infirmities in the
approach of the Labour Court, the Industrial Court concluded
that the entire approach of the Manager in arriving at the
findings of misconduct in his enquiry ’appeared to be biased
and unfair’, and ’the conclusions neither fair nor
reasonable and any order of dismissal based thereon could
not be sustained.’ The Industrial Court was, therefore
perfectly justified in interfering with the order of the
Labour Court. It merely set aside the award
775
of the Labour Court and did not proceed to re-appraise the
evidence but remitted the case to the Labour Court for fresh
decision. It was thus an eminently just order. The High
Court however, observed that the Labour Court could only
interfere with the decision of the inquiry officer if the
findings arrived at were perverse. The High Court completely
missed the ambit of jurisdiction of the Labour Court in that
it had the jurisdiction to decide the legality and propriety
of the order. Impropriety as converse of propriety cannot be
equated with perversity. The High Court wholly, misread the
relevant provision and interfered with the decision of the
Industrial Court which was preeminently just and within the
four corners of its jurisdiction. [785G; 786A-G; 787A-D]
JUDGMENT:
CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 1891-
1895 of 1982.
Appeals by Special leave from the Judgment and order
dated the 11th September, 1979 of the Madhya Pradesh High
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Court in Misc. Petitions Nos; 77 to 81 of 1979.
J. Ramamurthy and Ms. R. Vaigai for the Appellants.
G.B. Pal, S.K. Gambhir, Ashok Mahajan and Ms. Sunita
Kripalani for the Respondents.
The Judgment of the Court was delivered by
DESAI, J. Nothing appears more well settled than that
the extraordinary jurisdiction under Art. 226 conferred on
the High Court was a weapon forged to overreach injustice
and secure and advance justice. When therefore, this
extraordinary power is used to defeat justice and to promote
technicality not only its raison d’etre is violated but it
becomes a handy instrument for those to whom litigation cost
is a luxury enjoyed at the cost of others and employed to
exhaust and harass an unequal opponent. Sad as it may appear
that unfortunate situation emerges in this appeal.
The first respondent-Shree Synthetics Ltd.
(’respondent’ for short) appears to be a company governed by
the Companies Act, 1956. It has set up a factory at Ujjain
where it manufactures polyester fibre. Appellants in each of
these appeals were the workmen of the respondent. There is a
trade union of the workmen employed by the respondent of
which at the relevant time three out of the five appellants
in this group of appeals were office bearers. Babulal Nagar
was the President of the Union: Babulal Jaiswal was the
General Secretary and Ramesh Chandra was the Secretary.
776
According to the respondents on June 3, 1975 around
11.10 P. M. One Verma a workman of the respondent on the
shift being over went-out of the compound gate and took his
seat i l a tempo when Babulal Nagar and Babulal Jaiswal
along with three other appellant approached him and asked
Verma to alight from the tempo as they wanted to talk to
him. On Verma’s disinclination to come out of. the vehicle,
it was alleged that Babulal Nagar and Babulal Jaiswal pulled
Verma out of the vehicle and all the appellants assaulted
him with fists and kicks and felled him down as a result of
which Verma sustained bleeding injuries on his head. On
hearing the commotion, staff of the security department
intervened and rescued him.
Setting out these allegations a charge-sheet was drawn-
up and served on the five appellants followed by a composite
domestic enquiry at the end of which all of them were
dismissed from service.
The appellants moved five different applications before
the labour Court questioning the validity of the domestic
enquiry held against them as also the legality and propriety
of the orders terminating their services. The Labour Court
was of the opinion that the domestic enquiry was held
according to the relevant rules and as there was evidence
in support of the alleged misconduct the management was
justified in imposing the penalty of dismissal from service
and accordingly all the five applications were dismissed.
The appellants filed five separate revision petitions
before the industrial Court under Secs. 66 and 67 of the
Madhya Pradesh Industrial Relations Act, 1950 Act for
short). All the five revision petitions were heard by the
President of the Industrial Court at Indore who was of the
opinion that the entire approach of the inquiry officer-
Manager in arriving at the findings of misconduct in his
enquiry appear to be biased and unfair and that the
conclusions are neither fair nor reasonable and as such the
dismissal cannot be sustained on the basis thereof
Accordingly he, by a common judgment dated February 26,
1979, allowed all the revision petitions and set aside the
orders of the Labour Court dismissing the applications and
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remanded the matters to the Labour Court for a fresh
decision after giving both the parties due opportunity to
adduce evidence in respect of the alleged misconduct.
The respondent moved five separate misc. petitions in
the High
777
Court of Madhya Pradesh, Jabalpur at Indore under Arts. 226
and 227 of the Constitution questioning the correctness of
the decision of the Industrial Court. A Division Bench of
the High Court held that the Industrial Court exceeded its
jurisdiction by interfering with the findings of facts and
this was ill error apparent on the face of the award.
Accordingly, it issued a writ of certiorari and quashed the
decision of the Industrial Court. Hence these five civil
appeals by special leave.
Conditions of service in respect of the employees
employed by the respondent are governed by the Certified
standing orders. S. O. 12 (f) which was relied upon by the
respondent for imputing mis conduct to the appellants reads
as under:
"12. Disciplinary action for misconduct (l) The
following acts or omissions on the part of an employee
shall amount to a major misconduct:
(a) to (e) xx xx xx
(f) drunkenness, riotous or disorderly behaviour,
during working hours at the undertaking or conduct
endangering the life or safety of any person,
intimidation, physical duress, or any act subversive of
discipline.
The allegation in the charge-sheet on the basis of
which the domestic enquiry was held reads as under: F
"Babulal was on duty on 3.6.1975 in the B Shift
from 3 p. m. to 11 p. m. At about 8.15 p.m. when Shri
Satya Prakash Verma, a Telephone Operator and Shri K.
C. Bagdi, Shift-time keeper were coming out of the
canteen after taking their meals, Babulal Nagar and
Babulal Jaiswal were sitting in the lawn in front of
the canteen. At that time, Babulal Jaiswal asked
Babulal Nagar to explain to Verma the whole position in
Hindi. There upon Babulal Nagar went to Bagdi and Verma
and uttered the following meaningful words:- You are
just a child now. You do not understand anything; if
you interfere in this, you will have to pay a heavy
price, (true translation) Verma gave no reply and both
Verma and Bagdi
778
went into the office. Thereafter, at 9.15 p.m. A. K.
Awasthi and Rajendra Jain went to the canteen to take
their meals. At that time both the petitioners namely,
Babulal Nagar and Babulal Jaiswal were present there.
Babulal Nagar took out a false token and challenged
that it may be checked by any security official.
Rajendra Jain thereupon said that he was not in his
uniform. At that time, Babulal Jaiswal uttered some
filthy words and thereafter both Babulal Nagar and
Babulal Jaiswal left the canteen uttering filthy
abuses.
At 9.30 p.m. Babulal Nagar spoke to Verma on
telephone that he should come out of the Plant as he
wanted to talk to him. Verma, therefore, come out in
the lawn from his office where both Babulal Nagar and
Babulal Jaiswal were present. At that time, Babulal
Jaiswal said to Verma as under:-
"You have put end to our movement. In future
things will not be right, if you interfere with us, and
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threatened, that we shall see at 11 O’ clock outside
the gate. (true translation)
After the shift was over at about 11.10 p m. whom
Verma went out of the gate and took his seat in the
tempo. Babulal Nagar and Babulal Jaiswal along with the
other three petitioners went to him and asked Verma to
come out of the tempo as they wanted to talk to him.
Verma replied that they could talk to him there.
Thereupon both Babulal Nagar and Babulal Jaiswal pulled
Verma out of the tempo and all the petitioners
assaulted Verma with fists and kicks and felled him
down as a result of which he sustained a bleeding
injury on his head. On hearing the cresc of Verma
members of the security Department rescued him and took
him inside the gate.
Apart from anything else, a very serious question
touching upon the jurisdiction of the Disciplinary Authority
to hold an enquiry on the allegation that S.O. 12 (1) (f)
was violated would arise before the Labour Court more
particularly in view of the recent decision of this Court in
M/s Glaxo Laboratories (I) Ltd. v. Presiding officer, Labour
Court, Meerut & Ors. wherein S. O. 22 applicable to Glaxo
Laboratories (I) Ltd. wh ch is in pari materia
779
with the S. O. 12 (1) (f) came up for construction of this
Court. After an exhaustive review of the various decisions:
on the subject, this Court after repelling the construction
canvassed on behalf: of the appellant in that case that such
acts as drunkenness, riotous or disorderly behaviour are per
se misconduct uncomplicated with time place content and
wherever committed would constitute misconduct, held that
the various acts of misconduct therein set out would be
misconduct for the purpose of the relevant standing orders,
if committed within the premises of the establishment or in
the vicinity thereof. The Court further held that what
constitutes establishment or its vicinity would depend upon
the facts and circumstances of each case. But we shall not
finally pronounce on this point as the industrial Court had
remanded the matter to the Labour Court which has
jurisdiction to examine this case and we are inclined to
uphold that order.
Therefore, the narrow question which we propose to
examine in this case is whether the High Court in exercise
of its extraordinary jurisdiction under Arts. 226 and 227
should have by giving undue importance to a technical
objection of jurisdiction which on proper fathoming, it
itself lacked should have set aside a well-considered
reasoned judgment of the President of the Industrial Court
which again had merely remanded the matter thus prolonging
to some extent the agony of the unemployed workers
commencing from 1975.
Let us at the commencement acquaint ourselves with the
scope and ambit of the power of the Labour Court as such as
the Industrial Court under the Act which would provide a
correct perspective to determine whether the High Court in
exercise of its extraordinary jurisdiction under Arts. 226
and 227 was at all justified in interfering with the order
mad, by the Industrial Court or that legalese prevailed over
substantial social justice.
Sec. 61 prescribes the powers of the Labour Court which
inter alia includes the power-(A) to decide-(a) disputes
regarding which application has been made to it under sub-
section (3) of section 31 of the Act- Sec. 31 enables an
employee to make an application for relief against all order
of an Employer made under ally of the standing orders.
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Dismissal from service is an order made under the relevant
standing orders. A relief against such order can be obtained
by making all application under Sec. 61. Entry I in
780
Schedule II of the Act prior to the amendment of 1981
Provided that the Labour Court may examine:
"the propriety or legality of an order passed or
action taken by an employer acting or purporting to act
under the Standing orders.
The only feature worth-noticing is that the scope ambit
and contours of the jurisdiction of the Labour Court in such
an application would have to be determined within the
parameters or the expression the propriety or legality of an
order. Against an order made by the Labour Court under Sec.
61, a revision would lie under Sec. 66 to the Industrial
Court. Sec. 66 has been wholly recast in 1981. However at
the relevant time, Sec. 66 read-as under:
"66; Revision. (1) The Industrial Court may, on
the application by any party to a case which has been
finally decided by a Labour Court other than a case
decided under paragraph (D) of sub-section (1) of
section 61, call for and examine the record of such
case and may pass order in reference thereto as it
thinks fit:
Provided that the Industrial Court shall not vary
or reverse any order of the Labour Court under this
section
(i) it is satisfied that the Labour Court has-
(a) exercised jurisdiction not vested in it by
law; or
(b) failed to exercise a jurisdiction so vested;
or
(c) acted in exercise of its jurisdiction
illegally to material irregularity;
(ii) notice has been served on the parties to the
case and opportunity given to them for being
heard.
(2) No application under sub-section (I) shall lie to
the Industrial Court unless it is made within
thirty days of the date on which the case has been
finally decided by the Labour Court;
781
Provided that in computing the period of thirty days
the period requisite for obtaining a copy of the order
shall be excluded."
Having noticed the relevant provisions, it is now
necessary to ascertain with precision the jurisdiction of
the Labour Court under Sec. 61. The scheme of the standing
orders applicable to the respondent Company would show that
a penalty of dismissal or removal from service can be
imposed after holding a domestic enquiry According to the
relevant provisions in the standing orders, such an order
when made would be open to challenge by a substantive
application under Sec. 66 (1) and in such an application if
and when made, the Labour Court will have jurisdiction to
decide the legality and the propriety of the order. When
jurisdiction is conferred union the Labour Court, not only
to examine the legality of the order as also the propriety
of the order, the Labour Court can in exercise of the
jurisdiction examine the propriety or impropriety of the
order. The expression ’propriety’ is variously understood,
one meaning assigned to it being ’justice’ in Legal
Thesaurus by Burton at page 902. Amongst various shades of
meaning assigned to the expression, the oxford English
Dictionary, VOl. VIII page 1484 sets out ’fitness;
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appropriateness; aptitude; suitability; appropriateness the
circumstances or conditions, conformity with requirement;
rule or principle, rightness, correctness, justness etc.’ If
therefore, the justice or the justness in relation to a
legal proceeding where evidence is led is questioned and the
authority is conferred with jurisdiction to examine the
propriety of the order or decision that authority will have
the same jurisdiction as the original authority to come to a
different conclusion on the same set of facts. If any other
view is taken the expression ’propriety’ would lose all
significance. The expression ’legality and propriety’ has
been used in various statutes where appellate or revision
jurisdiction is conferred upon a superior authority. In
Raman & Raman Ltd. v. The State of Madras & Anr. while
examining the ambit of the jurisdiction of the State
Government under Sec. 64A of the Motor Vehicles Act, 1939 as
amended by the Motor Vehicles (Madras) Amendment Act, 1948
to interfere with the orders of subordinate Regional
Transport Authority on the ground of propriety, this Court
observed as under:
"The word "propriety" has nowhere been defined in
the Act and is capable of a variety of meanings. In the
782
Oxford English Dictionary (Vol. VIII), it has been
stated to mean "fitness; appropriateness; aptitude;
suitability; appropriateness to the circumstances or
conditions; conformity with requirement, rule or
principle; rightness, correctness, justness, accuracy".
If the State Government was of the opinion that
respondent No. I had better facilities for operation
than the appellant and their service to the public
would be more beneficial, lt could not be said that the
State Government was in error in thinking that the
order of the Board confirming the order of the Regional
Trans port Authority was improper."
In Moti Ram v. Suraj Bhan & Ors. while examining the
scope and ambit of jurisdiction of the High Court under Sec.
15 (5) of the East Punjab Urban Rent Restriction Act, 1949,
this Court observed as under:
"Under Sec. 15 (5) the High Court has jurisdiction
to examine the legality or propriety of the order under
revision and that would clearly justify the examination
of the propriety or legality of the finding made by the
authorities in the present case about the requirement
of the landlord under s. 13 (3) (a) (iii)."
After referring to these two decisions, in Ching Chong
Sine v. Puttay Gowder, Alagiriswami, J. held that tho court
exercising revisional jurisdiction to decide the legality or
propriety of an order has the power to come to a conclusion
different from that arrived by the subordinate court on the
same set of circumstances. In Ahmedabad Sarangpur Mills
Company Ltd v. Industrial Court, Ahmedabad and Anr. a
Division Bench of the Gujarat High Court held that the
expression ’legality and propriety’ in S. 78(1) of the
Bombay Industrial Relations Act does not limit the
jurisdiction of the labour court to a revisional
jurisdiction. And that any order made by the employer under
the standing order is subject to the jurisdiction conferred
on the labour court under Sec. 78, which can scrutinise the
legality and propriety of the order. This jurisdiction was
described by the court as original jurisdiction meaning
thereby that the labour
783
court can come to an entirely different conclusion on the
same set of facts. This view was followed by another
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Division Bench of the Gujarat High Court in Manekchown and
Ahmedabad Manufacturing Company Ltd v. Industrial Court, and
another. In Vithoba Maruti Chavan v. S. Taki Bilgrami,
Member Industrial Court, Bombay and Anr., a Division Bench
of the Bombay High Court held that the power to decide
’propriety’ and legality of the order made under standing
order does not confer a mere revisional jurisdiction but a
wider jurisdiction which will enable the Labour Court to set
aside the order of the employer depending upon the facts and
circumstances of the case.
Mr. Pai on the other hand drew our attention to
Vaidyanath v. The Madhya Pradesh v. State Road Transport
Corporation and Ors. While observing that a Labour Court
cannot exercise the power of an appellate court and cannot
reappraise the evidence yet both the Labour Court or the
Industrial Tribunal can interfere with the findings of fact
of the inquiry officer of the employer only where they are
not supported by any legal evidence or are so perverse that
no reasonable person would arrive at such findings on the
materials placed before him It was held that the power of
the Labour Court or the Industrial Court under the Act are
not wider than those of Industrial Tribunal under the
Industrial Disputes Act, 1947 before the introduction of
Sec. 11-A in the latter Act. In Kymore Cement Mazdoor
Congress v. Industrial Court, Indore and Ors., it was held
that the expression ’illegally ar with material irregularity
in sub-cl. (c) of the first proviso of Sec. 66(1) do not
cover either errors of facts or law and they do not refer to
the decision arrived at but to the manner in which it is
reached. Approaching the matter from this angle, the High
Court set aside the decision of the Industrial Court in
revision against the order of the Labour Court on the ground
that the Industrial Court had interfered with a finding of
fact which even if erroneous would not confer jurisdiction
on the Industrial Court to interfere in exercise of
revisional jurisdiction Mr. Pai emphasised that the view of
M.P. High Court on the interpretation of Sec. 61 should
prevail over the view of Gujarat High Court interpreting a
different statute. This does not carry conviction because
Sec. 61 of the Act is in pari materia with Sec. 78
784
of the Gujarat Act. However, it would be profitable to refer
to the decision of this Court in Awdesh Kumar Bhatnagar v.
The Gwalior Rayon Silk Mfg. (Weaving) Co. Ltd. and Anr. in
which this Court while examining the scope of the
jurisdiction conferred by Sec. 66 on the Industrial Court
under the Act held that if the Labour Court has committed
serious mistakes, the Industrial Court has jurisdiction to
interfere with the same and upheld the decision of the
Industrial Court which had interfered with the findings of
facts recorded by the Labour Court A full Bench of the
Madhya Pradesh High Court in Nand Kumar Singh v. The State
Industrial Court, Indore and Ors held that perverse or
arbitrary findings based on no material fall within the
ambit of the phrase "exercise of jurisdiction illegally or
with material irregularity" justifying interference in
revision. It is not necessary to further multiply the
authorities. Therefore, it appears well-established that the
Labour Court having jurisdiction to examine the legality and
propriety of the order made by the employer under the
standing order will have jurisdiction to examine the
propriety of the order which will permit it to come to a
conclusion different from the role to which the employer
arrived at Such being the amplitude of the jurisdiction of
the Labour Court if upon a wrong view of ambit of its
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jurisdiction Labour Court approaches the matter as if it
exercises narrow revisional jurisdiction, the industrial
Court in revision can interfere on the ground of failure to
exercise jurisdiction vested in the Labour Court or material
irregularity in exercise of its jurisdiction.
Sec. 66(1) of the Act provides that the Industrial
Court omitting the portion not relevant for the present
purpose, may call for and examine the record of such case
and pass order in reference thereto as it thanks fit. If the
Industrial Court has the jurisdiction to pass any order in
reference to a case called for by it thinks fit, obviously
it can come to a conclusion on the same set of facts
different from the one to which the Labour Court had
arrived. It was however urged that this jurisdiction of wide
amplitude has been cut down by the proviso which provides
that the Industrial Court shall not very or reverse any
order of the Labour Court under Sec. 66(1) unless-(i) it is
satisfied that the Labour Court has-(a) exercised
jurisdiction not vested in it by law; or (b) failed to
exercise a
785
jurisdiction so vested; or (c) acted in exercise of its
jurisdiction A illegally or with material irregularity. It
was urged that these clauses so circumscribe and cut down
the jurisdiction of the Industrial Court under Sec. 66 as to
be on par with Sec. 115 of the Code of Civil Procedure. The
main part of Sec. 61 clearly spells out the jurisdiction of
the Industrial Court to pass any order in reference to the
case brought before it as it thinks fit. The expression ’as
it thinks fit’ confers a very wide jurisdiction enabling it
to take an entirely different view on the same set of facts.
The expression ’as it thinks fit’ confers a very wide
jurisdiction enabling it to take an entirely different view
on the same set of facts The expression ’as it thinks fit’
has the same connotation, unless context otherwise
indicates, ’as he deems fit’ and the latter expression was
interpreted by this Court in Raja Ram Mahadev Paranjype &
Ors. v. Aba Maruti Mali & Ors to mean to make an order in
terms of the statute, an order which would give effect to a
right which the Act has elsewhere conferred. Is this
jurisdiction so circumscribed as to bring it on par with
Sec. 115 of the, Code of Civil Procedure ? Proviso does cut
down the ambit of the main provision but it cannot be
interpreted to denude the main provision of any efficacy and
reduce it to a paper provision. Both must be so interpreted
as to permit interference which if not undertaken there
would be miscarriage of justice. Sub-cl. (c) of the first
proviso to Sec. 66(1) will permit the Industrial Court to
interfere with the order made by the Labour Court, if the
Labour Court has acted with material irregularity in
disposal of the dispute before it. If the finding recorded
by the Labour court is. such to which no reasonable man can
arrive, obviously, the Industrial Court in exercise of its
revisional jurisdiction would be entitled to interfere with
the same even if patent jurisdictional error is not pointed
out.
Reverting to the facts of this case, the Industrial
Court while having the revision petitions found that the
petitioners were trade union workers and the three of them
were the office-bearers of the Union. It was further found
that a material piece of evidence clearly pointing to the
contrary was wholly overlooked by the inquiry officer. It
extracted the relevant portion of the evidence of witness
Balchand and pointed out in no uncertain terms that if the
inquiry officer had taken note of the relevant piece of
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evidence and
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had applied its mind to it and dealt with it in the report,
it would have been difficult to hold the charge proved. The
non-application of mind of the inquiry officer was pointed
out by referring to that part of the final order which
manifestly overlooked the material piece of evidence which
would go to the root of the matter. The Industrial Court
observed that the inquiry officer quitely skipped over very
material portion of the evidence of Balchand which went a
long way to falsify the charges relating to the incidents
which preceded the actual assault on Verma. ’The Industrial
Court then pointed out that report (Ex. D/18) purporting to
have been made by victim Verma to the factory Manager on the
day following the date of the occurrence when properly
scanned appears to be a highly suspicious evidence because:
’it is not dated aud does not bear the endorsement of the
officer to whom it was presented.’ This is permissible
because the revisional jurisdiction enables the authority to
point something which is no evidence legally speaking or in
the eye of law. It was pointed out that Verma did not
identify the report. The Industrial Court concluded that the
possibility of this report being introduced at a later stage
to strengthen the case against the live appellants cannot be
ruled-out. After referring to other infirmities in the
approach of the Labour Court, the Industrial Court concluded
that the entire approach of the Manager in arriving at the
findings of misconduct in his inquiry ’appear to be biased
and unfair’, and ’the conclusions are neither fair nor
reasonable and any order of dismissal based thereon cannot
be sustained.’ Can it ever be said that in reaching this
conclusion, the Industrial Court exceeded its revisional
jurisdiction ? The whole approach of the Labour Court
dealing with the report of the inquiry as also the inquiry
itself clearly disclosed material irregularity and thereby
the Labour Court failed to exercise jurisdiction vested in
it namely, to examine the property of the order with in it
failed to do. The Industrial Court in our opinion, was
perfectly justified in interfering with the order of the
Labour Court. Even then the approach of the Industrial
Court, being conscious of the severe constraints on its
jurisdiction was of dignified restraint and just. It merely
set aside the award of the Labour Court and did not proceed
to reappraise evidence but remitted the case to the Labour
Court for a fresh decision. It was thus an eminently just
order.
Is it such an order which the High Court could have
interfered with in exercise of its extraordinary
jurisdiction ? The High Court
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observed that the Labour Court can only interfere with the
decision of the inquiry officer, if the findings arrived at
by him were perverse. The High Court completely missed the
ambit of jurisdiction of the Labour Court in that it had the
jurisdiction to decide the legality and propriety of the
order. Impropriety as converse of propriety cannot be
equated with perversity as understood by the High Court. The
High Court further observed that if ’the finding of the
misconduct is a plausible conclusion flowing from the
evidence adduced at the enquiry, the labour tribunals have
no jurisdiction to sit in judgment over the decision of the
employer, as an appellate body. This betrays complete lack
of understanding of the jurisdiction of the Labour Court in
respect of an order made under the standing order as set out
in Schedule II item I to the Act which enables the Labour
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Court to examine the legality and propriety of the order.
The High Court therefore, wholly misread the relevant
provision and interfered with the decision of the Industrial
Court which was pre-eminently just and within the four
corners of its jurisdiction. What left us guessing was that
according to the High Court the Industrial Court had narrow
jurisdiction while dealing with the order of the Labour
Court, yet the High Court in exercise of its extraordinary
jurisdiction interfered with the decision of the Industrial
Tribunal. Times without number, it has been pointed out that
Art. 225 is a device to secure and advance justice and not
otherwise. (Sadhu Ram v. Delhi Transport Corporation)
Ordinarily, the courts exercising extraordinary
jurisdiction is loathe to interfere with an order remanding
the matter to the authority directed to investigate facts.
The Industrial Court had made an order of remand. The High
Court was not justified in interfering with the same. By
this uncalled for interference, it has merely prolonged the
agony of the unemployed workmen and permitted the
jurisdiction of the High Court under Act. 226 to be
exploited by those who can well afford to wait to the
deteriment of those who can ill afford to wait by dragging
the latter from court to court for adjudication of
peripheral issues avoiding decision on issues more vital to
them. (D.P. Maheshwari v. Delhi Administration and Ors.
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Accordingly these appeals succeed and are allowed and
the decision of the High Court is. set aside and the one of
the Industrial Court is restored with costs.
As the matter is an old one, the Labour Court is
directed to give top priority to this matter and dispose
this of as early as possible and not later than six months
from today.
N.V.K. Appeals allowed
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