Full Judgment Text
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PETITIONER:
T. PREM SAGAR
Vs.
RESPONDENT:
THE STANDARD VACUUM OIL COMPANYMADRAS AND OTHERS
DATE OF JUDGMENT:
16/12/1963
BENCH:
GAJENDRAGADKAR, P.B.
BENCH:
GAJENDRAGADKAR, P.B.
GUPTA, K.C. DAS
CITATION:
1965 AIR 111 1964 SCR (5)1030
CITATOR INFO :
D 1972 SC1479 (8)
ACT:
Madras Shops and Establishments Act (36 of 1947) ss.4(1)(a)
and 51-Position of management-What is practice-Writ of
certiorari--Issue of-High Court-Jurisdiction to decide on
facts.
HEADNOTE:
The appellant was appointed by respondent as Road Engineer.
After some time, he was promoted as Operations Assistant.
There was some misunderstanding between him and the
respondent in 1957. While he was drawing Rs. 1000 p.m., he
was asked to take leave. When he reported for duty, he was
not allowed to join duty as Operations Assistant but was,
asked to take up the post of the Senior Operations
Supervisor carrying a salary of Rs. 900. As he refused to
take up the new post, his services were terminated without
complying with the provisions of Section 41,(1). Ho filed
an appeal before the Additional Commissioner under s. 41 of
the Madras Shops & Establishments Act, 1947. His contention
was that the order terminating his services was invalid.
The contention of the respondent was that the Additional
Commissioner had no jurisdiction to deal with the appeal as
the appellant was a person employed in a position of
management and hence the provisions of the Act were not
applicable to him. Under Section 51 Of the Act, the
Commissioner of Labour decided that the appellant was not
employed under the respondent in a position of management.
The respondent filed a writ petition in the Madras High
Court challenging the order of the Commissioner of Labour..
When the cast was taken up by the Additional Commissioner,
the respondent contended that the appellant was an employer
as defined in the Act and not an employee. That contention
was rejected by the Additional Commissioner who also set
aside the order of termination of services of appellant.
The respondent filed a writ petition challenging the order
of the Additional Commissioner.
The two writ petitions were heard together by a Single Judge
of the Madras High Court and were dismissed on the ground
that the question involved was one of fact. However,
Letters Patent Appeals were accepted by the Division Bench
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of the Madras High Court. It is against the order of the
Division Bench that the appellant came to this Court after
obtaining a certificate from the High court. Allowing the
Appeals,
1031
Held (i) The High Court was not right in coming to the,
conclusion that the impugned order suffered from any error
of law which was apparent on the face of the record and
there was no justification for interfering with that order.
The order of the Commissioner was an elaborate and well
considered order. The Commissioner had taken into account
the or a land documentary evidence and had already examined
the probabilities of the case. He had laid down certain
tests to determine as to whether a person was in a position
of management and also applied them to the facts of the
case.
(ii)The appellant was not employed in a position of manage-
ment and as such did not fall within the exemption of s.
4(1) (a).
In order to determine whether a person is in a position of
management or not, the factors to be considered are whether
the, person had power to operate on the Bank account,
whether he could make payments to third parties and enter
into agreements with them on behalf of the employer, whether
he was entitled to represent the employer to the world at
large in regard to the dealings of the employer with
strangers, whether he had authority to supervise the work of
the clerks employed in the establishment, whether he had
control and charge of the correspondence, whether he could
make commitments on behalf of the employer, whether he could
grant leave to the members of the staff and hold
disciplinary proceedings against them and whether he had the
power to appoint members of the staff or punish them. The
salary drawn by an employee may have no significance and may
not be material though it may be treated theoretically as a
relevant factor.
(iii)It could not be maintained that because s. 51 provided
that the order of Commissioner of Labour on the questions
falling within his jurisdiction was final and could not be
agitated in any court of law, High Court was not competent
to deal with the writ petition filed against those orders.
In writ proceedings if an error of law apparent on the face
of the record is disclosed and a writ is issued, the usual
course to adopt is to correct the error and send the case
back to the Special Tribunal for its decision in accordance
with law. It is inappropriate for the High Court exercising
its writ jurisdiction to consider the evidence for itself
and reach its own conclusion in matters which have been left
by the legislature to the decision of specially constituted
Tribunals.
Rai Brij Raj Krishna v. S.K. Shaw and Bros., [1951] S.C.R.
145, The Colonial Bank of Australasia v. Willan, 5 P.C. 417,
Parry & Co. Ltd. v. Commercial Employees Association,
Madras, [1952] S.C.R. 519, Nagendra Nath v. Commissioner of
Hills Division, [1958] S.C.R. 1240, Syed Yakoob v. K. S.
Radhakrishnan [1964] 5 S.C.R. 64, P.T. Chandra v.
Commissioner for Workmen’s Compensation, Madras, [1958] 1
L.L.J., 55 and The Salem Sri Ramaswami Bank Ltd., Salem v.
The Additional
1032
Commissioner for Workmen’s Compensation, Chepauk, Madras and
an other, [1956] 2 L.L.J. 254, referred to.
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JUDGMENT:
CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 581 and 582
of 1963.
Appeals from the judgment and order dated February 18, 1960
of the Madras High Court in Writ Appeals Nos. 139 and 140 of
1959.
K.K. Venugopal and A.G. Ratnaparkhi, for the appellant (In
both the appeals).
S.Govind Swaminathan, P. Ram Reddy, A.V.V. Nair and R.
Thiagarajan, for respondent (In both the appeals).
December 16, 1963. The Judgment of the Court was delivered
by
GAJENDRAGADKAR J.-These two appeals raise a short question
about the validity of the writ of certiorari which has been
ordered to be issued by the Division Bench of the Madras
High Court in allowing a Letters Patent Appeal preferred
before it by the respondent M/s. Standard Vacuum Oil
Company, Madras. The appellant T. Prem Sagar was appointed
by the respondent as its Road Engineer at Madras on the 5th
February, 1951. In January, 1952, he was promoted as
Operations Assistant on a salary of Rs. 450 p.m., and as
such, he was placed on probation for a period of six months.
At the end of six months, the respondent declared that he
had completed his probation satisfactorily. In October,,
1957, as a result of some misunderstandings between him and
the respondent, he was again placed on probation from 1st
October, 1957 for a period of six months in the same post of
Operations Assistant. At the end of this period,, the
appellant received a letter from the Operations Manager of
the respondent informing him that he had done his work as a
probationer satisfactorily. Even so, it was alleged that he
did not show capacity for growth with the organisation and
on that account, he was offered the lower post’ of Senior
Operations Supervisor. It appears that this post was
specifically created for the appellant
1033
and it carried a salary of Rs. 900. At this time, as
Operations Assistant the appellant was drawing Rs. 1,000
p.m. The appellant was then asked to take leave which was
due to him, and when on returning from his leave he reported
for duty, the management refused to allow him to join duty
as an Operations Assistant. The appellant was not prepared
to take the post of the Senior Operations Supervisor, with
the result that on the 2nd May, 1958, the management of the
respondent terminated the services of the appellant with
effect from 30th April, 1958.
The appellant then filed an appeal before the Addl.
Commissioner for Workmen’s Compensation under s. 41 of the
Madras Shops and Establishments Act, 1947 (No. 36 of 1947)
(hereinafter called the Act). By this application, the
appellant complained that the order terminating his services
was invalid inasmuch as it had been passed without complying
with the mandatory provisions of s. 41 of the Act. Before
the Addl. Commissioner for Workmen’s, Compensation, the
respondent filed a petition alleging that the Addl.
Commissioner had no jurisdiction to deal with the
appellant’s appeal in view of the fact that the appellant
was a person employed in the respondent’s Head Office at
Madras in a position of management, and so, the provisions
of the said Act were inapplicable to him. The respondent
thereupon moved the Commissioner of Labour under s. 51 of
the Act to determine this question. Under the said section,
the Commissioner of Labour is competent to decide questions
of status and that is why the respondent moved the
Commissioner of Labour.
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The Commissioner recorded the evidence led by the respondent
as well as the appellant, and on the 12th January, 1959 he
pronounced his decision that the appellant was employed
under the respondent and he was not in a position of
management.
The respondent then moved the Madras High Court by Writ
Petition No. 521 of 1959 challenging the order of the
Commissioner of Labour. Mean-
1034
while, the Additional Commissioner for Workmen’s
Compensation took up the appeal for hearing. At this time,
the order passed by the Commissioner of Labour under s. 51
had been pronounced and the said order was binding between
the parties and was final. In view of the said order, the
respondent took up an alternative plea before the Addl.
Commissioner and urged that the appellant could not invoke
the provisions of s. 41 of the Act, because he was an
employer as defined under the Act and not an employee. The
Addl. Commissioner over-ruled this contention and held that
the Act applied. On the merits, he made findings in favour
of the appellant, rejected the contentions raised by the
respondent against the work of the appellant and its quality
and in the result, set aside the order of termination passed
by the respondent on the 2nd May, 1958. This order was
challenged by the respondent by preferring a writ petition
No. 573/1959 before the Madras High Court. That is how the
two writ petitions came to be filed. In both these writ
petitions, the respondent impleaded the appellant as well as
the Commissioner of Labour and the Addl. Commissioner for
Workmen’s Compensation, Madras. These two latter officers
are respondents 2 & 3 in the present appeals, whereas the
employer, the Standard Vacuum Oil Company is respondent No.
1. We are describing the employer Company as the respondent
in the course of this judgment.
The two Writ Petitions were heard together by Balakrishna
Ayyar J. The learned Judge was inclined to take the view
that the appellant was in a position of management and in
that sense, he did not agree with the conclusion of the
Commissioner of Labour. Even so, he held that the question
involved was one of fact and it was not open to him to issue
a writ of certiorari to correct the conclusion of the
Commissioner even if he thought that the said conclusion was
not right. On that view,. he refused to issue a writ in
favour of the respondent in W.P. No. 521 of 1959 and as a
consequence, the said writ
1035
petition as well as W.P. No. 573 of 1959 were dismissed. It
is common ground that if the respondent’s claim for a writ
of certiorari made in W.P. No. 521 of 1959 fails, its claim
for quashing the order passed by the Addl. Commissioner for
Workmen’s Compensation cannot be upheld.
The decision of Balakrishna Ayyar J. was challenged by the
respondent by preferring an appeal under the Utters Patent
before a Division Bench of the Madras High Court. The
Division Bench came to the conclusion that Balakrishna Ayyar
J. had taken an unduly narrow view about the scope of the
High Court’s jurisdiction under Art. 226 and it held that
the finding made by the Commissioner about the status of the
appellant suffered from an error of law which was apparent
on the face of it. That is why the said Bench issued a writ
of certiorari correcting the finding of the Commissioner and
consequently allowed both the writ petitions filed by the
respondent. It is against these decisions that the two
present appeals have been brought to this Court by the
appellant with a certificate issued by the High Court.
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Before dealing with the main points in controversy between
the parties. it would be relevant to refer to the material
provisions of the Act. The Act received the assent of the
Governor-General on the 2nd February, 1948 and came into
force on the 10th February, 1948. It has been passed with
the object of providing for the regulation of conditions of
work in shops, commercial establishments, restaurants,
theaters and other establishments, and for certain other
purposes. Section 2 of the Act prescribes definitions.
Section 2(3) defines a commercial establishment. It is
unnecessary to refer to this definition because it is common
ground that the respondent’s office at Madras where the
appellant was employed at the material time is a commercial
establishment under the Act. Section 2(5) defines an
employer as meaning a person owning, or having charge of,
the business of an establishment and in-
1036
cludes the Manager, Agent or other person acting in the
general management or control of an establishment. It will
be seen that the definition of the word " employer" includes
persons who own the establishment or have charge of the
business of the establishment as well as persons who act as
the Manager or Agent of the said establishment, or are
otherwise acting in the general management or control of it.
The control or management which is associated with persons
falling under the definition of employer is the general
management or control of the said establishment; it is a
kind of overall management or control and not management or
control of sections or departments or sub-sections or sub-
divisions that function under the establishment.
Section 2(12) defines a person employed. Since in the
present appeals we are concerned with a commercial
establishment, it is necessary to read s. 2(12) (iii). It
provides that a person employed means in the case of a
commercial establishment other than a clerical department of
a factory or an industrial undertaking, a person wholly or
principally employed in connection with the business of the
establishment, and includes a peon. The test which has to
be applied in determining the question as to whether a
person is employed in a commercial establishment is whether
he is wholly or principally employed in connection with the
business of the said establishment. As soon as it is shown
that the employment of the person is either wholly or
principally connected with the business of the
establishment, he falls within the definition.
That takes us to the exemptions prescribed by s. 4. We are
concerned in the present case with the exemption prescribed
by s. 4(1)(a). The said provision lays down that nothing
contained in this Act shall apply to persons employed in any
establishment in a position of management. One of the
points in dispute between the parties is when a person can
be said to be employed in the position of management? If
the appellant is such a person, then, of course, s. 41
1037
would not apply to him and the view taken by the Division
Bench would be right.
The next section to consider is s. 41. This section
provides the procedure which has to be followed in
dismissing employees to whom the Act applies. Section 41(1)
lays down that no employer shall dispense with the services
of a person employed continuously for a period of not less
than six months, except for a reasonable cause and without
giving such person at least one month’s notice or wages in
lieu of such notice, provided, however, that such notice
shall not be necessary where the services of such person are
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dispensed with on a charge of misconduct supported by
satisfactory evidence recorded at an enquiry held for the
purpose. Sub-section (12) confers right of appeal on the
person dealt with under sub-section (1), and sub-section (3)
provides that the decision of the appellate authority shall
be final and binding on both the employer and the person
employed. It is common ground that the termination of the
services of the appellant which has given rise to the
present proceedings has not complied with s. 41(1); so that
if it is shown that the appellant is an employee under s.
2(12)(iii) and not an employer under s. 2(5) and if it is
further proved that he is not a person employed in the
respondent’s establishment in a position of management, then
the termination of his services is invalid and the order
passed by the addl. Commissioner for Workmen’s Compensation
is correct. It is only if the respondent can show that the
appellant is either an employer or falls within the
exemption prescribed by s. 4(1)(a) that the writ petitions
filed by it can succeed.
There is one more section to which reference must be made
before we proceed to deal with the merits of the present
appeals. That is section 51. This section provides, inter
alia, that if any question arises whether all or any of the
provisions of the Act apply to an establishment or to a
person employed therein , it shall be decided by the
Commissioner of Labour and his decision thereon shall be
final and
1038
shall not be liable to be questioned in any court of law.
The Commissioner is thus constituted into a Tribunal
empowered to deal with questions therein specified, and the
statute provides that the decision of the Commissioner shall
be final on those points.
The first question which falls to be considered is: what
are the limits of the High Courts’ jurisdiction in issuing
a writ of certiorari in respect of orders like the one
pronounced by the Commissioner in the present case? Mr.
Venugopal contends that in dealing with this question in the
present appeals, we must bear in mind the specific provision
of s. 51 which provides that the decision of the
Commissioner of Labour on the questions falling within his
jurisdiction under the said section shall be final and shall
not be liable to be questioned in any court of law’ He
concedes that a provision like this cannot take away the
jurisdiction conferred on the High Courts under Art. 226 of
the Constitution, and so, it would not be open to him to
contend that because s. 51 provides that the said questions
will not be agitated in any court of law the High Court was
incompetent to deal with the writ petitions filed by the
respondent against the Commissioner’s orders. He, however,
urges that in determining the limits of the High Court’s
jurisdiction and the scope of its interference under Art.
226, it would be material to remember that the statute has
provided that the decision of the Commissioner shall be
final.
In support of this argument, he has referred us to the
decision of this Court in Rai Brij Raj Krishana and another
v. S.K. Shaw & Brothers(1). In that case, this Court was
dealing with the scheme of the Bihar Buildings (Lease, Rent
and Eviction) Control Act (No. 111 of 1947) and the
provisions of S. 11 in particular. Fazl Ali J. who spoke
for the Court observed that the Act has set up a complete
machinery for the investigation of the matters mentioned in
it upon which the jurisdiction of the Controller to order
eviction of a tenant depends, and it expressly
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(1) [1951] S.C.R. 145.
1039
makes his order final and subject only to the decision of
the Commissioner. It is in the background of this position
that the question which arose for the decision of the Court
was whether in such a case, the validity of the order could
be questioned in a regular suit brought before a civil
court. In answering this question, a distinction was drawn
between facts which are collateral and the proof of which
confers jurisdiction on the special tribunal, and facts the
decision of which on the merits has been left to the
jurisdiction of the Tribunal. In regard to the latter
category of cases, the Court accepted the view expressed by
Sir James Colville in the Colonial Bank of Australasia’ v.
Willan(1). Sir James Colville had observed in that case
that "the authorities establish that an adjudication by a
Judge having jurisdiction over the subject-matter is, if no
defect appears on the face of it, to be taken as conclusive
of the facts stated therein; and that the Court of Queen’s
Bench will not on certiorari ’quash such an adjudication on
the ground that any such fact, however essential, has been
erroneously found." Proceeding to deal with the dispute
before it on this basis, this Court held that even if the
Controller may be assumed to have wrongly decided the
question of non-payment of rent, which by no means was
clear, his order cannot be questioned in a civil court. It
would be noticed that though Fazl Ali J. has discussed the
position in regard to the jurisdiction of the High Court
under Art. 226, the issue arose in an appeal brought from a
suit instituted for the purpose of challenging the
Controller’s findings and conclusions. The distinction made
between. jurisdictional facts which are Collateral and the
proof of which confers jurisdiction on the special tribunal
and facts which are left to the decision of the tribunal on
the merits is, however, well-settled and is not open to
doubt or dispute. In that sense, Mr. Venugopal may be right
in contending that the question about the status of the
appellant has been left to the decision of the Commissioner
of Labour under s. 51, and so, the High Court can correct
the
(1) 5 P.C. 417 at p. 443.
1040
error committed by the Commissioner in dealing with the
question of status only if the said error-is an error of law
apparent on the face of the record.
Mr. Venugopal has then relied upon the observations made by
this Court in the case of Parry & Co. Ltd. vs. Commercial
Employees’ Association, Madras(1). In that case, Mukherjee
J. stated that no certiorari is available to quash a
decision passed with jurisdiction by an inferior tribunal on
the mere ground that such decision is erroneous, and be has
further added that it was conceded by Mr. Isaacs that in
spite of the relevant statutory provisions the superior
Court is not absolutely deprived of the power to issue a
writ, although it can do so only on the ground of either a
manifest defect of jurisdiction in the tribunal that made
the order or of a manifest fraud in the party procuring it.
The argument is that these observations suggest that it is
only errors in respect of jurisdiction or errors in orders
produced by fraud that can be corrected by a writ of
certiorari. It may be conceded that the observation made by
Mukherjee J. on which Mr. Venugopal relies does, prima facie
lend some support to his argument; but we do not think that
this observation can be read as laying down a categorical
and unqualified proposition that unless an error of
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jurisdiction is established, or fraud proved, no writ of
certiorari can be issued.
In fact, after the judgment of this Court was pronounced in
the case of Parry & Co. Ltd.(1), the question about the
jurisdiction of High Courts in issuing writs of certiorari
under Art. 226 has been frequently considered and there is
consensus of opinion in the judgments delivered by this
Court eversince that a writ of certiorari can be issued
where the order of the inferior tribunal is shown to suffer
from an error which is at)-parent on the face of the record.
As was observed by this Court in Nagendra Nath v.
Commissioner of Hills Division.(2), "it is clear from an
examination of the authorities of this Court.
(1) [1952] S.C.R. 519 at P. 525. (2) [1958] S.C.R.
1240,1269,1270.
1041
as also of the Courts in England, that one of the grounds on
which the jurisdiction of the High Court on certiorari may
be invoked, is an error of law apparent on the face of the
record and not every error either of law or fact, which can
be corrected by a superior Court, in exercise of its
statutory powers as a Court of appeal of revision." It is,
of course, difficult and indeed it would be inexpedient to
lay down any general test to determine which errors of law
can be described as errors of law apparent on the face of
the record, vide Syed Yakoob v. K.S. Radhakrishnan &
Ors.(1). Therefore, we are not prepared to accept Mr.
Venugopal’s contention that since there is no error of
jurisdiction in the present case and no allegation of fraud,
the High Court was not justified in issuing a writ. In our
opinion, if the Commissioner’s order is shown to suffer from
the infirmity of an error of law apparent on face of the
record, the High Court would be justified in issuing a writ
notwithstanding the fact that s. 51 of the Act purports to
make the Commissioner’s order final.
That takes us to the question as to whether the High Court
was right in holding that the Commissioner’s order suffered
from such an infirmity. Two points were urged in the writ
proceedings by the respondent when it challenged the
validity of the Commissioner’s order. The first contention
was that the appellant is not an employee of the respondent
and does not fall under s. 2(12) which defines a person
employed for the simple reason that he comes under the class
of persons included in the definition of the word
"employer". The argument was that the appellant being in a
position of management, was really holding the status of a
manager in a limited sense and was thus an employer. In
support of this argument, it was pointed out that several
provisions of the Act were not applicable to the appellant,
and so, it would be futile to describe him as a person
employed by the respondent. In fact, the argument was that
the
(1)[1964] 5 S.C.R. 64.
I/SCI/64-66
1042
salary paid to the appellant cannot be said to be wages, and
so, s. 29 itself was inapplicable to him. It is unnecessary
to consider whether the salary paid to the appellant amounts
to wages or not, because, in our opinion, the argument that
the appellant was in the position of an employer is so
clearly unsustainable that it is hardly necessary to examine
it in detail. Even so, it may incidentally be observed that
the definition of wages prescribed by s. 2(18) is wide
enough to take in the case of the appellant’s salary.
Similarly, it was urged that s. 31 which provides for the
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wages for over-time work, as well as ss. 32 and 33 would not
be applicable to the appellant. Assuming that some
provisions of the Act will not apply to the appellant, we do
not see how it follows that the appellant becomes an
employer under s. 2(5). If he is not an employer under s.
2(5 ), he is obviously a person employed under s. 2(12),
subject, of course, to the decision of the question as to
whether his case falls under the exemption provided for by
s. 4(1) (a). Now, the definition of the word "employer"
contained in s. 2(5 ) clearly requires that the person who
can be called an employer should have the general management
or control of the establishment. The appellant was employed
at the Head Office of the respondent at Madras and it is
nobody’s case that he was having any control or general
management of the said establishment. Indeed, we are
inclined to think that the plea raised by the respondent in
this form for the first time in the writ proceedings before
the High Court that the appellant was an employer, is a
frivolous plea. This plea had not been raised in this form
either before the Addl. Commissioner for Workmen’s
Compensation or the Commissioner for Labour..
That takes us to the question as to whether the appellant
is an employee whose case falls under the category of
exempted cases provided for by s. 4(1)(a). Section 4(1)(a)
refers to persons employed in any ,’.establishment in a
position of management, and so, the question is when can a
person be said to have
1043
been employed by the respondent in a position of management.
It is difficult to lay down exhaustively all the tests which
can be reasonably applied in deciding this question.
Several considerations would naturally be relevant in
dealing with this problem. It may be inquired whether the
person had a power to operate on the bank account or could
he make payments to third parties and enter into agreements
with them on behalf of the employer, was he entitled to
represent the employer to the world at large in regard to
the dealings of the employer with strangers, did he have
authority to supervise the work of the clerks employed in
the establishment, did he have control and charge of the
correspondence, could he make commitments on behalf of the
employer, could he grant leave to the members of the staff
and hold disciplinary proceedings against them, has he power
to appoint members of the staff or punish them-, these and
similar other tests may be usefully applied in determining
the question about the status of an employee in relation
to the requirements of s. 4(1)(a). The salary drawn by
the employee may have no significance and may not be
material though it may be treated theoretically as a
relevant factor, vide Chandra (T.P.) v. Commissioner for
Workmen’s Compensation, Madras & Anr(1). and The Salem Sri
Ramaswami Bank Ltd Salem v. The Additional Commissioner for
Workmen’s Compensation, Chepauk, Madras & Anr(1).
At this stage, it is necessary to examine how the
Commissioner of Labour approached this question. He began
the discussion of this problem by referring to the two
-Madras decisions just cited by us and said that as decided
by the Madras High Court, it would be necessary to find out
whether the appellant was in a position of management
"because he was in charge of correspondence of the branch,
was supervising the work of the clerks employed in the
Branch, was operating on the bank account, was making
payments, was entering into agreements with third parties on
(1) [1958] 1 L.L.J 55.
(2) [1956] 2 L.L.J 254.
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1044
behalf of the Company and was granting leave to the staff of
the Branch." Thus, it would be seen that in addressing
himself to the question raised for his decision, the
Commissioner applied tests to which no exception can be
taken. Having set out the tests which had to be applied, he
considered the evidence led by the parties before him and be
recorded his conclusions clearly and categorically in his
order. He held that the appellant had no power of appoint-
ment of labour, had no power to take disciplinary action
against them, had no power to grant leave to persons
subordinate to him, had no discretion in the matter of
incurring expenditure of his own accord as the expenditure
had to be sanctioned by the General Manager; had no power of
attorney to enter into agreements with third parties on
behalf of the Company; his work was subject to the overall
supervision of the Operations Manager; he bad no power to
bind the Company by his acts; he could not operate upon the
Co.’s bank account; he could not lay down policy for the Co.
and that be had to obtain the approval of the Operation
Manager on almost all matters. Having discussed the whole
of the evidence and recorded definite findings, the
Commissioner no doubt observed in the course of his order
that "it cannot, therefore, be said that the respondent was
exercising managerial powers in relation to the Head Office
of the Company where he was employed," and in that
connection, he added that one of the questions which had to
be considered by him was whether the powers exercised by the
appellant were managerial with reference to the Head Office
of the Company. It is on these two statements which the
Commissioner made in the course of his order that the
Division Bench has rested its decision and has recorded its
finding that the order passed by the Commissioner of Labour
is on its face patently and manifestly erroneous.
The Division Bench considered the relevant judicial
decisions bearing on the question about the extent of the
High Court’s jurisdiction in entertaining
1045
petitions for writs of certiorari and held that if the error
in the judgment of the Commissioner of Labour was shown to
be an error of law which was manifest on the face of the
record, it would be justified in issuing a writ. This view
is undoubtedly correct. The High Court was also right when
it held that the question about the status of the appellant
being a mixed question of fact and law, if it clearly
appeared from the impugned order that in dealing with the
status of the appellant a patently erroneous legal test was
applied, that also would-justify the( interference of the
High Court under Art. 226. It is in that connection that
the High Court has observed that the manifest error in the
impugned order lay in the fact that the Commissioner
"thought that it is only when an employee is exercising
managerial powers in relation to the head office of the
Company where he was employed that he can be said to be
employed in a position of management within the meaning of
s. 4(1)(a) of the Act". It would be noticed that this
conclusion is based on the two statements in the impugned
order to which we have already adverted.
Mr. Swaminathan for the respondent has fairly conceded that
when the Commissioner enumerated the tests which had to be
applied in dealing with the status of the appellant, he
committed no error of law; but be strongly urged that having
laid down the proper tests, the Commissioner went wrong in
applying the said tests because he seems to have
concentrated on the main question as to whether the
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appellant was clothed with managerial powers in regard to
the affairs of the Head Office of the Company at Madras
where he was employed, and that he contends constitutes a
manifest and patent error flaw in the conclusion recorded by
the Commissioner. We are not impressed by this argument. The
order pronounced by the Commissioner is an elaborate and
well-considered order. He has taken into account the oral
evidence, the documents produced before him and has also
examined the
1046
probabilities of the case. In appreciating the effect of
the two statements on which so much reliance has been placed
by Mr. Swaminathan and which, in substance, was the sole
basis of the decision of the Division Bench, we have to bear
in mind the fact ’.bat the said two sentences represent only
one of the many reasons given by the Commissioner in support
of his conclusion, and that reason also was given by him and
probably had to be given by him, because it appears that one
of the contentions raised by the respondent before the
Commissioner was that the appellant was clothed with
managerial functions and duties. In the application made by
the respondent under s. 51 before the Commissioner, the
respondent had specifically averred in paragraph 3 that the
appellant was an employee in the position of management and
"his duties and functions were managerial". That being so,
the Commissioner naturally had to consider this aspect of
the matter and so, he observed that he appellant did not
have managerial functions, duties or authorities. It would
we think, be unfair to hold that the whole approach of the
Commissioner was vitiated by the fact that he ’concentrated
on the question about managerial functions and authority and
did not apply the other tests which have been expressly set
out by him in the earlier part of his order. Therefore, we
do not think that the Division Bench was right in coming to
the conclusion that the impugned order suffers from any
error of law which is apparent on the face of the record.
Incidentally, we ought to point out that even if the
Division Bench was right in holding that the impugned order
should be corrected by the issue of a writ of certiorari, it
would have been better if it had not made its own findings
on the evidence and passed its own order in that behalf. In
writ proceedings if an error of law apparent on the face of
the record is disclosed and a writ is issued, the usual
course to adopt is to correct the error and send the case
back to the special Tribunal for its decision in accordance
with
1047
law. It would, we think, be inappropriate for the High
Court exercising its writ jurisdiction to consider the
evidence for itself and reach its own conclusions in matters
which have been left by the legislature to the decisions of
specially constituted Tribunals.
In the result, the appeals are allowed, the orders passed by
the High Court in the two writ petitions filed by the
respondent are set aside and the said writ petitions are
ordered to be dismissed with costs.
Appeals allowed.