Search By Topic: Service Matters

302. (P&H HC) 13-01-2021

A. Industrial Disputes Act, 1947 (14 of 1947), Section 17B -- Payment of full wages to workman pending proceedings in higher courts -- Last wage drawn – Delay in implementation of award -- Duty of employer – Responsibility of the employer to make the payment of 'wages last drawn' by the workman before termination of his service is not dependent or related to any interim order passed by the High Court -- This responsibility of the employer to make such payment is a liability, per se, arising only from the factum of filing of the writ petition by the employer; which is to continue during the duration of pendency of such writ petition -- There cannot be any escape from this liability under any circumstances for any reason whatsoever; except by seeking an order from High Court or the Supreme Court, as the case may be, under proviso to this Section, since there cannot be any estoppel against a statute.

(Para 6)

B. Industrial Disputes Act, 1947 (14 of 1947), Section 33C(1) – Execution of award – Award under challenge in writ -- Executing Court allowed the revised wages to the respondent-workman from the date of Award; instead of granting the said benefit from the date of his actual reinstatement -- Since the petitioner-employer is already before the High Court against the Award and the issue of reinstatement is also subject to the decision of the writ petition, therefore, the grant of revised wages for the period before the actual reinstatement, at this stage, may not be germane to law -- There was no necessity for the Executing Court to create a situation where the workman might have to return the money in the situation of writ petition being allowed by the High Court; ultimately -- Hence, the direction of the Executing Court to that extent deserves to be modified.

(Para 8)

303. (SC) 05-01-2021

A. Constitution of India, Article 32, 136, 226 -- Disciplinary enquiries against employee – Judicial review – Scope of -- Power of judicial review in the matters of disciplinary inquiries, exercised by the departmental/appellate authorities discharged by constitutional Courts under Article 226 or Article 32 or Article 136 of the Constitution of India is circumscribed by limits of correcting errors of law or procedural errors leading to manifest injustice or violation of principles of natural justice and it is not akin to adjudication of the case on merits as an appellate authority.

(Para 23)

B. Constitution of India, Article 32, 136, 226 -- Disciplinary action against employee – Judicial review – Scope of -- Power of judicial review, of the Constitutional Courts, is an evaluation of the decision-making process and not the merits of the decision itself -- It is to ensure fairness in treatment and not to ensure fairness of conclusion -- Court/Tribunal may interfere in the proceedings held against the delinquent if it is, in any manner, inconsistent with the rules of natural justice or in violation of the statutory rules prescribing the mode of enquiry or where the conclusion or finding reached by the disciplinary authority if based on no evidence -- If the conclusion or finding be such as no reasonable person would have ever reached or where the conclusions upon consideration of the evidence reached by the disciplinary authority is perverse or suffers from patent error on the face of record or based on no evidence at all, a writ of certiorari could be issued -- To sum up, the scope of judicial review cannot be extended to the examination of correctness or reasonableness of a decision of authority as a matter of fact.

(Para 25)

C. Constitution of India, Article 32, 136, 226 -- Disciplinary enquiries against employee – Judicial review – Scope of -- When the disciplinary enquiry is conducted for the alleged misconduct against the public servant, the Court is to examine and determine: (i) whether the enquiry was held by the competent authority; (ii) whether rules of natural justice are complied with; (iii) whether the findings or conclusions are based on some evidence and authority has power and jurisdiction to reach finding of fact or conclusion.

(Para 26)

D. Disciplinary enquiries against employee – Power of Disciplinary authority to differ -- Where the enquiry officer is not the disciplinary authority, on receiving the report of enquiry, the disciplinary authority may or may not agree with the findings recorded by the former, in case of disagreement, the disciplinary authority has to record the reasons for disagreement and after affording an opportunity of hearing to the delinquent may record his own findings if the evidence available on record be sufficient for such exercise or else to remit the case to the enquiry officer for further enquiry.

(Para 27)

E. Disciplinary enquiries against employee – Evidence required -- Strict rules of evidence are not applicable to departmental enquiry proceedings -- However, the only requirement of law is that the allegation against the delinquent must be established by such evidence acting upon which a reasonable person acting reasonably and with objectivity may arrive at a finding upholding the gravity of the charge against the delinquent employee -- Mere conjecture or surmises cannot sustain the finding of guilt even in the departmental enquiry proceedings.

(Para 28)

F. Constitution of India, Article 32, 136, 226 -- Disciplinary enquiries against employee – Judicial review – Scope of -- Constitutional Court while exercising its jurisdiction of judicial review under Article 226 or Article 136 of the Constitution would not interfere with the findings of fact arrived at in the departmental enquiry proceedings except in a case of malafides or perversity, i.e., where there is no evidence to support a finding or where a finding is such that no man acting reasonably and with objectivity could have arrived at that findings and so long as there is some evidence to support the conclusion arrived at by the departmental authority, the same has to be sustained.

(Para 29)

F. Constitution of India, Article 32, 136, 226 -- Dismissal of bank employee -- Judicial review – Scope of -- Chargesheet was served upon the respondent delinquent for misappropriation of public funds by affording fake credits in his various accounts maintained at the branch where he was serving – In enquiry charge no.1 not proved and charges nos. 2-7 stood proved against the delinquent respondent -- It was later revisited by the disciplinary authority and apart from the note of disagreement in reference to charge no. 1, the disciplinary authority accepted the finding of fact recorded by the enquiry officer in his report for charge nos. 2 to 7 and with its prima facie opinion, called upon the respondent to submit his explanation and after affording an opportunity of hearing and expressed its brief reasons while upholding the finding recorded by the enquiry officer in his report and confirmed its opinion of inflicting penalty of dismissal from service – Appellate authority after assigning reasons confirmed the finding of fact in upholding the order of penalty inflicted upon the respondent delinquent – Held;

-- if the order of dismissal was based on the findings of charge no. 1 alone, it would have been possible for the Court to declare the order of dismissal illegal but on the finding of guilt being recorded by the Enquiry Officer in his report in reference to charges nos.2-7 and confirmed by the disciplinary/appellate authority was not liable to be interfered and those findings established the guilt of grave delinquency.

-- The Constitution Bench has clearly laid down that even after the charges which have been proved, justify imposition of penalty, the Court may not exercise its power of judicial review.

-- In banking business absolute devotion, integrity and honesty is a sine qua non for every bank employee -- It requires the employee to maintain good conduct and discipline and he deals with money of the depositors and the customers and if it is not observed, the confidence of the public/depositors would be impaired – For this additional reason, Court opined that High Court has committed an apparent error in setting aside the order of dismissal of employee.

(Para 30-43)

321. (SC) 01-10-2020

Factories Act, 1948 (63 of 1948), Section 5, 59 – Constitution of India, Article 142 -- Public emergency – Covid-19 situation /lockdown – Notifications to exempt factories from observing some of the obligations towards employers – Over-time to employees – Respondent-State aimed to ameliorate the financial exigencies that were caused due to the pandemic and the subsequent lockdown – Held, financial losses cannot be offset on the weary shoulders of the laboring worker, who provides the backbone of the economy -- Section 5 of the Factories Act could not have been invoked to issue a blanket notification that exempted all factories from complying with humane working conditions and adequate compensation for overtime, as a response to a pandemic that did not result in an ‘internal disturbance’ of a nature that posed a ‘grave emergency’ whereby the security of India is threatened -- In any event, no factory/ classes of factories could have been exempted from compliance with provisions of the Factories Act, unless an ‘internal disturbance’ causes a grave emergency that threatens the security of the state, so as to constitute a ‘public emergency’ within the meaning of Section 5 of the Factories Act -- Writ petition allowed and Notification No. GHR/ 2020/56/FAC/142020/346/M3 dated 17 April 2020 and Notification No. GHR/2020/92/FAC/142020/346/M3 dated 20 July 2020 issued by the Labour and Employment Department of the Respondent State, quashed – Invoking Article 142 of the Constitution, Court directed that overtime wages shall be paid, in accordance with the provisions of Section 59 of the Factories Act to all eligible workers who have been working since the issuance of the notifications.

(Para 45, 46)

322. (SC) 10-09-2020

A. Constitution of India, Article 226, 311 – Departmental enquiry – Judicial review – Nature of – Power of judicial review discharged by Constitutional Courts under Article 226 or 32, or when sitting in appeal under Article 136, is distinct from the appellate power exercised by a departmental appellate authority – Judicial review is an evaluation of the decision-making process, and not the merits of the decision itself – Judicial Review seeks to ensure fairness in treatment and not fairness of conclusion – It ought to be used to correct manifest errors of law or procedure, which might result in significant injustice; or in case of bias or gross unreasonableness of outcome.

(Para 25)

B. Constitution of India, Article 226, 311 – Disciplinary proceedings -- Constitutional Courts while exercising their powers of judicial review would not assume the role of an appellate authority – Their jurisdiction is circumscribed by limits of correcting errors of law, procedural errors leading to manifest injustice or violation of principles of natural justice -- Put differently, judicial review is not analogous to venturing into the merits of a case like an appellate authority.

(Para 28)

C. Constitution of India, Article 226, 311 – Indian Evidence Act, 1872 (1 of 1872), Section 165 -- Disciplinary proceedings -- Objection on role of Enquiry officer – It must be recognized that, under Section 165, Evidence Act, judges have the power to ask any question to any witness or party about any fact, in order to discover or to obtain proper proof of relevant facts -- While strict rules of evidence are inapplicable to disciplinary proceedings, enquiry officers often put questions to witnesses in such proceedings in order to discover the truth -- Indeed, it may be necessary to do such direct questioning in certain circumstances -- No specific malice or bias has been alleged against the enquiry officer, and even during the enquiry no request had been made to seek a replacement; thus, evidencing how these objections are nothing but an afterthought.

(Para 31)

D. Constitution of India, Article 226, 311 – Departmental enquiry – Allegation of corruption – Non-action in criminal case -- Dismissal from service -- After investigation, the CBI though did not find adequate material to launch criminal prosecution but recommended major disciplinary action – In a disciplinary enquiry, strict rules of evidence and procedure of a criminal trial are inapplicable, like say, statements made before enquiry officers can be relied upon in certain instances -- Appellant’s contention that he should be exonerated in the present proceedings as no criminal chargesheet was filed by the CBI after enquiry, is liable to be discarded – Employer always retains the right to conduct an independent disciplinary proceeding, irrespective of the outcome of a criminal proceeding.

(Para 33-35)

E. Constitution of India, Article 226, 311 – Allegation of corruption -- Departmental enquiry – Dismissal from service – Interference in -- Unlike in criminal cases, in matters of disciplinary proceedings Courts only interfere on grounds of proportionality when they find that the punishment awarded is inordinate to a high degree, or if the conscience of the Court itself is shocked -- Thus, whereas imposition of major penalty (like dismissal, removal, or reduction in rank) would be discriminatory and impermissible for trivial misdeeds; but for grave offences there is a need to send a clear message of deterrence to the society -- Charges such as corruption, misappropriation and gross indiscipline are prime examples of the latter category, and ought to be dealt with strictly – Dismissal order, upheld.

(Para 1, 36)

323. (SC) 09-09-2020

Constitution of India, Article 16 -- Maharashtra State Reservation (of Seats for admission in Educational Institutions in the State and for appointments in the Public Services and posts under the State) for Socially and Educationally Backward Classes (SEBC) Act, 2018 (62 of 2018) – 16% reservations to Marathas to be a “Socially and Educationally Backward Class” – Validity of – Matter referred to Larger Bench : 

-- As per Indra Sawhney’s case 1992 Supp. (3) SCC 217, Article 16 (4) should be balanced against the guarantee of equality enshrined in Article 16 (1), which is a guarantee held out to every citizen, reservations contemplated in Clause (4) of Article 16 should not exceed 50 per cent -- Relaxation of the strict rule of 50 per cent can be made in certain extraordinary situations -- People living in far flung and remote areas not being in the mainstream of national life should be treated in a different way -- Extreme caution has to be exercised and a special case made out for relaxation of the rule of 50 per cent.

-- Court prima facie opined that the State of Maharashtra has not shown any extraordinary situation for providing reservations to Marathas in excess of 50 per cent. Maratha community which comprises of 30 per cent of the population in the State of Maharashtra cannot be compared to marginalized sections of the society living in far flung and remote areas. The State has failed to make out a special case for providing reservation in excess of 50 per cent. Neither has any caution been exercised by the State in doing so.

-- The social, educational and economic backwardness of a community, existence of quantifiable data relating to inadequacy of representation of the community in public services and deprivation of the benefits flowing from reservations to the community are not exceptional circumstances for providing reservations in excess of 50 per cent.

Court referred the matter to Larger Bench by passing following orders: -

(A) As the interpretation of the provisions inserted by the Constitution (102nd Amendment) Act, 2018 is a substantial question of law as to the interpretation of the Constitution of India, these Appeals are referred to a larger Bench. These matters shall be placed before Hon’ble The Chief Justice of India for suitable orders.

(B) Admissions to educational institutions for the academic year 2020-21 shall be made without reference to the reservations provided in the Act. We make it clear that the Admissions made to Post-Graduate Medical Courses shall not be altered.

(C) Appointments to public services and posts under the Government shall be made without implementing the reservation as provided in the Act. Liberty to mention for early hearing.

(Para 1, 15-17)

326. (P&H HC) 18-08-2020

A. Constitution of India, Article 226 -- Writ petition for interest on delayed payment of retiral dues – Maintainability of -- By now, it is well settled that a writ petition for payment of interest on delay in release of the amount representing retiral benefits is maintainable

(Para 6)

B. Constitution of India, Article 226 -- Disciplinary proceedings – Pendency of – Amount of Contributory Provident Fund could not be withheld – Contributory provident fund released in two instalments; firstly, on 07.12.2006 ? 6,11,693/-, secondly on 01.08.2017 ?10,40,578/- -- Petitioner was relieved from service on 24.04.2015 -- Thus, after giving three months, a reasonable period, interest is payable to the petitioner with effect from 01.08.2015 on the delayed payment of the amount representing CPF – Interest @ 8% p.a. awarded for delayed period.

(Para 7, 10)

C. Constitution of India, Article 226 -- Punjab Civil Service Rules, Rule 2.2 (c)(1), Chapter II, Vol.II and Rule 8.21 (aa) Volume-I Chapter-VIII – Disciplinary proceedings – Withholding of Leave encashment/ Gratuity – Interest thereupon – Punishment for recovery of Rs.5,000/- passed in 15.2.2017, attained finality – Delay in release of leave encashment amount as well as gratuity – After giving three months reasonable period for release of the amount, the interest is payable with effect from 01.06.2017 on the aforesaid amount -- Interest @ 8% p.a. awarded for delayed period.

(Para 8, 10)

D. Constitution of India, Article 226 -- Salary for a period worked on interim order – Recovery of -- Held, recovery could not be made because petitioner, under the interim order passed by the Court, had worked -- Writ petitioner held entitled to be paid the salary for the period he had actually worked.

(Para 9)

330. (SC) 12-06-2020

Disaster Management Act, 2005 (53 of 2005), Section 10(2)(l) – Constitution of India, Article 14, 19(1)(g) -- Lock down period during pandemic Covid-19 – Full wages to employees for 50 days – Notification/Order issued by Union of India – Power of – Challenged being violative of Article 14, 19(1)(g) -- Both Industry and Labourers need each other -- No Industry or establishment can survive without employees/labourers and vice versa – Held, efforts should be made to sort out the differences and disputes between the workers and the employers regarding payment of wages of above 50 days and if any settlement or negotiation can be entered into between them without regard to the order dated 29.03.2020, the said steps may restore congenial work atmosphere – Directions issued for following interim measures which can be availed by all the private establishment, industries, factories and workers Trade Unions/ Employees Associations etc. which may be facilitated by the State Authorities: -

i) The private establishment, industries, employers who are willing to enter into negotiation and settlement with the workers/employees regarding payment of wages for 50 days or for any other period as applicable in any particular State during which their industrial establishment was closed down due to lockdown, may initiate a process of negotiation with their employees organization and enter into a settlement with them and if they are unable to settle by themselves submit a request to concerned labour authorities who are entrusted with the obligation under the different statute to conciliate the dispute between the parties who on receiving such request, may call the concerned Employees Trade Union/workers Association/ workers to appear on a date for negotiation, conciliation and settlement. In event a settlement is arrived at, that may be acted upon by the employers and workers irrespective of the order dated 29.03.2020 issued by the Government of India, Ministry of Home Affairs.

ii) Those employers’ establishments, industries, factories which were working during the lockdown period although not to their capacity can also take steps as indicated in direction No.(i).

iii) The private establishments, industries, factories shall permit the workers/employees to work in their establishment who are willing to work which may be without prejudice to rights of the workers/employees regarding unpaid wages of above 50 days. The private establishments, factories who proceed to take steps as per directions (i) and (ii) shall publicise and communicate about their such steps to workers and employees for their response/participation. The settlement, if any, as indicated above shall be without prejudice to the rights of employers and employees which is pending adjudication in these writ petitions.

iv) The Central Government, all the States/UTs through their Ministry of Labour shall circulate and publicise this order for the benefit of all private establishment, employers, factories and workers/employees.

(Para 7, 36, 37)

336. (P&H HC) 13-05-2020

A. Punjab Co-operative Societies Act, 1961 (25 of 1961), Section 54 – Dismissal of employee -- Embezzlement charge – Inquiry Report -- Inquiry Report does not even reflect any consideration, worth the name, of the documentary evidence by the Inquiry Officer to support his ultimate findings -- Inquiry Officer patently went by the oral evidence adduced before him, which was discussed at length, but there is neither any detailed reference to nor discussion about the documentary evidence marked through the said witnesses -- Though it would not have been possible for the Inquiry Officer to record individual findings on each of the 3549 fake entries allegedly made by the petitioner, he did not even choose to randomly test and analyze at least some such entries and record proper findings thereon – Dismissal order and Inquiry report are incurably tainted by illegality and arbitrariness apart from being violative of the principles of natural justice.

(Para 67,68, 71)

B. Punjab Co-operative Societies Act, 1961 (25 of 1961), Section 54 -- Destruction of record – Burden of proof -- Inquiry Officer merely noted that the ledger sheets were missing and held that ‘there was no evidence to rebut that ledger sheets missing have not been stolen/ destroyed/concealed by the Charged Official’ -- Inquiry Officer thereupon opined that the allegation that these documents were destroyed or stolen by the petitioner stood proved – Burden of proving the charges was shifted upon the petitioner in reverse – Held, it was for the Bank to substantiate and prove that the petitioner had stolen the ledger sheets of his own accounts from the two Branches and not for the petitioner to rebut such a presumption, as postulated by the Inquiry Officer -- Dismissal order and Inquiry report are incurably tainted by illegality and arbitrariness apart from being violative of the principles of natural justice.

(Para 69, 71)

C. Punjab Co-operative Societies Act, 1961 (25 of 1961), Section 54 -- Ex-parte inquiry – Cross-examination of witnesses – Right of -- Non-cooperation attributed to the petitioner to justify his exclusion from the inquiry is wholly insufficient as the Inquiry Officer himself recorded that even thereafter, he invited the petitioner to participate in the proceedings -- However, there is no indication of the Inquiry Officer putting the petitioner on notice – Petitioner ought not to have been deprived of an opportunity to at least cross-examine the witnesses, two of whom were the authors of the final reports, even if he had been set ex parte, which, in fact, he was not -- He was however denied such opportunity -- Thus, the inquiry proceedings stand vitiated on this ground.

(Para 70, 71)

337. (SC) 18-03-2020

A. Constitution of India, Article 311 -- Removal of probationer on assessment of performance – Enquiry -- Opportunity of hearing -- Requirement of -- Probationer not strictly covered within the umbrella of Article 311 -- Merely because ACRs were consistently marked ‘Good’, it cannot be a ground to bestow him with a right to continue in service – Neither any specific misconduct has been attributed nor any allegation made – Order is based upon overall assessment of the performance during the period of probation, which was not found satisfactory – Such an inference which can be a valid foundation to dispense with services of a probationer does not warrant holding of an enquiry in terms of Article 311 of the Constitution -- In cases of ‘stigmatic’ removal only that a reasonable opportunity of hearing is sine-qua-non.

(Para 14-20)

B. Constitution of India, Article 311 -- Probation period – Nature of -- Entire objective of probation is to provide the employer an opportunity to evaluate the probationer’s performance and test his suitability for a particular post -- Such an exercise is a necessary part of the process of recruitment, and must not be treated lightly -- Written tests and interviews are only attempts to predict a candidate’s possibility of success at a particular job -- True test of suitability is actual performance of duties which can only be applied after the candidate joins and starts working.

(Para 16)

C. Constitution of India, Article 311 -- Removal of probationer – Judicial review of -- If the Court finds that the real motive behind the order was to ‘punish’ the official, it may always strike down the same for want of reasonable opportunity of being heard -- Onus would lie on the probationer to prove that the action taken against him was of punitive characteristics.

(Para 21, 24)

D. Constitution of India, Article 311 -- Appointment of Civil Judge (Junior Division)-cum-Judicial Magistrate – Exercise of power not vested – Removal during probation -- Judicial officer is expected to be in know of Section 36(3) of the NDPS Act, 1985 which expressly ousts competence of a judicial officer below the rank of Sessions Judge or an Additional Sessions Judge in NDPS matters -- High Court on administrative side, therefore, justifiably inferred he was prone to act negligently or had the tendency to usurp power which the law does not vest in him -- This was a relevant factor to determine suitability of a probationer judicial officer – Order of discharge whereby services were dispensed with during probation approved.

(Para 23)

341. (P&H HC) 04-03-2020

A. Central Reserve Police Force Rules 1955, Rule 16, 31 -- Central Civil Services (Temporary Service) Rules 1965, Rule 5 – Constitution of India, Article 14 --  Principle of natural justice -- Temporary employee – Termination of – Show-cause notice – Requirement of -- Allegation of desertion and misconduct -- Desertion is a serious allegation, which cannot be proved without any enquiry -- Reason behind the termination order was the allegation of misconduct – Held, it was necessary and incumbent as well as mandatory for the respondents to hold an enquiry -- Even a probationer has protection against the arbitrary termination and probationer is also entitled to certain protection -- Service of temporary employee cannot be terminated arbitrarily or punitively without applying the principle of natural justice -- Termination order of a temporary employee without enquiry cannot be sustained.

(Para 11-15)

B. Central Reserve Police Force Rules 1955, Rule 16, 31 -- Central Civil Services (Temporary Service) Rules 1965, Rule 5 – Constitution of India, Article 14 --  Temporary employee – Leave without sanction -- Deserter – Misconduct – Termination of -- Petitioner had applied for leave for his own marriage -- Due to compelling circumstances, petitioner left the training centre for undergoing the marriage ceremony -- Date of marriage had already been fixed by his parents and it would have been embarrassment not only for the relatives of the petitioners but more so for the girl side and all the people, who were attending the marriage ceremony -- Rejection of his leave in these circumstances left no choice with the petitioner but to leave as he did – Since, the petitioner did return to join back, the punishment of termination in the present situation is nothing but 'harsh' and therefore deserves to be set aside -- Respondents are directed to take back the petitioner into service forthwith, however, the petitioner shall not be entitled to the back wages.

(Para 20-23)