Search By Topic: Service Matters

316. (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)

317. (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)

318. (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)

321. (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)

325. (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)

331. (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)

332. (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)

336. (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)