Search By Topic: Service Matters

53. (SC) 09-07-2024

A. Constitution of India, Article 12, 13, 226 -- Army Welfare Education Society / Private Educational  Institution – Service dispute – Maintainability of writ –

-- Whether the appellant Army Welfare Education Society is a “State” within Article 12 of the Constitution of India so as to make a writ petition under Article 226 of the Constitution maintainable against it?

-- Whether a service dispute in the private realm involving a private educational  institution and its employees can be adjudicated upon in a writ petition filed under Article 226 of the Constitution?

Held, High Court committed an egregious error in entertaining the writ petition holding that the appellant society is a “State” within Article 12 of the Constitution -- School run by the Appellant Society imparts education -- Relationship is that of an employee and a private employer arising out of a private contract -- If there is a breach of a covenant of a private contract, the same does not touch any public law element -- The school cannot be said to be discharging any public duty in connection with the employment of the respondents.

(Para 42, 46)

B. Doctrine of legitimate expectation -- Features :

-- First, legitimate expectation must be based on a right as opposed to a mere hope, wish or anticipation;

-- Secondly, legitimate expectation must arise either from an express or implied promise; or a consistent past practice or custom followed by an authority in its dealings;

-- Thirdly, expectation which is based on sporadic or casual or random acts, or which is unreasonable, illogical or invalid cannot be treated as a legitimate expectation;

-- Fourthly, legitimate expectation operates in relation to both substantive and procedural matters;

-- Fifthly, legitimate expectation operates in the realm of public law, that is, a plea of legitimate action can be taken only when a public authority breaches a promise or deviates from a consistent past practice, without any reasonable basis.

-- Sixthly, a plea of legitimate expectation based on past practice can only be taken by someone who has dealings, or negotiations with a public authority. It cannot be invoked by a total stranger to the authority merely on the ground that the authority has a duty to act fairly generally.

The aforesaid features, although not exhaustive in nature, are sufficient to help in deciding the applicability of the doctrine of legitimate expectation to the facts of the case.

(Para 48, 49)

C. Doctrine of legitimate expectation – Arbitrariness in State action -- It is clear that legitimate expectation, jurisprudentially, was a device created in order to maintain a check on arbitrariness in State action -- It does not extend to and cannot govern the operation of contracts between private parties, wherein the doctrine of promissory estoppel holds the field.

(Para 49)

D. Doctrine of legitimate expectation – Schol run by Society – Applicability upon -- Even if the function being performed by a private educational institution in imparting education may be considered as a public function, the relationship between the administration of such an institution and its employees remains a contractual one, falling within the ambit of private law -- No statutory obligation on the appellant society which requires that the salaries and allowances of the respondents are to be kept at par with what is payable to teachers of Government institutions -- Appellant society, for the purposes of its relationship with its employees, cannot be regarded as a public or Government authority -- Doctrine of legitimate expectation will have no applicability to the facts of the case.

(Para 50-52)

59. (J&K&L HC) 24-05-2024

A. Constitution of India, Article 226 -- Writ jurisdiction – Service matter -- Interference in finding in Enquiry report -- In writ jurisdiction, Court cannot go into the sufficiency of evidence on the basis of which the Inquiry Officer has given his findings, yet, it is open to the Court to interfere in the findings of the Inquiry Officer if the same are based upon no evidence or if the said findings are based upon irrelevant material.

(Para 14)

B. Constitution of India, Article 226 -- Criminal case against employee – Termination of services -- Acquittal in criminal case – Mere acquittal will not confer on an employee a right to claim any benefit including reinstatement -- However, if the charges in the departmental inquiry and the criminal Court are identical or similar, then the matter acquires a different dimension -- Acquittal in the criminal proceedings was after full consideration of the prosecution evidence and that the prosecution miserably failed to prove the charge, it would be open to the Court to exercise its power of judicial review and interfere in the findings of the disciplinary inquiry.

(Para 19)

C. Central Reserve Police Force Rules, 1955, Rule 27 (2) -- Constitution of India, Article 226 -- Criminal case against employee – Termination of services – “tried and acquitted” -- Discharge by Criminal Court – Charges in the criminal case and the departmental proceedings are similar in nature -- Sanction from Inspector General not sought -- Petitioner may not have been tried by the criminal Court, but he has been discharged and exonerated of criminal charges so his case stands at the higher pedestal than acquittal, particularly when the petitioner has been discharged on merits and not on technicalities -- Dismissal of petitioner from service becomes unsustainable in law -- Termination order set aside, with back wages of 50%.

(Para 20-29)

D. Service matter -- Termination form service -- Re-instatement – Backwages – Even if an employee has succeeded in establishing that his dismissal from service is illegal, he may be entitled to reinstatement, but it is not necessary that he should be given full back wages.

(Para 27)

66. (HP HC) 14-05-2024

A. Industrial Disputes Act, 1947 (14 of 1947), Section 25FF – Transfer of Undertaking/ Company – Retrenchment compensation – Requirement of -- In case service of the workman is not interrupted by such transfer and terms and conditions of service applicable after such transfer are not in any way less favourable to the workman and new employer is legally liable to pay to the workman, in the event of his retrenchment compensation on the basis his service has been continuous, there shall be no requirement of notice u/s 25-FF of the Act nor any compensation in lieu of retrenchment  -- Three conditions specified in the proviso are to be satisfied -- Employees can claim compensation against the transfer, if the three conditions remain unsatisfied.

(Para 16-20)

B. Industrial Disputes Act, 1947 (14 of 1947), Section 2(k) – Industrial dispute – Transfer of Undertaking -- Petitioner-company while making its worker apprised of the factum with regard to proposed transfer/sale, specifically assured workmen of the petitioner-company that upon transfer they would become workmen/employees of HFL-transferee company with continuity of service on the conditions which in aggregate would be similar and in any case would not be less favourable to the existing conditions on which they are employed with the petitioner -- No dispute exist interse petitioner and its workers – Merely by submitting demand notice, respondent-union cannot be permitted to claim that “industrial dispute” exist interse petitioner and workmen.

(Para 25-28)

C. Industrial Disputes Act, 1947 (14 of 1947), Section 2(k), 10(1) -- Industrial dispute -- Demand Notice – Reference – Duty of Authority -- Appropriate Government, while considering/ making reference in terms of Section 10(1) of the Act, requires to apply its mind to ascertain whether industrial dispute, if any, exists or not – Firstly, authority needs to form an opinion that industrial dispute exist, only thereafter, it can proceed to make reference -- Authority cannot delve into the merits of the dispute, but before arriving at a conclusion that industrial dispute exist, if any, in the parties, authority needs to form an opinion on the basis of material adduced on record by the parties.

(Para 29-38)

74. (Kerala HC) 11-04-2024

A. Kerala Co-operative Societies Act, 1969 (Act 21 of 1969), Section 69 -- Maternity Benefit Act, 1961 (53 of  1961), Section 2(1), 3(e), 20 – Co-operative Society/ Hospital – Establishment -- Petitioner being a Society and a hospital would answer the definition of 'establishment' under the Maternity Benefits Act -- Petitioner is liable to maintain registers and records provided under Section 20 of the Maternity Benefits Act and the Rules framed thereunder.

(Para 19)

B. Kerala Co-operative Societies Act, 1969 (Act 21 of 1969), Section 69 -- Kerala Industrial Establishments (National and Festival Holidays) Act,  1958 (47 of 1958), Section 10 -- Co-operative Society/ Hospital – Establishment -- Petitioner being a Co-operative Society and a hospital comes within the ambit of 'establishment' under the Festival Holidays Act -- Petitioner is bound to maintain the registers and records under the Festival Holidays Act.

(Para 20)

C. Kerala Co-operative Societies Act, 1969 (Act 21 of 1969), Section 69 -- Kerala Industrial Establishments (National and Festival Holidays) Act,  1958 (47 of 1958), Section 10 -- Kerala Shops and Commercial Establishments Act, 1960 (34 of 1960) -- Maternity Benefit Act, 1961 (53 of  1961) -- Minimum Wages Act, 1948 (11 of 1948) -- Co-operative Society/ Hospital – Benefits to employees – Labour laws -- Provisions of the Kerala Shops and Commercial Establishments Act, 1960, the Minimum Wages Act, 1948, the Maternity Benefit Act, 1961 and the Festival Holidays Act, deal with enforcement and inspection of various welfare and social security measures for employees which are not essentially covered by the provisions of the Kerala Co-operative Societies Act and Rules -- Fact that the conditions of service of employees of Co-operative Societies are governed by the Co-operative Societies Act, will not make the provisions of the aforesaid labour legislations inapplicable to Co-operative Societies -- Employees of the Co-operative Societies are entitled to the benefits of the said labour legislations.

(Para 21)

88. (P&H HC) 08-01-2024

A. Constitution of India, Article 226 – Challenge to illegality in selection – Participation in selection process – Effect of -- By participating in the process petitioner accepted the procedure for selection, and not the illegality in it that arises on account of wrong implementation of the rule of reservation – Held, petitioner cannot be precluded from the challenging the stated illegality in the selection process by filing the petition.

(Para 6)

B. Constitution of India, Article 226 – Challenge to illegality in selection – Non impleading the cleared candidates – Ground of -- No right has been conferred upon such candidates pursuant to clearing the screening test in their respective categories -- Outcome of the petition will only determine as to whether the rule of reservation is being correctly followed for the selection in question -- It will not adversely affect rights of the candidates in any manner as they are still to participate in the process of selection -- Therefore, they need not be impleaded as parties to the petition.

(Para 7)

C. Constitution of India, Article 14, 16, 226 – Rule of migration in reservation -- Meritorius candidate -- Reserved to unreserved category -- Merit of a reserved category candidate will have to be recognised and in case he/ she is entitled to an un-reserved post, it cannot be denied -- If a candidate is categorised resulting in his/ her ouster from the process of selection before the final merit list is drawn, it will deprive such a candidate from being considered against open/ un-reserved posts on merit -- This flies in the face of the rule of reservation, and cannot be permitted -- There is no justification to categorise the candidates for shortlisting and during the process of selection as, firstly, it compromises merit and, secondly, militates against the rule of migration in reservation.

(Para 8.4-8.6)