Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases Indian Laws Indian Laws + SC Indian Laws - 1960 (3) TMI SC This

  • Login
  • Referred In
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

1960 (3) TMI 53 - SC - Indian Laws

Issues:
1. Disciplinary action against an employee before the conclusion of a criminal trial.
2. Compliance with principles of natural justice in disciplinary proceedings.

Disciplinary action against an employee before the conclusion of a criminal trial:
The case involved an appeal by special leave in an industrial matter where the appellant, a textile manufacturing company, had dismissed the respondent, an employee, for allegedly stealing a cycle. The respondent had recovered the stolen cycle, but a criminal case was pending against him. The company conducted an enquiry and dismissed the respondent based on the misconduct charge. Subsequently, the company sought approval of the dismissal under s. 33(2) of the Industrial Disputes Act. The respondent had been acquitted by the criminal court before the tribunal hearing, leading to a dispute on whether the company was justified in taking disciplinary action before the criminal trial's conclusion.

Compliance with principles of natural justice in disciplinary proceedings:
The main contention raised by the appellant-company was that they were not obligated to await the criminal trial's outcome before conducting a fair enquiry and taking disciplinary action against the respondent. The company argued that the respondent's refusal to participate in the enquiry did not hinder the company's right to complete the process based on the evidence available. On the other hand, the respondent's counsel contended that natural justice required the employer to wait for the criminal trial's decision before disciplinary action. The court held that while it is common practice for employers to stay enquiries pending criminal trial outcomes, it is not a strict requirement of natural justice. In cases of a simple nature, employers are not obliged to delay disciplinary actions. The court emphasized that in complex cases, waiting for the criminal trial's decision may be advisable to prevent prejudice to the employee's defense. Ultimately, the court found no failure of natural justice in the company's actions and granted approval for the respondent's dismissal, overturning the tribunal's decision.

In conclusion, the Supreme Court allowed the appeal, setting aside the tribunal's order and granting approval for the respondent's dismissal by the appellant-company. The court highlighted that the tribunal had exceeded its jurisdiction under s. 33(2) of the Industrial Disputes Act and emphasized the simplicity of the case as a justification for the employer's actions. No costs were awarded in the circumstances.

 

 

 

 

Quick Updates:Latest Updates