9911796707
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Issues Involved:
1. Competence of the authority to terminate the respondent's service. 2. Whether the termination was punitive in nature. 3. Compliance with principles of natural justice and the requirement of a disciplinary inquiry. Detailed Analysis: 1. Competence of the Authority to Terminate Service: The primary issue was whether the Executive Assistant to the General Manager had the authority to terminate the respondent's service. The respondent contended that the Executive Assistant's position did not exist on the relevant date, rendering the termination invalid. However, the Supreme Court concluded that the termination order was, in fact, passed by the General Manager, who was the competent authority as per Standing Order 3(e), and merely communicated by the Executive Assistant. The Court emphasized that the form of the signature (whether full or initials) on the termination order did not affect its validity, as long as it was consciously made by the competent authority. 2. Nature of the Termination - Punitive or Simpliciter: The second issue was whether the termination was punitive, requiring a disciplinary inquiry. The Court noted that under the Standing Orders, two distinct powers exist: one to impose punishment for misconduct after a disciplinary inquiry (Standing Order 21(2) read with Standing Order 23) and another to terminate service simpliciter with one month's notice or pay in lieu thereof (Standing Order 26). The Court found that the reason for termination cited was an "unsatisfactory record of service," not misconduct. Thus, the termination was not punitive but a simple termination under Standing Order 26. The Court clarified that merely stating the reason for termination does not necessarily make it punitive unless misconduct is the foundation for the termination. 3. Compliance with Principles of Natural Justice: The respondent argued that the termination violated principles of natural justice as it was done without a proper inquiry or an opportunity to defend against the allegations. The Supreme Court held that even if the termination were considered punitive, the employer could justify the action before the Labour Court by presenting evidence. The Court referred to several precedents, including *Punjab National Bank Ltd. v. Its Workmen* and *Delhi Cloth and General Mills Co. Ltd. v. Ludh Budh Singh*, which allow employers to substantiate their actions before a tribunal if a domestic inquiry is found invalid or not conducted. The appellant had provided sufficient evidence before the Labour Court to justify the termination, thereby curing any procedural defects. Conclusion: The Supreme Court allowed the appeal, setting aside the High Court's judgment and upholding the appellant's action. The Court also ordered the appellant to pay Rs. 1,500 as costs to the respondent and an additional Rs. 15,000 as an ex-gratia payment due to the respondent's unfortunate position. This comprehensive analysis preserves the legal terminology and significant phrases from the original judgment, ensuring a thorough understanding of each issue involved.
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