1984 (9) TMI 305 - SC - Indian Laws

Summary

Issues Involved:
1. Legality and justification of the termination of services of Shri R.K. Kindra.
2. Adherence to principles of natural justice and equity in the enquiry proceedings.
3. Entitlement of the worker to any relief.

Summary of Judgment:

1. Legality and Justification of Termination:
The appellant, Rajinder Kumar Kindra, was dismissed from service by M/s. Raymond Woolen Mills Ltd. following charges of misappropriation, conspiracy, and negligence. The Enquiry Officer found him guilty of gross negligence and misconduct. However, the arbitrator found no evidence supporting the charges of misappropriation, manipulation of accounts, or conspiracy. The Supreme Court noted that the only misconduct alleged was the appellant's negligence in keeping his private cheque book, which was not a valid ground for dismissal. The Court held that the findings of the Enquiry Officer were perverse and based on no legal evidence.

2. Adherence to Principles of Natural Justice and Equity:
The arbitrator initially appointed, Shri G.C. Jain, concluded that the enquiry was vitiated due to the absence of evidence. However, a second arbitrator, Shri N.L. Kakkar, upheld the dismissal based on the same flawed evidence. The Supreme Court emphasized that the findings of the Enquiry Officer and the second arbitrator were perverse and not supported by any evidence. The Court reiterated that keeping one's private cheque book in any manner is not part of the performance of duty and does not constitute misconduct.

3. Entitlement to Relief:
The Supreme Court held that the appellant's dismissal was unsustainable and ordered his reinstatement with full back-wages and consequential benefits. The Court rejected the employer's argument that the appellant was gainfully employed during his dismissal period, noting that merely helping his father-in-law did not constitute gainful employment. The appellant was awarded costs of Rs. 3,000/- and was to be reinstated within a week with all consequential benefits.

Conclusion:
The Supreme Court allowed the appeal, set aside the award of the arbitrator Shri Kakkar, and directed the reinstatement of the appellant with full back-wages and consequential benefits, emphasizing the perverse nature of the findings and the lack of evidence supporting the charges against the appellant.