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1971 (2) TMI 111

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..... f 1970 - - - Dated:- 18-2-1971 - DUA, I.D. AND SHELAT, J.M., JJ. For the Appellant : M. C. Chagla and R. Gopalakrishnan For the Respondent :K. P. Gupta, JUDGMENT: Dun, J. In this appeal special leave was limited to the question whether relief by way of payment of compensation should not be substituted for the relief by way of reinstatement granted by the Labour Court to the workman, H. P. Bhagavati, Store, Clerk. The Panitole Tea Estate belongs to the Jokai (Assam) Tea Co., Ltd., Panitole. Depot Line was one of the Out Gardens under this Tea Estate and it had a separate godown. One B. K. Borgohain, a part-time clerk was in charge of this godown. Ammonia sulphate fertiliser was stored in this godown, 970 bags having been received there between December 12, 1960 and January 5, 1961. Pursuant to receipt of an anonymous letter that there was pilferage of these bags the stock was checked and 89 bags were found missing. In the course of the domestic enquiry against Borgohain a chit (Ex. 12) was produced by him which suggested H. P. Bhagavati s collusion with Borgohain in this affair. Bhagavati was accordingly also charge sheeted and after domestic enquiry he was .....

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..... he was engaged in for joining the service of the appellant-company. The company s establishment in Delhi was comparatively a small establishment. There can be no doubt that the position of a stenographer in such an establishment would be one of confidence and trust as he would be taking down dictation and typing out all kinds of matters including sometimes confidential and even secret matters. For example, a report of the working of this branch to the company s headquarters by the branch manager, or a report as regards the working of other rival insurance companies in Delhi area, or a report regarding promotion and even demotion of some of the members of the staff of the branch office, and such other matters would be of a highly confidential nature. If the branch manager were, for cm reason or the other to lose confidence and trust in stenographer working under him, it would obviously be unpossible for him to give dictation on such matters to such a stenographer. On the assumption that the respondent was made to take dictation and type out letters in connection with other concerns in which the appellant company was interested and the respondent was not paid any extra remuneration .....

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..... ed principles in that regard and has to examine carefully the circumstances of each case and decide whether such a case is one of those exceptions to the general rule. If the Tribunal were to exercise its discretion in disregard of such circumstances or the principles laid down by this Court it would be a case either of no exercise of discretion or of one not legally exercised In either case the High Court in exercise of its writ jurisdiction can interfere and cannot be content by simply saying that since the Tribunal has exercised its discretion it will not examine the circumstances of the case to ascertain whether or not such exercise was properly and in accordance with the wellsettled principles made. If the High Court were to do so, it would be a refusal on its part to exercise jurisdiction.", And again: "The Tribunal no doubt felt that it was not established whether the investigation and the report following it were properly done and made, that the company ought to have disclosed it to the workman and given him an opportunity to vindicate himself and that the nondisclosure of the report made the termination illegal and unjustified. That may or may not be right. But .....

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..... abour, Court and impugned order was made mechanically without considering the relevant circumstances and applying its mind to the question as to which of the two reliefs was more appropriate. On behalf of the respondents it is submitted that Bhagavati, the workman concerned in this case, is innocent and the management was found by the Labour Court on evidence to have resorted to unfair labour practice. The chit, Ex. 12, was also held not to be in the handwriting of Bhagavati. It is further emphasised that criminal proceedings Were also started against Bhagavati but he was discharged in the criminal case for want of evidence implicating him. The respondent s learned counsel has, in support of his submission,, drawn our attention to The Punjab National Bank Ltd. v. Its Workmen[1960] 1 S.C.R 806), M. L. Bose Co. (P) Ltd. v. Its Employees([1961] 11 L.L.J. 107 (S.C.)) and Workmen of United Bleachers (P) Ltd., v. United Bleachers (P) Ltd . ()[1968] 1 L.L.J 529), (a decision High Court). In the Punjab National Bank case(supra)) it was observed that the propriety of reinstatement in a case of wrongful or illegal dismissal-is normally a question of fact and where the industrial tribunal .....

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..... it is not possible to exhaustively enumerate them. Each case has to be decided on its own facts and no hard and fast rule can be laid down to cover generally all conceivable contingencies. Proper balance has to be maintained between the conflicting claims of the employer and the employee without jeopardising the larger interests of industrial peace and progress. In Hindustan Steel Ltd. s case(supra) this Court substituted the order of reinstatement by an order of payment of compensation on the ground that the police report and the security officer s recommendation to the Company showed that it was not desirable for reasons of security to reinstate the employee., In that case it was observed : "As exceptions to the general rule of reinstatement, there have been cases where reinstatement has not been considered as either desirable or expedient. These were the cases where there had been strained relations between the employer and the employee, where the post held by the aggrieved employee had been one of trust and confidence or where, though dismissal or discharge was unsustainable owing to some infirmity in the impugned order, the employee was, found to have been gu .....

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..... he management lost confidence in Bhagavati because of the lapses mentioned therein. It appears that it was only when the management suspected Bhagavati s collusion with Borgohain that the management felt that his integrity was questionable. That chit having been found not to be in Bhagavati s handwriting and Bhagavati s dismissal having been held to be wrongful we are unable to sustain the plea of want of confidence raised by Shri Chagla. It is significant that no such plea was sought to be substantiated before the Labour Court. It is undoubtedly true that the store of the Tea Estate would contain goods of substantial value and a person really suspected of being untrustworthy may not justifiably be forced on the unwilling employer, but that aspect requires determination on facts which should have been properly placed before the Labour Court and a finding secured after appropriate trial. The suggestion that having regard to the nature, of the proceedings against Bhagavati, the management has lost confidence is unacceptable. A similar argument was repelled in the case of Assam, Match Co.(supra). If the workman is entitled as a general rule to be reinstated after his wrongful dismissa .....

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