Supreme Court Upholds Termination of Employee for Voluntary Cessation of Service — Validity of Absence Without Leave Affirmed. The court affirmed the Bank's decision to terminate the employee's service due to unauthorized absence exceeding 150 days, validating the application of Clause 17(b) of the Bipartite Settlement.

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Case Note & Summary

The case involved an appeal by the Bank of Baroda against a judgment of the Allahabad High Court regarding the termination of an employee, Anita Nandrajog, for voluntary cessation of service. The respondent was employed as an accounts clerk and had a history of unauthorized absences, including two significant periods of absence from 1986 to 1988. After leaving for Libya without permission in 1988, she failed to report for duty for over 150 consecutive days. The Bank issued a notice invoking Clause 17(b) of the Fifth Bipartite Settlement, requiring her to report for duty within 30 days, failing which she would be deemed to have voluntarily retired. The respondent did not comply and instead requested further leave. The Bank subsequently treated her as having voluntarily retired and terminated her employment. The respondent challenged this decision, leading to a referral to the Labour Court, which ruled in her favor. The Bank appealed this decision, arguing that no inquiry was necessary under the Bipartite Settlement. The Supreme Court analyzed the provisions of the Bipartite Settlement and the respondent's conduct, concluding that the Bank's actions were justified and did not violate principles of natural justice. The court emphasized the importance of employee accountability and upheld the termination order, setting aside the Tribunal's award and the High Court's judgment. The appeal was allowed with no order as to costs.

Headnote

A) Employment Law - Termination of Service - Validity of Termination for Absence - Industrial Disputes Act, 1947, Section 10 - The court upheld the termination of the respondent's service due to her unauthorized absence exceeding 150 days, affirming that the Bank acted within its rights under the Bipartite Settlement. The court found no violation of natural justice as the respondent was aware of her absence and the consequences thereof (Paras 12-12).

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Issue of Consideration

Whether the action of the management of Bank of Baroda in treating the respondent as deemed to have voluntarily retired from service was legal and justified.

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Final Decision

The Supreme Court upheld the termination of the respondent's service by the Bank, affirming that the action was valid under Clause 17(b) of the Fifth Bipartite Settlement. The court set aside the Tribunal's award and the High Court's judgment, allowing the appeal with no order as to costs.

Law Points

  • Voluntary cessation of employment
  • absence without leave
  • principles of natural justice
  • Bipartite Settlement
  • disciplinary procedure
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Case Details

2009 LawText (SC) (09) 23

Civil Appeal No. 6898 of 2004

2009-09-01

Markandey Katju, Asok Kumar Ganguly

Regional Manager, Bank of Baroda

Anita Nandrajog

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Nature of Litigation

Appeal against the judgment of the Allahabad High Court regarding termination of employment.

Remedy Sought

The Bank sought to overturn the Tribunal's award and the High Court's judgment.

Filing Reason

The respondent challenged her termination as illegal and unjustified.

Previous Decisions

The Tribunal ruled in favor of the respondent, declaring the Bank's termination order illegal.

Issues

Legality of termination for voluntary cessation of service Application of principles of natural justice in employment termination

Submissions/Arguments

The respondent argued that she was not given a charge sheet or inquiry regarding her absence. The Bank contended that no inquiry was necessary under the Bipartite Settlement.

Ratio Decidendi

The court held that an employee's unauthorized absence for over 150 days justified termination under the Bipartite Settlement, emphasizing the need for accountability in employment.

Judgment Excerpts

The action of the Bank in terminating her service on the ground of voluntary cessation of employment was valid. No establishment can function if it allows its employees to behave in such a manner.

Procedural History

The respondent was initially terminated by the Bank on 25.8.1989 for unauthorized absence. She challenged this decision before the Labour Court, which ruled in her favor. The Bank appealed to the Allahabad High Court, which dismissed the petition, leading to the current appeal in the Supreme Court.

Acts & Sections

  • Industrial Disputes Act, 1947: Section 10
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