Supreme Court Allows Appeals Against High Court's Direction on Employment Discretion. The discretion under Regulation 17(3) does not create a vested right for retrenched drivers to receive alternative jobs.

In Favour of Accused
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Case Note & Summary

The dispute arose from the retrenchment of drivers employed by the U.P. State Road Transport Corporation due to medical unfitness, specifically poor eyesight. The Corporation had established regulations requiring annual medical examinations for drivers, and those failing the tests could be discharged, with the possibility of being offered alternative jobs at the Corporation's discretion. Following medical examinations, several drivers were found unfit and subsequently discharged with compensation. They challenged their retrenchment in the High Court, which ruled that the Corporation must offer them alternative jobs. The Corporation appealed this decision to the Supreme Court. The Supreme Court analyzed the relevant regulations, particularly focusing on the discretion granted to the Corporation under Regulation 17(3). It concluded that while the Corporation had the authority to offer alternative employment, it was not mandated to do so, and the discretion must be exercised reasonably and fairly. The court emphasized that the discretion should not be fettered by self-imposed rules and must consider the individual circumstances of each case. Ultimately, the Supreme Court allowed the appeals, reversing the High Court's decision and directing the Corporation to consider the cases of the retrenched drivers without imposing an obligation to offer alternative jobs. No costs were awarded in the case.

Headnote

A) Employment Law - Medical Fitness and Employment Discretion - Discretion to Offer Alternative Jobs - U.P. State Road Transport Corporation Employees (Other than Officers) Service Regulations, 1981, Regulations 17(2) and 17(3) - The court held that the discretion conferred by Regulation 17(3) does not create a vested right for retrenched drivers to receive alternative jobs, but rather a right to have their cases considered. The High Court's direction to offer alternative jobs was erroneous as it exceeded the jurisdiction of the court to dictate how discretion should be exercised (Paras 279B, 279E).

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Issue of Consideration

Whether the U.P. State Road Transport Corporation was obliged to offer alternative jobs to drivers found medically unfit.

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Final Decision

The Supreme Court allowed the appeals, reversing the High Court's decision and directing the Corporation to consider the cases of the retrenched drivers without imposing an obligation to offer alternative jobs. No costs were awarded.

Law Points

  • Discretion in employment
  • Medical fitness
  • Alternative employment
  • Statutory authority
  • Public service efficiency
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Case Details

1991 LawText (SC) (04) 4

Civil Appeal Nos. 1756-59 of 1991

1991-04-11

K. Jagannatha Shetty, Jagdish Saran Verma, V. Ramaswami

1991 AIR 1099, 1991 SCR (2) 274, 1991 SCC (3) 239, JT 1991 (2) 292, 1991 SCALE (1) 734

Raju Rama Chandran, Prem Malhotra

U.P. State Road Transport Corporation

Mohd. Ismail and Ors.

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Nature of Litigation

Challenge to the retrenchment of drivers based on medical unfitness.

Remedy Sought

The drivers sought reinstatement or alternative employment.

Filing Reason

The drivers were discharged after being found medically unfit.

Previous Decisions

The High Court directed the Corporation to offer alternative jobs to the drivers.

Issues

Whether the Corporation was obliged to offer alternative jobs to medically unfit drivers. The scope of discretion under Regulation 17(3) of the Service Regulations.

Submissions/Arguments

The Corporation argued that offering alternative jobs was discretionary and not obligatory. The respondents contended that the Corporation was required to offer alternative jobs to rehabilitate medically unfit drivers.

Ratio Decidendi

The discretion under Regulation 17(3) does not create a vested right for retrenched drivers to receive alternative jobs; it requires the Corporation to consider individual cases without mandating a specific outcome.

Judgment Excerpts

The discretion conferred by Regulation 17(3) confers no vested right on the retrenched workmen to get an alternative job in the Corporation. The High Court was in error in directing the Corporation to offer alternative jobs to the respondents.

Procedural History

The respondents were discharged following medical examinations, challenged their retrenchment in the High Court, which ruled in their favor, leading to the Corporation's appeal to the Supreme Court.

Acts & Sections

  • U.P. State Road Transport Corporation Employees (Other than Officers) Service Regulations: Regulation 17(2), Regulation 17(3)
  • U.P. Industrial Disputes Act: Section 6(N)
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