Supreme Court Dismisses Appellant in Service Repatriation Case Due to Non-Joinder of Necessary Party and Finality of Prior Order. Non-Impleadment of Actual Employer and Failure to Challenge Earlier High Court Order Fatal to Claim for Reinstatement and Transfer Back to Parent Department.

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Case Note & Summary

The Supreme Court of India dismissed a special leave petition arising from an order of the Allahabad High Court dated April 21, 1980 in Miscellaneous Application in Civil Revision No. 1136/79. The dispute concerned the service claim of the appellant, S.K. Saldi, who alleged that he was initially appointed in M/s. Meerut Straw Board Mills, Meerut, claimed to be a subsidiary of Jaswant Sugar Mills, and was subsequently transferred on deputation to S.B. Sugar Mills. He sought repatriation to his parent department on the ground that the Mill was not inclined to retain his services. The appellant filed Civil Suit Case No. 26/48 before the Civil Judge, Bijnor, which by order dated March 29, 1979 directed S.B. Sugar Mill, Bijnor to formally reinstate him and thereafter transfer him to the parent department. The Mill challenged this order in revision before the Allahabad High Court. The High Court held that the appellant was not entitled to be reinstated; since an enquiry was pending against him, the Court at the most could direct an enquiry followed by action according to its result. That order was not challenged and became final. The appellant then filed a revision petition before the High Court which was dismissed, leading to the present appeal by special leave before the Supreme Court. The appellant argued that as he was initially appointed in Meerut Straw Board and transferred to the Mill on deputation, he was entitled to be repatriated when the Mill was not inclined to retain his services, and therefore the Civil Court's direction was valid and the High Court was not justified in reversing it. The Supreme Court noted several insurmountable hurdles. First, the appellant had not impleaded his claimed employer, M/s. Jaswant Sugar Mills, in the suit; he had suo motu impleaded the sugar Mill in the special leave petition filed in the Supreme Court but subsequently deleted it. Consequently, the sugar Mill against whom relief was sought was not a party to the suit, making the suit liable to be dismissed for non-joinder of necessary and proper party. Second, the main order had been allowed to become final and not challenged. The Court observed that the review order could not have more force than the original order. Finding no manifest error of law warranting interference, the Supreme Court dismissed the appeal without costs and dissolved the interim order passed earlier.

Headnote

A) Civil Procedure - Non-joinder of Necessary Party - Non-impleadment of actual employer in suit for reinstatement renders suit liable to dismissal - Not mentioned - The appellant filed a civil suit for reinstatement and transfer to parent department without impleading his claimed employer M/s. Jaswant Sugar Mills; the Supreme Court observed that the suit was liable to be dismissed for non-joinder of necessary and proper party. Held that the omission of the actual employer was a fatal defect and the relief could not be granted against a party not before the court (Paras Not mentioned).

B) Res Judicata and Finality of Orders - Finality of Unchallenged Order - Order allowed to become final cannot be reopened through review or revision with greater force - Not mentioned - The High Court in the earlier revision held that the appellant was not entitled to reinstatement and at most an enquiry could be directed; that order was not challenged and became final; the appellant subsequently filed a revision petition which was dismissed. Held that the review order could not have more force than the original order, and the failure to challenge the earlier order barred re-agitation of the same issue (Paras Not mentioned).

C) Service Law - Deputation and Repatriation - Employee on deputation not automatically entitled to reinstatement in parent department pending enquiry - Not mentioned - The appellant claimed transfer on deputation to S.B. Sugar Mills and sought repatriation; the High Court held reinstatement could not be directed while an enquiry was pending. Held that the proper course was to conduct an enquiry and take action according to its result, not to order formal reinstatement and transfer (Paras Not mentioned).

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Issue of Consideration

Whether the appellant was entitled to reinstatement and repatriation to his parent department after being on deputation; whether the civil suit was liable to be dismissed for non-joinder of the actual employer as a necessary and proper party; whether the previous High Court order not challenged had attained finality and barred subsequent proceedings

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Final Decision

The Supreme Court dismissed the appeal without costs and dissolved the interim order passed by the Court, finding no manifest error of law warranting interference.

Law Points

  • Suit for reinstatement and transfer liable to be dismissed for non-joinder of necessary and proper party
  • order not challenged and allowed to become final cannot be reopened by review or revision with greater force
  • no manifest error of law warranting interference under Article 136
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Case Details

1997 LawText (SC) (02) 189

1997-02-06

K. Ramaswamy

Shri Pramod Swarup

S.K. Saldi

The General Manager, U.P. State Sugar Corporation Ltd.

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Nature of Litigation

Civil appeal by special leave against High Court order in civil revision concerning reinstatement and transfer of an employee on deputation

Remedy Sought

Appellant sought reinstatement and transfer back to parent department from S.B. Sugar Mills

Filing Reason

Appellant claimed appointment in Meerut Straw Board Mills as subsidiary of Jaswant Sugar Mills, transfer on deputation to S.B. Sugar Mills, and non-relief leading to filing of civil suit

Previous Decisions

Civil Judge, Bijnor by order dated March 29, 1979 directed S.B. Sugar Mill to formally reinstate and transfer appellant; Allahabad High Court in revision held appellant not entitled to reinstatement and at most directed enquiry; that order not challenged and became final; subsequent revision petition by appellant before High Court dismissed; hence special leave petition before Supreme Court

Issues

Whether appellant was entitled to reinstatement and repatriation to parent department after deputation when the Mill was not inclined to retain his services Whether the civil suit was liable to be dismissed for non-joinder of necessary and proper party, namely the actual employer Whether the previous High Court order not challenged had attained finality and barred subsequent revision or review

Submissions/Arguments

Appellant contended that being initially appointed in Meerut Straw Board and transferred to the Mill on deputation, he was entitled to be repatriated when the Mill was not inclined to retain his services, and therefore the Civil Court's direction was valid and the High Court was not justified in reversing it Supreme Court noted that the appellant had not impleaded his claimed employer M/s. Jaswant Sugar Mills in the suit and the main order had been allowed to become final, so the suit was liable to be dismissed for non-joinder of necessary and proper party and the review order could not have more force than the original

Ratio Decidendi

A suit for reinstatement and transfer is liable to be dismissed for non-joinder of necessary and proper party when the actual employer is not impleaded. An order allowed to become final and not challenged cannot be reopened through a subsequent review or revision with greater force. No manifest error of law warrants interference under Article 136.

Judgment Excerpts

The High Court held that the was not entitled to be reinstated. the appellant had not impleaded his employer M/s. Jaswant Sugar Mills with whom he claimed to have been appointed Therefore, the suit was liable to be dismissed for non-joinder of necessary and proper party. The appeal is accordingly dismissed, but in the circumstances, without costs. The interim order passed by this Court stands dissolved.

Procedural History

Appellant filed Civil Suit Case No. 26/48 before Civil Judge, Bijnor seeking reinstatement and transfer; Civil Judge by order dated March 29, 1979 directed S.B. Sugar Mill, Bijnor to formally reinstate and transfer appellant; Mill challenged order in revision before Allahabad High Court; High Court held appellant not entitled to reinstatement and at most could direct enquiry, order not challenged and became final; appellant filed revision petition before High Court which was dismissed; appellant filed special leave petition before Supreme Court; Supreme Court dismissed appeal on February 6, 1997 without costs and dissolved interim order.

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