Case Note & Summary
The dispute arose from the termination of two coal company employees following a fatal mine accident. Bharat Coking Coal Ltd and others were the appellants, while Babulal, a Senior Mining Engineer, and Maheshwari Sharma, a Manager at South Govindpur Colliery, Govindpur area, were the respondents. On June 30, 1989, at 2:00 p.m., a roof fall occurred in the XI Seam, causing the death of five miners and serious injuries to two others. The employer alleged that both respondents were absent from the site and had failed to take necessary safety precautions to avert the accident. A Fact Finding Committee was appointed, and its report dated July 1, 1989, indicated dereliction of duty on the part of the respondents leading to the mine accident. Consequently, the appellant exercised power under Rule 12.4(1)(c) of the Common Coal Cadre, 1974, which allowed termination of an executive cadre employee with three months' notice or pay in lieu thereof otherwise than on disciplinary grounds. The services of both first respondents were terminated. However, the Supreme Court in C.A. No.3673 of 1988, titled G.P. Lal vs. Coal India Ltd., had already struck down the rule as violative of Article 14 of the Constitution. Therefore, the rule was never in vogue to invoke the exercise of power by the appellants. The core legal issues were whether the termination under the struck-down rule was valid, whether a disciplinary enquiry was necessary before taking action for alleged dereliction of duty, and whether the respondents were entitled to subsistence allowance pending enquiry. The appellants relied on the fact-finding report and the rule, while the respondents relied on the unconstitutionality of the rule and the need for an enquiry. The Court held that when a charge of dereliction of duty was imputed to the respondents, it was necessary to hold an enquiry and give them an opportunity before taking any disciplinary action. It referred to the Constitution Bench decision in Managing Director, ECIL, Hyderabad & Ors. vs. B. Karunakar & Ors., which held that the delinquent must be deemed to be under suspension pending enquiry. Accordingly, the Court directed that the appellants should hold an enquiry against both first respondents giving reasonable opportunity according to the rules. The respondents were deemed to be under suspension and entitled to subsistence allowance during the pending enquiry. The enquiry was to be completed within six months from the date of receipt of the order, and subsistence allowance was to be paid within six weeks from the date of receipt of a copy of the order. The appeals were disposed of with no order as to costs.
Headnote
A) Service Law - Termination - Common Coal Cadre, 1974, Rule 12.4(1)(c) - Rule empowering termination without disciplinary enquiry was struck down as violative of Article 14 of Constitution in G.P. Lal v. Coal India Ltd. Consequently termination based on invalid rule could not stand and enquiry was required before disciplinary action. Held that appellants must hold enquiry giving reasonable opportunity (Paras 1-2). B) Service Law - Disciplinary Enquiry - Constitution of India, 1950, Article 14 - When charge of dereliction of duty imputed, departmental enquiry mandatory; employer cannot invoke struck-down rule. Held that delinquent deemed under suspension pending enquiry and entitled to subsistence allowance; enquiry to be completed within six months and allowance paid within six weeks (Paras 1-2).
Issue of Consideration
Whether termination of respondents under Rule 12.4(1)(c) of Common Coal Cadre, 1974 was valid after the rule was struck down as unconstitutional in G.P. Lal v. Coal India Ltd; whether disciplinary enquiry was required before action for alleged dereliction of duty; and relief of subsistence allowance pending enquiry.
Final Decision
Appeals disposed of; appellants directed to hold departmental enquiry against both first respondents giving reasonable opportunity; respondents deemed under suspension and entitled to subsistence allowance pending enquiry; enquiry to be completed within six months from receipt of order; subsistence allowance to be paid within six weeks from receipt of copy of order; no costs.
Law Points
- Rule 12.4(1)(c) of Common Coal Cadre
- 1974 struck down as violative of Article 14
- termination under invalid rule requires departmental enquiry
- delinquent deemed under suspension pending enquiry
- subsistence allowance payable
- enquiry to be completed within six months
