Supreme Court Upholds Employer in Industrial Disputes Act Case on Go-Slow Misconduct and Dismissal Permission. Section 33 of Industrial Disputes Act, 1947 Empowers Tribunal Only to Grant or Refuse Dismissal Permission, Not Substitute Lesser Punishment; Finding of No Evidence Against Sixteen Workmen Perverse.

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Case Note & Summary

The dispute arose between the appellant management, M/s Sasa Musa Sugar Works (P) Ltd., a sugar factory in District Saran, Bihar, and its workmen represented by forty-eight individuals including Shobrati Khan and others. The litigation originated from two applications filed by the management under Section 33 of the Industrial Disputes Act, 1947, seeking permission to dismiss the workmen for indulging in an unjustified go-slow. A cross-application was filed by the workmen under Section 33A alleging that the management had suspended them as a punitive measure in breach of Section 33. The background involved a history of industrial disputes between the management and the union, including previous dismissals and reinstatements. In January 1952, after the union served a notice with forty demands, the workmen resorted to go-slow from January 9 to 12 and again from January 24 to 31 despite conciliation efforts and advice from labour authorities. The management suspended thirty-three workmen on February 1, 1952, and later seven more on February 6 and eight more on February 7, giving notices that they were suspended until further orders for taking leading part in the unjustified go-slow which was in contravention of the Act. As adjudication proceedings were pending since September 1951, the management filed two applications under Section 33 on February 6 and February 11, 1952, seeking permission to dismiss all forty-eight workmen. The workmen filed an application under Section 33A on March 29, 1952, claiming that the suspensions were punitive and violated Section 33. The Industrial Tribunal, after considering evidence, held that no enquiry was held by the management before filing the applications but that the Tribunal was in full possession of facts and no prejudice was caused to the workmen. It further held that the order of suspension was not a measure of punishment but an order pending enquiry and proceedings under Section 33, and since there were no Standing Orders, the management's liability to pay wages during suspension remained. On the merits, the Tribunal found that there was a deliberate and unjustified go-slow during pending conciliation proceedings. However, it held that there was no evidence against sixteen of the forty-eight workmen and refused permission to dismiss them. For the remaining thirty-two workmen, instead of granting permission to dismiss, it granted leave to suspend them for seven days, citing contemplated Standing Orders and a Go-Slow Committee's opinion. The workmen's application under Section 33A was rejected. Both parties appealed to the Labour Appellate Tribunal. The workmen withdrew their appeal regarding Section 33A, resulting in the confirmation of the Industrial Tribunal's finding that suspension was not punishment. The Appellate Tribunal, however, held that the suspension was substantive punishment because the notices did not state it was pending enquiry, and the subsequent application for permission to dismiss was mala fide, and dismissed the management's appeal. The management then appealed to the Supreme Court by special leave. The Supreme Court held that the Industrial Tribunal had no power under Section 33 to substitute its own punishment; it could only grant or refuse permission to dismiss. The Appellate Tribunal erred in holding suspension as substantive punishment contrary to the confirmed finding. The finding of no evidence against sixteen workmen was perverse because the evidence against them was the same as against the others. Go-slow was serious misconduct, insidious in nature, and could not be countenanced. Consequently, the Supreme Court allowed the appeals, set aside the Appellate Tribunal's order, and granted the management permission to dismiss all forty-eight workmen.

Headnote

A) Labour Law - Industrial Disputes Act, 1947, Section 33 - Powers of Industrial Tribunal - The Tribunal has no power to substitute its own punishment; it can only grant or refuse permission to dismiss - Held that the Tribunal erred in granting only seven days' suspension instead of dismissal permission (Paras not mentioned).

B) Labour Law - Industrial Disputes Act, 1947, Sections 33 and 33A - Nature of Suspension - Suspension pending enquiry and proceedings under Section 33 is not punitive if no Standing Orders; liability to pay wages remains - Held that Appellate Tribunal erred in treating suspension as substantive punishment (Paras not mentioned).

C) Evidence - Perverse Finding - Industrial Disputes Act, 1947, Section 33 - Tribunal's finding of no evidence against sixteen workmen was perverse when the same evidence existed against the others - Held that permission to dismiss must be granted for all forty-eight workmen (Paras not mentioned).

D) Labour Law - Misconduct - Go-Slow - Go-slow is serious misconduct, insidious in nature, and cannot be countenanced, especially during pending conciliation proceedings - Held that workmen's deliberate go-slow justified dismissal (Paras not mentioned).

E) Appellate Review - Effect of Withdrawal - Withdrawal of workmen's appeal under Section 33A confirmed the Industrial Tribunal's finding that suspension was not punishment; the Appellate Tribunal could not reopen that issue - Held that the management's application was not mala fide (Paras not mentioned).

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Issue of Consideration

Whether the Industrial Tribunal, while deciding an application under Section 33 of the Industrial Disputes Act, 1947 for permission to dismiss workmen, could substitute its own punishment; whether suspension pending enquiry was punishment; whether finding of no evidence against sixteen workmen was perverse.

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Final Decision

The Supreme Court allowed the appeals by the management, set aside the order of the Labour Appellate Tribunal, and granted permission to the management to dismiss all forty-eight workmen under Section 33 of the Industrial Disputes Act, 1947. The Court held that the Industrial Tribunal's finding of no evidence against sixteen workmen was perverse and that the suspension was not a punishment. The workmen's application under Section 33A stood dismissed.

Law Points

  • Legal points not extracted
  • Industrial Tribunal under Section 33 can only grant or refuse permission to dismiss
  • cannot substitute lesser punishment
  • Suspension pending enquiry and proceedings under Section 33 is not punishment unless Standing Orders provide otherwise
  • Finding of no evidence against some workmen when same evidence applies to others is perverse
  • Go-slow is serious misconduct insidious in nature
  • Withdrawal of appeal under Section 33A confirms findings of Industrial Tribunal
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Case Details

1959 LawText (SC) (04) 13

Civil Appeals Nos. 746 and 747 of 1957

1959-04-29

Wanchoo, K.N., Sinha, Bhuvneshwar P., Gajendragadkar, P.B.

Citation not available, 1959 AIR 923, 1959 SCR Supl. (2) 836

M. C. Setalvad, Attorney-General for India; R. C. Prasad

M/s Sasa Musa Sugar Works (P) Ltd.

Shobrati Khan and Others

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Nature of Litigation

Industrial dispute arising out of applications under Section 33 of the Industrial Disputes Act, 1947 for permission to dismiss workmen for go-slow, and a cross-application under Section 33A alleging illegal suspension.

Remedy Sought

The management sought permission under Section 33 to dismiss forty-eight workmen; the workmen sought a declaration of breach of Section 33 and relief under Section 33A.

Filing Reason

The management alleged that the workmen resorted to an unjustified go-slow in January and February 1952 during pending conciliation and adjudication proceedings, leading to suspension and the need for dismissal permission.

Previous Decisions

The Industrial Tribunal granted permission only to suspend thirty-two workmen for seven days, refused permission for sixteen workmen, and dismissed the workmen's Section 33A application. The Labour Appellate Tribunal allowed withdrawal of the workmen's appeal under Section 33A, but dismissed the management's appeal holding that suspension was substantive punishment and the management's application was mala fide.

Issues

Whether the Industrial Tribunal under Section 33 of the Industrial Disputes Act could substitute its own punishment instead of granting or refusing permission to dismiss. Whether the suspension of workmen pending enquiry and proceedings under Section 33 was punitive in the absence of Standing Orders. Whether the finding of no evidence against sixteen workmen was perverse when the same evidence applied to the other thirty-two workmen. Whether the management's application for permission to dismiss was made mala fide due to the wording of the suspension notices.

Submissions/Arguments

The management argued that the Industrial Tribunal could only grant or refuse permission to dismiss and could not substitute its own judgment about the quantum of punishment. The management contended that the suspension was not punishment but an interim order pending enquiry and proceedings under Section 33. The management asserted that the finding of no evidence against sixteen workmen was perverse as the same evidence existed against all forty-eight workmen. The workmen argued that the management's applications under Section 33 had not been preceded by any enquiry into the misconduct and were therefore liable to be rejected. The workmen claimed that the order of suspension amounted to punishment and thus Section 33 had been contravened. The workmen contended that there was no evidence against sixteen of them and that the go-slow was not unjustified.

Ratio Decidendi

The Industrial Tribunal under Section 33 of the Industrial Disputes Act, 1947 has no power to substitute its own punishment; it can only grant or refuse permission to dismiss. Suspension pending enquiry and proceedings under Section 33 is not punitive if no Standing Orders provide otherwise, though the employer remains liable to pay wages during suspension. A finding of no evidence against some workmen when the same evidence applies to others is perverse. Go-slow is serious misconduct, insidious in nature, and cannot be countenanced, particularly during pending conciliation proceedings.

Judgment Excerpts

The only possible order on the applications of the management under s. 33 of the Act was to permit it to dismiss the workmen provided there was evidence against them all. It was not open to the Industrial Tribunal to substitute some other form of punishment and give permission therefor. The finding of the Industrial Tribunal that there was no evidence against sixteen workmen was, on the face of it, perverse, since the evidence against them was the same as against the thirty-two others. Go-slow was serious misconduct, insidious in nature and could not be countenanced.

Procedural History

An adjudication proceeding was pending between the management and its workmen since September 8, 1951. On January 1, 1952, the union issued a notice with forty demands threatening go-slow. Go-slow occurred from January 9 to 12 and again from January 24 to 31, 1952, despite conciliation efforts. The management suspended thirty-three workmen on February 1, 1952, seven more on February 6, and eight more on February 7, giving notices of suspension until further orders. The management filed applications under Section 33 of the Industrial Disputes Act, 1947 on February 6 and February 11, 1952, seeking permission to dismiss the forty-eight workmen. The workmen filed an application under Section 33A on March 29, 1952. The Industrial Tribunal, by award dated September 22, 1952, held that suspension was not punishment, go-slow was unjustified, refused permission for sixteen workmen, granted only seven days' suspension for thirty-two, and dismissed the Section 33A application. Both parties appealed to the Labour Appellate Tribunal. The workmen withdrew their appeal regarding Section 33A, and the Appellate Tribunal dismissed the management's appeal on June 3, 1955, and May 21, 1956. The management then appealed to the Supreme Court by special leave.

Acts & Sections

  • Industrial Disputes Act, 1947: Section 33, Section 33A
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