Bombay High Court Allows Employer's Petition for Approval of Dismissal Under Section 33(2)(b) of Industrial Disputes Act, 1947 — Employee Found Guilty of Theft in Domestic Enquiry. The Court held that the Industrial Tribunal erred in reappreciating evidence when the enquiry was fair and the findings were not perverse, and granted approval for dismissal.

High Court: Bombay High Court In Favour of Prosecution
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Case Note & Summary

The petitioner, Century Textile & Industries Ltd., filed a writ petition challenging the order of the Industrial Tribunal, Thane, dated 10th March 1995, which rejected its application under Section 33(2)(b) of the Industrial Disputes Act, 1947 seeking approval for the dismissal of the respondent employee, Shri Bhagirathmal D. Sharma. The respondent was employed as an attendant in the Bardana Department (Scrapyard) of the petitioner company. On 28th January 1987, a truck (MMS-2411) came to load scrap material. The respondent, responsible for supervising loading, conspired with scrap dealer Insan Ali and watchman D.B. Waghmare to load additional valuable items such as bearings, pipes, copper tubes, and brass valves beyond the authorized scrap. The truck was checked at the factory gate by the Security Jamadar, and a panchnama was drawn in the presence of the store-in-charge and Security Officer. A charge-sheet dated 17th February 1987 was issued to the respondent under Model Standing Orders clauses 24(d) (theft, fraud, or dishonesty) and 24(m) (gross negligence). A joint domestic enquiry was conducted against the respondent and Waghmare; Waghmare resigned, but the enquiry continued against the respondent. The enquiry officer found the respondent guilty, and the management dismissed him from service. Since a reference (IT No. 51 of 1982) was pending before the Tribunal, the employer sought approval under Section 33(2)(b). The Tribunal rejected the application, holding that the enquiry was not fair and that the findings were perverse. The High Court, per Justice B.H. Marlapalle, allowed the writ petition, setting aside the Tribunal's order. The Court held that the Tribunal exceeded its jurisdiction by reappreciating evidence when the enquiry was fair and proper. The Court noted that the respondent was given full opportunity to defend, the enquiry officer's findings were based on evidence, and there was no perversity. The Court granted approval for the dismissal, observing that the employer had made out a prima facie case. The writ petition was allowed, and the Tribunal's order was quashed.

Headnote

A) Industrial Law - Approval under Section 33(2)(b) - Scope of Tribunal's Power - The Tribunal, while considering an application under Section 33(2)(b) of the Industrial Disputes Act, 1947, is not to reappreciate evidence if the domestic enquiry was fair and proper and the findings are not perverse. The employer need only make out a prima facie case for approval. (Paras 1-10)

B) Industrial Law - Misconduct - Theft and Dishonesty - Model Standing Orders Clauses 24(d) and 24(m) - The employee, an attendant, was found to have conspired with others to load excess scrap material onto a truck, amounting to theft and gross negligence. The domestic enquiry held him guilty, and the High Court upheld the dismissal as the findings were based on evidence. (Paras 2-10)

C) Industrial Law - Enquiry - Fairness - Joint Enquiry - The joint enquiry against the employee and another was not vitiated merely because the other employee resigned; the enquiry was conducted fairly and the employee was given full opportunity to defend. (Paras 2-10)

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Issue of Consideration

Whether the Industrial Tribunal erred in refusing approval under Section 33(2)(b) of the Industrial Disputes Act, 1947 for dismissal of an employee found guilty of theft and dishonesty in a domestic enquiry

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Final Decision

The High Court allowed the writ petition, set aside the order of the Industrial Tribunal dated 10th March 1995, and granted approval under Section 33(2)(b) of the Industrial Disputes Act, 1947 for the dismissal of the respondent employee from service.

Law Points

  • Approval under Section 33(2)(b) of Industrial Disputes Act
  • 1947 requires employer to prove prima facie case and that enquiry was fair and proper
  • Tribunal cannot reappreciate evidence if enquiry is fair
  • Misconduct of theft and dishonesty under Model Standing Orders clauses 24(d) and 24(m) established
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Case Details

2005 LawText (BOM) (09) 85

Writ Petition No. 6156 of 1996

2005-09-16

B.H. Marlapalle

Mr. C.V. Pavaskar for the petitioner; Mr. Amol P. Mhatre i/b P.K. Dhakephalkar for the respondent no.1

The Century Textile & Industries Ltd.

Shri Bhagirathmal D. Sharma & Anr.

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Nature of Litigation

Writ petition challenging the order of the Industrial Tribunal rejecting employer's application under Section 33(2)(b) of the Industrial Disputes Act, 1947 for approval of dismissal of an employee

Remedy Sought

The petitioner employer sought quashing of the Tribunal's order and grant of approval for the dismissal of the respondent employee

Filing Reason

The Industrial Tribunal refused to grant approval for the dismissal of the employee, holding that the domestic enquiry was not fair and the findings were perverse

Previous Decisions

The Industrial Tribunal by order dated 10th March 1995 in Application (IT) No.4 of 1989 rejected the employer's application under Section 33(2)(b) of the Industrial Disputes Act, 1947

Issues

Whether the Industrial Tribunal erred in refusing approval under Section 33(2)(b) of the Industrial Disputes Act, 1947 by reappreciating evidence when the domestic enquiry was fair and proper Whether the findings of the enquiry officer were perverse or based on no evidence

Submissions/Arguments

The petitioner argued that the domestic enquiry was conducted fairly, the employee was given full opportunity, and the findings were based on evidence; the Tribunal exceeded its jurisdiction by acting as an appellate authority The respondent argued that the enquiry was not fair, the findings were perverse, and the Tribunal correctly rejected the application

Ratio Decidendi

In an application under Section 33(2)(b) of the Industrial Disputes Act, 1947, the Tribunal's jurisdiction is limited to examining whether the domestic enquiry was fair and proper and whether the findings are perverse. If the enquiry is fair and the findings are based on evidence, the Tribunal must grant approval and cannot reappreciate evidence as an appellate authority.

Judgment Excerpts

The Tribunal has exceeded its jurisdiction by reappreciating the evidence and coming to a conclusion that the findings of the enquiry officer were perverse. The enquiry was fair and proper and the findings of the enquiry officer were based on evidence.

Procedural History

The employer filed Application (IT) No.4 of 1989 under Section 33(2)(b) of the Industrial Disputes Act, 1947 before the Industrial Tribunal, Thane, seeking approval for dismissal of the employee. The Tribunal rejected the application on 10th March 1995. The employer then filed Writ Petition No. 6156 of 1996 before the Bombay High Court, which was allowed on 16th September 2005.

Acts & Sections

  • Industrial Disputes Act, 1947: 33(2)(b)
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