Bombay High Court Allows Employer's Petition Challenging Reinstatement Order — Employee Abandoned Service by Taking Up Employment Abroad Without Intimation. Clause 13.4 of Certified Standing Orders Validly Invoked to Terminate Employment for Abandonment of Service Under Industrial Disputes Act, 1947.

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

The Petitioner, Infomedia India Ltd., engaged the First Respondent as a machine operator at its printing establishment in Mumbai. On 22 June 1992, the First Respondent applied for leave from 1 July to 29 August 1992, claiming he would tour South India. The leave was sanctioned, but instead of touring India, the First Respondent went to South Africa and took up employment with a printing company called Golden Era, earning Rs.15,000 per month compared to his Indian wage of Rs.4,000 per month. He did not report for duty after the expiry of leave. On 15 September 1992, the Petitioner informed the First Respondent that under Clause 13.4 of the Certified Standing Orders, he had lost his lien on the job and his name was removed from the muster roll. The First Respondent claimed he learned of this communication while in South Africa and returned to India in December 1992 because he could not tolerate the atmosphere and food abroad. He moved the Conciliation Officer on 18 March 1993, and after failure of conciliation, a reference was made to the Industrial Court under Section 10 of the Industrial Disputes Act, 1947. The First Respondent alleged that he went to South Africa at the behest of the Petitioner's General Manager, Mr. V.V. Kanuga. The Industrial Court held that the termination was illegal and ordered reinstatement with full back wages. The Petitioner challenged this order by way of a writ petition. The High Court found that the Industrial Court's finding that the First Respondent did not intend to abandon service was perverse and unsupported by evidence. The First Respondent's own deposition showed he took up employment in South Africa without informing the Petitioner, and his claim that he acted on the General Manager's instructions was not credible. The High Court held that the First Respondent's conduct clearly constituted abandonment of service under Clause 13.4 of the Certified Standing Orders, and the termination was valid. The impugned order of the Industrial Court was quashed and set aside, and the writ petition was allowed.

Headnote

A) Service Law - Abandonment of Service - Loss of Lien - Clause 13.4 of Certified Standing Orders - The employee applied for leave to tour South India but instead went to South Africa and took up employment there. Upon expiry of leave, he did not report for duty. The employer invoked Clause 13.4 of the Certified Standing Orders to treat the employee as having lost his lien on the job. The Industrial Court's finding that the employee did not intend to abandon service was perverse and based on no evidence. Held that the employee's conduct clearly constituted abandonment of service, and the termination was valid. (Paras 1-10)

B) Industrial Disputes Act, 1947 - Section 10 - Reference - The Industrial Court had jurisdiction to adjudicate the dispute, but its order of reinstatement with full back wages was set aside as the termination was justified under the Standing Orders. (Paras 3-10)

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Issue of Consideration

Whether the termination of the First Respondent for abandonment of service was justified under the Certified Standing Orders and whether the Industrial Court erred in reinstating him with back wages.

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Final Decision

The High Court allowed the writ petition, quashed and set aside the impugned order of the Industrial Court, and held that the termination of the First Respondent was valid.

Law Points

  • Abandonment of service
  • loss of lien
  • certified standing orders
  • termination without domestic enquiry
  • Industrial Disputes Act
  • 1947
  • Section 10 reference
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Case Details

2006 LawText (BOM) (08) 84

WRIT PETITION NO.2512 OF 2003

2006-08-03

Dr. D.Y. Chandrachud, J.

Mr. K.M. Naik with Mr. S.P. Dhulapkar for the Petitioner, Mr. S.N. Deshpande for Respondent No.1

Infomedia India Ltd.

Suhas Shripad Gadre & Anr.

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Nature of Litigation

Writ petition challenging the order of the Industrial Court reinstating the employee with back wages.

Remedy Sought

The Petitioner sought to quash the Industrial Court's order of reinstatement with full back wages.

Filing Reason

The Petitioner challenged the Industrial Court's finding that the termination was illegal and the order of reinstatement with back wages.

Previous Decisions

The Industrial Court had ordered reinstatement with full back wages in favour of the First Respondent.

Issues

Whether the First Respondent abandoned his service and lost his lien under Clause 13.4 of the Certified Standing Orders. Whether the Industrial Court's finding that the termination was illegal was perverse.

Submissions/Arguments

The Petitioner argued that the First Respondent applied for leave to tour South India but instead went to South Africa and took up employment, thus abandoning service. The First Respondent contended that he went to South Africa at the behest of the General Manager and did not intend to abandon service.

Ratio Decidendi

An employee who applies for leave for a specific purpose but instead engages in employment elsewhere without informing the employer, and fails to report for duty after expiry of leave, abandons service. The employer is entitled to invoke the Certified Standing Orders to treat the employee as having lost his lien on the job. The Industrial Court's finding that there was no abandonment was perverse and based on no evidence.

Judgment Excerpts

The evidence that has emerged from the record shows that it is now an undisputed position that the First Respondent never proceeded on any tour within the territory of India but instead, took up employment in South Africa with a Company by the name of Golden Era which carried on the business of printing. The Industrial Court has come to the conclusion that the First Respondent did not intend to abandon his service. That finding is perverse and is based on no evidence whatsoever.

Procedural History

The First Respondent moved the Conciliation Officer on 18 March 1993. After failure of conciliation, a reference was made to the Industrial Court under Section 10 of the Industrial Disputes Act, 1947. The Industrial Court ordered reinstatement with full back wages. The Petitioner challenged this order by filing Writ Petition No.2512 of 2003 before the Bombay High Court.

Acts & Sections

  • Industrial Disputes Act, 1947: Section 10
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