High Court of Bombay Upholds Reinstatement of Bank Employee in Disciplinary Matter — Full Back Wages Awarded for Flawed Inquiry. Syndicate Bank's Dismissal of Clerk for Alleged Misconduct Set Aside as Inquiry Was Vitiated by Bias and Non-Supply of Documents.

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

The petitioner, Syndicate Bank, a nationalised bank, challenged the Part-I Award dated 28.5.2003 and Part-II Award dated 7.9.2010 passed by the Central Government Industrial Tribunal No.2 in Reference No.CGIT-2/31 of 2001. The Tribunal had directed reinstatement of the respondent-workman, Vinod Kumar Amin, with continuity of service and full back wages. The respondent had joined the bank in 1977 as a clerk and worked for 22 years. He was an active union member. A charge-sheet was issued on 23.7.1998 alleging misconduct under clause 19.5 of the Bipartite Settlement, claiming that he was carrying on business in the name of M/s.Amigo Industries, a partnership firm with his brother and another person, which had availed credit facilities from the bank and defaulted. A domestic inquiry was held, and the respondent was dismissed from service on 30.6.1999. The respondent raised an industrial dispute, which was referred to the Tribunal. The Tribunal held that the inquiry was vitiated due to bias and non-supply of documents, and that the findings were perverse. The Tribunal set aside the dismissal and ordered reinstatement with full back wages. The High Court upheld the Tribunal's award, finding no perversity in the Tribunal's findings. The court noted that the Inquiry Officer was biased and that the workman was not given a fair opportunity. The court also held that the punishment of dismissal was disproportionate. The petition was dismissed, and the award was confirmed.

Headnote

A) Industrial Law - Domestic Inquiry - Bias - Natural Justice - The inquiry was vitiated as the Inquiry Officer was biased and the workman was not supplied with relevant documents, violating principles of natural justice. The court held that the inquiry was not fair and proper (Paras 10-25).

B) Industrial Law - Reinstatement - Back Wages - Full back wages awarded as the dismissal was set aside due to flawed inquiry and the workman had been out of service for a long period. The court upheld the Tribunal's award of reinstatement with continuity of service and full back wages (Paras 30-38).

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Issue of Consideration

Whether the Industrial Tribunal was justified in setting aside the dismissal of the respondent-workman and ordering reinstatement with full back wages, and whether the inquiry conducted by the bank was fair and proper.

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Final Decision

The High Court dismissed the writ petition and upheld the Industrial Tribunal's award directing reinstatement of the respondent-workman with continuity of service and full back wages.

Law Points

  • Natural justice
  • bias in domestic inquiry
  • non-supply of documents
  • perversity of findings
  • proportionality of punishment
  • reinstatement with full back wages
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Case Details

2014 LawText (BOM) (04) 53

WRIT PETITION NO.14 OF 2011

2014-04-11

G. S. KULKARNI, J.

Mr.Atul G.Damle i/b. Mr.Piyush Shah, for Petitioner. Mr.R.D.Bhatt, for Respondent.

Syndicate Bank

Vinod Kumar Amin

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India challenging the award of the Central Government Industrial Tribunal.

Remedy Sought

Petitioner bank sought to quash the Tribunal's award directing reinstatement with full back wages.

Filing Reason

The bank challenged the Tribunal's award on the ground that the inquiry was fair and the findings were correct.

Previous Decisions

The Industrial Tribunal had set aside the dismissal and ordered reinstatement with full back wages.

Issues

Whether the domestic inquiry was vitiated by bias and non-supply of documents? Whether the Tribunal's award of reinstatement with full back wages was justified?

Submissions/Arguments

Petitioner argued that the inquiry was fair and the findings were based on evidence. Respondent argued that the inquiry was biased and documents were not supplied, violating natural justice.

Ratio Decidendi

A domestic inquiry must be conducted fairly and in accordance with principles of natural justice. Bias on the part of the Inquiry Officer and non-supply of relevant documents vitiate the inquiry. The findings of the Tribunal on such issues are not to be interfered with unless perverse.

Judgment Excerpts

By this petition under Article 226 of the Constitution of India, the Petitioner a nationalised bank challenges the Part-I Award dated 28.5.2003 and the Part-II Award dated 7.9.2010 passed by the Presiding Officer, Central Government Industrial Tribunal no.2 in Reference No.CGIT-2/31 of 2001. The Tribunal held that the inquiry was vitiated due to bias and non-supply of documents, and that the findings were perverse.

Procedural History

Charge-sheet issued on 23.7.1998; domestic inquiry held; dismissal on 30.6.1999; industrial dispute raised; reference to Tribunal; Part-I Award on 28.5.2003; Part-II Award on 7.9.2010; writ petition filed in 2011; judgment on 11.4.2014.

Acts & Sections

  • Constitution of India: Article 226
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