Supreme Court Allows Management's Appeal in Service Termination Case Due to Compliance with Rule 37(6) of Maharashtra Employees of Private Schools Rules. The Court held that the Enquiry Committee's combined report, signed by all members including a dissenting member, satisfied procedural requirements, distinguishing the case from Vidya Vikas Mandal.

  • 8
Judgement Image
Font size:
Print

Case Note & Summary

The dispute arose from the termination of services of the original respondent, a Head Mistress, after a disciplinary enquiry. A charge-sheet with 53 charges was issued on 15 January 1998. An Enquiry Committee of three members was constituted under Rule 36 of the Maharashtra Employees of Private Schools (Conditions of Service) Rules 1981. The Committee submitted a combined report on 29 June 1998, with one member dissenting. The employee's services were terminated on 3 July 1998. The School Tribunal rejected the appeal on 27 April 2005. The High Court, in a writ petition, set aside the termination solely on the ground that there was no evidence that the three members had assembled and deliberated before preparing their reports, thus breaching Rule 37(6). The High Court directed payment of 50% arrears of salary from termination until retirement in 2009. The management appealed to the Supreme Court. The Supreme Court examined the record and found that the Committee had met on 14 June 1998, received individual findings on 18 June 1998, and on 29 June 1998, the compiled report was read, approved with amendments, and signed by all three members, with one dissenting. The Court held that the requirements of Rule 37(6) were fulfilled, distinguishing the case from Vidya Vikas Mandal v. Education Officer where reports were submitted beyond the prescribed period. The Supreme Court set aside the High Court's judgment. However, since the employee had died and the legal representatives were pursuing the case, the parties agreed to an ex gratia payment of Rs. 1,50,000 by the management in full and final settlement. The appeals were disposed of accordingly.

Headnote

A) Service Law - Disciplinary Enquiry - Rule 37(6) of the Maharashtra Employees of Private Schools (Conditions of Service) Rules 1981 - Combined Report - The Enquiry Committee of three members must submit a combined report, whether consenting or dissenting. In the present case, the Committee met, received individual findings, prepared a compiled report, and all three members signed the final report, with one dissenting. Held that the requirements of Rule 37(6) were duly fulfilled (Paras 3-5).

B) Service Law - Precedent - Distinguishing Facts - Vidya Vikas Mandal v. Education Officer, (2007) 2 SCALE 589 - In that case, two members submitted reports beyond the prescribed period, whereas in the present case all reports were submitted within time and a combined report was prepared. Held that the decision in Vidya Vikas Mandal is distinguishable on facts (Paras 5-6).

C) Service Law - Termination - Ex Gratia Payment - After the employee's death, the Supreme Court, on consent of parties, directed the management to pay Rs. 1,50,000 as ex gratia payment in full and final settlement, closing the proceedings (Para 7).

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the requirements of Rule 37(6) of the Maharashtra Employees of Private Schools (Conditions of Service) Rules 1981 were fulfilled in the disciplinary enquiry leading to termination of the employee.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The Supreme Court allowed the appeals, set aside the High Court's judgments, and directed the management to pay Rs. 1,50,000 as ex gratia payment to the respondents within one month, in full and final settlement. No order as to costs.

Law Points

  • Rule 37(6) of the Maharashtra Employees of Private Schools (Conditions of Service) Rules 1981 requires a combined report by all three members of the Enquiry Committee
  • whether consenting or dissenting
  • factual compliance with procedural requirements is essential
  • Vidya Vikas Mandal v. Education Officer distinguished on facts.
Subscribe to unlock Law Points Subscribe Now

Case Details

2019 LawText (SC) (7) 68

Civil Appeal Nos.5296-5297/2019 (Arising out of SLP(C) Nos.23318-23319/2017)

2019-07-09

Dr Dhananjaya Y Chandrachud, Indira Banerjee

Shri Yogiraj Shikshan Prasarak Mandal & Ors.

Vidya (Dead) Thru Lrs. & Anr.

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Civil appeal against High Court judgment setting aside termination of service on procedural grounds.

Remedy Sought

Appellants sought to set aside the High Court's order directing payment of 50% arrears of salary and to uphold the termination.

Filing Reason

The High Court set aside termination on the ground that the Enquiry Committee did not assemble and deliberate before submitting reports, allegedly violating Rule 37(6).

Previous Decisions

School Tribunal rejected employee's appeal on 27 April 2005; High Court allowed writ petition on 16 December 2015 and dismissed review on 1 March 2017.

Issues

Whether the Enquiry Committee complied with Rule 37(6) of the Maharashtra Employees of Private Schools (Conditions of Service) Rules 1981 by submitting a combined report after deliberations.

Submissions/Arguments

Appellants argued that the Committee met on several dates, individual findings were received, and a compiled report was approved on 29 June 1998, thus fulfilling Rule 37(6). They distinguished Vidya Vikas Mandal where reports were submitted beyond the prescribed period. Respondents argued that the third member's affidavit before the Tribunal showed procedural irregularities, and the requirements of Rule 37(6) were not fulfilled.

Ratio Decidendi

The requirements of Rule 37(6) of the Maharashtra Employees of Private Schools (Conditions of Service) Rules 1981 are fulfilled when the Enquiry Committee of three members meets, receives individual findings, prepares a compiled report, and all members sign the final report, even if one dissents. The decision in Vidya Vikas Mandal is distinguishable on facts where reports were submitted beyond the prescribed period.

Judgment Excerpts

It is evident that the requirements of Rule 37(6) of the 1981 Rules were duly fulfilled. The factual position in Vidya Vikas Mandal (supra) is clearly distinguishable from the facts of the present case. We have already noted that the requirements of Rule 37(6) of the 1981 Rules were fulfilled.

Procedural History

Charge-sheet issued on 15 January 1998; Enquiry Committee submitted report on 29 June 1998; termination on 3 July 1998; School Tribunal rejected appeal on 27 April 2005; High Court allowed writ petition on 16 December 2015; review dismissed on 1 March 2017; Supreme Court granted leave and disposed of appeals on 9 July 2019.

Acts & Sections

  • Maharashtra Employees of Private Schools (Conditions of Service) Rules 1981: Rule 36, Rule 37(6)
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
Supreme Court Supreme Court Allows Management's Appeal in Service Termination Case Due to Compliance with Rule 37(6) of Maharashtra Employees of Private Schools Rules. The Court held that the Enquiry Committee's combined report, signed by all members including a d...
Related Judgement
Supreme Court Supreme Court Allows ESI Corporation's Appeal in Directors' Remuneration Case — Directors Receiving Remuneration Held to Be 'Employees' Under ESI Act. The Court ruled that Directors of a company who receive remuneration for services rendered fall w...