Bombay High Court Allows Management to Conduct Enquiry Against Employee Subject to Suspension and Subsistence Allowance — Employee Offers to Waive Back Wages for Continuity. The court sustained the management's right to conduct an enquiry subject to suspension and subsistence allowance, while noting the employee's offer to waive back wages for continuity of service.

High Court: Bombay High Court Bench: AURANGABAD
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Case Note & Summary

The case involves a writ petition filed by Smt. Mohinibai Badriprasad Agrawal Shikshan Prasarak Mandal and the Incharge Head Master of Mahatma Jyotiba Fule Secondary School against Shri Gokul s/o Pitambar Patil and the Education Officer (Secondary), Zilla Parishad, Nandurbar. The dispute arose from an alleged oral termination of the employee on 21/06/2010. The petitioners sought to conduct a disciplinary enquiry against the respondent employee. The court, after hearing the parties on multiple dates, indicated that the management's right to conduct an enquiry would be sustained subject to placing the employee under suspension from the date of alleged oral termination and paying subsistence allowance as per rules, relying on the Supreme Court's observations in Vidya Vikas Mandal & Anr vs The Education Officer & Another. The respondent employee, through his advocate, expressed willingness to waive all back wages on condition of continuity of service and that no disciplinary proceedings be initiated on old charges. The petitioners' advocate sought instructions from the management's President and Secretary and was to make a statement on 18/08/2016. The court adjourned the matter to that date, clarifying that no further submissions would be entertained. The judgment was delivered on 18th August 2016 by Justice Ravindra V. Ghuge.

Headnote

A) Service Law - Disciplinary Enquiry - Right of Management - The management's right to conduct an enquiry against an employee is sustained subject to placing the employee under suspension from the date of alleged oral termination and paying subsistence allowance as per rules, following the observations in Vidya Vikas Mandal & Anr vs The Education Officer & Another, 2007(3) Mh.L.J. 801 = 2007(11) SCC 352 (Paras 2-3).

B) Service Law - Back Wages - Waiver - The employee offered to waive all back wages on condition of continuity of service and no disciplinary proceedings on old charges, which the court considered (Para 3).

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Issue of Consideration

Whether the management's right to conduct an enquiry against an employee can be sustained without placing the employee under suspension and paying subsistence allowance, and whether the employee's offer to waive back wages for continuity of service is acceptable.

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Final Decision

The court sustained the management's right to conduct an enquiry subject to placing the employee under suspension from 21/06/2010 and paying subsistence allowance as per rules. The matter was adjourned to 18/08/2016 for the petitioners to make a statement on the employee's offer to waive back wages.

Law Points

  • Right of management to conduct disciplinary enquiry
  • Suspension pending enquiry
  • Payment of subsistence allowance
  • Waiver of back wages for continuity of service
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Case Details

2016 LawText (BOM) (08) 58

WRIT PETITION NO. 6043 OF 2014

2016-08-18

Ravindra V. Ghuge

Shri Bagul D.S. and Shri G.D.Jain for Petitioners, Shri S P Brahme for Respondent 1, Shri P.N.Kutti for Respondent 2

Smt. Mohinibai Badriprasad Agrawal Shikshan Prasarak Mandal, Nandurbar and The Incharge Head Master, Mahatma Jyotiba Fule Secondary School, Lahan Kadwan

Shri Gokul s/o Pitambar Patil and The Education Officer (Secondary), Zilla Parishad, Nandurbar

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Nature of Litigation

Writ petition challenging the right of management to conduct disciplinary enquiry against an employee

Remedy Sought

Petitioners sought to conduct an enquiry against the respondent employee

Filing Reason

Alleged oral termination of the employee on 21/06/2010 and dispute over management's right to conduct enquiry

Issues

Whether the management's right to conduct an enquiry can be sustained without suspension and subsistence allowance Whether the employee's offer to waive back wages for continuity is acceptable

Submissions/Arguments

Petitioners argued for right to conduct enquiry Respondent employee offered to waive back wages for continuity of service and no disciplinary proceedings on old charges

Ratio Decidendi

The management's right to conduct a disciplinary enquiry is sustained subject to placing the employee under suspension and paying subsistence allowance, following the principles in Vidya Vikas Mandal.

Judgment Excerpts

the right of the Management to conduct an enquiry would be sustained subject to placing the respondent/ employee under suspension from the date of alleged oral termination 21/06/2010 and on payment of subsistence allowance as per rules Mr.Brahme submitted on instructions that even now the respondent is willing to waive all back wages on the condition that he would be given continuity of service and there shall be no disciplinary proceedings by digging up the old charges.

Procedural History

The writ petition was filed in 2014. The court heard the parties on 27/07/2016, 11/08/2016, and 16/08/2016, and passed an interim order on 16/08/2016, adjourning to 18/08/2016 for final disposal.

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