Supreme Court Allows Workman's Appeal in Industrial Dispute — Scope of Enquiry Under Section 33(2)(b) of Industrial Disputes Act, 1947 Clarified. Labour Court's Order Rejecting Approval for Dismissal Restored as It Did Not Exceed Its Limited Jurisdiction.

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Case Note & Summary

The appeal arose from a dispute between John D'Souza, a workman, and the Karnataka State Road Transport Corporation (KSRTC). The workman joined as a bus conductor in 1984 and was a union activist. He remained absent from duty from 18 August 2005 without prior permission. After a notice, he was served with a charge sheet on 23 June 2006. A domestic enquiry was held, and the workman participated but failed to produce evidence despite multiple adjournments. The enquiry officer found the charges proved, and the disciplinary authority dismissed him from service on 11 October 2010. Since an industrial dispute was pending before the Labour Court, the Corporation sought approval under Section 33(2)(b) of the Industrial Disputes Act, 1947. The Labour Court initially held the enquiry fair but later rejected the approval application, finding that the workman had applied for leave and reported for duty, and that there was victimisation. The Corporation challenged this, leading to multiple rounds of litigation. The Division Bench of the High Court set aside the Labour Court's order, holding that the Labour Court exceeded its jurisdiction by considering additional evidence not part of the domestic enquiry. The Supreme Court allowed the appeal, setting aside the Division Bench's order and restoring the Labour Court's order, holding that the Labour Court's jurisdiction under Section 33(2)(b) is limited but includes considering allegations of victimisation if supported by material on record. The Court found that the Labour Court had not exceeded its jurisdiction and that the Division Bench erred in interfering.

Headnote

A) Industrial Law - Section 33(2)(b) - Scope of Enquiry - The Labour Court's jurisdiction under Section 33(2)(b) of the Industrial Disputes Act, 1947 is limited to examining whether a prima facie case for dismissal exists and whether the employer has complied with the conditions of the section, including payment of one month's wages. The court cannot permit parties to adduce fresh evidence not produced in the domestic enquiry or act as an appellate authority. However, the court may consider allegations of victimisation or unfair labour practice if supported by material on record. (Paras 3, 14-20)

B) Industrial Law - Section 33(2)(b) - Prima Facie Case - The test for a prima facie case is whether on the evidence led, it was possible to arrive at the conclusion in question, not whether that was the only conclusion possible. The Labour Court cannot substitute its own judgment for that of the disciplinary authority. (Paras 8, 20)

C) Industrial Law - Section 33(2)(b) - Additional Evidence - The Labour Court cannot rely on documents or evidence that were not part of the domestic enquiry proceedings, as the scope of enquiry under Section 33(2)(b) is restricted to the material already on record. (Paras 11, 20)

D) Industrial Law - Section 33(2)(b) - Victimisation - The Labour Court may consider whether the dismissal amounts to victimisation or unfair labour practice, but such finding must be based on material that was part of the domestic enquiry or otherwise available on record, not on fresh evidence adduced before the Labour Court. (Paras 10, 20)

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Issue of Consideration

What is the scope and ambit of the enquiry to be held by a Labour Court or Industrial Tribunal while granting or refusing approval for the discharge or dismissal of a workman under Section 33(2)(b) of the Industrial Disputes Act, 1947?

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Final Decision

The Supreme Court allowed the appeal, set aside the impugned judgment of the Division Bench of the High Court dated 30 November 2018, and restored the order of the First Additional Labour Court, Bangalore dated 28 October 2016 rejecting the Corporation's application under Section 33(2)(b) of the Industrial Disputes Act, 1947.

Law Points

  • Section 33(2)(b) of the Industrial Disputes Act
  • 1947
  • scope of enquiry
  • prima facie case
  • victimisation
  • unfair labour practice
  • additional evidence
  • domestic enquiry
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Case Details

2019 LawText (SC) (10) 16

Civil Appeal No. 8042 of 2019 (Arising out of SLP(C) No. 6371 of 2019)

2019-10-16

Surya Kant, J.

John D'Souza

Karnataka State Road Transport Corporation

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Nature of Litigation

Civil appeal against judgment of Division Bench of High Court of Karnataka in writ appeal concerning approval of dismissal under Section 33(2)(b) of Industrial Disputes Act, 1947.

Remedy Sought

The appellant workman sought setting aside of the Division Bench order and restoration of the Labour Court's order rejecting the Corporation's application for approval of dismissal.

Filing Reason

The workman was dismissed from service for unauthorized absence; the Corporation sought approval under Section 33(2)(b) as an industrial dispute was pending; the Labour Court rejected approval; the High Court in writ appeal set aside the Labour Court's order.

Previous Decisions

Labour Court initially held enquiry fair but later rejected approval; Single Judge dismissed Corporation's writ petition; Division Bench in earlier writ appeal set aside and remanded; Labour Court again rejected approval; Single Judge upheld; Division Bench in impugned judgment set aside Labour Court's order.

Issues

Whether the Labour Court exceeded its jurisdiction under Section 33(2)(b) by considering additional evidence and acting as an appellate authority? What is the scope of enquiry under Section 33(2)(b) of the Industrial Disputes Act, 1947?

Submissions/Arguments

Appellant workman argued that the Labour Court correctly considered allegations of victimisation and that the Division Bench erred in interfering. Respondent Corporation argued that the Labour Court exceeded its jurisdiction by considering fresh evidence not part of the domestic enquiry and by acting as an appellate authority.

Ratio Decidendi

The jurisdiction of the Labour Court under Section 33(2)(b) of the Industrial Disputes Act, 1947 is limited to examining whether a prima facie case for dismissal exists and whether the employer has complied with the conditions of the section. The court cannot permit parties to adduce fresh evidence not produced in the domestic enquiry or act as an appellate authority. However, the court may consider allegations of victimisation or unfair labour practice if supported by material on record. The test for a prima facie case is whether on the evidence led, it was possible to arrive at the conclusion in question, not whether that was the only conclusion possible.

Judgment Excerpts

A prima facie case does not mean a case proved to the hilt, but a case which, can be said to be established, if the evidence, which is led in support of the same, were believed. The Labour Court while passing the impugned order has not only traveled beyond the order of remand, but has acted like an Appellate Authority.

Procedural History

The workman was dismissed on 11.10.2010. The Corporation filed application under Section 33(2)(b) before Labour Court. Labour Court initially held enquiry fair on 16.03.2012 but later rejected approval on 06.11.2013. Corporation's writ petition dismissed by Single Judge on 21.11.2014. Corporation filed Writ Appeal No. 30/2015, allowed by Division Bench on 14.07.2016 remanding matter. Labour Court again rejected approval on 28.10.2016. Corporation's writ petition dismissed by Single Judge on 20.09.2017. Corporation filed Writ Appeal No. 6609/2017, allowed by Division Bench on 30.11.2018. Workman appealed to Supreme Court.

Acts & Sections

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