Case Note & Summary
The petitioner, Divisional Railway Manager, South Western Railway, Hubli, challenged the award dated 03.09.2007 passed by the Central Government Industrial Tribunal cum Labour Court, Bangalore in CR 35/1994. The respondent workman, B.H. Kakargal (since deceased, represented by his wife), joined railway service as a Khalasi on 17.11.1962 and was promoted to various positions, lastly as Driver 'B' in 1984. On 02.09.1987, while on duty as a driver in Train No.MU-4 UP Del. Goods traveling from CNR to MAO station, an accident occurred. On 10.10.1987, he was served with a charge sheet under Rule 9 of the Railway Servants (Discipline and Appeal) Rules, 1968. A domestic enquiry was held, and the workman was found guilty of misconduct. The disciplinary authority imposed the penalty of removal from service. The workman raised an industrial dispute, which was referred to the Central Government Industrial Tribunal. The Tribunal, by its award dated 03.09.2007, held that the enquiry was valid and the workman was guilty of misconduct, but directed the management to pay compensation of Rs. 1,00,000 in lieu of full and final settlement of the workman's claim. The petitioner challenged this award, arguing that once the enquiry was found valid and misconduct proved, the Tribunal had no power to award compensation. The respondent argued that the Tribunal had discretion under Section 11A of the Industrial Disputes Act, 1947. The High Court considered the question whether the Tribunal, having found the enquiry valid and misconduct proved, could direct payment of compensation. The Court held that the Tribunal's power under Section 11A is to modify the punishment but not to grant compensation when the enquiry is valid and misconduct is proved. The Court found that the Tribunal had exceeded its jurisdiction. The Court set aside the award and rejected the reference in its entirety.
Headnote
A) Industrial Law - Misconduct - Compensation in lieu of reinstatement - Section 11A of Industrial Disputes Act, 1947 - Where a domestic enquiry is held valid and the workman is found guilty of misconduct, the Tribunal cannot award compensation in lieu of reinstatement. The power under Section 11A is to modify the punishment but not to grant compensation when the enquiry is valid and misconduct is proved. (Paras 1-6)
B) Railway Servants (Discipline and Appeal) Rules, 1968 - Rule 9 - Charge sheet - Validity of enquiry - The charge sheet issued under Rule 9 was valid and the enquiry was conducted in accordance with law. The Tribunal's finding that the workman was guilty of misconduct was upheld. (Paras 2-4)
Issue of Consideration
Whether the Central Government Industrial Tribunal, having found that the workman was guilty of misconduct in an enquiry held in accordance with law, can direct payment of compensation by the management in lieu of full and final settlement of the claim of a workman?
Final Decision
The High Court allowed the writ petition, set aside the award dated 03.09.2007 passed by the Central Government Industrial Tribunal cum Labour Court, Bangalore in CR 35/1994, and rejected the reference in its entirety.
Law Points
- Industrial Tribunal cannot award compensation in lieu of reinstatement when domestic enquiry is valid and misconduct is proved
- Section 11A of Industrial Disputes Act
- 1947 does not confer power to grant compensation in such cases
- Railway Servants (Discipline and Appeal) Rules
- 1968 Rule 9
Case Details
2013 LawText (KAR) (02) 21
Writ Petition No.6701 of 2008 (L-TER)
R.M. Kulkarni for petitioner, M.H. Bhat for respondent
The Divisional Railway Manager, South Western Railway, Hubli
Smt. Kashavva (wife of late B.H. Kakargal)
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Nature of Litigation
Writ petition under Articles 226 and 227 of Constitution of India challenging an award of the Central Government Industrial Tribunal cum Labour Court, Bangalore.
Remedy Sought
Petitioner sought to set aside the award dated 03.09.2007 and to reject the reference in its entirety.
Filing Reason
The Tribunal, after finding the domestic enquiry valid and the workman guilty of misconduct, directed payment of compensation of Rs. 1,00,000 in lieu of full and final settlement, which the petitioner contended was beyond its jurisdiction.
Previous Decisions
The Central Government Industrial Tribunal cum Labour Court, Bangalore passed an award on 03.09.2007 in CR 35/1994, holding the enquiry valid and misconduct proved, but directing compensation of Rs. 1,00,000.
Issues
Whether the Central Government Industrial Tribunal, having found that the workman was guilty of misconduct in an enquiry held in accordance with law, can direct payment of compensation by the management in lieu of full and final settlement of the claim of a workman?
Submissions/Arguments
Petitioner argued that once the enquiry was found valid and misconduct proved, the Tribunal had no power to award compensation; the only option was to uphold the punishment or modify it under Section 11A, but not to grant compensation.
Respondent argued that the Tribunal had discretion under Section 11A of the Industrial Disputes Act, 1947 to award compensation in lieu of reinstatement.
Ratio Decidendi
When a domestic enquiry is held valid and the workman is found guilty of misconduct, the Tribunal cannot award compensation in lieu of reinstatement. The power under Section 11A of the Industrial Disputes Act, 1947 is to modify the punishment but not to grant compensation when the enquiry is valid and misconduct is proved.
Judgment Excerpts
The question which arises for consideration in this writ petition is, whether Central Government Industrial Tribunal having found that the workman was guilty of misconduct in an enquiry held in accordance with law, can direct payment of compensation by the management, in lieu of full and final settlement of the claim of a workman?
In the instant case, the Tribunal having held that the enquiry was valid and the workman was guilty of misconduct, could not have directed payment of compensation in lieu of full and final settlement of the claim of the workman.
Procedural History
The workman B.H. Kakargal was served with a charge sheet on 10.10.1987 under Rule 9 of the Railway Servants (Discipline and Appeal) Rules, 1968. A domestic enquiry was held, and he was found guilty of misconduct. The disciplinary authority imposed the penalty of removal from service. The workman raised an industrial dispute, which was referred to the Central Government Industrial Tribunal cum Labour Court, Bangalore, registered as CR 35/1994. The Tribunal passed an award on 03.09.2007, holding the enquiry valid and misconduct proved, but directing payment of compensation of Rs. 1,00,000. The petitioner filed the present writ petition on 08.02.2008 challenging the award.
Acts & Sections
- Industrial Disputes Act, 1947: Section 11A
- Railway Servants (Discipline and Appeal) Rules, 1968: Rule 9
- Constitution of India: Articles 226, 227
