Sunday, 14 October 2012

Termination of an employee without show cause notice amounts to breach of principle of natural justice




IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO.1151 OF 2012
Sanjeevan Gramin Vaidyakiya & 
Samajik Sahayata Pratisthan 

versus
Gorakhnath Popat Bandhane

CORAM :  ANOOP V. MOHTA, J.
DATE :  05th july 2012

. Heard by consent of the parties. 
2} The   petitioner   has   challenged   the   impugned   order   dated
23.12.2011 whereby the learned Presiding Officer,  considering the
termination   notice   and   undisputed   facts   that   no   opportunity
whatsoever   was   given   before   terminating   the   respondent   and
thereby caused breach of principles of natural justice, has set aside

the    termination  notice  and  directed  to  reinstate  to  the  post  of
Laboratory Attendant with continuity and back wages. Though time
was granted, till this date the order is not yet complied with. 
3} The learned counsel appearing for the petitioner has strongly
relied   on   the   Judgment   of   the   Full   Bench   in  Saindranath
Jagannath Jawanjal vs. Pratibha Shikshan Sanstha & Anr

1
  and
placed reliance specifically on paragraphs 45 and 46 which reads as
under :
“45 ….In this behalf, readily available judgments
are in the case of (State of Punjab and others vs. Dr.
Harbhajan Singh Greasy, U.P.State Spinning Co.Ltd. vs.
R.S. Pandey and anr,   (2005) 8 SCC 264, (U. P. State
Textile   Corpn.Ltd.   vs.   P.C.   Chaturvedi   and   others,
2005(8)   SCC   211;   wherein   the   Supreme   Court   has
observed   that   in   case   of   no   enquiry   or   defective
enquiry, proper relief is to set aside the dismissal with
direction to the management to hold enquiry from the
1   2007 (3) Bombay Cases Reporter 527

stage   the   illegality   has   crept   in   and   that   the
reinstatement   is   to   be   treated   for   the   purposes   of
holding  fresh enquiry  and  no more.    So  far  as  back
wages   are   concerned,   the   entitlement   thereof   is   to
make   dependent   on   the   final   outcome   of   the   fresh
enquiry.
46 The aforesaid principle has been adopted by
the   Division   Bench   of   this   Court   while   considering
provisions of the M.E.P.S. Act in the case of (Kashiram
Rajaram Kathane vs. Bhartiya R.B. Damle Gramsudhar
Shikshan   Prasar   Sanstha,   1997(3)   Mh.   L.J.235;
wherein and the Division Bench has read the aforesaid
statement of law and the principles recognised by the
Supreme Court in section 11 of the Act.  This view is
holding the filed for a decade.”
He further relied upon a judgment in Kashiram Rajaram Kathane vs.
Bhartiya R. B. Damle Gram Sudhar Tatha Shikshan Prasar Society &
Ors reported in 1997(3) Maharastra Law Journal 235.  

4} The principles so laid down by the Hon'ble the Supreme Court
and as followed by the Full Bench of this Court, in my view, need no
discussion and/or elaboration. We have  to consider  the  facts and
circumstances   of   each   and   every   case.   In   the   present   case   the
respondent   has   served   for   more   than   five   years   as   Laboratory
Attendant.  There   is   nothing   on  record   that  prior  to  the  alleged
incident   there   was   any   show   cause   notice   and/or   memo   issued
and/or served. Admittedly, apart from any adverse memo,  no show
cause notice whatsoever was issued prior to the termination notice
dated 31.3.2011.     The question of enquiry comes if any charges
with show cause is issued.  
5} After going through the contents of the termination order and
hearing both the counsel appearing for the parties, I am inclined to
observe that the termination order as stands, itself is very unclear
and vague but stigmatic. The allegation of some undisclosed and/or
alleged doubtful activities  that itself cannot be  the  reason not  to
issue   any   memo   and/or   show   cause   notice   and/or   not   to   hold

enquiry before terminating any employee. 
6} The employer in a given case at his risk may  terminate  the
employee without assigning any  reason and even without issuing
show cause notice.   The Court needs to consider whether the basic
principle   of   natural   justice   which   has   various   facets   and   which
cannot be invoked only from the point of view of the employers but
also from the point of view of the employee.     In the present case,
in my view,  there is a discussion referred to  the rival contentions
raised for the first time in the appeal.    The Management and/or the
employee cannot give justification to terminate the employee for the
first  time  during  trial  and/or  before  the  Tribunal.      It  definitely
affects the right of the employee to deal and/or to defend the case
at appropriate time. 
7} If the Management as recorded, has certain adverse material,
they must initiate steps as required in accordance with law. Once
they  fail  to  take  steps  and  they  take  risk  of  terminating  service
without issuing adverse memo and/or show cause notice and now

to justify the same action, submits supporting material for the first
time in the Tribunal and/or before the Court and   to say that the
grievances are very serious against the delinquent and/or employee,
in my view, is of no assistance. The abrupt termination in such cases
basically   when   averments   alleging   the   doubtful   activities   itself
means  that  the Management  had   previous  knowledge  and/or  at
least   undisclosed   material   to   support   their   action.   The   alleged
collection of so called doubtful activities and/or materials brought
and/or  with   the Management,   just   cannot   be  the   foundation  to
terminate any employee without giving notice and/or at least memo
of  those activities alleged by others. Such averments and/or such
adverse   material   forwarded   by   others   and/or   collected   by   the
Management   has   various   facets   including   internal   or   external
politics. In my view, such undisclosed and vague reasons cannot be
accepted as foundation to terminate the employees abruptly as done
in the present case. The practical aspect of internal politics and/or
external   forces   just   cannot   be   overlooked.       The   service
jurisprudence  no where  permits  the  parties  to  overlook  practical
side of such human intuition.  If the management is clear and  they
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have material to support the action, then it is necessary for them to
disclose  and  give  full  opportunity  to  the employee  before  taking
drastic action of termination, basically, when the Petitioner was in
service for more than five years. The   judgments,   therefore,   so
cited in the present facts and circumstances,   are not sufficient to
interfere with the order so passed by the Presiding Officer. 
8} I am not denying the right of the management to issue fresh
show cause notice and/or to enquire into the matter. They are free
to take action if they desire. The Court may not direct the private
management to hold fresh enquiry in particular manner or method.
Whatever   material   which   they   have,   they   may   take   their   own
decision and proceed to enquire and/or pass the appropriate order
after  giving opportunity  to  the parties. At  the  show  cause  notice
stage in my view, the Court cannot direct to decide and/or to hold
enquiry   based   upon   the   vague   and   unclear   show   cause   notice
basically when it is a private litigation between the employee and
employer,  of the private management. The Management in a given
case, if proper explanation is given and after verifying the material,
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AGK wp1151-12-karode.doc
which   they   have   collected   and   which   they   have   brought,   may
withdraw the show cause notice and/or may drop the proceedings.
It is the domain of the management to take action which they desire
based on the material available and/or in the given case the parties
may settle the matter then and there only. No question of direction
from the Court even at such stage of conflict and/or dispute. 
9} The   learned   counsel   appearing   for   the   respondent   has
contended that let the petitioner be kept under suspension and the
management be permitted to hold enquiry and/or take appropriate
steps.   Admittedly, the respondent was never under suspension at
any point of time.  No show cause notice was issued.  No officer was
appointed. Therefore, submission to  keep him under suspension is
uncalled  for.  The  thing  which  was  not  done  at  the initial  stage
cannot be directed by the Court for the first time and basically in a
dispute of  this nature. Once  the  termination order itself goes,  the
sequence should be reinstatement  to the post with continuity and
backwages as directed.   Nothing is wrong in it. 
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10} “No work No Wages” should be the formula. It is not necessary
in every matter  that  full  back wages  should  be  provided  and/or
granted.   But   in   a   case   like   this   and   considering   the   facts   and
circumstances,     where   the   action   of   termination   as   recorded   is
apparently in breach of the basic principles of natural justice, there
is no reason even to interfere with the order of back wages. In every
matter though the principle of full back wages need not be followed
but at the same if the action is illegal and in contravention of basic
principles, I see there is no reason that the order of back wages as
awarded need to be interfered with. Apparently the respondents and
his family suffered because of illegal action. Therefore, taking over
all view of the matter, no interference is called for. The petition is
dismissed.  Ad­interim order stands vacated.   No costs. 
(ANOOP V. MOHTA, J)
9/9
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