# [1964] 3 S.C.R. 616

- **Citation:** [1964] 3 S.C.R. 616
- **Court:** Supreme Court of India
- **Decided:** 1964
- **Bench:** P. ll. GAJENDRAGADKA..R, K. N. Wancroo, K. C. Das Gupta
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/1964-3-s-c-r-616-3010
- **Pages:** 8

## Headnote

lndwtricl Di•pute-Dismimil of employ,.-No proper
.. t•irv bydepartment-Rei1Ml<llement by Industrial Tribunal1clidity-"0ontinuow
"rvice",
.Meaning
of-Indu-<trial
Di•p«tu Act, UU7 (U ej 19/,7), "· 2 (eee), 25B.
D, a workman in the appellant company, was served with
a notice on October 23, 1959, in which it was alleged that a
number of articles had been spoiled due to his faults, and he
wa1 asked to show cause why the company should not take
di1clplinary action against him. In the enquiry held against
him nobody cacept himself was examined to prove the charge.
He was confronted with the reports of the superior and other
pcnon1 made behind his back and simply asked why these
pcnons would be making the reports against him falsely. On
November II, 1959, an order was made by the management
dismissinc him from the service of the company "for causing
wilful in1ubordination or disobedience whether alone or in
eombination with another or others; for any orders ef the
.superior of the management". The Indu1trial Tribunal, to
which the di1pute was referred, was of the view that the rules
of natural justice had not been followed by the domestic tribunal ; and after examining the evidence adduced before it the
Tribunal came to the conclusion that there was no sufficient
material to hold that D was guilty of insubordination or di•·
obedience for which the dismi11a·J order purported to have
been made, or in respect of the alleg'cd damage done to the
company'• property. The Tribunal accordingly set uide tile
order of the dismissal and directed D's reinstatement. The
appcllant challenged the validity of the order of the Tribunal
on the ground, im.r alia, that it was not open to the Tribunal
ta go behind the finding arrived at by the domestic tribunal.
H•ld that if an industrial employee'• services arc terminated after a proper domestic enquiry held in accordance
with the rula of natural justice aad the conclu1iou reached at
3 S.C.R.
SUPREME COURT REPORTS 617
the cnqulry are not perverse, the industrial Tribunal is not
entitled to conoidcr the propriety or the correctness of the said
conclusions. But, where, as in the present case, there was no
proper enquiry, the Tribunal was justified in ignoriog the
findings of the domestic tribunal.
An enquiry cannot be said to have been properly held
unlcas (i) the employee proceeded against has t>cen informed
clearly of the chargca levelled against him, (ii) the witnesses
arc examined--<>rdinarily in the presence of the employee-ill
respect of the chargca, (iii) the employee i1 given a fair opportunity tO CrOSs•cxaminc Witncssea, (lY) he is CiVCn a fair
opportunity to examine witncoscs including himself in his
defence if he so wishes on any relevant matter, and (v) the
enquiry officer rrcords his findings with reasons for the 1am1 ia
his report.
Two of the workmen in the service of the appellant cempany had been appointed on March 10, 1959, but their scrviCl!I
were tcrmmatcd on January 15, 1960. A workman who had
been iR continuous service for not less than one year under an
employer waa entitled to certain benefits uader " 25F of the
Industrial Disputes Act, 1947, and under s. 25B a workman
who during a period of twelve calendar months had actually
worked in an indu1try for not less than 240 days ohall be
deemed to have completed one year of completed service in the
industry. It wa• found that the two workman had during the
period of employment for less than 11 calendar months worked
for more than 240 days.
He/;J that the two workmen were net entitled to the
bencfit1 of s. 25F of the Industrial Disputes Act, 1947.
Before a workman can be considered to have completed
one year of amtinuous service in any industry it must be shown
first that he was employed for a period of not less than 12
caleadar months and, next that during those 12 calendar
months he had worked for not less than 2+0 days. The require·
mcntl of 1. 25B would not be satisfied by the mere fact of the
nlllXlbcr of working days being not less

## Text

--
May t.
IIG SUPREME COURT REPORTS [1964] VOL.
SUR ENAMEL AND STAMPING
WORKS (P) LTD.
v;
THEIR WORKMEN
(P. ll. GAJENDRAGADKA..R, K. N. WANCROO,
and K. C. DAS GUPTA JJ.)
lndwtricl Di•pute-Dismimil of employ,.-No proper
.. t•irv bydepartment-Rei1Ml<llement by Industrial Tribunal1clidity-"0ontinuow
"rvice",
.Meaning
of-Indu-<trial
Di•p«tu Act, UU7 (U ej 19/,7), "· 2 (eee), 25B.
D, a workman in the appellant company, was served with
a notice on October 23, 1959, in which it was alleged that a
number of articles had been spoiled due to his faults, and he
wa1 asked to show cause why the company should not take
di1clplinary action against him. In the enquiry held against
him nobody cacept himself was examined to prove the charge.
He was confronted with the reports of the superior and other
pcnon1 made behind his back and simply asked why these
pcnons would be making the reports against him falsely. On
November II, 1959, an order was made by the management
dismissinc him from the service of the company "for causing
wilful in1ubordination or disobedience whether alone or in
eombination with another or others; for any orders ef the
.superior of the management". The Indu1trial Tribunal, to
which the di1pute was referred, was of the view that the rules
of natural justice had not been followed by the domestic tribunal ; and after examining the evidence adduced before it the
Tribunal came to the conclusion that there was no sufficient
material to hold that D was guilty of insubordination or di•·
obedience for which the dismi11a·J order purported to have
been made, or in respect of the alleg'cd damage done to the
company'• property. The Tribunal accordingly set uide tile
order of the dismissal and directed D's reinstatement. The
appcllant challenged the validity of the order of the Tribunal
on the ground, im.r alia, that it was not open to the Tribunal
ta go behind the finding arrived at by the domestic tribunal.
H•ld that if an industrial employee'• services arc terminated after a proper domestic enquiry held in accordance
with the rula of natural justice aad the conclu1iou reached at
3 S.C.R.
SUPREME COURT REPORTS 617
the cnqulry are not perverse, the industrial Tribunal is not
entitled to conoidcr the propriety or the correctness of the said
conclusions. But, where, as in the present case, there was no
proper enquiry, the Tribunal was justified in ignoriog the
findings of the domestic tribunal.
An enquiry cannot be said to have been properly held
unlcas (i) the employee proceeded against has t>cen informed
clearly of the chargca levelled against him, (ii) the witnesses
arc examined--<>rdinarily in the presence of the employee-ill
respect of the chargca, (iii) the employee i1 given a fair opportunity tO CrOSs•cxaminc Witncssea, (lY) he is CiVCn a fair
opportunity to examine witncoscs including himself in his
defence if he so wishes on any relevant matter, and (v) the
enquiry officer rrcords his findings with reasons for the 1am1 ia
his report.
Two of the workmen in the service of the appellant cempany had been appointed on March 10, 1959, but their scrviCl!I
were tcrmmatcd on January 15, 1960. A workman who had
been iR continuous service for not less than one year under an
employer waa entitled to certain benefits uader " 25F of the
Industrial Disputes Act, 1947, and under s. 25B a workman
who during a period of twelve calendar months had actually
worked in an indu1try for not less than 240 days ohall be
deemed to have completed one year of completed service in the
industry. It wa• found that the two workman had during the
period of employment for less than 11 calendar months worked
for more than 240 days.
He/;J that the two workmen were net entitled to the
bencfit1 of s. 25F of the Industrial Disputes Act, 1947.
Before a workman can be considered to have completed
one year of amtinuous service in any industry it must be shown
first that he was employed for a period of not less than 12
caleadar months and, next that during those 12 calendar
months he had worked for not less than 2+0 days. The require·
mcntl of 1. 25B would not be satisfied by the mere fact of the
nlllXlbcr of working days being not less than 240 days.
Cxvrr.. APPELLATEjUR1SD1CTION: Civil Appeal
No. 681 of 1962.
·
. .
. Appeal by special leave from the award dated
·:March 13; 1961, of the Fifth Industrial Tribunal
West Bengal, in Case No. VIII,167of1960,
·'
1963
Svr Enarnd and
Siampint Works
(P) Ltd
v.
Workmen
•
1969
Sur Etiomtl-'
Stamping W ""
(P) Ltd.
••
ll(ol'km•
Dtu Guplo 11
618 SUPREME COURT REPORTS (1964] VOL.
P. K. Sen Gupta and D. N. Mukherjee,' for the
appellant.
Janardan Sharma, for the respondents .
1963. May 7. The Judgment of the Court was
deli vercd by
DAS GUPTAJ.-This appeal arises out of an
industrial dispute between the appellant and its
workmen. The dispute was with regard to the
dismissal of 11 workmen and was referred to the
Fifth Industrial Tribunal, West Bengal. In this
appeal we arc concerned with three only out of th6se
11, as the company was given special leave to
appeal against the Tribunal's award in respect of
these three. They arc, Manik Chandra Das, Nagen
Bora and Monoharan.
We shall deal first with the case of Manik
Chandra Das. It appears that on October 23, 1959
he was served with a notice in which it was alleged
that a number of articles had been spoiled due to
his
He was asked to show cause within 48
hours of the receipt of the notice why the company
should not take disciplinary measures against him.
In his reply of October 25, he denied any responsibility in the matter and mentioned that he had
reported to the supervisor and sardars about the
defective articles beforehand and according to the
advice given by them had painted borders. According to the management, an enquiry was held against
Manik on October 29, 1959 and on the report of the
enquiry officer, the Works Manager, he was dismissed.
The order of dismissal was made on November 11,
1959. In this it was stated that he had been dismissed from the service of the company "for causing
wilful insubordination or disobedience whether alone
or in combination with another or othcn, or any
orders of the superior or of the management."
3 S.C.R. SUPREME COURT REPORTS
619
It appears that some evidence was led before
the Industrial Tribunal against Manik to show that
he had caused some damage to the company's
property. The Tribunal held that the rules of natural
justice had not been followed by the domestic
tribunal. It then examined the evidence adduced
by the witnesses on behalf of the management and
came to the conclusion that there was no sufficient
material before the Tribunal to hold that Manik was
guilty of insubordination or disobedience for which
the dismissal order purported to have been passed.
The Tribunal further pointed out that the evidence
before it in respect of the alleged damage done to
the company's property was not sufficient for est·
ablishing any charge which might merit dismissal.
Accordingly, it set aside the order of dismissal passed
by the Company and directed his reinstatement.
In support of the appeal against this order
Mr. Sen Gupta has urged that it was not open to
the Industrial Tribunal to go behind the finding
arrived at by the domestic tribunal.
He contended
that the Tribunal was wrong iri thinking that the
rules of natural justice were not followed. It appears
that a joint enquiry was held against Manik and
one Birinchi. Nobody was examined at this enquiry
to prove the charges. Only Manik and Birincbi
were examined. They were confronted with the
reports of the supervisor and other persons made
behind their backs and were simply asked why these
persons would be making the reports against them
falsely. It is not clear whether what they said was
recorded. According to the enquiring authority
they were "unable to explain as to why these persons
would be making the reports against them falsely."
In our opinion, it would be a misuse of the words to
say that this amounted to holding of proper enquiry.
It has been laid down by this Court in a series of
. decisions that if. an industrial employee's services
Sur Enamel ond
S1amping
(P) Ltd.
v.
Workm1n
Du Gll/lt4 I.
196J
Sur Enamd and
Stomping w,,.ks
(P) Ltd.
v.
W01A:m1n
Das C•Pto /,
620
SUPREME COURT REPORTS [1964] VOL.
are terminated after a proper domestic enquiry held
in accordance with the rules of natural justice and
the conclusions reached at the enquiry are not per·
verse the industrial tribunal is not entitled to consider
the propriety or the correctness of the said conclusions.
In a number of cases which have come to this Court
in recent months, we find that some employers have
misunderstood the decisions of this Court to mean
that the mere form of an enquiry would satisfy the
requirements of industrial law and would protect
the disciplinary action taken by them from challenge.
This attitude is wholly misconceived.
An enquiry
cannot be said to have been properly held unless,
(i) the employee proceeded against has been informed clearly of the charges levelled against him,
(ii) the witnesses are examined-ordinarily in the
presence of the employee-in respect of the charges,
(iii) the employee is given a fair opportunity to
cross-examine
witnesses, (iv) he is
given a fair
opportunity to examine witnesses including himself
in his defence if he so wishes on any relevant matter,
and (v) the enquiry officer records his findings with
reasons for the same in his report. In the present
case the persons whose statements made behind the
backs of the employees were used by the enquiring
authority were not made available for cross-examination but it would appear that they were not even
present at the enquiry. It does not even appear
that these reports were made available to the
employee at any time before the enquiry was held.
Even if the persons who made the reports had been
present and the employee given an opportunity to
cross-examine them, it would have been difficult to
say in these
that that was a fair and
sufficient opportunity. But in this case it appears
that the persons who
the reports did not attend
the enquiry at all. From whatever aspect the
is examined it is clear that there was no enqwry
worth the name and the Tribunal was justified iD
3 S.C.R. SUPREME COURT REPORTS
621
entirely ignoring the conclusion reached by the
dome&tic Tribunal.
There is again the curious circumstance that
while the domestic tribunal recommended the dismissal of Manik on a charge of having deliberately
caused damage to raw materials the order of dismissal passed by the management was not in respect of
this misconduct. The order in terms mentions that
"you are dismissed from the service of the company
for causing wilful insubordination or disobedience
whether alone or in combination with another or
others, of any order of the superior or of the management. ........... ". It appears that the charge· sheet
which was sent to Manik on Octobrr 23, 1959, did
not mention any charge of "wilful insubordination
or disobedience". It is quite clear that the domestic
tribunal did not find him guilty of any insubordina·
tion or disobedience. lt is difficult to understand
how the charge being for causing damage to property and the enquiry officer's report being in respect of
the same, the dismissal order was made for something
else. That itself would be a sufficient ground for
setting aside the order of dismissal.
Even if we assume as Mr. Sen Gupta tried to
convince us that Manik was dismissed really because
he was found guilty of having caused damage to property and the statement was wrongly made in the
dismissal order that the ground for dismissal was his
wilful insubordination or disobedience, the appellant's case would be no better. For, there having
been no proper enquiry by the domestic tribunal the
employer could justify the order of dismissal only by
satisfying the Industrial Tribunal of the truth of the ,.
charge. The Tribunal has not been satisfied and
we are not inclined to examine the correctness of its
decision in that respect because ordinarily findings
of fact are not allowed to be challenged in app-
. eals under Art. 136. fn our opinion, the Tribunal
1963
Sur Enam1l and
Stamping WOJkJ
(P) Ltd.
v.
W01km111
Da1 l:•Pla J.
/963
Sur Enamel ontl
Stomping Works
(P) Ltd.
v.
Wo'*1n1n
Das Gup14 J.
622 SUPREME COURT REPORTS(l964] VOL.
rightly set aside the order of dismissal passed by the
company and ordered reinstatement of Manik.
Coming now to the case of Nagen Bora and
Monoharan, we find that they were temporary work·
men. The Tribunal held that the order of termination of their services was bad only by reason of noncompliance with the provisions of s. 25F of the Industrial Disputes Act and not otherwise. The Tribunal directed certain payments to be made to these
persons by way of compensation. Mr. Sen Gupta
wanted to argue that as these two were temporary
workmen they were not entitled to the benefit of s.25F.
It is unnecessary for us to consider this question, as
it appears to us that assuming that temporary workmen are also entitled to the benefit of s. 25F, neither
Nagen Bora nor Monoharan comes within the terms
of that section.
On the plain terms of the section only a workman who has been in continuous service for not less
than one year under an employer is entitled to its
benefit. "Continuous Service" is defined in s. 2(eee)
as meaning uninterrupted service, and includes service
which may be interrupted merely on account of
sickness or authorised leave or an accident or a strike
which is not illegal or a lock-out or a cessation of
work which is not due to any fau It on the part of
the workman. What is meant by "ore year of
continuous service" has been defined in s.
25B.
Under this section a workman who during a period
of twelve calendar months has actually worked ien a
industry for not less than 240 days shall be di nmed
to have completed one year of completed servcee in
the industry. Nagen Bora and Monoharam were
both reappointed on March 10, 1959. Their services
were terminated on January J5, 1960. Thusthesir
total period of employment was less than II
month.
It is not disputed that period of their former employ·
ment under the company prior to their reappointment
3 S.C.R.
SUPREME COURT REPORTS 623
on March 10, 1959, cannot be taken into consideration in computing the period of one year, because it is common ground that their reappointment
on March 10, 1959, was a fresh appointment. The
position therefore is that during a period of employment for less than 11 calendar months these two
persons worked for more than 240 days. In our opinion that would not satisfy the requirement of s.25B.
Before a workman can be considered to have completed one year of continuous service in an industry
it must be shown first that he was employed for a
period of not less than 12 calendar months and,
next that during those 12 calendar months had
worked for not less than 240 days. Where, as in the
present case, the workmen have not at all been employed for a period of 12 calendar months it becomes
unnecessary to examine whether the actual days of
work numbered 240 days or more. For, in any case,
the requirements of s. 25B would not be satisfied by
the mere fact of the number of working days being
not less than 240 days.
We have therefore come to the conclusion that
' the Tribunal was wrong in thinking that these two
workmen were entitled to the benefit of s.25F.
Accordingly, we set aside the direction that the Tribu·
nal made for payments to Nagen Bora and Mono·
haran by way of compensation.
The appeal is therefore dismissed in respect of
Manik Chandra Das, but allowed in respect of
Nagen Bora and Monoharan.
Mr. Sen Gupta, who appeared before us on behalf on the appellant, assured us, however, that the
appellant will make the payments directed by the
Tribunal less what has already been paid in compliance with the Tribunal's order. We have no doubt
that the appellant company will carry out this assurance given by its Counsel. No order as to costs.
Appeal allowed in part.
196!1
Sur Enamtl otul
Sta,,ping Works
{/') Ltd
•
Workm111
n,, Gup1a J