# B.D. SHETTY AND ORS v. MIS. CEAT LTD. AND ANR

- **Citation:** [2001] Supp. 4 S.C.R. 511
- **Court:** Supreme Court of India
- **Decided:** 2001-10-30
- **Case number:** Civil Appeal No. 7382 of 2001
- **Bench:** D.P. Mohapatra, Shivaraj V. Patil
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/b-d-shetty-and-ors-v-mis-ceat-ltd-and-anr-18262
- **Pages:** 14

## Headnote

Labour Law:
Industrial Employment (Standing Orders) Act, 1946:
Section 10-A( 1 )(b)-Subsistence allowance-Payment o.f-Expression
"delay in completion of disciplinary proceedings directly attributable to tlie
conduct of workman" -Scope of-Stay of disciplinary proceedings pending
ctiminal trial by Labour Court~Reduction of subsistence allowance on the
ground that there was delay on the part of workmen in completing the disciplinary proceedings-Validity of-Held, stay of disciplinary proceedings by competent court pending criminal trial does not amount to "delay directly attributable to the conduct of workmen "-It is only where the workman unjustifiably
or deliberately drags or prolongs the domestic inquiry without any order of the
Court-Thus, in the instant case workmen entitled to subsistence allowance at
the rate of 75%.
Section 10-A( 3 )-Subsistence allowance-Rate of payment-Claim for
100% subsistence allowance under Model Standing Orders on the ground that
they are more beneficial-Entitlement of-Expression "provisions of such
other law"-Scope o.f-Held, the expression refers to the law other than the
one covered by the Act and Rules made thereunder-Model Standing Orders
are part of 1959 Rules .framed under the Act-Thus, do not come witlzin the
purview of "other law"-Claim for 100% subsistence allowance there.fore,
rejected-Bombay Industrial Employment (Standing Orders) Rules, 1959Clause 25(5-A).
Interpretation o.f statutes :
Beneficial legislation-Interpretation of-Held, should be understood
and construed in its proper and correct perspective to advance legislative
intention underlying it-The view which is in tune with the legislative intention
and furthers the same should be preferred to the one which would.frustrate 11.
511
A
B
c
D
E
F
G
H
512
SUPREME COURT REPORTS
[2001] SUPP. 4 S.C.R.
A
Words and Phrases:
"Delay directly attributable to the conduct of workman" -Meaning of in
the context of Section JO-A( 1 )( b) of the industrial Employment (Standing
Orders) Act, 1946.
B
"Pro~isions o.f such other law "-Meaning of in the context o.f Section 10c
D
E
F
G
H
A( 3) of the Industrial Employment (Standing Orders) Act, 1946.
Appellant-workmen of the respondent company resigned from the
membership of a trade union and accepted the membership of another
union. Vice-President of the trade union from which they resigned made a
false complaint of assault against them. Appellants were arrested and
subsequently released on bail. Thereafter they were suspended from service on acc~~nt of the criminal cases. After issuing chargesheet unde~ the
Model Standing Orders, domestic inquiry was initiated against them; Appellants' co.mplaint for not proceeding with the.domestic inquiry till the
conclusion of criminal trial was allowed by Labour Court. The respondent
filed revision application beforethe Indust.rial Court. During the pendency
of revision, the respondent reduced the rate of subsistence allowance of the
appellants from 75% to 50% alleging that there was a delay on the part of
the appellants in completing the domestic inquiry. The appellants filed
complaint before the Industrial Court, which dismissed the complaint.
Appellants' appeal and Letters Patent Appeal before the High Court were
also dismissed. Hence the present appeal by the workmen.
'·
H was contended on behalf of appellants that the delay in completion
of domestic inquiry was not directly ~ttributable to them when a compe·
tent judicial authority had stayed the departmental proceedings pending
criminal trial and thus it could not be considered as a delay covered by
Section 10-A(l)(b) of the Act; that they were entitled for 100% subsistence
allowance after 180 days of the suspension under Clause 25(5~A) of the
Model Standing Orders framed under the Bombay Industrial Employ~
ment (Standing Orders) Rules, 1959 which being more beneficial prevails
over S.10-A(3) of the Act.
· '
Partly allowing the appeal, the Court·
HELD : 1.1. Stay of disciplinary proceedings by Labour Court pend

## Text

B.D. SHETTY AND ORS.
v.
MIS. CEAT LTD. AND ANR.
OCTOBER 30, 2001
[D.P. MOHAPATRA AND SHIVARAJ V. PATIL, JJ.]
Labour Law:
Industrial Employment (Standing Orders) Act, 1946:
Section 10-A( 1 )(b)-Subsistence allowance-Payment o.f-Expression
"delay in completion of disciplinary proceedings directly attributable to tlie
conduct of workman" -Scope of-Stay of disciplinary proceedings pending
ctiminal trial by Labour Court~Reduction of subsistence allowance on the
ground that there was delay on the part of workmen in completing the disciplinary proceedings-Validity of-Held, stay of disciplinary proceedings by competent court pending criminal trial does not amount to "delay directly attributable to the conduct of workmen "-It is only where the workman unjustifiably
or deliberately drags or prolongs the domestic inquiry without any order of the
Court-Thus, in the instant case workmen entitled to subsistence allowance at
the rate of 75%.
Section 10-A( 3 )-Subsistence allowance-Rate of payment-Claim for
100% subsistence allowance under Model Standing Orders on the ground that
they are more beneficial-Entitlement of-Expression "provisions of such
other law"-Scope o.f-Held, the expression refers to the law other than the
one covered by the Act and Rules made thereunder-Model Standing Orders
are part of 1959 Rules .framed under the Act-Thus, do not come witlzin the
purview of "other law"-Claim for 100% subsistence allowance there.fore,
rejected-Bombay Industrial Employment (Standing Orders) Rules, 1959Clause 25(5-A).
Interpretation o.f statutes :
Beneficial legislation-Interpretation of-Held, should be understood
and construed in its proper and correct perspective to advance legislative
intention underlying it-The view which is in tune with the legislative intention
and furthers the same should be preferred to the one which would.frustrate 11.
511
A
B
c
D
E
F
G
H
512
SUPREME COURT REPORTS
[2001] SUPP. 4 S.C.R.
A
Words and Phrases:
"Delay directly attributable to the conduct of workman" -Meaning of in
the context of Section JO-A( 1 )( b) of the industrial Employment (Standing
Orders) Act, 1946.
B
"Pro~isions o.f such other law "-Meaning of in the context o.f Section 10c
D
E
F
G
H
A( 3) of the Industrial Employment (Standing Orders) Act, 1946.
Appellant-workmen of the respondent company resigned from the
membership of a trade union and accepted the membership of another
union. Vice-President of the trade union from which they resigned made a
false complaint of assault against them. Appellants were arrested and
subsequently released on bail. Thereafter they were suspended from service on acc~~nt of the criminal cases. After issuing chargesheet unde~ the
Model Standing Orders, domestic inquiry was initiated against them; Appellants' co.mplaint for not proceeding with the.domestic inquiry till the
conclusion of criminal trial was allowed by Labour Court. The respondent
filed revision application beforethe Indust.rial Court. During the pendency
of revision, the respondent reduced the rate of subsistence allowance of the
appellants from 75% to 50% alleging that there was a delay on the part of
the appellants in completing the domestic inquiry. The appellants filed
complaint before the Industrial Court, which dismissed the complaint.
Appellants' appeal and Letters Patent Appeal before the High Court were
also dismissed. Hence the present appeal by the workmen.
'·
H was contended on behalf of appellants that the delay in completion
of domestic inquiry was not directly ~ttributable to them when a compe·
tent judicial authority had stayed the departmental proceedings pending
criminal trial and thus it could not be considered as a delay covered by
Section 10-A(l)(b) of the Act; that they were entitled for 100% subsistence
allowance after 180 days of the suspension under Clause 25(5~A) of the
Model Standing Orders framed under the Bombay Industrial Employ~
ment (Standing Orders) Rules, 1959 which being more beneficial prevails
over S.10-A(3) of the Act.
· '
Partly allowing the appeal, the Court·
HELD : 1.1. Stay of disciplinary proceedings by Labour Court pending criminal trial docs not amount to delay in completion of discipHnary
..
r
l I
,._ .
r
'
}
·.
•,
8.D. SHEITY v. CEAT LTD.
513
proceedings "directly attributable to the conduct of workman ''under
Section 10-A(l)(b) of the Industrial Employment (Standing Orders) Act,
1946. Thus, the appellant-workmen were entitled to subsistence allowance
at the rate of 75% after 90 days of their suspension under Section 10A(l)(b) of the Act. [515-C)
1.2. When a workman bonafule approaches a competent court to
protect himself from prejudice likely to be caused by continuing proceedings simultaneously in domestic inquiry as also in the criminal case grounded
on the same set of facts and succeeds in getting order from a competent
judicial authority staying further proceedings in the disciplinary proceedings till the disposal of the criminal case, it cannot be said that delay on
that account in completion of disciplinary proceedings is directly attributable to the conduct of such workman. If such a delay is also to be taken as
covered by Section 10-A(l)(b) it may amount to, in a way, putting restraint
or clog on the exercise of legal right of a workman to approach a court of
A
B
c
law out of fear of losing subsistence allowance at the rate of 75%.
D
[519-G-H; 520-A; F]
1.3. Reference to the delay directly attributable to the conduct of the
workman in Section 10-A(l)(b) is obviously to the one where.the workman
unjustifiably, deliberately or designedly drags on or prolongs the domestic
inquiry. Thus a workman cannot be permitted to take advantage of delay
caused by himself in the absence of any order passed by a court. [520-E]
1.4. The words used in Section 10-A(l)(b) of the Act are 'directly
attributable to' prefixing the word 'directly' to the words 'attributable to'
emphasis that in order to deny a workman subsistence allowance at the
rate of 75%, the delay should be directly attributable to the conduct of
such workman in completion of disciplinary proceedings and not that
every kind of delay is covered by the said provision. [519-D]
E
F
2.1. In the field of interpretation of statutes the courts always preG
sume that the legislature inserted every part thereof with a purpose and
the legislative intention is that every part of the statute should. have effect.
Further, it cannot be said that a word or words used in a statute are either
unnecessary or superfluous unless there are compelling reasons to say so
looking to the scheme of the statute having regard to the object and
H
514
SUPREME COURT REPORTS
[2001] SUPP. 4 S.C.R.
A
purpose sought to be achieved by it. In this view, the. use of the word
'directly' in Section 10-A(l)(b) has to be given meaning and effect in the
'
.
B
c
context of the said provision under the scheme of the Act. [519-F]
'Words and Phrases' Permanent Edition; Law Lexicon by P. Ramanatha
Aiyar, referred to.
2.2. A beneficial. piece of legislation has to be understood and con·
strued In its proper and correct perspective so as to advance the legislative
intention underlying its enactment rather than abolish it. Assuming two
views are possible, the one, which is i~ tune with the legislative intention
and furthers the same, should be preferred to the one which would fros·
trate it. [521-B]
.. 3. It is plain from the very language of Section 10-A(3) that the
words tprovisions of such other law' necessarily refer to the law other than
one covered by the very Act and Rules made thereunder. The Model
D · Standing Orders contained in Schedule I, are part of Bombay Indtistrial
Employment (Standing Orders) Rules, 1959 and these rules are framed in
exercise of the powers conferred by Section 15 of the Industrial Employment (Standing Orders) Act, 1946. Hence it cannot be said that the Model
E
F
G
H
Standing Orders come within the meaning of such 'other law' covered by
Section 10-A(3). Thus, the claim of appellants that they are entitled" to
l00% subsistence allowance under the Model Standing Orders cannot be
accepted. [523-B; 522-E]
May & Baker Ltd. v. Kishore Jaikishandas lcchaporia, [1991) Lab. I.C.
2066, approved.
4. In the instant case; the competent court has granted stay order
staying the disciplinary proceedings and the matter is pending in the
revision filed by the respondent challenging the same before the Industrial
Tribunal. Whether there is justification for continuation of the stay order
or not, is pending consideration before the Industrial Tribunal. Thus,
without expressing any. opinion on merits, the Industrial Tribunal is directed to dispose. of the revision application within a period of two months ·
from the date of this judgment. [521-C; E]
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 7382 of 2001.
B.D. SHE'ITY v. CEAT LTD. [PATIL, J.]
515
From the Judgment and Order dated 20.1.2000 of the Bombay High
A
Court in L.P.A. No. 308 of 1999.
Sanjay Parikh, R.R. Chandrachud and Ms. Jayana Kothari for the Appellants.
S. Ganesh, Rajan Narain and Ms. Sushma Sharma for the Respondents.
The Judgment of the Court was delivered by
SHIVARAJ V. PATIL, J. Leave granted.
B
The question "whether the 'delay' in completion of disciplinary proceed·
C
ings directly attributable to the conduct of a workman under Section 10A( 1 )(b) of Industrial Employment (Standing Orders) Act, 1946 also covers
delay occasioned on account of such workman succeeding in getting stay of
disciplinary proceedings at the hands of competent judicial authority pending
trial of a criminal case in a bona fide effort to protect him from the prejudice
D
that may be caused by simultaneous proceedings" has come up for consideration and decision in this appeal.
In brief, the facts giving rise to this appeal are:
The appellants are employees of the respondent-company. They resigned from the membership of the Mumbai Shramik Sangh Union, which till
then had been the only trade union in the respondent-company and accepted
membership of Shramik Utkarsha Sabha. One Mr. Sayeed Ahmed, an employee of respondent and Vice-President of Mumbai Shramik Sangh made a
false complaint on 23.4.1996 on account of union rivalry against the appellants
alleging that they had assaulted him; they were arrested and subsequently
released on bail; on 8.5.1996, suspension orders were issued to the appellants
on account of criminal cases; the appellants replied to the order of suspension
denying allegations made against them. On 7 .10.1996, the respondent issued
charge-sheets to the appellants alleging misconduct under the Model Standing
Orders 24(K) and 24(I); the appellants gave replies to the charge-sheets denying the allegations; the domestic inquiry commenced on 25.1.1997; the appellants requested the respondent as well as Inquiry Officer not to proceed with
. the domestic inquiry till the conclusion of criminal trial pending before the
Sessions Court; since the said request was not accepted, the appellants filed
E
F
G
H
516
SUPREME COURT REPORTS
[2001] SUPP. 4 S.C.R.
A
·complaints before the Labour Court, Thane under the Maharashtra Recognition
of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (for short
the MRTU & PULP Act). In the said complaint c~ses, the Labour Court
granted interim order on 23.7.1997 staying the domestic inquiry .. In the final
order passed on 11.12.1997, the Labour Court confirmed the said interim order
B
restraining the respondent fro.m conducting the domestic inquiry till the completion of the criminal trial. Against this order, the respondent has filed
Revision Application (ULP) Nos. 34, 35 and 36 of 19~8 before the Industrial
Tribunal, Thane, which are pending.
On 19.12.1997, the respondent reduced the subsistence wages of the
c
appellant from'75% to 50% on account of delay caused by the appellants in
the completion of the domestic inquiry. The appellants, in th~ reply denied that
the delay in the domestic proceedings is directly attributable to them and that
as per the long standing practice, they were entitied to full wages after 180 days
· of suspension which was riot paid to them. Thereafter, aggrieved by the rate
D
of reduction of subsistence wages, the appellants filed complaint on 29 .12.1997
·in the Industrial Court invoking the provisions of the MRTU & PULP Act and
claimed 100% subsistence wages. The said complaint was dismissed. The
appellants filed Writ Petition ~o. 6208/1998 in the High Court challenging the
said order passed by the Industrial Court. dismissing the complaint. The same
E
was dismissed.by the learned Single Judge of the High Court. The Letters
Patent appeal filed by the appellants against the said order of the learned Single
Judge was also dismissed in limine. Hence, this appeal.
F
G
Mr. Sanjay Parikh, learned counsel for the appellants.contended that (1)
. ~he delay in completion of domestic inquiry i.s not directly attributable to the
appellants when a competent judicial authority has granted stay of the proceed-
,ings in .domestic iQqu~ry pending trial in criminal proceedings on being satisfied of bon:!Jff de efforts of the appell,ants to protect themselves from the preju-
. d~ce that would be caused if the dome.stic inquiry was to be continued affecting
their fair trial in criminal proceedings; if the domestic inquiry was not stayed
.j-
•
'
.'
'
•
•
•
the appellants would have been compelled to disclose their defence which
. .
·'.
. .
.
'
.
w~uld have prejudiced their .valu~ble legal rig~t to free and fair trial in criminal
.proceedings. (2) The labour. court granted stay.of domestic inquiry in the light
of various d~cisions of thi~ Court, satisfied on facts of the case that continuance
. of domestic inquiry pend~ng criminal trial would be prejudicial to the appellants; merely because the appellants succeeded in getting stay order to protect
' ,,...
B.D. SHEITY v. CEAT LTD. [PATIL, J.]
517
their rights, it cannot be considered as a delay caused by them covered by
S~tion 10-A(l)(b) of the Industrial Employment (Standing Orders) Act, 1946
(for short 'the Act'). (3) the appellants are entitled for 100% subsistence
allowance after 180 days of suspension under Clause 25(5-A) of the Model
Standing Order Rules framed under the Bombay Industrial Employment (Standing Orders) Rules, 1959; clause 25(5-A) of the Model Standing Order Rules
being more beneficial prevails over Section 10-A(3) of the Act; the High
Court has failed to see this aspect of the matter. (3) The High Court also failed
to appreciate that the exercise of their legal rights by the appellants for a fair
and free trial before the Sessions Court did not attract the mischief of Section
10-A(l)(b) of the Act.
On the other hand, Mr. S. Ganesh, learned senior counsel for the respondents, supporting the impugned order, contended that if the delay is attributable to workman, it is enough to attract the application of Section 10-A(l)(b)
of the Act; when the language of the Section is plain and clear it is not
permissible to exclude delay attributable to workman on the ground that delay
is caused on account of stay granted by the court; it is not permissible to add
. or exclude any words to the provision; the labour court as well as the High
Court were right in accepting the case of the respondent-company reducing
subsistence allowance of appellants to 50% having due regard to clear provision contained in Section 10-A(l)(b). He also added that the appellants caused
delay at every stage even before the labour court as well as before the revisional
authority. The further submission of the learned counsel was that in Mumbai
completion of a sessions trial takes number of years, particularly, the cases
where the accused are on bail; in this case the appellants are on bail; in cases
where trial takes long time there would be no justification to stay domestic
inquiry or payment of subsistence allowance at higher rate. According to him
no prejudice would be caused to the appellants as they have already disclosed
their defence by denying the charge of their involvement in criminal acts; even
the revision petition filed by the respondents challenging the order of stay,
granted by the labour court, is pending consideration and decision; in those
proceedings also the appellants are causing delay on one or the other ground;
the benefit of clause 25(5A) of the Model Standing Order Rules is not available
to the appellants in terms of Section 10-A(3) of the Act, they not being 'any
other law'.
We have carefully considered the submissions made by the learned
counsel for the parties. Section 10-A of the Industrial Employment (Standing
Orders) Act, 1946, to the extent relevant, reads:-·
A
B
c
D
E
F
G
H
518
A
B
c
D
SUPREME COURT REPORTS
(2001) SUPP. 4 S.C.R.
"10-A. Payment ~f subsistence allowance (1) Where any workman is
suspended by the employer pending investigation or inquiry into
complaints or charges of misconduct against him, the employer shall
pay to such workman subsistence allowance-
(a) at the rate of fifty per cent of wages which the workman was
entitled to immediately preceding the date of such suspension,
for the first ninety days of suspension; and
(b). at the rate of seventy-five per cent ofsuch wages fo! the remaining period of suspension if the delay in the completion of disciplinary proceedings against such workman is not directly attributable to the conduct of such workman.
(2) ......................... .
(3) Notwithstanding anything contained in the foregoing provisions
of this section, where provisions relating to payment of subsistence
allowance under any other law for the time being in force in any State
are more beneficial than the provisions of this section, the provisions
of such other law shall be applicable to the payment of subsistence
allowance in that State."
E
It is clear from Secti~n lO~A, extracted above, that the employer ik
/
required to pay subsistence allowance to a workman suspended pending inquiry at the rate of 50% of wages for·the first 90 days and at the rate of 75%
of wages for the remaining period of suspension, if delay in completion or
disciplinary proceedings is not directly attributable to the conduct of the workman
f
concerned. If a workman is entitled .to more beneficial provisions regarding
subsistence allowance under any other law in force in any State, then the .
provisions of such other law shall prevail.
Where a workman is suspended by the employer, pending investigation
or inquiry into a complaint or charges of misconduct against such workman,
G
a statutory obligation is cast "on the employer under the said provision to pay
subsistence allowance at the rate mentioned and such a workman has a statutory right to get subsistence allowance. However, as an exception a workman
can be denied payment of subsistence allowance at the rate of 75% after expiry
of 90 days of suspension, if the delay in the completion of disciplinary P!OH
ceedings is directly attributable to the conduct of such workman.
' ....
B.D. SHETIY v. CEAT LTD. [PATIL, J.]
519
In the light of the· question set out above we have to examine whether
A
delay of any kind is covered by mischief of Section 10..A(l)(b) of the Act, as/
sought to be made out on behalf of the respondent. The work "attribute" means,
"to ascribe to as belonging or pertaining" as stated in 'Words and Phrases'
Permanent Edition; According to P. Ramanatha Aiyar's Law Lexicon "attributable is a plain Engligh word involving some casual connection between the
B
loss of employment and that to which the loss is said to be attributable. This
connection need not be that of a sole, dominant, direct or proximate cause and
effect. A contributory casual connection is quite sufficient". "The expression
'attributable to' is wider in import than the expression 'derived from' and so
it follows that the legislature intended to cover receipts from sources other than
C
the actual conduct of the business of generation and distribution of electricity."
If under Section 10-A(l)(b) of the Act only the words 'attributable to'
were used, the position would have been different but the words used 'directly
attributable to' prefixing the word 'directly' to the words 'attributable to'
makes a drastic difference to emphasis that in order to deny a workman
subsistence allowance at the rate of 75%, the delay should be directly attributable to the conduct of such workman in completion of disciplinary proceedings and not that every kind of delay is covered by the said provision; If that
was the intention of the legislature there was no need for emphasis by adding
the word 'directly' and instead they would have simply used the words 'attributable to'. In the field of interpretation of statutes the courts always presume
that the legislature inserted every part thereof with a purpose and the legislative
intention is that every part of the statute should have effect. Further, it cannot
be said that a word or words used in a statute are either unnecessary or
superfluous unless there are compelling reasons to say so looking to the scheme
of the statute having regard to the object and purpose sought to be achieved
by it. In this view, the use of the word 'directly' in the provision has to be given
meaning and effect in the context of the said provision under the scheme of
the Act.
When a workman approaches a competent court bonafidely to protect
himself from prejudice likely to be caused by continuing proceedings simultaneously in domestic inquiry as also in the criminal case grounded on the same
set of facts and succeeds in getting order from a competent judicial authority
staying further proceedings in the disciplinary proceedings till the disposal of
the criminal case, it cannot be said that delay on that account in completion of
/
D
E
F
G
H
520
SUPREME COURT REPORTS
[2001] SUPP. 4 S.C.R.
'
A
disciplinary proceedings is directly attributable to the conduct of such workman. It cannot be denied that a workman is also entitled for a free and fair
trial in the criminal case. Hence, if a workman, in order to protect himself from
the prejudice that may be caused by simultaneous proceedings, approaches a
competent judicial authority and that authority, on being satisfied, taking into
B
consideration the facts and circumstances of the case, stays further proceedings
in a domestic inquiry pending a criminal trial, delay caused on that account in
completion of domestic inquiry cannot be directly attributable to the conduct
of such workman because granting stay of further proceedings in a domestic
inquiry does not depend on the pleaSure or mere wish of a workman himself.
C
May be, in a given case the court may refuse to stay disciplinary proceedings.
It is open to · the employer to oppose granting order by a competent court
staying disciplinary proceedings on all the grounds available to him. If a
workman is to be denied subsistence allowance at the. rate of 75% under
Section IO~A(l)(b), even in a ca8e where he may have a legal right and a good
D
case on merit to get order from a competent court staying domestic inquiry
· pending criminal trial, he may be forced to suffer in silence. During the period
of suspension he has to support his family and survive to fight or defend· his
case. It appears, reference to the delay directly attributable to the conduct of
the workman in the saidprovision is obviously to the one where the workman
unjustifiably, deliberately or designedly drags on or prolongs the domestic
inquiry.
To. put it in other way, a workman cannot be permitted to take
advantage of delay caused by himself in the ab~ence of any order passed by
a court. If such a delay is also to be taken as covered by Section 10-A(l)(b)
it may amount to in a way putting restraint or clog on the exercise of legal right
F
G
H.
of a workman to approach a court of law out of fear of losing subsistence
allowance at the rate of 75%. It is one thing to say that in a given case there
should be no stay of disciplinary proceedings. It is another thing .to say that
in case stay is granted there will be delay in completion of disciplinary proceedings, which is directly attributable to the conduct of a workman. Merely
because legal proceedings will be pending in a court or before other authority
and they take sometime for disposal, may be inevitably, that itself cannot be
the ground to deny subsistence allowance to a workman against a statutory
obligation created on the employer under Section 10-A(l)(b). One must not
Jose sight of the fact that the Act is a beneficial piece of legislation and the
provision of subsistence allowance made is intended to serve a definite purpose
of sustaining the workman and his family members during the bad titne when
•
B.D. SHEITY v. CEAT LTD. [PATIL, J.]
521
he is under suspension pending inquiry. This provision is enacted with a view
to ensure social welfare and security.
Hence, such a beneficial piece of
legislation has to be understood and construed in its proper and correct perspective so as to advance the legislative intention underlying its enactment rather
than abolish it. Assuming two views are possible, the one, which is in tune
with the legislative intention and furthers the same, should be preferred to the
one which would frustrate it.
It is open to the employer to resist granting of interim order by a court
staying the disciplinary proceedings or getting the stay order vacated, as the
case may be, satisfying the court that on facts and circumstances of the case,
there is no justification to stay the disciplinary proceedings pending criminal
trial. In the present case, as already stated, the competent court has granted
stay order staying the disciplinary proceedings and the matter is pending in
revision filed by the respondent challenging the same before the Industrial
Tribunal. It may be stated here itself that during the course of the arguments
A
B
c
both the learned counsel stated that in order to avoid further delay, a direction
D
may be given to Industrial Tribunal to dispose of the revision petiti?n within
a given time frame. Whether there is justification for continuation of the stay
order or not is pending consideration before the Industrial Tribunal. Hence,
we do not express any opinion on merit although some submissions were made
before us by the learned counsel for the parties in this regard. The learned
senior counsel for the respondent submitted that even before the Tribunal in
the revision petition, the delay is caused by the appellants. As can be seen from
Rozname (order sheet) of the proceedings before the Tribunal, the delay is not
entirely attributable to the appellants although few adjournments were sought
by them.
Sometimes court was vacant, sometimes the proceedings were
adjourned by the consent of the parties and sometimes for other reasons. The
learned counsel for the appellants complained that there was delay on the part
of the respondent also after issuing suspension orders to the appellants on
8.5.1996; the appellants replied to the suspension orders on 6.9.1996; no action
was taken upto 7 .10.1996 on which date charge-sheets were received by the
appellants; the appellants filed reply to the charge-sheets on 15.10.1996 and the
domestic inquiry commenced only on 25.1.1997.
E
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We are not impressed by the submission of the learned counsel for the
respondent that once there is delay on account of the conduct of the workman,
whatever may be the reason for delay, it is good enough to attract Section 10H
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[2001] SUPP. 4 S.C.R.
A(l)(b) to deny the workman subsistence allowance at 75% after 90 days of
suspension. According to him, no distinction can be made to exclude delay
caused on account of stay order granted by a court at the instance of workman.
He contended that no words can be added or excluded to the said provision to
avoid the mischief of it. In our view, a plain reading and clear understanding
of Section 10-A(l}(b}, as already discussed above, excludes the delay in completion of disciplinary proceedings . caused on account of order granted by a
competent court from the mischief-of the said provision. It is only the delay
that is directly attributable to the workman is covered by the said provision.
For what is stated above, the question raised in the beginning is answered in
the negative.
The argument of the learned counsel for the appellants that looking to
the Model Standing Orders appearing in 'schedule I appended to the Bombay
Industrial Employment (Standing Orders) Rules, 1959, which are more beneficial, the appellants are entitled for 100% subsistence allowance equivalent to
their wages, dearness allowance and other compensatory allowance in case
inquiry is Q.Ot completed within the period of 180 days is based on Section 10A(3) is untenable. The learned senior counsel for the respondent pointed out
that Model Standing Orders contained in Schedule I, are the part of Bombay
Industrial Employment (Standing Orders) Rules, 1959 and these rules are
framed in exercise of the powers conferred by S.ection 15 of the Act. Hence,
it cannot be said that the said Model Standing Orders come within the meaning
of such 'other law' covered by Section 10-A(3). He drew our attention to a
Division Bench judgment of Bombay High Court in May & Baker Ltd. v.
Kishore Jaikishandas /cchaporia, (1991) Lab.LC. 2066 in which it is clearly
held that Model Standing Orders were not "other laws". Para 9 of the said
judgment reads thus:-
"There is no dispute that the payment that was made by the appellant
to the 1st respondent was in accord not only with the provisions of the
Certified Standing Orders applicable to their industrial establishment
but also with those of Section 10-A. It was urged by Mrs. D'souza,
learned counsel for the 1st respondent that the 1st respondent was
entitled to subsistence allowance as provided by the Model Standing
Orders by reason of sub-section (3) of Section 10-A because the Model
Standing Orders were "other laws" within the meaning of sub-section
(3). We find this argument difficult to accept. The Model Standing
..
...
B.D. SHEITY v. CEAT LTD. [PATIL, J.]
523
Orders, as also Certified Standing Orders, are laws no doubt, but they
A
are laws made under the provisions of the Act. They are not provisions
"under any other law". In our view, therefore, the provisions of
Section 10-A supervene in relation to the payment of subsistence
allowance over the provisions of the Model Standing Orders."
We have every good reason to accept the said view. It is plain from the
very language of Section 10-A(3) that the words 'provisions of such other law'
necessarily refer to the law other than one covered by the very Act and Rules
made thereunder. In this view, we reject the contention of the learned counsel
for the appellants. Similarly, his argument that there is a practice with the
respondent to make 100% subsistence allowance if inquiry is not completed
within 180 days, and as such the appellants are also entitled accordingly,
cannot be accepted in view of the specific provision contained in Section 10A of the Act.
In view of submissions made by both learned counsel that the revisional
authority may be directed to dispose of the revision petitions pending before
the Industrial Tribunal within the given time frame and looking to the facts and
circumstances of the case, we also think it just and appropriate to direct the
Industrial Tribunal, Thane, to dispose of the revisions pending before it within
two months from the date of receipt of copy of this order. It is open to both
the parties to urge all the contentions available to them including that there is
no need to continue the stay order at this length of time and that no prejudice
will be caused to appellants when they have already disclosed their defence in
the domestic inquiry.
The learned senior counsel for the respondent submitted that in the event
we hold against the respondent and reverse the impugned order, the payment
of subsistence allowance at the rate of 75% may be ordered prospectively.
Having regard to the facts and circumstances of the case and the view we have
taken, it is not possible to accept the request made on behalf of the respondent
that payment of subsistence allowance at the rate of 75% may be ordered
prospectively.
In view of the interpretation we have placed on Section 10-A(l)(b) in
regard to delay and answered the question in the negative, the impugned order
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does call for interference.
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SUPREME COURT REPORTS
[2001] SUPP. 4 S.C.R.
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For what is stated above, the impugned order cannot be sustained. We
set aside the same and hold that the appellants are entitled for subsistence
allowance at the rate of 75%. The appeal is allowed accordingly. The
Industrial Tribunal, Thane, shall dispose of the Revision Application (ULP)
Nos. 34, 35 and 36 of 1998 within a period of two months from the date of
B . receipt of copy of this order. No costs.
s.v.K.·
Appeal allowed.