# Jfrmici;cl Ciuncil Pa/Mi v. T.J. Jeseph 1\!11dholkar J

- **Citation:** [1964] 2 S.C.R. 104
- **Court:** Supreme Court of India
- **Decided:** 1964
- **Bench:** P. B. Gajendragadkar, K. N. Wanchoo, M. HmAY.tTULLAH, K. C. Das Gupta, J. C. Shah
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/jfrmici-cl-ciuncil-pa-mi-v-t-j-jeseph-1-11dholkar-j-2827
- **Pages:** 11

## Headnote

Indu•trinl
Dispute-Di•misMl-1"dustrfol
Disputes
Act, 1917 (U of 1917), s. 33.
The appellant was cl1arged with groS5 dereliction of duty.
The appellant in answer to the charge sheet admitted the
mistakes and contended that he was over-worked and that it
was the duty of others also to check the load sheet aud balance
chart prepared by him.
Enquiry was held by the Station
Manager to whom the appellant objected on the ground of
bias. On the finding• of the enquiry the appellant was dismissed by the Regional Representative of the respondent company and was given one month's wages and was informed that
the approval of the action taken was being sought from the
Industrial Tribunal before whom some industrial disputes were
pending. The order of dismissal was communicated to the
appellant on \fay 30, and the application for apprornl was
made the same day. An application under s. 33A was made on
June 3, 1960, by the appellant challen.ging the ordtr of dismissal. The appellant objected to the maintainability of the application for approval but the Tribunal accorded approval to the
action taken by the respondent and dismissed the application
of the appellant under s. 33-A, on appeal by special leave.
HeW,, that the application for approval was in accordance
with the proviso of s. 33 and properly made.
-
2 S.C.R.
SUPREME COURT REPORTS
105
The Strau; Borlrd .IJfanufacturing Co .. Ltd., Flahflranpur v.
Gom'.nd, [1962] Supp. 3 S. C.R. 618, referred to.
Held, further that in the absence of any positive action
amounting to recognition of the appeJlant as a protected person
by the respondent (and the appellant had produced no such
evidence) he could not be held to be a protected workman for
dismissing whom
p1 evious
sanction \Vas
necessary under
s. 33 (3).
Held, further, that assuming that the Station l'vfanager
who held the enquiry was biased though the order of dismissal
was passed by the Regional Representative against whom no
such allegation was madr, the Tribunal was entitled to go into
the question whether the dismissal was justified on the evi·
dence laid before it.
Phulbari Tea Estate v. Its Workmen .. [1960] 1 S C.R. 32,
referr< d to.
HelC:, further, that the dismissal of the appellant did not
amount to victimisation
[Jehl, also that even if the do1nestic enquiry was defective
provided that there is a prima facie case for dismissal and a
bonafide conclusion is reached that the employee is guilty of
misconduct, and if the Labour Court in dealing with the application under s. 33 (2) and after considering for itself the evidence adduced before it gives its approval it w.;uld relate back
to \\'hen the e1nployer came to the conclusion after the e:nquiry
that the dismissal is a proper punishment.
.
Jf /8. Sasa. Musa Sugar Works (P) Lt1l. v. Slwbrati Khan,
[19.19] Supp. 2 S. C.R. 836, distinguished.
JJiunagement of Ranipur Colliery v. Bhuban Singh, [1959:1
Supp. 2 S C. R. 719, referred to.
CrvrL APPELLATJ~ jumsnronoN : Civil Appeal
No. 419 of 1962.
Appeal by special leave from the Awarrl dated
June 22, l!J{l), of the Second Labour Court, West
Bengal in Case No. 97/3:3A 0f 19f10.
N. N. Keswani, for th: ilppellant,
1963
P.TI. Kalya11i
v.
M/s. Air France
Calcutta
1963
P. ff_ lialyani
v,
M/s. Air FrQJZct
CaicuttJ
B'anch!:lo J,
106 SUPREME COURT REPORTS [1964] VOL.
C. K. Dephtary, Solicitor-General of India and
El. L. Anand for the respondent.
196:t February 15.
The Judgment of the
Court was <lei ivered by
WANCHOO J.-This appeal by special leave
challanges the order of the Second Labour Court,
West Bengal, relating to the dismissal of the appellant, who was in the service of the respondentcompany.
A charge-sheet was issued to the appellant on April 23, 1960 under the signature of the
Station Manager of the respondent-company.
The
charge-sheet contained two charges of gross dereliction of duty inasmuch as the appellant had made
mistakes in the preparation of a load-sheet on one
dav and a balance chart on another dav, which mistakes might ha,·e led

## Text

1913
Jfrmici;cl Ciuncil
Pa/Mi
v.
T.J. Jeseph
1\!11dholkar J,
1963
Ftiru1ry 15.
104
SUPREME COURT REPORTS [1964]VOL.
For these reasons we allow the appeals and set
aside the orders of the High Court and quash the
writs issued by it.
There will, however, be no order
as to costs as the respondents have not appeared.
Appert.ls allowed,
--~-
P. H. KALY ANI
v.
M/S. AIR FRANCE CALCUTT A
(P. B. GAJENDRAGADKAR, K. N. WANCHOO,
M. HmAY.tTULLAH, K. C. DAS GUPTA and
J. C. SHAH JJ.)
Indu•trinl
Dispute-Di•misMl-1"dustrfol
Disputes
Act, 1917 (U of 1917), s. 33.
The appellant was cl1arged with groS5 dereliction of duty.
The appellant in answer to the charge sheet admitted the
mistakes and contended that he was over-worked and that it
was the duty of others also to check the load sheet aud balance
chart prepared by him.
Enquiry was held by the Station
Manager to whom the appellant objected on the ground of
bias. On the finding• of the enquiry the appellant was dismissed by the Regional Representative of the respondent company and was given one month's wages and was informed that
the approval of the action taken was being sought from the
Industrial Tribunal before whom some industrial disputes were
pending. The order of dismissal was communicated to the
appellant on \fay 30, and the application for apprornl was
made the same day. An application under s. 33A was made on
June 3, 1960, by the appellant challen.ging the ordtr of dismissal. The appellant objected to the maintainability of the application for approval but the Tribunal accorded approval to the
action taken by the respondent and dismissed the application
of the appellant under s. 33-A, on appeal by special leave.
HeW,, that the application for approval was in accordance
with the proviso of s. 33 and properly made.
-
2 S.C.R.
SUPREME COURT REPORTS
105
The Strau; Borlrd .IJfanufacturing Co .. Ltd., Flahflranpur v.
Gom'.nd, [1962] Supp. 3 S. C.R. 618, referred to.
Held, further that in the absence of any positive action
amounting to recognition of the appeJlant as a protected person
by the respondent (and the appellant had produced no such
evidence) he could not be held to be a protected workman for
dismissing whom
p1 evious
sanction \Vas
necessary under
s. 33 (3).
Held, further, that assuming that the Station l'vfanager
who held the enquiry was biased though the order of dismissal
was passed by the Regional Representative against whom no
such allegation was madr, the Tribunal was entitled to go into
the question whether the dismissal was justified on the evi·
dence laid before it.
Phulbari Tea Estate v. Its Workmen .. [1960] 1 S C.R. 32,
referr< d to.
HelC:, further, that the dismissal of the appellant did not
amount to victimisation
[Jehl, also that even if the do1nestic enquiry was defective
provided that there is a prima facie case for dismissal and a
bonafide conclusion is reached that the employee is guilty of
misconduct, and if the Labour Court in dealing with the application under s. 33 (2) and after considering for itself the evidence adduced before it gives its approval it w.;uld relate back
to \\'hen the e1nployer came to the conclusion after the e:nquiry
that the dismissal is a proper punishment.
.
Jf /8. Sasa. Musa Sugar Works (P) Lt1l. v. Slwbrati Khan,
[19.19] Supp. 2 S. C.R. 836, distinguished.
JJiunagement of Ranipur Colliery v. Bhuban Singh, [1959:1
Supp. 2 S C. R. 719, referred to.
CrvrL APPELLATJ~ jumsnronoN : Civil Appeal
No. 419 of 1962.
Appeal by special leave from the Awarrl dated
June 22, l!J{l), of the Second Labour Court, West
Bengal in Case No. 97/3:3A 0f 19f10.
N. N. Keswani, for th: ilppellant,
1963
P.TI. Kalya11i
v.
M/s. Air France
Calcutta
1963
P. ff_ lialyani
v,
M/s. Air FrQJZct
CaicuttJ
B'anch!:lo J,
106 SUPREME COURT REPORTS [1964] VOL.
C. K. Dephtary, Solicitor-General of India and
El. L. Anand for the respondent.
196:t February 15.
The Judgment of the
Court was <lei ivered by
WANCHOO J.-This appeal by special leave
challanges the order of the Second Labour Court,
West Bengal, relating to the dismissal of the appellant, who was in the service of the respondentcompany.
A charge-sheet was issued to the appellant on April 23, 1960 under the signature of the
Station Manager of the respondent-company.
The
charge-sheet contained two charges of gross dereliction of duty inasmuch as the appellant had made
mistakes in the preparation of a load-sheet on one
dav and a balance chart on another dav, which mistakes might ha,·e led to a serious accident to the
aircraft.
The appc Hant gave his reply to the chargesheet on April 2(i, 19('0 in which he admitted the
mistakes
that
had been
made.
He,
however,
contended that he was over-worked and further that
it was the duty of others also to check the load-sheet
and balance chart prepared
by him.
\Jth
May
Hl60 was fixed for inquiry by the Station Manager.
The appellant objected to the inquiry being held by
Station Manager on the grounrl that the Station
Manager was biased against liim on account of the
evidence which he had given against the Station
Manager in a customs case which was partly rc-sponsible for the infliction of a
fine
<m the
Station
Manager;
His objection was however over-ruled
and the inquiry was held by the Station Manager
and completed on l\lay JO, 19HO.
Thereafter it
appears that the Station
~fanagcr forwarded his
findings and recommendations
to
the Regional
Representative of the rcsponrlent-company.
The
appellant was dismi11~d on :\fay 28, !fllJO. by_ the
Regional Representative; the order of
<l1sm1ssal
provided for payment of one month's wages to the
,,
-
2 S.C.R.
SUPREME COURT REPORTS
107
appellant and also stated that an application was
being made before the First Industrial Tribunal,
West Bengal, for approval of the action taken,
apparently as some industrial dispute was pending
before that tribunal. It appears that the order of
dismissal was communicated to the appellant on
May 30, and one month's wages were also tendered
to him.
The same day the respondent filed an
application before the First Industrial Tribunal,
West Bengal, seeking approval of the action.
On
June 3, 1960, the appellant made an application
under s. 33-A of the Industrial Disputes
Act
No. XIV of 194 7, (hereinafter referred to as the
Act), challenging the legality of the action taken on
a large number of grounds.
These grounds were considered by the Labour
Court and all of them were substantially decided
against the appellant. The Labour Court held that
the di1missal of the appellant was
justified and
therefore accorded approval for such dismissal. In
particular, dealing with the various points raised on
behalf of the appellant, the Labour Court held that
the application under s. 33 (2) (b) of the Act was
validly made even though it had been made after
the order of dismissal had been passed. It further
held that the case was not covered bys. 3:J (1) of the
Act and it was not necessary to obtain the previous
-permission of the tribunal before dismissing the
.ippellant. It also held that the appellant was not
a protected workman.
Further as to the charge that
the Station Manager was biased and therefore there
was violation of the principles of natural justice, the
Labour Court was of the view that the coritention
of the appellant that the Station Manager was
biased against him because of the evidence he had
given in the customs case could not be brushed aside
lightly.
But it went on to hold that even if there
was some violation of-the princi~es of natural justice
in asmuch as the Station Manager was biased against
1963
P.H. KalJan
v.
M/s. Air Fran.~t
C2lcu'ta
Wanchoo J.
1963
I'. I I K a!J·m1i
v.
M/.r. Air Franet
(,"alc1Jt'a
Wanclwn J.
108
SUPREME COURT REPORTS [I !lG1] VOL.
the appellant, the respondent had adduc~d all the
evidence before it in support of its action and it had
to decide on that evidence whether the action was
justified and approval should be granted.
In this
connection, the Labour Co11rt relied on the decision
of this Court in
Phulbc1ri
Tea
Estute v. Its
workmen (1 ).
The Labour Court then went into the evidence
tendered before it. It pointccl out that the appellant
had admitted the two mistakes which ll'Crr the basis
of the charge.
It also held that the mistakes were
of a serious nature which might have resulted in an
accident to the aircraft. It said that the fact that
other people were also responsible for checking loadsheets and balance-charts would not mitigate the
mistakes committed by
the appellant "·ho was
primarily responsible for preparing them.
It also
repelled the charge of victirni,ation raised on behalf
of the appellant on account of the delay in giving
him the charge-sheet.
Finally, it came to the conclusion that the mistakes committed by the appellant
were serious involving possible accident to the aircraft and possible loss of human life.
It was not
prepared to accept the pica of over-work and other
picas raised on behalf of the appellant to mitigate
the mistakes committed by him.
It pointed 011t that
the mistakes being of a serious nature the puni,hment
of dismissal inflicted by th~ respondent could not be
said to b" unconscionable or entirely out of proportion to the gravity of the offence. It. therefore,
dismissed the application of the appellant under
s. 33-A of the Act and accorded approval to th·:
action taken by the respondent.
This decision of
the labour Court is being challengecl by the present
appeal by special leave.
The main point which \\"aS raised in this appeal
is now conclurled by tlic clccision of this Court iu
thr.
Stra11J
Borul'f
.lfan,1facturhu;1
Co. J,imitc.rl,
81Llw.ra11pm v. Go1:inrl (').
This Court has hcl<l in
t l) [1960) l s.c.R. S2,
(2) (1962) Supp. s S.C.R. 618.
-
-
2 S.C.R.
SVl>RE11E COUR.t REPORtS
109
that casr that "the proviso to s. 33 (2) (b) contemplates the three things mentioned therein, namely, (i)
dismissal or discharge, (ii) payment of wages, and (iii)
making of an application for approval, to be simultaneous and to be part of the same transaction so
that the employer when he takes th: action under
s. 33 (2) by dismissing or discharging an employee,
should immediately pay him or offer to pay him
wages for one month and also make an application
to the tribunal for approval atthe same time".
It
was further held that "the employer's conduct should
show that the three things contemplated under the
proviso, are parts of the same transaction; and the
question whether the application was made as part of
the same transaction or at the same time when the
action was taken would be a question of fact and
will depend upon the circumstances of each case".
In the present case the order of dismissal was passed
by the Regional Representative on May 28, 1960 and
was communicated to the appellant on May 30th.
The wages were offered to the appell;mt at the same
time when the order was communicated to him,
though he did not accept . them.
The respondent
also made the application under s. 33 (2) (b) to the
industrial tribunal the same day.
In these circum.
stances we are of opinion that the Labour Court
was right in holding that the application under s. 33
(2) (b) was in accordance with the proviso to that
section and was properly made.
Learned counsel for the appellant has further
raised some points which were raised on behalf of
the appellant before the Labour Court. In the first
place, he contends that the appellant was a protected
workman and the Labour Court was not right when
it held that the appellant was not a protected workman. We are of opinion that the questitm whether
a particular workman is a protected workman or not
is a question of fact, and the finding of the Labour
Court on such a question will generally be accepted
1963
P, H. K alyt1ni
..
M/s. Air Frane1
Calcutta
Wanc!too J.
1963
P. lJ. Kal;·ani
v.
}.Ifs. Air France
.ColC1dla
M'anchoo J.
110 SUPREME COURT REPORTS [l9u4] VOL.
by this Court as conclusive.
Besides, the Labour
Court has pointed out that the mere fact that a letter
was written to the Manager of the rcspondentcompany by the Vice-President of the union in which
the name of the appellant was mentioned as a joint
secretary of the union and the manager had been
requested to recognise him along with others mentioned in the letter as protected workmen would not be
enough.
The· company had replied to that letter
pointing out certain legal defects therein and there
was no evidence to show what happened thereafter.
The Labour Court has held that according to the
rules framed by the Government of \'\'est Bengal as to
the recognition of protected workmen, there must be
some positive action on the part of the employer in
regard to the recognition of an employee as a protected workman before he could claim to be a protected workman for the purpose of s. 33.
l\othing
has been shown to us against this view.
In the absence therefore of any evidence as to recognition, the
Labour Court rightly held that the appellant wa~ not
a protected workman and therefore previous permission under s. 33 (:1) of the 'Act would not be necessary
before his dismissal.
Then it is urged that after the Labour Court
held that the Station Manager who held the inquiry
was baised and there had been violation of the
principles of natural justice, it was not open to the
Labour Court to consider the question whether the
appellant was rightly dismissed itself. On the other
hand it has been urged on behalf of the respondent
that the Station Manager could not in the circumstances of this case be said to have violated the
principles of natural justice because _the '!1istakes were
admitted bv the appellant and the inquiry was really
formal and all that the Station Manager had to do
was to recommend ·what he considered suitable punishment for the misconduct, which had taken place.
It is also pointed out that the actual punishment
-
~ $.d.R..
SUPREME COURT REPORTS
11i
was awarded by the
Regional
Representative
and not by the Station Manager. There is some
force in these contentions on behalf of the respondent
in the circumstances of the present case. But we do
not think it necessary to pronounce finally on the
question whether in snch circumstances there would
be violation of natural justice. It is now well settled
by a number of decisions of this Court that it is open
to the tribunal to go into the propriety of an order
of dismissal itself, when there is a defect in the
domestic inquiry. In these circumstances even if it
be held that the Station Manager was biased and
therefore there was some violation of the principles
of natural justice inasmuch as the inquiry was held
by him, the Labour Court would be entitled to go
into the question whether the dismissal was justified
on the evidence led before it and this is exactly
what the Labour Coart did relying on the judgment
of this Court in Phulbari Te(], Est(J,fe (1). The c9ntention therefore on behalf of the appellant that the
Ilabour Court was not entitled to go into the question
whether the dismissal was justified once it held that
the domestic inquiry was defective, must be rejected.
.
Then it is urged that the Labour Court was
wrong in holding that victimisation had not been
proved.
We however find no reason to differ from
the finding of the Labour Court on the question of
victimisation, apart from the fact that a finding of
victimisation is generally a question of fact and
cannot be agitated in this Court. The Labour Court
has pointed out that the plea of victimisation on the
ground that there was some delay in giving the
charge-sheet to the appellant cannot be sustained,
because the Station Manager came to know about
the mistakes only a few days before the charge-sheet
was given, though the mistakes had' actually been
committed in January and March, and also because
the appellant admitted the mistakes and there could
be no doubt therefore that he had committed them.
(I) [1960) IS. C, R. 52.
-
1963
P. H. Kalyani
v.
M/s. Air Franc1
Calcuua
Wonchao .T.
1963
P. fl. T.ah .. i
v.
ill; s. Air J•'rt1n<1
Calcutta
Wanrhoo J.
112
SUPREME COURT RtPOR'tS [l!J64] VOL
We agree with the Labour Court that in the face of
the appellant's admission of the mistakes there could
be no question of victimis,11ion in this case.
Finally it is urged that as the domestic inquiry
was defective, there could be no approval of the
action taken in consequence of such an iuquiry and
the Labour Court even if it held that the dismissal
was justified should have ordered the dismissal from
, the date its award would become operative.
In this
connection reliance was placed on the decision of this
Court !n Jlessrs.
S£z.sa JI us£• Swjflr Works (!') Ltd.
v. Sliobrnti l\han, ('), where the following observations occur at p. 845 :-
" ...... as the management held no inquiry after
suspending the workmen and proceedings under
s. 33 were
practically
converted into the
inquiry
which
normally
the
management
should have held before applying to the Industrial Tribunal, the management is bound to
pay the wages of the workmen till a case for
dismissal was made out in the
proceedings
under s. :13."
\Ve arc of opinion that those observations cannot be
taken advantage of by the appellant.
T!1at was a
case where an application had been made under
s. 33 (I) of the Act for permission to dismiss the
employees and such permission was asked for though
no inquiry what-so-ever had been held by the employer and no decision taken that the employees be
dismis>ed.
It was in those circumstances that a case
for dismissal was made out only in the proceedings
under s. 33 (1) and therefore the employees were
held entitled to their wages till the decision of the
application under s. 33.
The matter would have
been different if in that case an inquiry had been
held and the employer had come to the conclusion
that dismissal was the proper punishment and then
(1) Ll9)~J Supp. 2 S.C.R. 836.
•
~/
' I r
•
2 S.C.R.
SUPREME COURT REPORTS
113
had applied under s. 33 (1) for permission to dismiss.
In those circumstances the permission would have
related back to the date when the employer came to
the conclusion after an inquiry that dismissal was
the proper punishment and had applied for removal
of the ban by an application under s. 33 (1): (see
the Manage'l1Ulnt of Ranipur Colliery v. Bhuban
- Singh (1). The present is a case where the employer
has held an inquiry though it was defective and has
passed an order of dismissal and seeks approval of
that order.
If the inquiry is not defective, the
Labour Court has only to see whether there was a
prima facie case for dismissal, and whether the
employer had come to the bona fide conclusion that
the employee was guilty of misconduct.
Thereafter
on coming to the conclusion that the employer had
bona fide come to the conclusion that the employee
was guilty i. e. there was no unfair labour practice
and no victimisation, the Labour Court would grant the
approval which would relate back to the date from
which the employer had ordered the dismissal.
If
the inquiry is defective for any reason, the Labour
Court would also have to consider for itself on the
evidence adduced before it whether the dismissal
was justified. However, on coming to the conclusion
on its own appraisal of evidence adduced before it
that the dismissal was justified its approval of the
order of dismissal made by the employer in a defrctive inquiry would still relate back to the date when
the order was made.
The observations in Me&srs.
Basa Musa Sugar Company's case ('), on which the
appellant relies apply only to a case where the employer had neither dismissed the employee nor had come
to the conclusion that a case for dismissal had been
made out. In that case the dismissal of the employee
takes effect from the date of the award and so until
then the relation of employer and employee continues in law and in fact.
In the present case an
inquiry has been held which is said to be defective
in one respect and dismissal has been ordered. The
(I) [1959) Supp. 2 S.C.R. 719.
(2) [1959] Supp. 2 S.C.R. 836.
1963
P. H. Kalyrm.i
v.
M/1. Air Franc1
Calcutta
Wanchoo J.
1963
P. H. Ira(l<illi
•.
Mjs. Air Fra11"
C.Jndl4
WdllcAH J,
1963
F1truary 15
114 SUPREME COURT REPORTS [1964] VOL.
respondent had however to justify· the order of dismissal before the Labour Court in view of the defect
in the inquiry. It has succeeded in doirig so and
therefore the approval of the Labour Court will
relate back to the date on which the respondent
passed the order of dismissal.
The contention of
the appellant therefore that dismissal in this case
should take effect from the date from which the
Labour Court's award came into operation must fail.
There is no force in this appeal and it is hereby
dismissed.
In the circumstances we pass no order
as to costs.
STATE OF PU~JAB & ANOTHER
v.
BRITISH INDIA CORPORATION LTD.
(S. K. DAS, A. K. SARKAH, K. c. DAS GUPTA
and 'i\. RAJAGOPALA AYYANGAR JJ.)
Properly 1'ax-Exemption-"Uscd for the purpose of a
factory" and "Rent"-Mea11i11g of-Punjab Urban Immot'!lbk
Property Tax Ac/, 1940 (Pb. 17 of 1940), ss. 3, 4-Punjab
Urban lmmovabk Property Tax Rules, 1941, r. JS.
The property involved in the first appeal was a set or
room5 used for indoor games b)' the mill employees, one big
-
hall used as the Gurkha (;uards Club, a set of rooms used as ~
Officers' Club and a set of roon1s used as residential quarters t
~·
by workers of the mills. The property involved in the second •---
appeal consi•ted of 200 quarters which had Leen allotted to the
workers of the factory for their occupation. The question wa•
whether these properties w<"rc exempted fro1n taxation under
s. 4 of the Punjab Urban Immovable Property Tax Act, 1940,