09 March 2005
Supreme Court
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CHIEF ENGINEER (CONSTRUCTION) Vs KESHAVA RAO (D) BY LRS.

Case number: C.A. No.-003791-003791 / 2003
Diary number: 19964 / 2002
Advocates: ANIL KATIYAR Vs K. SARADA DEVI


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CASE NO.: Appeal (civil)  3791 of 2003

PETITIONER: CHIEF ENGINEER (CONSTRUCTION)    

RESPONDENT: KESHAVA RAO (D) BY LRS.          

DATE OF JUDGMENT: 09/03/2005

BENCH: B.P.SINGH & S.B.SINHA

JUDGMENT: J U D G M E N T

                        B.P.SINGH, J.    

                                                  This Appeal by Special Leave has been preferred by the Chief  Engineer (Construction), Southern Railways against the judgment and  order of the High Court of Karnataka at Bangalore dated 15th June,  2002 in Writ Appeal No.16 of 1999. The learned Single Judge, against  whose judgment the aforesaid appeal was preferred, had set aside the  award of the Tribunal and held that the services of the Respondent were  illegally terminated. He was therefore, entitled to reinstatement with full  back wages. While affirming the finding of the learned Single Judge that  the                                                  ...2/-

                       -2- services of the Respondent were illegally terminated, the Division  Bench modified the direction with regard to payment of consequential  benefits by directing that only 50% of the back wages from the date of  termination till the date of death or date of superannuation of the  Respondent, whichever is earlier, shall be paid.         The facts of the case are that the Respondent was appointed on  16.7.1975 as a causal labourer by the Railways on payment of daily  wages of Rs.4/- which was later enhanced to Rs.10.40. The case of the  Appellant was that on 1.11.1977 the Respondent abandoned his work  and did not report for duty thereafter. Consequently he was marked  absent in the muster roll and being a casual employee his name was  deleted from the muster roll after five weeks continued absence from the  alleged date of abandonment. About a year and 5 months later, on 4th  April, 1979, the Respondent served a notice upon the Railways alleging  that his services had been illegally terminated. In the said notice issued  through an Advocate the Respondent stated that he had been appointed  by an order of appointment dated 16.7.1975 as a Clerical Mate in the  Southern Railways, Bangalore, on monthly wages of Rs.332.95. He was  also                                                  ...3/-

                       -3- issued a Casual Labour Service Card. It was alleged that despite  satisfactory service rendered by him, he was illegally prevented from  doing work without assigning any reason whatsoever. This amounted to  wrongful termination of service and therefore, the Respondent was  entitled to be reinstated with full back wages.         The reply of the Southern Railways is dated 11th April, 1979 in

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which it was stated that he had been engaged as an extra labour (Casual  Labour) in the category of Clerical Mate on daily wage basis at Rs.4/-  per day. He was deputed to work under the Inspector of Works  (Doubling), Bangalore City. He was unauthorisedly absent from duty on  his own accord from 1.11.1977. On 18.11.1977 he only came to receive  his wages upto 31.10.1977. He made a request on 25.11.1977 to be re- engaged and though the Head Clerk (Stores) was willing to engage him  as a fresh entrant on daily wage, he declined to accept the engagement.  Thereafter he never turned up for work. Since he was unauthorisedly  absenting himself from duty, under Rule 2505 of the Railway Manual  his engagement stood automatically terminated. In view of the aforesaid  rule the Respondent had no justifiable claim either for re-engagement or  for                                                  ...4/-

                       -4- back wages. Since the Respondent had voluntarily abandoned his  service there was no question of issuance of notice to him.         Thus, the case of the Respondent was that he had been prevented  from working on 1.11.1977, and the case of the Appellant on the other  hand was that the Respondent voluntarily abandoned his service and  therefore, in accordance with the relevant rules his name was struck off  from the muster roll.         The dispute was ultimately referred to the Central Government  Industrial Tribunal-cum-Labour Court, Bangalore, being Central  Reference No.65 of 1988. It is worthwhile noticing that the Reference  was made almost 10 years after the date of alleged abandonment of  service and/or termination of service of the Respondent.         Before the Tribunal the Respondent examined himself as a  witness whereas the Railways examined its Office Superintendent.  Some documentary evidence was also produced such as muster rolls.  The Respondent produced no documentary evidence in support of his  case.         The Tribunal found that the Petitioner was employed as a casual  labourer on a project and, therefore, was not                                                 ...5/-

                       -5- entitled to temporary status. The Tribunal recorded this finding on the  basis of the evidence led by the Railways that he had been employed in  connection with project work and was not entitled to temporary status.  The Respondent as a witness before the Tribunal did not deny the fact in  his evidence that he was engaged for project work. The Tribunal  considered the relevant Rules in this regard and came to the conclusion  that since the Petitioner was employed in connection with project work  as a causal labourer, the Rules did not entitle him to be granted  temporary status.         The Tribunal also considered the evidence on record and after  examining the muster rolls (Exhibits M-1 to M-30) recorded a finding of  fact that from 1st November, 1977 onwards the Respondent had not  worked even for a single day. Long thereafter he set up a claim for  reinstatement. The Tribunal also found that the plea of the Respondent  was not justified and that he in fact, had abandoned his service with  effect from 1.11.1977. Accordingly, the Tribunal rejected the Reference.         The Respondent thereafter preferred a writ petition before the  High Court of Karnataka at Bangalore which came to be disposed of by  a learned Judge of the Court. The                                                  ...6/-

                       -6- learned Judge noticed the finding of fact recorded by the Tribunal that  the Respondent had voluntarily abandoned his

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service but found the finding to be perverse. The learned Judge observed  that though the Respondent is said to have been appointed as a causal  labourer against a project, it was not the case of the Management that  the project work was over and therefore, he was no more required. The   only question therefore, which arose for consideration was whether this  was a case of termination of service as contended by the Respondent- Workman, or whether it was a case of voluntary abandonment of service  as contended by the Appellant.         The learned Judge further observed that merely on the basis of  the muster rolls the Tribunal could not have jumped to the conclusion  that the Respondent had abandoned his service. The High Court laid  considerable emphasis on the fact that his name was deleted from the  muster  roll only five weeks after the date of abandonment. According to  learned Judge subsequent conduct of the Respondent assumed  considerable significance inasmuch as on 4.4.1979 the Respondent got a  notice issued through an Advocate which was duly replied by the  Executive Engineer. In that notice                                                  ...7/-

                       -7- he demanded reinstatement to his original post together with back  wages. The learned Judge observed that the reply by the Executive  Engineer is not to the effect that the Petitioner voluntarily abandoned his  service, but the said reply sought to justify the termination. It was  therefore, clear that within a reasonable time after the relevant date  namely the date of abandonment of service as per the employer and the  date of termination as pleaded by the Appellant, the Workman got  issued a notice claiming that his service had been terminated and he  should be reinstated with back wages. To this notice the Appellant  replied justifying the termination which clearly established the  fact that  it was a case of termination of service and not a case of voluntary  abandonment of service. Therefore, the Tribunal’s conclusion to the  contrary was perverse.         We have carefully perused the notice given by the Respondent  and the reply thereto given by the Appellant. No doubt, about a year and  5 months after the alleged termination of service, such a notice was  served upon the Appellant by the Respondent. The High Court has  observed that within a reasonable time the Respondent had claimed  reinstatement on the ground that his service had been                                                  ...8/-

                       -8- illegally terminated. In the first instance the period of 1 year and 5  months does not appear to be reasonable time for asserting the factum of  termination of employment. However, what is more important is the fact  that in its reply the Appellant did not justify the termination as has been  observed  by the learned Judge. In its reply the Appellant asserted that  the Respondent was unauthorisedly absent from duty on his own accord  from 1.11.1977 and that since he had remained unauthorisedly absent  beyond the prescribed period of 3 days, as provided under Rule 2505 of  the Railway Manual, his engagement stood terminated and he had no  claim of reinstatement or back wages. It was, therefore, stated that in  view of the unauthorised absence of the Respondent which amounted to  voluntary abandonment of service, the question of issue of notice,  charge sheet etc. did not arise.         It will thus appear from the reply to the Notice dated 11.4.1979  that the Appellant’s reply did not justify the order of termination, but  only asserted the fact that the Petitioner had voluntarily abandoned his  service and therefore, his name had to be deleted from the muster roll.                                                  ...9/-

                       -9-             

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In our view the High Court has completely mis-read the Appellant’s  reply to the Respondent’s notice.          The learned Judge further held that since the Petitioner had been  appointed as Casual labourer on 16.5.1975 and had continuously worked  till end of 1977 it followed that the Petitioner had put in continuous  service as contemplated by Section 25B of the Industrial Disputes Act.  Since there was non-compliance of the provisions of Section 25F of the  Industrial Disputes Act, the termination of his service was not legally  sustainable. Such a contention was not raised before the Labour Court,  but the learned Judge recorded the aforesaid finding in his judgment. In  doing so the learned Judge has completely lost sight of the fact that the  initial burden of establishing the factum of continuous work for 240  days in a year rested with the Respondent. Unless the said initial burden  was discharged, and the Appellant failed to produce evidence in rebuttal,  such a finding could not have been recorded by the learned Judge.         The Appellant preferred an appeal which came to be disposed of  by a Division Bench of the High Court which affirmed the order of the  learned Judge but directed that                                                 ...10/-

                       -10- instead of full back wages only 50% of the back wages shall  be paid. We may notice the fact that the Respondent died sometime in  the year 2000, and therefore, the direction was to pay 50% of the back  wages from the date of termination till the date of superannuation or till  the date of death whichever was earlier.         We are of the view that this Appeal should be allowed. The  Labour Court recorded two crucial findings of fact namely, that the  Respondent was engaged as a causal labourer in connection with project  work, and secondly, that he had abandoned his service and the allegation  that he was prevented from joining his duties on 1.11.1977 was not true.  These were findings of fact recorded by the Tribunal on the basis of  evidence on record. The muster roll, no doubt, supported the case of the  Appellant that after 1.11.1977 he did not report for duty. We cannot lose  sight of the fact that thereafter till 4.4.1979 the respondent did nothing to  assert his right of reinstatement. The delay of a year and 5 months in  issuing a notice appears to us to be significant. Apart from this no  evidence was led by the Respondent-Workman that he had made any  effort to seek reinstatement or complained against                                                 ...11/-

                       -11-

the action of the Management to anyone. There is no material  whatsoever to suggest that he had made a grievance about it before any  authority or before the Workers’ Union.         We have further found that the learned Judge, whose finding was  affirmed by the Division Bench, fell into an error in thinking that the  reply given by the Appellant to  the notice of the Respondent justified the order of termination. As we  have noticed earlier, the learned Judge mis-read the reply given by the  appellant-Railways in which it was clearly asserted that the Respondent  had abandoned his service and therefore, in terms of the Rules his name  was deleted from the muster roll. There is nothing in the reply to the  notice which is even suggestive of the fact that the appellant accepted  the fact that the services of the Respondent were terminated, or that  there was justification for  such termination. The finding of the Tribunal  therefore, did not suffer from the vice of perversity or unreasonableness.  In fact the High Court was  in error in interfering with the findings of  fact recorded by the Tribunal.                                                  ...12/-

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                       -12-

       We therefore, allow this appeal, set aside the impugned judgment  and order of the High Court dated June 15, 2002 and restore the award  of the Industrial Tribunal-cum-Labour Court, Bangalore dated June 28,  1991.         No order as to costs.