02 August 1963
Supreme Court
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THE BUCKINGHAM AND CARNATIC CO. LTD. Vs VENKATIAH AND ANR.

Case number: Appeal (civil) 874 of 1962


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PETITIONER: THE BUCKINGHAM AND CARNATIC CO.  LTD.

       Vs.

RESPONDENT: VENKATIAH AND ANR.

DATE OF JUDGMENT: 02/08/1963

BENCH: GAJENDRAGADKAR, P.B. BENCH: GAJENDRAGADKAR, P.B. WANCHOO, K.N. GUPTA, K.C. DAS

CITATION:  1964 AIR 1272            1964 SCR  (4) 265  CITATOR INFO :  R          1968 SC  33  (12)  R          1979 SC 582  (6)

ACT: Industrial  Dispute-Standing Orders-Termination of  Service- Enployee  absent without leave-"Employer not to  dismiss  or punish employee during period of sickness"-scope and  effect of-Employees State Insurance Act, 1948 (34 of 1948), s.  73, sub-ss. (1) and (2) and s. 85(d)-Standing Orders No. 8  (ii) and 13(f)Regulations 53 to 86.

HEADNOTE: The respondent Venkatiah went on leave for six days and  did -not  join  duty  on  the expiry of  the  leave  period  but remained  absent  without  sending  to  the  appellant   any communication  for  extending his leave. Later,  he  sent  2 letter to the appellant accompanied by a medical certificate issued  by  a  Civil Assistant Surgeon  in  respect  of  his illness  for  a period of nearly two  months.   The  Medical Officer  of the appellant was unable to confirm that he  was ailing for a period of two months.  Finding the  explanation for his absence unsatisfactory the appellant refused to take him back in its employment.  Meanwhile he had applied to the Regional   Director  of  the  Employees’   State   Insurance Corporation  and  obtained  cash sickness  benefit  for  the period  covered  by the Medical Certificate  issued  by  the Civil Assistant Surgeon.  On the appellant’s refusal to take him  back in its employment, the respondent union,  referred his case for adjudication 18-2 S. C. India/64 266 to the Labour Court and the management of the appellant  was directed to reinstate him.  The appellant then moved a  writ petition in the High Court and it was allowed by the learned single  Judge.   The  respondent then  preferred  a  Letters Patent  Appeal before a Division Bench of the  High’  Court. The  appeal was allowed by the Division Bench and the  award passed  by  the Labour Court was restored.   In  his  appeal against the said decision the appellant’s main contention in this  Court  was that the case of  Venkatiah  fell  squarely within  the provisions of Standing Order 8(ii) and the  High

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Court  was  wrong  in  holding  that  the  decision  of  the appellant  in refusing to condone the absence  of  Venkatiah was  either unfair or improper, or that it  contravened  the provisions  of s. 73 of the Employees’ State Insurance  Act, 1948.   The respondent mainly contended that in the  present case the employee received sickness benefit, and so, for the said sickness, no penalty could be imposed on him. Held  :  (i)  Standing Order 8(ii)  was  applicable  to  the present  case and the fact that the same conduct  was  dealt with in two different standing orders, could not affect  the applicability of Standing Order 8(ii) to the present case. (ii) Whether  or not the appellant should have accepted  the certificate of the Civil Assistant Surgeon was primarily for the appellant to consider; as there was no allegation  about mala fides in this case, it was not open to the High  Court, in  exercise  of  its writ  jurisdiction,  to  consider  the propriety  of the conclusion reached by the Labour Court  on this point. (iii)     On  a  proper construction of s. 73(1)  read  with sub-s.  (2), it was impossible to invoke s. 73  against  the appellant,  because the termination of Venkatiah’s  services had  not  taken place during the period of his  illness  for which  he received sickness benefit; the High Court was  not justified  in  taking  the  view  that  the  termination  of Venkatiah’s  services under S.O. 8(ii) contravened the  pro- visions of s. 73(1). (iv) The  view  taken  by the Regional  Director  about  the effect  of the Civil Assistant Surgeon’s  certificate  under the proviso to regulation 53 could not be said to be binding on  the appellant and in view of the construction put on  s. 73(1),  there was no inconsistency between the said  section and Standing Order 8(ii).

JUDGMENT: CIVIL APPELLATE JURISDICTION: Civil Appeal No. 874 of 1962. Appeal  from the judgment and order dated January 15,  1962, of the Madras High Court in Writ Appeal No. 82 of 1959. A.   V.  Viswanatha Sastri, G. B. Pai and B. N.  Ghosh,  for the appellant. 267 B.   R.  Dolia, M. Rajagopalan and K. R. Chaudhuri, for  the respondents. August 2, 1963.  The Judgment of the Court was delivered  by GAJENDRAGADKAR,  J.-The principal question which  arises  in this  appeal  relates to the true scope and  effect  of  the provisions  contained  in  s. 73  of  the  Employees’  State Insurance  Act,  1948  (hereinafter called  the  Act).   The appellant, the Buckingham & Carnatic Co. Ltd., is a  company registered under the Indian Companies Act and its registered office  is at Madras.  It has a Textile Mill in Madras  City which  employs  14,000 workmen.  On January  10,  1957,  the respondent   Venkatiah  whose  case  is  sponsored  by   the respondent Union, the Madras Labour Union, had gone on leave for six days.  Taking into account the intervening holidays, the said leave expired on January18, 1957.  He, however  did not  join  duty on the 19th January as he should  have,  but remained  absent  without  leave  without  sending  to   the appellant any communication for extending his leave.  On the 11th  March 1957 he sent a letter to the  appellant  stating that  sometime after reaching his village near  Kanigiri  he suffered  from  fever and dysentery and was treated  by  the Civil   Assistant  Surgeon,  Kanigiri.   This   letter   was accompanied  by  a  certificate issued  by  the  said  Civil

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Assistant  Surgeon.  In this certificate it was stated  that Venkatiah  suffered from chronic malaria and dysentery  from January  15 to, March 7, 1957.  When he appeared before  the Manager  of  the Company, he was asked to go to  the  Senior Medical Officer of the appellant for examination.  The  said Officer  examined him and was unable to confirm that he  had been  ailing for a period of nearly two months.   Acting  on that  opinion’ the appellant refused to take back  Venkatiah and  when Venkatiah pressed to be taken back, the  appellant informed  him  on  March  23, 1957  that  he  could  not  be reinstated  as  his  explanation for  his  absence  was  un- satisfactory.   The  case of Venkatiah was  treated  by  the appellant  under  Standing Order No. 8(ii) of  the  Standing Orders of the appellant. Meanwhile,  Venkatiah  had applied to  the  Employees  State Insurance Corporation and on or about the 15th June 1957  he obtained cash sickness benefit for the period covered by the medical certificate issued. by the Civil Assis- 268 tant  Surgeon,  Kanigiri.   The Regional  Director  to  whom Venkatiah  had applied for the said assistance accepted  the said  certificate as alternative evidence and directed  that payment  may be made to him to the extent permissible  under the Act.  Accordingly, Rs. 82-14-00 were paid to him. When  the  appellant refused to take back Venkatiah  in  its employment, the respondent Union took up his case and it was referred  for adjudication to the Labour Court at Madras  as an  industrial dispute (S.P.O. No. A-5411 of 1958).   Before the Labour Court the appellant urged that the reference made was  invalid and it also contended that the  termination  of Venkatiah’s  services  was  ’Justified.   The  Labour  Court rejected  the  appellants preliminary object-ion  about  the invalidity of the reference.  It held that if the matter had to be considered solely by reference to the Standing Orders, the  appellant  was  entitled to  succeed,  because  it  was justified  in acting upon the opinion given by  its  Medical Officer in regard to the alleged illness of Venkatiah.  When the  said opinion was attacked before the Labour  Court,  it observed  that  it was easy to make, such an attack  and  it held that "he was not inclined to accept the correctness  of the  criticism  in the a absence of any strong  evidence  to show  that  the Medical Officer was prejudiced  against  the worker  and was motivated with the idea  of  victimisation". The  respondent, however, succeeded before the Labour  Court primarily  on the ground that the decision of the  appellant not  to  take  back  Venkatiah  was  inconsistent  with  the provisions  of  s. 73 of the Act.  That is  why  the  Labour Court directed the management of the appellant to  reinstate Venkatiah  within two weeks after its award came into  force without liability to pay back-wages, but with continuity  of service. After  this award was pronounced by, the Labour  Court,  the appellant moved the Madras High Court by 2 writ petition and prayed  that  the  said award be quashed (W.P.  No.  716  of 1958).   This  writ  petition was  allowed  by  Mr.  Justice Balkrishna Ayyar.  The learned Judge held that s. 73 of  the Act was inapplicable to the present case and found that,  in substance, the labour court had made its award on grounds of sympathy  for  Venkatiah rather than on the  merits  of  the case.. In the result, the said 269 award  was set aside by the learned judge.   The  respondent challenged  the  correctness of this decision by  a  Letters Patent  Appeal  before a Division Bench of the  Madras  High Court  (No.  LPA 82 of 1959).  The respondent’s  appeal  was

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allowed by the Division Bench and in consequence, the  award passed by the Labour Court has been restored.  The  Division Bench  has held that s. 73 applied to the present  case  and that  made  the  refusal  of  the  appellant  to  take  back Venkatiah  in its employment illegal.  It has also  observed that  in refusing to take back Venkatiah the  appellant  had not   properly  discharged  its  obligation   of   examining Venkatiah’s  explanation reasonably and that  introduced  an infirmity  in its decision not to take him back.  In  ,other words,  according to the Division Bench, the action  of  the management amounted to contravention of the provisions of s. 73  of  the Act and was otherwise not fair.  It  is  against this decision that the appellant has come to this Court with a  certificate  issued by the Madras High Court  under  Art. 133(1)(c) of the Constitution. Mr.  Sastri  for  the appellant contends that  the  case  of Venkatiah  falls squarely within the provisions of  Standing Order 8(ii) and the High Court was in error in holding  that the  decision  of the appellant in refusing to  condone  the absence of Venkatiah was either unfair or improper, or  that it  contravened the provisions of s. 73 of the Act.  Let  us first examine Standing Order No. 8(ii) before proceeding any further.  The said Standing Order reads thus:               "Absent   without  Leave:  Any  employee   who               absents himself for eight consecutive  working               days  without  Leave shall be deemed  to  have               left  the  Company’s  service  without  notice               thereby  terminating his contract of  service.               If he gives an explanation to the satisfaction               of  the  management,  the  absence  shall   be               converted  into leave without pay or  dearness               allowance.               Any employee leaving the Company’s service  in               this  manner  shall  have  no  claim  for  re-               employment in the Mills.               But   if   the  absence  is  proved   to   the               satisfaction  of the Management to be one  due               to  sickness,  then  such  absence  shall   be               converted  into medical leave for such  period               as   the   employee  is  eligible   with   the               permissible allowances." 270 This  Standing  Order is a part of  the  certified  Standing Orders  which  had  been revised  by  an  arbitration  award between  the parties in 1957.  The relevant  clause  clearly means  that if an employee falls within the mischief of  its first part, it follows that the defaulting employee has ter- minated  his  contract of service.  The first  provision  in clause  (ii)  proceeds on the basis that absence  for  eight consecutive  days without leave will lead to  the  inference that the absentee workman intended to terminate his contract of  service.   The certified Standing Orders  represent  the relevant terms and conditions of service in a statutory form and they are binding on the parties at least as much, if not more,  as  private  contracts embodying  similar  terms  and conditions of service.  It is true that under common law  an inference  that  an employee has abandoned  or  relinquished service  is  not  easily drawn unless  from  the  length  of absence   and  from  other  surrounding   circumstances   an inference  to that effect can be legitimately drawn  and  it can  be  assumed  that  the  employee  intended  to  abandon service.  Abandonment or relinquishment of service is always a  question  of intention, and normally, such  an  intention cannot  be  attributed  to  an  employee  without   adequate evidence  in that behalf.  But where parties agree upon  the

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terms  &  conditions  of service and they  are  included  in certified  Standing Orders, the doctrines of common  law  or considerations of equity would not be relevant.  It is  then a matter of construing the relevant term itself.  Therefore, the, first part of Standing Order 8(ii) inevitably leads  to the  conclusion  that  if an employee is  absent  for  eight consecutive  days  without  leave,  he  is  deemed  to  have terminated his contract of service and thus relinquished  or abandoned his employment. The  latter part of this clause, however, provides that  the employee  can offer an explanation as to his absence and  if Ms   explanation  is  found  to  be  satisfactory   by   the management, his absence will be converted into leave without pay or dearness allowance.  Now this clause is in  substance a proviso to its first part.  Before effect is given to  the inference of relinquishment of service which arises from the first  part  of the clause, an opportunity is given  to  the employee to offer an explanation and if the said explanation is treated as satisfactory by the management, 271 the  inference  of  termination of contract  of  service  is rebutted  and  the  leave in question is  treated  as  leave without  pay  or  dearness allowance.   This  latter  clause obviously postulates that if the explanation offered by  the employee is not found to be satisfactory by the  management, the  inference arising from the first part prevails and  the employee shall be deemed to have terminated his contract  of service with the result that the relationship of master  and servant between the parties would be held to have come to an end.  With the remaining part of the said Standing Order  we are not concerned in this appeal. It is true that absence without leave for eight  consecutive days  is also treated as misconduct under cl. 13(f)  of  the Standing Orders.  The said clause refers to the said absence and  habitual  absence without leave.  In other  words,  the position  under  the  Standing Orders  appears  to  be  that absence  without leave for more than eight consecutive  days can give rise to the termination of the contract of  service either  under  Standing  Order  8(ii) or  may  lead  to  the penalties awardable for misconduct after due enquiry is held as  required by the relevant Standing Order.  The fact  that the  same  conduct is dealt with in two  different  Standing Orders cannot affect the applicability of S.O. 8(ii) to  the present  case.   It is not as if the appellant is  bound  to treat  Venkatiah’s absence as constituting misconduct  under S.O. 13(f) and proceed to hold an enquiry against him before terminating  his  services.   Dismissal  for  misconduct  as defined  under S.O. 13 may perhaps have different  and  more serious   consequences  from  the  termination  of   service resulting  from  S.O. 8(ii).  However that may be,  if  S.O. 8(ii)   is  applicable,  it  would  be  no  answer  to   the appellant’s case under S.O. 8(ii) to say that S.O. 13(f)  is attracted.  This position is not seriously in dispute. The  High  Court  appears to have taken the  view  that  the appellant  did not act fairly in rejecting Venkatiah’s  case that he was ill and in refusing to act upon the  certificate produced by him in support of his case.  It is necessary, in the first instance, to examine the correctness of this  con- clusion.  As we have already indicated, the Civil  Assistant Surgeon  no doubt certified on March 7, 1957 that  Venkatiah had suffered from chronic dysentery from janu 272 ary  15  to  March 7, 1957, and he added that  he  was  then completely free from the ailments and was in a fit state  of health  to join duty on the 9th March  1957.   Incidentally,

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the certificate has been granted at the end of the treatment and  specifically  avers that he was fit enough to  join  on March  9, 1957.  When Venkatiah was examined by the  Medical Officer  of  the  appellant on the  22nd  March  1957,  thr- Medical Officer was unable to confirm that he was ill for  a period of nearly two months.  The High Court has  criticised this  certificate as being vague.  In our opinion,  by  this certificate  the  Medical  Officer  politely  suggests  that having  regard to the opinion which he formed  on  examining Venkatiah  on  March  22,  he  was  unable  to  confirm  the certificate  issued  by the Civil Assistant  Surgeon.   What struck  the  High  Court  as vague  in  the  certificate  is obviously the result of the desire of the appellant’s  Medi- cal Officer to observe professional courtesy in dealing with the  certificate  on which Venkatiah relied.  Apart  from  I this  aspect, however, we do not see how it was open to  the High  Court  to  consider the propriety  of  the  conclusion reached by the Labour Court on this point.  We have  already noticed that the Labour Court has specifically repelled  the criticism made by the respondent against the conduct of  the appellant’s Medical Officer and has held that if the  matter had  fallen to be considered only in the light  of  Standing Order 8(ii), the appellant would have succeeded.  That being so,  it  is not easy to see how the  respondent’s  grievance against the said finding of the Labour Court could have been properly  upheld  by the High Court in exercising  its  writ jurisdiction under Art. 226 of the Constitution.  Whether or not  the appellant should have accepted the  certificate  of the Civil Assistant Surgeon was primarily for the  appellant to consider.  It is significant that there is no  allegation about mala fides in this case, and so, we do not think  that the High Court was justified in making a finding against the appellant   on  the  ground  that  the  appellant  had   not discharged  its  obligation  under the  Standing  Orders  of properly considering the explanation of Venkatiah in  regard to his absence.  The High Court was apparently aware of this position and so, it has stated in the course of its judgment that  it would rest its decision on what it regarded  to  be the effect of 273 s.   73  "even assuming that the discharge of the worker  in the instant case was automatic by virtue of the operation of Standing Order 8(ii), and so, it is to this part of the case that we must now turn. Before doing so, however, we may refer to the argument urged before  us by Mr. Dolia for the respondent that it would  be anomalous  if  it  is  open  to  the  appellant  to   reject Venkatiah’s case that he was ill during the relevant  period when the said case had been accepted by the Corporation-when it  gave him relief under s. 73 and the  regulations  framed under the Act.  Mr. Dolia relies on the fact that  Venkatiah satisfied   the  relevant  authorities   administering   the provisions  of the Act that he was ill during  the  relevant period,  and  had, in fact, been given  assistance  on  that basis, so that for the purposes of the Act he is held to  be ill  during  that  period, and yet  the  appellant  for  the purpose of Standing Order 8(ii) holds that Venkatiah was not ill. during the same period.  It could not be the  intention of  the  legislature  to allow such  a  glaring  anomaly  to prevail,  says  Mr.  Dolia, and so, he  suggested  that  the appellant  was bound to hold that Venkatiah was  ill  during the  relevant  period, having regard to the  fact  that  his illness had been accepted by the relevant authorities  under the   Act.   This  argument  is  no  doubt,   prima   facie, attractive,  but before accepting it, it would be  necessary

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to  find out whether there is any specific provision in  the Act which compels the appellant to accept the view taken  by the relevant authority under the Act when it decided to give assistance to Venkatiah. Section 73 of the Act reads asunder :               "Employer  not to dismiss or  punish  employee               during period of sickness, etc.-               (1)No  employer shall dismiss,  discharge,  or               reduce or otherwise punish an employee  during               the  period  the  employee is  in  receipt  of               sickness  benefit  or maternity  benefit,  nor               shall   he,  except  as  provided  under   the               regulations,  dismiss, discharge or reduce  or               otherwise punish an employee during the period               he  is in receipt of disablement  benefit  for               temporary  disablement  or  is  under  medical               treatment for sickness or is absent from  work               as  a  result  of illness  duly  certified  in               accordance with the regulations to arise out 274               of the pregnancy or confinement rendering  the               employee unfit for work.               (2)No  notice  of dismissal  or  discharge  or               reduction  given  to an  employee  during  the               period  specified in sub-section (1) shall  be               valid or operative." Mr.  Dolia contends that since this Act has been passed  for conferring   certain  benefits  on  employees  in  case   of sickness,  maternity and employment injury, it is  necessary that  the operative provisions of the Act should  receive  a liberal and beneficent construction from the court.  It is a piece  of  social legislation intended to  confer  specified benefits on workmen to whom it applies, and so, it would  be inappropriate to attempt to construe the relevant provisions in  a technical or a narrow sense.  This position cannot  be disputed.  But in dealing with the plea raised by Mr.  Dolia that  the section should be liberally construed,  we  cannot overlook  the  fact  that  the  liberal  construction   must ultimately  flow from the words used in the section. If  the words used in the section are capable of two constructions one of which is shown patently to assist     the achievement of  the  object  of the Act, courts would  be  justified  in preferring  that construction to the other which may not  be able  to further the object of the Act.  But, on  the  other hand,  if  the  words used in  the  section  are  reasonably capable of only one construction and are clearly intractable in regard to the construction for which Mr. Dolia  contends, the   doctrine  of  liberal  construction  can  be   of   no assistance. Mr.  Dolia’s suggestion is that the general policy of s.  73 is  to  prevent  dismissal, discharge,  reduction  or  other punishment  being imposed or,. an employee who is ill if  it is  shown that he has received sickness benefit.  There  are other  cases  mentioned in this section to which it  is  not necessary  to  refer  for the purpose of  dealing  with  Mr. Dolia’s argument.  According to Mr. Dolia, the operation  of s.  73 is confined to cases of illness for instance, and  it prohibits the imposition of any penalty wherever it is shown that in respect of the illness in question, the employee has received  sickness  benefit.   In  the  present  case,   the employee has received sickness benefit, and so, for the said sickness, no penalty can be imposed on him.  That, in brief, is the contention which Mr. Dolia has pressed 275 before us.

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On the other hand, Mr. Sastri argues that the words used  in the  section  are  capable of only  one  construction.   The section  merely  prohibits any punitive action  being  taken against  the employee during the period of his illness,  and he  urges that the prohibition is not confined  to  punitive action  in respect of illness alone but extends to  punitive action in respect of all kinds of misconduct whatever.  What the section says is, during the period that the employee  is ill, no action can be taken against him whatever may be  the cause for the said action. Mr. Sastri also contended that the clause "during the period the  employee is in receipt of sickness benefit"  can  cover the  period  during which the sickness benefit  is  actually received  by him, and so, he suggests that since during  the period of Venkatiah’s illness itself no sickness benefit had been  received by him, s. 73(i) is wholly inapplicable.   We are  not  impressed by this argument.  In our  opinion,  the clause  "during  the period the employee is  in  receipt  of sickness benefit" refers to the period of his actual illness and  requires that for the said period of illness,  sickness benefit should have been received by him.  It is quite clear that in a large majority of cases, sickness benefit would be applied for and received by the employee after his  sickness is  over, and so, to hold that the period there referred  to is the period during which the employee must be ill and must also receive sickness benefit, would make the section wholly unworkable.  That is why we do not think that the limitation which  Mr.  Sastri  seeks to introduce  by  suggesting  that sickness  benefit must be paid during the course of  illness itself, can be read into the section. Even  so,  what is the effect of s. 73(1) ?  In  considering this  question, it would be useful to take into account  the provisions  of -sub-s. (2).  This sub-section provides  that no  notice given to an employee during the period  specified in  sub-s.  (i) shall be valid or operative.   Thus,  it  is clear  that  the giving of the notice during  the  specified period  makes  it  invalid, and it is  remarkable  that  the notice is not in regard to dismissal, discharge or reduction in  respect  of  sickness alone, but it  includes  all  such notices  issued, whatever may be the  misconduct  justifying them.  Thus, 276 there  can  be no doubt that the punitive  action  which  is prohibited  by s. 73(1) is not confirmed to punitive  action proceeding on the basis of absence owing to sickness; it  is punitive  action  proceeding on the basis of  all  kinds  of misconduct which justifies the imposition of the penalty  in question.   What s. 73(1) prohibits is such punitive  action and  it  limits the extent of the said  prohibition  to  the period  during  which the employee is ill.  We are  free  to confess  that the clause is not very happily worded, but  it seems to us that the plain object of the clause is to put  a sort of a moratorium against 211 punitive actions during the pendency of the employee’s illness.  If the employee is  ill and if it appears that he has received sickness benefit  for such  illness,  during that period of  illness  no  punitive action  can be taken against him.  That appears to us to  be the  effect  of  that part of s. 73(1)  with  which  we  arc concerned  in  the  present appeal.  If that be  so,  it  is difficult to invoke s. 73 against the appellant, because the termination  of  Venkatiah’s services has  not  taken  place during  the  period  of his illness for  which  he  received sickness benefit. There  is  another aspect of this question to  which  it  is necessary  to refer.  Section 73(1) prohibits  the  employer

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from  dismissing, discharging, reducing or  otherwise  puni- shing  an  employee.   This seems to suggest  that  what  is prohibited is some positive act on the part of the employer, such as an order passed by him either dismissing,  discharg- ing  or  reducing  or punishing the  employee.   Where  ter- mination  of the employee’s services  follows  automatically either from a contract or from a Standing Order by virtue of the  employee’s  absence  without leave  for  the  specified period,  such termination is not the result of any  positive act  or order on the part of the employer, and so to such  a termination  the prohibition contained in s. 73(1) would  be inapplicable.   Mr. Dolia no doubt contended that  the  word ’discharge’  occurring  in  s.  73(1)  should  be  liberally construed  and  he argued that termination of  service  even under Standing Order 8(ii) should be held to be a  discharge under  s.  73(1).   We  are  not  prepared  to  accept  this argument.   In  considering  the  question  about  the  true denotation  of  the  word "discharge" in  s.  73(1),  it  is relevant  to bear in mind the provisions of S. 85(d) of  the Act. 277 Section  85(d) provides that if any person in  contravention of  s. 73 or any regulation, dismisses, discharges,  reduces or  otherwise punishes an employee, he shall  be  punishable with  imprisonment which may extend to three months or  with fine which may extend to five hundred rupees, or with  both. In other words, the contravention of s. 73(1) is made  penal bys.  85(d), and so, it Would not be reasonable to  put  the widest  possible  denotation on the  word  "discharge"  ins. 73(1).  The word "discharge" in s. 73(1) must,therefore,  in the context, be taken to be a discharge which is the  result of a decision of the employer embodied in an order passed by him.   It  may  conceivably  also  include  the  case  of  a discharge  where  discharge is provided for by  a  Standing. Order.   In such a case, it may be said that  the  discharge flowing from the Standing Order is, in substance,  discharge brought  about  by the employer with the assistance  of  the Standing  Order.   Even  so, it cannot  cover  the  case  of abandonment  of  service by the employee which  is  inferred under Standing, Order 8(ii).  Therefore, we do not think the High  Court  was  justified  in taking  the  view  that  the termination  of  Venkatiah’s services under  S.O.  8(ii)  to which the appellant has given effect by refusing to take him back, contravenes the provisions of s. 73(1). Mr. Dolia argued that on the appellant’s construction  73(1) would afford very unsatisfactory and poor protection to  the employees.   If  all that s. 73(1) does is  to  prevent  any punitive action being taken against the employee during  the period that he is ill, there is not much of protection given to him at all, says Mr. Dolia.  There is no doubt some force in this argument: but as we have already observed, the words used in s. 73(1) read with subs. (2) cannot reasonably  lead to  the  construction  for which, Mr.  Dolia  contends.   It would,  we think, be unreasonable, if not  illegitimate,  to construe the relevant section merely on the hypothesis  that the  legislature intended to provide a larger protection  to the employees when the said hypothesis cannot be worked  out in the light of the words used by the statute. By virtue of the power conferred on the State Government  by s.  96  to make rules, certain regulations had  been  framed under the Act in 1950.  Chapter III of these 278 Regulations  deals with the benefit claims.  Regulations  53 to  86 in this Chapter are concerned with the  certification and  claims for sickness and temporary  disablement.   Regu-

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lation 54 provides for the persons competent to issue  medi- cal certificate and Regulation 55 required that the  Medical Certificate should be filled in the prescribed form.   Regu- lation  57 deals with the Medical Certificate on first  exa- mination  and  Regulation  58 refers to  the  final  Medical Certificate.  Regulation 63 prescribes the form of claim for sickness  or  temporary  disablement.   An  insured   person intending  to claim sickness benefit has to submit the  said form  to the appropriate Local Office by post or  otherwise. Regulation  64  lays down that if such a claimant  fails  to submit to the appropriate Local Office by post or  otherwise the  first  medical certificate or  any  subsequent  medical certificate  within the period therein prescribed, he  shall not  be eligible for that benefit in respect of  the  period indicated   thereunder.   It  is  in  the  light  of   these regulations  that Regulation 53 has to be considered.   This regulation  provides  that  every  insured  person  claiming sickness  benefit  shall  furnish evidence  of  sickness  in respect  of the days of his sickness by means of  a  medical certificate  given  by  an  Insurance  Medical  Officer   in accordance  with  the Regulations in the  appropriate  form. There  is,  however, a proviso to Regulation 53  which  says that  the  Corporation  may accept  any  other  evidence  of sickness  or  temporary disablement if in  its  opinion  the circumstances  of  any particular case so justify.   In  the present  case, the Regional Director has accepted the  Civil Assistant  Surge’on’s  certificate  under  the  proviso   to regulation 53 when he directed that cash benefit may be paid to  Venkatiah  under  s.  73(1).   Having  regard  to  these Regulations,  it is difficult to see how the view  taken  by the  Regional Directors about the effect of the  certificate issued  by  the Civil Assistant Surgeon can be  said  to  be binding on the appellant.  There is no provision in the  Act or  the  Regulations, to which S. 73(1) refers by  which  it could  be  contended  that once the illness  of  an  insured employee is accepted by the appropriate authority under  the Act,  it must automatically be accepted by the  employer  in dealing  with  the said employee’s case under  the  Standing Orders.   Therefore, the argument that inconsistent  results may follow if two views 279 are  allowed  to be taken about the illness of a  given  em- ployee,  does not help the appellant.  Besides, as  we  have already indicated, this argument has hardly any relevance in view of the construction which we are inclined to put on  s. 73(1)  of the Act.  In view of our construction of the  said section,  Mr. Dolia’s argument that there  is  inconsistency between  the said section and Standing Order 8(ii) also  has no validity. Before  parting with this case, we ought to add that at  the very  outset, Mr. Sastri for the appellant made it clear  to us  that the appellant was fighting this appeal not so  much to  resist  the order of reinstatement passed in  favour  of Venkatiah  as  to get a decision from this Court  about  the true  scope  and effect of s. 73(1) of the  Act.   In  other words, he argued that this case was fought as a test case on the  question  of  the construction  of  the  said  section. Therefore,  when we suggested to Mr. Sastri that the  appel- lant who is a very big prosperous employer should not resist the  reinstatement of a single employee whose case has  been brought to this Court, he assured us that he would recommend to  the  employer  to  take  Venkatiah  back  on  the  terms prescribed by the Labour Court in the first instance in this case. In  the result, the appeal is allowed, the order  passed  by

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the  Division Bench of the Madras, High Court is  set  aside and  that of the Single Judge restored.  There would  be  no order as to costs. Appeal allowed. 280