B.R. SINGH & ORS. ETC. ETC.versusUNION OF INDIA & ORS.

                  B.R. SINGH & ORS. ETC. ETC.                               A.
                               v.
                    UNION OF INDIA & ORS.

                        SEPTEMBER 26, 1989

    [K. JAGANNATHA SHETTY AND A.M. AHMADI, JJ.]                             B

     Constitution of India-Articles 19( l)(c) and 32-Workmen of
Trade Fair Authority of India-Dismissal of-Whether legal.

    Industrial Disputes Act 1947-Sections 10(3), JOA (4A), 22 &
23-Whether attracted.                                                       C

     Trade Fair Authority of India Employees (Conduct, piscipline
and Appeal) Rule 32-Whether properly applied. .

       Trade Fair Authority of India Employees' Union had been
demanding from. the management (i) housing facilities for the D
employees; (ii) regularisation of at least 50% ,of casual or daily rated
employees and (iii) upward revision of the salaries and allowances of the
workers. These demands were discussed by the Union with t.he manage-
ment from mne to time but nothing concrete except assurances
emerged. On October 29, 1986, the Union wrote to the General
Manager seeking ilnplementation ·of the assurances not later than E
November 15, 1986. It was also communicated that the workers would
proceed on one day's token strike on 13.11.86, if no action was taken.
In response thereto the General Manager only assured the Union
representatives that the Standing Committee which was seized of the
matter, would be requested to take up the matter on priority basis but
things remained standstill till the end of November 1986 and the F
reminders sent thereafter also did not yeild the desired result. There-
upon on January 15, 1987 the Union sought permission to hold the
general body meeting on 19.1.87 during lunch interval and in anticipa-
tion of the grant of such permission issued notices of the meeting to the
members. The General Manager, however declined to grant the neces-
sary permission. But the General Body Meeting of the Union was held G
<1s scheduled and a decision was taken to strike work on 21.1.1987 as a
protest. The management was put on notice, which reacted by suspend-
ing the President, Vice President & other Executive Members of the
Union. Workers' demand for withdrawal of the orders of suspension
was rejected. Instead all the· remaining office bearers & leading activists' .H
_were suspended. These suspended employees have filed a writ petition
                                   257
    258         SUPREME COURT REPORTS                [1989] Supp. 1 S.C.R.

    challenging their suspension.
A
        During the strike some workers attended duty while some others
  gave undertaking in the prescribed form; all such workers were allowed
  to work but others who refused to sign the Undertaking but reported for
  work were denied employment. Efforts to solve the unemployment
B problem of such employees having failed, they too have filed a writ
  petition seeking necessary relief.

        By its order of March 3, 1987 the management terminated the
  services of all the 12 office bearers under Rule 32 of the Trade Fair
  Authority of India Employees (Conduct, Discipline and Appeal) Rules
  1977 without holding a departmental inquiry as contemplated by Rules
c 27 to 29 of the Rules. Accordin(l to the management the reason for not
  holding the inquiry was th~t the workers had terrorised & intimidated
  not only the Disciplinary Authority but also the witnesses and an
  atmosphere of violence, general in discipline and insubordination was
  created, as a result of which it was not practicable to hold the inquiry.
D These dismissed employees have also filed a Writ Petitioll.

          One Raju, a casual labourer of TFAI since 1982, was sel~cted on
  July 4, 1986 as a Mini-stiller Driver. He joined the new post on the same
  day but his appointment was cancelled without assigning any reason
  and he was reverted as a daily wager. He too had joined the others for
E regularisation of his service and has taken part in the strike. His
  services were terminated on December I, 1986 without any inquiry. He
  too has filed a Writ Petition challenging the action of the management.

         Another Writ Petition has been filed hy two daily-rated Security
    Guards of TFAI whose services were terminated, even though they had
F   remained on duty during the strike. Their contention is that they were
    dismissed as they refused to falsely implicate their co-workers who had
    espoused their cause. They urge their's was a case of victimisation.

       In the counter affidavit filed on behalf of the management, it was
  urged that as the petitions require collection and adjudication of facts,
G the petitioners should be relegated to the Industrial Tribunal or the
  concerned High Court. On merits, it was contended that the office
  bearers of the Union had created an atmosphere of violence and had
  paralysed the smooth running of the TFAI from November 1986
  onwards; the officials being terrified were unable to function; that the
  union held the meeting even though permission was refused for the
H purpose; that provocative speeches undermining discipline were made
                          B.R. SINGH "· U.0.J.                       259

at the meeting, and that the ultimate termination of the services was
                                                                            A
motivaterl nor coercive. As the strike neither was prolonged, the man-
agement was forced to make alternative arrangements including those
of the security as the President of India was to inaugurate AHARA-
1987 on January 25, 1987 and foreign VIPs were expected to visit the
Pragati Maidan. To ensure proper security, the management was even
forced to file a suit and obtain an injuction from the High Court rest·     B
raining the union members from preventing and obstructing the entry
of delegates, guests & dignitaries into. Pragati Maidan.

       Likewise the management sought to defend its action in regard to
casual labour, by saying that 85 posts were considered necessary for
regularisation and the matter was pending with the Standing Commit- C
tee. It was denied that the management was not sympathetic. On similar
grounds the action taken by tlie management against Raju and the two
security guards were sought to be justified.

      When the Petitions reached hearing, the Court directed the Delhi
Administration to spare the services of a Judge of the Labour Court to D
look into the facts of these cases and transmit his report to this Court.
The concerned Judge considered the facts of each case after giving full
opportunity of hearing and leading evidence to the parties and there-
after submitted his report to this Court. On most of the issues involved
the Judge found in favour of the workmen.
                                                                          E
      Allowing the Writ Petitions with directions this Court,

      HELD: The right to form association or Unions is a fundamental
right under Article J9(l)(c) of the Constitution. The necessity to form
unions is obviously for voicing the demands and grievances of labour.
The trade unionists act as mouthpieces of labour. l270A-B]                  F

      Strike in a given situation is only a form of demonstration, e'.g.
go~slow." sit-in-work to rule. absentism etc. Strike is one such mode <1f
demonstration by workers for their rights. The right to demonstrate
and, therefore, the r~ht to strike is an important weapon in the
armoury of the workers. This right is recognised by almost all Demo·        G
cratic Countries. But the right to strike is not absolute under our
industrial jurisprudence and restrictions have been placed on it h)'
section 10(3), IOA (4A), 22 and 23 the Industrial Disputes Act. These
provisions, however, have no application to the present case since it is
no body's contention that the Union's demands had been referred to
any forum under the statute, Though there were angry protests _a.nd         H
      260          SUPREME COURT REPORTS                [1989] Supp. 1 S.C.R.

      efforts to obstruct the officers from entering the precints of TF AI there
~     was·no convincing evidence of use of force of violence. l270C-FJ

            Although TFAI was sympathetic to regularisation of service of the
      casual workers, since the proposal had to pass through various levels it
      was not possible to take an early decision in the matter. In their frustra-
B     lion workers decided to put pressure by proceeding on strike. During
      the strike certain events happened which were avoidable but nothing
      destructive meaning thereby damaging the property of TFAI took
      place. [271H; 272A]                                                            i
                                                                                    _,
            So far as the case of security guard Vipti Singh is concerned, we
¢     are constrained to say that the material on record does disclose that he
      had signed the attendance register showing his presence from March
      23, 1987 to March 29, 1987, even though he was in fact absent on those
      days. His explanation in this behalf is far from convincing. The ends of
      justice would be .met if his re-instatement without back wages is
      drected. [273B-C]
II>
           In the case of Raju, the action of the management must be held to
      be penal in nature and cannot i>e sustained as it was taken without
      hearing the delinquent. [273D i                                                I
E
          Keeping in view the interest both of the labour and the institution, '
    the Court directed that the management will prepare a list of casual- ·
                                                                                     l
    daily-rated workers who were its employees prior to the strike on
    January 21, 1987 in accordance with their seniority, if such a list does         ~
    not exist. TFAI will provide them work on the same basis on which they
    were given work prior to the strike. Aller the seniority list is prepared
    TF AI will absorb 85 of the seniormost casual workers in regular
JI: employment pending finalisation of the regularisation scheme. TFAI
    will complete the regularisation process within a period of 3 months
    from to-day. TFAI will determine the number of casual employees who
    would have been employed had they not proceeded on strike. The wages
    payable to such casual employees had they been employed for the period
    of 6 months immediately preceding the date of this order will be worked
() out on the basis of actual labour employed and the amount so worked
    out will be distributed amongst the casual employees who report for
    work ip the next three months after TFAI resumes work to casual
    labour.· Peon Urned Singh, Security Guard Bansi Dhar and Driver Kaju
    will also be re-instated in service forthwith. They too will be paid back
    wages (less suspension allowance, if ally) for a period of six months
H immediately preceding this order. So far as Driver Raju is concerned he
                    B.R. Sl1'[GH v. U.0.1. !AHMADI, J.]                261

will be absorbed in regular service ..s per te offer made in the letter of    A
July 25, 1987. The Security Guard Vipti Singh will also be re-instated in
service hut without back wages. In tbe case of the 12 dismissed workers
tbe circumstances did not exist for the exercise of extraordinary powers
under Rule 32 of the Rules. The orders terminating the service of the 12
union representatives are therefore set aside and they are ordered to be
retained in service forthwith with back wages covering a period of six        B
months immediately preceding the date of this order. They should be
reinstated forthwith. [273E:H; 274A-B]

      TFAl to pay Rs.5,000 by way of costs to the Union. [274C]

      CIVIL ORIGINAL JURISDICTION: Writ Petitions Nos. 627,                   C
662, 296, 271 & 452 of 1987.

      (Under Article 32 of the Constitution of India).

                                  WITH
                                                                              D
      Civil Miscellaneous Petition No. 12733 of 1988.

      M.K. Ramamurthy, M.A. Krishnamurthy and Mrs. Indira Sawh-
ney for the Petitioners.

     Ram Panjwani, Raj Panjwani and Vijay Panjwani for the                    E
Respondents.

      The Judgment of the Court was delivered by

      AHMADI, J. This batch of petitions brought under Article 32 of
the Constitution of India challenge certain actions taken by the officers     F
of the Trade Fair Authority of India (TFAI) in exercise of their disci-
plinary jursidiction whereby the services of certain regular workmen
have been terminated and several casual or daily rated workers are
rendered jobless. Put briefly, the facts giving rise to these petitions are
as under:

     The Trade Fair Authority Employees' Union (Union hereafter)
was demanding housing facilities, regularisation of atle2st 50% of
Casual or daily rated employees and upward revision of the salaries and
allowances of the workers of TFAI. These demands were discussed
with the Chief General Manager of TFAI on August 29, 1986 and
thereafter from time to time but nothing concrete emerged. The case           H
      262         SUPREME COURT REPORTS              l1989J Supp. 1 S.C.R.

A     of the Union is that the Chief General Manager had assured the Union
      representatives that although it may not be possible to regularise the
      service of casual labour to the extent of 50% some posts had already
      been identified and the Standing Committee of TFAI which was seized
      of the matter would take a decision at an early date. On the question of
      upward revision of wages and allowances the Union's case is that the
B     Chief General Manager had given an assurance that pending final
      decision by the High Powered Committee of TFAI, the scales pr~vail-        \
      ing in MMTC and STC could be adopted. The grievance of the Union           i
      is that despite these assurances no action to implement the same was
      taken whereupon the Union wrote to the Chief General Manager on
      Octob.er 29, 1986 seeking implementation of the assurances at an early     "f
C     date and not later than November 15, 1986. It was also communicated
      that the workers belonging to the Union had decided to proceed on a
      token strike of one day on November 13, 1986. At a subsequent meet-
      ing held on November 3, 1986 the General Manager of TFAI is stated
      to have assured the Union representatives that the Standing Commit-
      tee will be requested to take up the issue on priority basis so that the
D     outcome becomes known by the end of November, 1986. No such
      decision was taken by the end of Novemher, 1986; not even after the
      Union's reminders of December 18, 1986 and January 9, 1987 where-
      upon the Union wrote a letter dated January 15, 1987 to the Chief
      General Manager to permit the Union to hold a General Body Meet-
      ing of the Union on January 19, 1987 during lunch hours. In anticipa-
l:I   tion of such permission being granted, which had always been granted
      in the past, the Union despatched notices to its members to attend the
      meeting. However, the Chief General Manager informed the Union
      representatives that the permission was refused. Within minutes of the
      receipt of this communication, the President of the Union sent a reply
      stating that it was not possible to cancel the meeting at such short
F     notice. The General Body Meeting was held as schedule and a decision
      was taken to strike work on January 21, 1987 to protest against the
      management's failure to implement the assurances already given. On
      the same day, January 19-," 1987, the Union served the management
      with a notice informing it about the decision to strike work on January
      21, 1987. The management reacted by placing the President, Vice-
G     President and Executive Members of the Union under suspension with
      immediate effect, i.e. with effect from January 20, 1987. This angered
      the striking workmen who had gathered outside the precints of TFAI
      on January 21, 1987. They demanded the immediate withdrawal of the
      suspension orders failing which they threatened that the strike would
      continue indefinitely. Intimation to this effect was served on the Chief
H     General Manager. The management however suspended all the re-
                   B.R. SINGH v. U.0.1. [AHMADI, J.[                  263

maming office bearers, the executive members and leading activists of
                                                                             A
the Union w.e.f. January 23, 1987. The strike was, however, called off
w.e.f. January 24, 1987, according to the Union in the larger interest
of .TFAI and in national interest as the President of India was to
inaugurate the AHARA '87 on January 25, 1987, while according to
the management it continued for almost two weeks. Writ Petition
No. 296/1987 is by those 42 suspended workers.                               B

      Now, during the strike some of the casual workers attended duty
and their services remained unaffected, some others who reported for
duty after the strike and were prepared to sign an undertaking in the
prescribed form were given work while the remaining casual workers
who did not sign such an undertaking or were late in reporting for
work were denied employment. The Union's case is that out of a total         c
work-force of about 500 casual workers, 160 did not participate in the
strike and about 90 signed the undertaking and they have since been
employed while the remaining casual workers are denied work. The
Union sought the intervention of the Union Commerce Minister and
also invoked the jursidiction of the Labour Commissioner, Delhi              D
Administration, with a view to finding an amicable settlement as the
discharged workers were facing untold miseries. However, contends
the Union, the response of the management was not positive and
hence the Union was left with no alternative but to invoke this court's
jurisdiction for an early solution of the unemployment problem faced
by the workers. Writ Petition No. 271/87 is by 243 casual labourers          E
who have thus been rendered jobless.

      Thereafter the management by their orders of March 3, 1987
terminated the services of all the 12 office bearers and Executive Com-
mittee Members who had been suspended earlier in exercise of their
power under the special procedure outlined-in Rule 32 of the TFAI            F
Employees (Conduct, Discipline and Appeal) Rules, 1977 ('The
Rules' hereafter). This rule inter alia empowers the Board of TFAI to
impose any of the penalties specified in Rule 25 (which includes
penalties from Censure to Dismissal), without holding an inquiry if the
Board is satisfied for reasons to be stated in writing that it is not
practicable to hold such inquiry or in the interest of the security of the   G
Authority it is not expedient to hold such inquiry. This provision over-
rides the need to hold a departmental inquiry under Rules 27 to 29 of
the Rules. The Board in the impugned orders of dismissal has assigned
three reasons in support of its decision that is not practicable to hold
an inquiry, namely ''(i) you by yourself and together with and through.
other associates have threatened, intimidated ·and terrorised the Disci-     H
      264         SUPREME COURT REPORTS                [1989) Supp. 1 S.C.R.

      plinary Authority so tha_t he is afraid to direct the inquiry to be held;
      (ii) you the employee of Trade Fair Authority of India particularly
      through and together with your associates have terrorised and
      threatened and intimidated witnesses who are likely to give evidence
      against you with fear of reprisal as to prevent them from doing so; and
      (iii) as an atmosphere of violence and of general indicipline and insub-
B     ordination has been created by a group of suspended employees". The
      board has also stated in the impugned order that it is not expedient in
      the interest of security of the TFAI to hold an enquiry in the manner
      provided by the Rules. Annexure I to each order sets out the reasons
      which impelled the Board to visit the 12 employees with the extreme
      penalty of dismissal. These 12 dismissed workers have challenged the
      orders of dismissal by their writ petition No. 267 of 1987.
c
          Writ Petition No. 452 of 1987 is by one Raju, an employee of
    TFAI. He was a casual labourer of TFAI since 1982 and was selected
    on July 4, 1986 as a Mini-Stiller Driver in the scale of Rs.260-400. He
    joined the new post on the same day but h;; appointment was cancel-
LI> led without assigning any valid reason on July 25, 1986 and he was
    reverted as a daily wager. He too had joined the others for regularisa-
    tion of his service and had taken part in the strike. The management by
    office order dated March 2, 1987 terminated his service w.e.f.
    December 1, 1986. No enquiry was held nor was any opportunity to
    explain his conduct given to the delinquent before his services came to
Ji: be terminated. He has, therefore, challenged the order dated July 25,
    1986 and the subsequent order dated March 2, 1987 as violative of the
    principles of natural justice.

          Writ Petition No. 662 of 1987 concerns two daily rated Security
    Guards of TFAI whose services came to be terminated by TFAI. The
Ji; service of Bansi Dhar came to be terminated on April 2, 1987 while
    that of his companion Vipti Singh came to be terminated on April 8,
    1987. Their allegation is that their services were dispensed :;vith
    because they refused to give false evidence against their co-workers
    who were active members of the Union and who had filed W.P. No.
    271/87 challenging the ma/a fide action of TFAI terminating the
G serviC:es of 243 casual daily rated workers. They contend that even
    though they had remained on duty during the strike, their services
    were terminated because they refused to falsely impiicate their co-
    workers who had espoused their cause. They, therefore, contend that
    iheir termination smacks of victimisation.

lll         In all the writ petitions Mr. N.N. Kesar, Manager (Admn) TFAI
                    B.R. SINGH v. U.0.1. (AHMADI. J.]                   265

ha.s filed his counter conte,11ding that as the petitions require collecti9n.   A
of facts this Court should refuse to entertain these_petiti-ons and;should
relegate the petitioners to the industrial tribunal or the concerned
High Court.. According to the deponent TFAI had tp take action
against· the office bearers of the Union as they had created an
atmosphere of violence and had paralysed the smooih functioning of
TFAf from November, 1986 onwards. Instances of insubordination,                 B
threats, violence and lack of discipline have been enumerated to show
that officers of TFAI found it difficult to carry out their functions and
1uties because of constant fear to themselves and their kith and kin.
Even though ,permission for holding a General Body meeting on
January 19, 1987 within the precints of TFAI was refused, the meeting
was held at which inflammatory and provocative speeches were made
by the Union leaders. Extracts from the speeches of the various Union
                                                                                c
leaders have been set out in the counter to acquaint the court to the
type of atmosphere that prevailed at a point of time when several
important foreign delegates and VIPs were attending the International
Fair held by TFAI. The secret reports which were received from the
officers of TFAI at different levels also suggested that trouble was            D
brewing and immediate firm action was necessary. Therefore, when
the management learned that the employees had decided to go on a
token strike on January 21, 1987 it took action of suspending some of
the office bearers of the Union. After the strike was prolonged upto
January 23, 1987, TFAI had to make alternative arrangements includ-
ing security arrar.5ements to ensure that no untoward incident occur-           E
red during the visit of foreign VIPs and more particularly during the
visit of the President of India who was to inaugurate the AHARA-
1987 on January 25, 1987.· Even during the visit of the President cer-
tain employees posted themselves at the main gates along with the
President, Vice-President, General Secretary and Secretary of the
Union for picketing. Since certain other inaugurations by VIPs were to          F
take place between January 28, 1987 and February 2, 1987, TFAI was
constrained to file a suit No. 263 of 1987 in the Delhi High Court
against the Union and seven office bearers to restrain them from pre-
venting and obstructing the entry of delegates, guest, dignitaries, etc.
into the Pragati Maidan where TFAI was having its fair. An ex-parte
injunction was granted prohibiting picketing, slogan shouting, etc.             G
within 75 meters of all gates leading to the Fair as shown in the map
appended to the suit. It will thus be seen that according to TFAI the
workers' agitation was not a peaceful one as is alleged by the peti-
tioners. It was in the backdrop of these facts that the Board decided to
terminate the services of the 12 employees by virtue of the power
conferred on it by Rule 32 of the Rules. The reasons which impelled             ·H
    266         SUPREME COURT REPORTS              [1989] Supp. 1 S.C.R.

A the Board to take this drastic action have been set out in the annexure
  appended to each order of dimissal. TFAI, therefore, contends that
  the action taken against the 12 erring workers is just, legal and proper
  and this Court should refuse to interfere with the same. So far as the
  suspended employees are concerned TFAI cont~nds that it has power
  under Rule 22 of the Rules to suspend erring delinquents pending
B inquiry. Such suspended employees are entitled to suspension allo-
  wance paid at 50% of salary and allowances. It is denied that TFAI has
  used the power of suspension as a coercive measure. It is however
  stated that the correct number of suspended employees is 34 as named
  in the Counter. Out of these 34 employees, the suspension order of 33
  workmen have since been revoked on acceptance of their explanation.
€ Hence the suspension order that survives is against Peon Urned Singh
  only, who is receiving suspension allowance as per rules.

         Insofar as the casual labour is concerned, it is contended that
   TFAI had taken over the maintenance of Pragti Maidan from
   C.P.W.D. w.e.f. January 1983. The Standing Committee had, there-
b fore, sanctioned a certain number of posts of the Engineering staff for
   this purpose. A number of daily wage posts on muster roll were
   created from time to time and were filled in by both skilled and unskil-
   led labour. A proposal for regularising such employees was pending
   before the Standing Committee which had called for information. It
   was however tentatively decided that 85 posts may be considered
E urgently for regularisation. This proposal was cleared in January,
   1987. The matter was pending with the Internal Works Study Unit in
   the Ministry of Commerce and their report was awaited. It was, there-
   fore, contended that TFAI was always sympathetic in its approach and
   yet the Union gave a call for a strike on January 19, 1987. The TFAI
   denies thatit did not provide work to casual labour when they reported
., on January 24, 1987 or thereafter or that they demanded any such
   undertaking as alleged.

          As regards the termination of Raju's service it is contended by
    TFAI that he was given a provisional appointment on July 4, 1986 but
    the same had to be terminated on July 25, 1986 firstly because it
G subsequently came to light that he was convicted on June 30, 1987
    under Sections 87 and 113 of the Motor Vehicles Act and fined Rs .300
    and secondly because of his outrageous behaviour with his dealing
    assistant on July 22, 1986. These two reasons 'formed the basis and the
    grounds and the administrative reasons' for withdrawal of the provi-
    sional offer made in the letter of July 4, 1986. However, the letter of
JiJ July 25, 1986 uses the words 'some administrative reasons' for cancel-
                   B.R. SINGH v. U.0.I. [AHMADI, J.)                 267
                                  '
lation of the order and impugned order of March 2, 1987 gives fjo
                                                                             A
reason whatsoever. It is,' therefore, contended that since the offer·was
only provisional, the petitioner had no right to the post and hence the
petition deserves to be dismissed.

      So far as the termination of service of the two Security Guards is
concerned it is contended that the allegation that their services were       B
dispensed with because they refused to co-operate with th.e manage-
ment and give evidence against their co-workers is denied. IUs, there-
fore, contended that their petition is without merit.

       When these petitions reached hearing before this Court on
October 13, 1987, this Court passed a common order directing the
Chief Secretary of Delhi Administration to spare the services of a
                                                                             c
Judge of the Labour Court to look into the facts of these cases and
finalise its report so as to reach the Registry of this Court on or before
December 18, 1987. Since the inquiry could not be finalised within ttie
time allowed the time was extended upto October 31, 1988. Shri Bhola
Dutt,- Presiding Officer, Labour Court (VII) submitted his report on         D
October 29, 1988. Before finalising its report the Labour Court gave'
an opportunity to the contesting parties to file their pleadings. Issues
were framed thereafter, parties were permitted to lead oral and
documentary evidence, counsel were beard on the evidence tendered
and only thereafter the Labour Court recorded its findings. It came to
the conclusion that the 243 casual labourers had been doing con-             E
servancy work since several years and all of them were denied work
when they reported for duty on January 24, 1987 and thereafter
because the 'York of Safai Kamdars was handed over to M.C.D. w.e.f.
January 22, 1987. It, however came to the conclusion that denial of
work to all the 243 casual workers was not justified. So far as the only
suspended employee-Peon Urned Sing!t-is concerned, the Labour                F
Court opined that mere participation in the strike called by the Union
would not furnish a sufficient cause to order large scale suspension of
employees much less termination of their employment. Since 33 of his
colleagues similarly suspended were taken back in service there was no
justification to single out Urned Singh for different treatment, more so
when no disciplinary action is initiated or contemplated against him.        G
With regard to the termination of Raju driver's service, the Labour
Court came to the conciusion that the management had acted in an
illegal manner. In the first place it was not possible to accept the
reason that during the summer season there is paucity of work and
hence the provisional offer made on July 4, 1987 had to be cancelled
within twenty days on July 25, 1987. It would it difficult to believe that   H
     268         SUFREME COURT REPORTS                 [1989] Supp. 1 S.C.R.

     within such a shQrt period there was a slump in work necessitating
A
     cancellation of the order. As to the second reason regarding his con-
     viction under the Motor VehicJes Act it pointed out that the allegation
     that he had abused Amar Singh was not inquired into and the delin-
     quent was not given an- opportunity to explain his conduct. Certain
     other allegations by the management regarding his behaviour e.g.
B    absence without prior intimation, etc., all amount to misconduct for
     which a departmental enquiry was necessary and in the absence of such
     an enquiry the order was unsustainable. It therfore, held that the
     termination of Raju's service was illegal.

          The case of the two security guards has been dealt with in detail
    by the Labour Court. The Labour Court points out that the manage-
c ment decided to refuse work to Bansi Dhar as his performance was not
    found to be satisfactory. He was served with memos dated December
    25, 1984, February 10, 1986 and February 20, 1987 with a warning to
    improve his performance failing which the management would be con-
    strained to refuse work to him. The note submitted by the Chief
Il> Securty Officer on March 3, 1987 that his termination may be con-
    sidered ~if he is found absent or ii;idisciplined in future is indicative of
    the fact that the management desired to give him an opportunity to
    improve. Nothing had happened between March 3, 1987 and April 2,
    1987 to warrant the termination of his service. The Labour Court,
    therefore, held that the termination of his employment by the order of
    April 2, 1987 was not sustainable. As regards his companion Vipti
    Singh the management pointed out that apart from the fact that his
    service was not satisfactory as is reflected by the memos of August 14,
    1985 and October 20, 1986, he was found to have signed the atten-
    dance register fiom March 23, 1987 to March 29, 1987 even though he
    was admittedly absent on those days. The Labour Court examined this
F   ground   in detail and came to the conclusion that even though the
    workmen had signed his presence on those dates, some doubt arose on
    account of absence of cross marks in the register. The Labour Court,
    therefore, came to the counclusion that the termination of the service
    was also not justified.

G          Taking note of the fact that the Union was demanding the
     upward revision of wages of non-executive staff, housing facility and
     regularisation of casual labour and the management's failure to accede
     to the demands notwithstanding the meetings held on August 29, 1986,
     November 3, 1986 and January 19, 1987, the Labour Court came to the
     conclusion that the strike was legal and justified, peaceful and non-
'i   violent and for a duration of only three days. The Labour Court also
                   B.R. SINGH v. U.0.1. {AHMADI, J.]                  269

came to the conclusion that there was no justification for resorting to
                                                                             A
the exercise of extraordinary powers under Rule 32 of the Rules. In
the view of the Labour Court participation in strikes and slogan shout-
ing are part of trade union activity and hence it was not legal and
proper to visit the twelve Union leaders with the extreme punishment
of dismissal from service. It, therefore, held that their dismissal was
illegal, unjustified and wholly arbitrary.                                   B

    , All the above findings of the Labour Court have been assailed by
the TFAI in the objections to the report. It is not necessary for us to
indicate in detail the nature of the objections but suffice it to say that
according to the TFAI the findings reached by the Labour Court. are
one sided, perverse and contrary to the evidence on record. We have
perused the objections as well as the reply filed thereto by the             c
petitioners.

       From the above resume it clearly emerges that the charter of
demands put forth by the Union was pending consideration. The main
demands were three in number, namely, (i) for upward revision of             D
wages (ii) for regularisation of services of casual labour and (iii) for
providing housing facilities to the employees. Efforts to settle these
pending issues through negotiations were made at the level of the
Chief General Manager and it appears that this response was not nega-
tive. It appears that the question of regularisation ·of casual and daily
rated workers was referred to the Standing Committee of the Board            E
which had taken the tentative decision to create 85 posts on the regular
establishment for regularisation. This proposal was forwarded to the
I. W .S. unit of the concerned Ministry for approval. However since the
final decision was delayed the union leaders become restive. The
Union representatives, therefore~ decided to call a General Body
Meeting to decide on the future course of action. On January 15, 1987        F
it wrote to the management to permit it to hold a meeting on January
19, 1987. Notwithstanding the refusal of the permission the Union was
compelled to hold the meeting as it had informed its members and it
was not possible to shift the venue at short notice. The angered leaders
who addressed the workers condemned the management's action in
refusing to solve the outstanding problems of the workers in strong          G
language. We have perused the extracts from their speeches on which
TFAI relies. The language used is no doubt harsh and it would have
been proper if such language had been avoided.

      Counsel for TFAI also strongly contended that since the strike
was illeg!'l the workers are not entitled to any relief. We see no merit     H
    270         SUPREME COURT REPORTS               [1989] Supp. 1 S.C.R.

A in this submission. The right to form association or unions is a funda-
  mental right under Article 19(1)(c) of the Constitution. Section 8 of
  the Trade Unions Act provides for registration of a trade union if all
  the requirements of the said enactment are fulfilled. The right to form
  associations and unions and provide for their registration was recog-
  nised obviously for conferring certain rights on trade unions. The
B necessity to form unions is obviously for voicing the demands and
  grievances of labour. Trade unionists act as mouthpieces of labour.
  The strength of a trade union depends on its membership. Therefore,
  trade unions with sufficient membership strength are able to bargain
  more effectively with the managements. This bargaining power would
  be considerably reduced if it is not permitted to demonstrate. Strike in
  a given situation is only a form of demonstration. There are different
c modes    of demonstrations, e.g., go-slow, sit-in, work-to-rule, absen-
  tism, etc., and strike is one such mode of demonstration by workers for
  their rights. The right to demonstrate and, therefore, the right to strike
  is an important weapon in the armoury of the workers. This right has
  been recognised by almost all democratic countries. Though not raised
D to the high pedestal of a fundamental right, it is recognised as a mode
  of redress for resolving the grievances of workers. But the right to
  strike is not absolute under our industrial jurisprudence and restric-
  tions have been placed on it. These are to be found in sections 10(3),
  10A(4A), 22 and 23 of the Industrial Disputes Act, 1947 ('I.D. Act' for
  short). Section 10(3) empowers the appropriate Government to pro-
E hibit the continuance of a strike if it is in connection ·with a dispute
  referred to one of the fora created under the said statute. Section
  10A(4A) confers similar power on the appropriate Government where
  the industrial dispute which is the cause of the strike is referred to
  Arbitration and a notification in that behalf is issued under Section
  10(3A). These two provisions have no application to the present case
F since it is no body's contention that 'he union's demands have been
  referred to any forum under the statute.

          The field of operation of Sections 22 and 23 is different. While
    Section 10(3) and Section lOA( 4A) confer power to prohibit oon-
    tinuance of strike which is in progress. Sections 22 and 23 seek to
G prohibit strike at the threshhold. Section 22 provides that no person
    employed in a public utility service shall proceed on strike unless the
    requirements of clauses (a) to (d) of sub-section (1) thereof are fulfil-
    led. The expression 'public utility service' is defined in Section 2(n)
    and indisputably TFAI does not fall within that expression. Section 23
    next imposes a general restriction on declaring strikes in breach of
J!i contract during pendency of (i) conciliation proceedings, (ii) proceed-
                    B.R. SINGH v. U.0.1. [AHMADI, J.]                   271

ings before Labour Court, Tribunal or National Tribunal, (iii) arbitra-        A
tion proceedigs & (iv) during the period of operation of any settlement
or award. In the present case no proceedings were pending before any
of the aforementioned fora nor was it contended that any settlement or
award touching these workmen was in operation during the strike
period and hence this provision too can have no application. Under
Section 24 a strike will be illegal only if it is commenced or declared in     B
contravention of Section 22 or 23 or is continued in contravention of
an order made under Section 10(3) or 10A(4A) of the I.D. Act.
Except the above provisions, no other provision was brought to our
attention to support the contention that the strike was illegal. We,
therefore, reject this contention.
                                                                               c
      The next question is whether the material on record reveals that
the office hearers of the union had given threats to officials of TFAI as
alleged. The Labour Court has negatived the involvement of office
bearers of the union in giving threats either in person or on telephone.
We have perused the evidence on record in this behalf and we are
inclined to think that there were angry protests and efforts to obstruct       D
the officers from entering the precints of TFAI but there is no convinc-
ing evidence of use of force or violence.

      From what we have discussed above we are of the view that
although TFAI was sympathetic to regularisation of service of the
casual workers, since the proposal had to pass through various levels it       E
was not possible to take an early decision in the matter. It was held up
in the Ministry for which TFAI could not be blamed. So also the
proposal to revise the wages of non-executive staff was under consi-
deration since some time. However, the Union leaders lost patience
and took a decision to proceed on strike on the eve of the President's
visit to TFAI. This action of the Union impelled TFAI to make                  F
alternative arrangements. It, therefore, dismissed the 12 union leaders
invoking Rule 32 of the Rules.

      On going through the material placed before the Labour Court,
we feel that the criticism levelled by TFAI that it exceeded its brief and
has betrayed a somewhat one-sided approach cannot be said to be                G
wholly mispiacel We have,· however, looked to the bare fa~ts found by
it.. We are however disinclined to analyse the evidence before the
Labour Court because we are of the view that even though TFAI was
not ave_rse to the de!Ilands of labour it could not take a final decision at
an early date for want of approval from the concef!led Ministry. This
angered the Union representatives more particularly because the                H·
     272         SUPREME COURT REPORTS                [1989] Supp. 1 S.C.R.

 A   executive staff was granted upward revision of salary, allowances, etc.,
     and hence they decided to call a meeting of the general body to decide
     on the future course of action. In their frustration they decided to put
     pressure by proceeding on strike. _During the strike period certain
     events happened which we wish were avoided. But fortunately nothing
     destructive, meaning thereby damaging to the property of TFAI, took
  B place. A few brushes and exchange of strong words appear to have
     taken place which are described as threats by the management. The
     vast mass of labour was only responding to the call of the Union. Even
     the union representatives were acting out of frustration and not out of
     animoisity for the officers. The facts of this case, therefore, demand
     that we appreciate the conduct of both sides keeping in mind the
  C prevailing overall situation. While the workers were frustrated for
     want of an early solution, the management was worried because of the
     impending visit of the President on January 25, 1987. Instead of trying
     to lay the blame at the door of either party, which would only leave a
     bitter taste for long, we think we should resolve the crisis in the larger
     interest of the institution.
  ID
            Taking an overall view of the facts and circumstances which
     emerge. from the oral as well as documentary evidence placed on
     record, we are of the opinion that while some of the Union leaders
     acted in haste, they do not appear to have been actuated by any obli-
     que motive. The management also took action against the workmen
   E not because it was unsympathetic towards their demands but because
     of the anxiety caused to them on account of untimely action taken by
     the Union only a few days before the President's scheduled visit to the
     fare. The management also felt hurt as its reputation was at stake since
      several dignitaries from abroad were participating in the fare. Its
      action must, therefore, be appreciated in this background.
   F
            The interest of the institution must be paramount to all concernd
      including the workmen. At the same time this Court cannot be obli-
      vious to the economic hardship faced by labour. We have already
      pointed out earli.er how both parties reacted to the tense atmosphere
      that built up over a period of time. The facts found by the labour
  G court clearly show that while the labour was frustrated as its demands
      were out.standing since long and they were finding it difficult to combat
      the inflation without an upward revsion in wages, etc.", the manage-
      ment was worried about TFAI's reputation likely to be lowered in the
      eyes of visitig dignitaries because of certain events that were happen-
      ing due to the workers' agitation. In these circumstances it would be
· H unwise and futile to embark upon a fault finding mission.
                   B.R. SINGH v. U.0.1. [AHMADI, J.]               273

      Keeping the interest of the institution in mind and bearing in      A
mind the economic hardships that the labour would suffer if the
impugned orders are not set aside, we think that it would be desirable
to restore the peace by directing the re-instatement of the workers.
However, so far as the case of the security guard Vipti Singh is con-
cerned, we are constrained to say that the material on record does
disclose that he had signed the attendance register showing his pre-      B
sence from March 23, 1987 to March 29, 1987 even though he was in
fact absent on those days. His explanation in this behalf is far from
convincing. We are, therefore, of the opinion that he deserves punish-
ment, but not the extreme punishment of dismissal from service. We
think that the ends of justice would be met if we direct his reinstate-
ment without back wages.
                                                                          c
      So far as the case of driver Ra ju is concerned, it must be pointed
out that the management cancelled the offer of July 4, 1986 by the
letter of July 25, 1986 because of his conviction under Sections 87 and
113 of the Motor Vehicles Act and his so-called outrageous behaviour
with the dealing assistant on July 22, 1986. These being clearly acts of D
misconduct, the action of the management must be held to be penal in
natue and cannot be sustained as it was taken without hearing the
delinquent. To hold an enqui.ry against him at this late stage is not
desirable.

      In the result all the writ petitions are allowed and the rule is E
made absolute in each case to the extent indicated hereinafter. The
management will prepare a list of casual-daily rated workers who were
its employees prior to the strike on January 21, 1987 in accordance
with their seniority, if such a list does not exist. TFAI will provide
them work on the same basis on which they were given work prior to
the strike. After the seniority list is prepared TFAI will absorb 85 of F
the seniormost casual workers in regular employment pending finalisa-
tion of the regularisation scheme. TFAI will complete the regularisa-
tion process within a period of 3 months from today. TFAI will
determine the '1umber of casuai- employees who would have been
employed had they not proceeded on strike. The wages payable to
such casual employees had they been employed for the period of 6 G
months immediately preceding the date of this order will be worked
out on the basis of actual labour employed and the amount so worked
out will be distributed amongst the casual employees who report for
work in the next three months after TFAI resumes work to casual
labour. Peon Urned Singh, Security Guard Bansi Dhar and Driver
Raju will also be reinstated in service forthwith. They too will be paid H
    274         SUPREME COURT REPORTS               [1989] Supp. 1 S.C.R.

A back wages (less suspension allowance, if any) for a period of 6 months
  immediately preceding this order. So far as Driver Raju is concerned
  he will be absorbed in regular service as per the offer made in the letter
  of July 4, 1987 disregarding the subsequent communication of July 25,
  1987. The security guard Vipti Singh will also be reinstat~d in service
  but without back wages. In the case of the 12 dismissed workers we
B are, on the facts placed before us, of the view the circumstances did
  not exist for the exercise of extraordinary powers under Rule 32 of the
  Rules. The orders terminating the services of the 12 union representa-
  tives are therefore set aside and they are ordered to be reinstated in
  service forthwith with back wages covering a period of 6 months
  immediately preceding the date of this order. They should be rein-
C stated forthwith. In view of the above directions no further order is
  required on the C.M.P. TFAI will pay Rs.5,000 in all by way of costs
  to the Union.

    Y.Lal                                                 Petition allowed.