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Supreme Court of India

SHRI TALUKDAR SINGHversusTATAENGINEER2015ING & LOCOMOTIVE CO. LTD.

Citation
2015 INSC 517
Decided
24 July 2015
Disposal
Case Partly allowed

Holding

The Supreme Court held that although the dismissal was justified, the compensation awarded was grossly inadequate and must be enhanced to Rs.5,00,000 to meet the interest of justice.

Summary

Shri Talukdar Singh, a 59‑year‑old ex‑serviceman employed as a Turner by Tata Engineering & Locomotive Co., was dismissed in 1990 after a charge‑sheet for slapping a colleague. The Labour Court found the enquiry fair and the misconduct proved but held that dismissal was shockingly disproportionate, awarding retrenchment compensation of Rs.6,049. The Bombay High Court upheld the dismissal but enhanced the compensation to Rs.1,00,000, deducting the amount already paid. On appeal, the Supreme Court examined whether the dismissal was proportionate and whether the compensation awarded was adequate in view of the appellant’s age, years of service, and circumstances. It concluded that the dismissal, though justified, was disproportionate and the compensation was grossly insufficient, directing an enhancement to Rs.5,00,000 inclusive of the amount already paid. The appeal was partly allowed and the High Court’s order modified accordingly.

Issues considered

  • Whether the dismissal of the employee for misconduct was proportionate under labour law.
  • Whether the retrenchment compensation awarded by the Labour Court was adequate.
  • Whether the High Court's enhancement of compensation to Rs.1,00,000 was sufficient or required further enhancement.

Subjects

labour lawretrenchment compensationmisconductdismissalproportionalityenhancement of compensationSupreme Courtappeal

Judgment

                    [2015] 10 S.C.R. 67


                 SHRI TALUKDAR SINGH                           A
                             v.
     TATAENGINEE~ING & LOCOMOTIVE CO. LTD.

              (CivilAppeal No. 5701 of2015)
                                                               B
                      JULY24,2015
      [T. 5. THAKUR, V. GOPALAGOWDAAND R.
                  BANUMATHI, JJ.]
     Labour laws - Retrenchment compensation -                 c
Enhancement- Commission of misconduct by the appellant
- Termination of services - Award of retrenchment
compensation of Rs. 60491- to appellant by Labour Court
holding punishment disproportionate - High Court though
upheld the punishment of dismissal, but enhanced D
compensation to Rs. 1, 00, 0001- - On appeal, held:
Concurrent findings of fact by both Labour Court and High
Court that misconduct of the appellant was proved on the
basis of the evidence and that the punishment of dismissal
was shockingly disproportionate- When Labour Court passed E
the award, appellant was about 59 years and two years later
he attained the age of superannuation - Considering the
number of years the appellant has worked with the respondent
and the facts and circumstances of the case, compensation
enhanced to Rs. 5, 00, 0001- - Judgment of High Court F
accordingly modified.

     CIVIL APPELLATE JURISDICTION: Civil Appeal No.
5701 of 2015
                                                               G
      From the Judgment and Order dated 19.06.2014 of the
High Court of Judicature at Bombay in Writ Petition No. 3646
of 2001

     S. Ravi Shankar for the Appellant.
                                                               H
                             67
68         SUPREME COURT REPORTS                 [2015] 10 S.C.R.


A         C.U. Singh, R. N. Karanjawala, Debmalya Banerjee,
     Jasmeet Singh, A.S. Aman, Manik Karanjawala (for
     Karanjawala & Co.) for the responde~t.

          The Judgment of the Court was delivered by
8
          R. BANUMATHI, J. 1. Leave granted.

       2. This appeal arises out of the order passed by the High
  Court of Bombay in Writ Petition No.3646 of 2001 dated
  19.06.2014, in and by which, the High Court enhanced the
C retrenchment compensation of Rs.6,049/- awarded by the
  Labour Court to Rs. 1,00,000/-without any interest.

           3. A charge-sheet dated 07.05.1988 was issued to the
     appellant for committing the misconduct of slapping his
D    colleague, Mr. Kunjumon who was working with the respondent-
     company. An enquiry was conducted against the appellant and
     the services of the appellant were terminated on 07 .05 .1990.
     The appellant challenged his termination and a reference was
     made to the Labour Court, Pune. By the award dated
E    28.02.2000, Labour Court held that the enquiry against the
     appellant was fair and proper and the misconduct was proved.
     However, the Labour Court held that the punishment of
     dismissal from service was shockingly disproportionate and
F    awarded retrenchment compensation of Rs.6,049/- to the
     appellant. Being aggrieved, the appellant filed writ petition
     contending that the punishment of dismissal was harsh and
     that the retrenchment compensation of Rs. 6,049/- awarded
     was no compensation at all. By the impugned judgment, the
G    High Court while upholding the punishment of dismissal,
     enhanced the compensation to Rs.1,00,000/- minus
     Rs.6,049/- which was already paid to the appellant. Still
     aggrieved, the appellant has preferred this appeal.

H         4. We have heard Mr. S. Ravi Shankar, the learned
     counsel for the appellant and the Learned Senior Counsel Mr.
    SHRI TALUKDAR SINGH v. TATA ENGINEERING &                        69
      LOCOMOTIVE CO. LTD. [R BANUMATHI, J.]

C.U. Singh, appearing for the respondent-management and A
perused the impugned judgment and material on record.

      5. The short question is whether the compensation of
Rs.1,00,000/- awarded by the High Court is to be enhanced.
Appellant who was an ex-serviceman was employed with the             B
respondent-company as a Turner in the Auto Division w.e.f.
09.01.1978 drawing monthly wage of Rs.2,621/- and he
worked till he was terminated on 07 .05.1990. It is seen from
the record that Mr. Kunjumon used harsh words and shoved
the appellant towards the door and evidence would show that          C
it was not a premeditated attack on Mr. Kunjumon. Both the
Labour Court as well as the High Court recorded concurrent
findings of fact thatthe misconduct of the appellant was proved
on the basis of the evidence and that the punishment of
dismissal was shockingly disproportionate. When the Labour           D
Court passed the award, the appellant was about 59 years
and he attained the age of superannuation in the year 2002.
Considering the number of years which the appellant worked
with the respondent and the facts and circumstances of the
case, we are of the view that the interest of justice would be       E
met if the compensation of Rs.1,00,000/- is enhanced to
Rs.5,00,000/-which is inclusive of the compensation awarded
by the High Court. The judgment of Bombay High Court is
accordingly modified and the compensation is enhanced to             F
Rs.5,00,000/-which shall be payable by the respondent within
a period of eight weeks and in the event of default the same
shall be payable with interest at the rate of 9% p.a. and the
appeal is partly allowed. No order as to costs.

Nidhi Jain                                  Appeal partly allowed.
                                                                     G


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