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M/S. LAKSHMI PRECISION SCREWS LTD. versus RAM BAHAGAT

Citation: [2002] SUPP. 1 S.C.R. 512 · Decided: 13-08-2002 · Supreme Court of India · Bench: U.C. BANERJEE · Disposal: Dismissed

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Judgment (excerpt)

A 
MIS. LAKSHMI PRECISION SCREWS LTD. 
V, 
RAM BAHAGAT 
AUGUST 13, 2002 
B 
[UMESH C. BANERJEE AND K.G. BALAKRISHNAN, JJ.] 
Labour Laws :· 
Industrial Employment (Standing Orders) Act, 1946-Clause 9(/)(ii) of 
C Certified Standing Orders-Workman remaining absent from duty--
Management advising workman to report hack-'-Also warning that in case 
he fails, his disinterestedness would be presumed arid his name would be 
struck off from the rolls of the company under Certified Standing Orders-
Workman. not complying with the conditions-Management striking off his 
D name ji·om the rolls-Workman making representation to ·management to 
take him back--Representations rejected-Dispute-Labour Court holding 
termination u1?iustified and ordering reinstatement-High Court confirming 
the same--1nterference by Supreme Court--Held. action of management 
arbitrwy, devoid of any justification and principles of natural justice since 
workman not given any opportunity-Thus no perversity or mis-carriage of 
E justice warranting intervention-Administrative Law-Principles of natural 
justice-Constitution of India-Article 136. 
F 
Respondent-workman was employed in the appellant-company. He 
absented from work without prior information from 13.10.1990. Management 
informed respondent-workman by letter dated 17.10.1990 that as he had been 
absenting from duty without authorised leave or notice, he should report back 
on duty within 48 hours of the receipt and tender his explanation for his 
absence. He was also warned that in case he failed to report, his 
disinterestedness would be presumed and his name would be struck off from 
the rolls of the company under the Certified Standing Orders of Company. 
G Respondent workman did not comply with the condition stipulated in the letter. 
Management then informed respondent-workman by letter dated 25.10.1990 
that his name had been removed from the rolls of the company under Clause 
9(f)(ii) of the Certified Standing Orders of the Company since he remained 
absent continuously for a period of 10 days. Respondent-workman made 
H representation to the management to take him back on duty as he had been 
512 
• 
LAKSHMI PRECISION SCREWS LTD. ''· RAM BAHAGAT 
513 
unwell during the period of his absence but the representation was rejected. A 
Thereafter he raised a dispute. Labour Court held that termination of the 
services of respondcnt-lvorkman \'Vas unjustified and thus ordered his 
reinstatement. High Court upheld the order. Hence the present appeal. 
Dismissing the appeal, the Court 
HELD: I.I. Arbitrariness is an anti-thesis to rule of law, equity, fair 
play and justice. There may be contract of employment but it cannot be devoid 
of the basic principles of the concept of justice. Justice oriented approach as 
B 
is the present trend in Indian jurisprudence shall have to be read as an in-
built requirement of the basic of concept of justice, to wit, the doctrine of natural C 
justice, fairness, equality and rule of law. (522-F-GJ 
11. In the instant case, respondent-workman remained absent from duty 
and within a period of four days a letter was sent lo him informing that since 
he was absenting himself from duty without authorised leave he should report 
back within 48 hours and also tender his explanation for his absence, D 
otherwise his disinterestedness would be presumed, which is not in strict 
compliance with the Certified Standing Order. Though however, the letter 
dated 25.10.1990 comes within the ambit of the Certified Standing Order of 
10 days' continued absence-the situation however is slightly different in the 
present context since this letter was an intimation of his name being struck 
off from the rolls of the company. It is an act; subsequent to the order of E 
termination and if the letter dated 17.10.1990 sent after four days is an 
indication for such an order of termination the same does not come within 
the ambit of the Certified Standing Order. Further the letter dated 17.10.1990 
cannot be treated to be an opportunity since it is only on the fourth day that 
such a letter was sent-the action of appellant stands out to be devoid of any F 
justification, neither it depicts acceptability of the doctrine of natural justice 
or the concept of fairness-arbitrariness is written large. The finding of High 
Court that the decision to terminate the respondent-workman by reason of a 
presumption is purely arbitrary in nature, is confirmed. There is no perversity 
or miscarriage

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