SYNDICATE BANK versus THEGENERALSECRETARY,SYNDICATEBANKSTAFF ASSOCIATION AND ANR.

Citation: [2000] 3 S.C.R. 285 · Decided: 25-04-2000 · Supreme Court of India · Bench: S. SAGHIR AHMAD · Disposal: Appeal(s) allowed

Judgment (excerpt)

SYNDICATE BANK 
v. 
THEGENERALSECRETARY,SYNDICATEBANKSTAFF 
ASSOCIATION AND ANR. 
APRIL 25, 2000 
(S. SAGHIRAHMAD AND D.P. WADHWA, JJ.] 
Labour Law: 
Termination-Principles of natural justice-Compliance of-Bank em-
ployee-Unauthorised absence from service-Show cause notice under Clause 
16 of the Bipartite Settlement-Notice sent to employee by Registered post at 
the correct address-Returned with postal endorsement 'Refused' -Employee 
neither submitting his explanation nor reporting for duty-Expiry of notice 
period-Termination order treating absence as voluntary abandonment of 
service-On Reference-Tribunal passing an Award holding that termination 
order without conducting enquiry, illegal-Directions for reinstatement with 
continuity of service-Validity of-Held, principles of natural justice are inbuilt 
in Clause 16 of the Bipartite Settlement-Thus, termination order following 
Clause 16 of the Bipartite Settlement without enquiry not illegal and violative 
of principles of natural justice. 
Standing orders-Principles of natural justice-Applicability of-Held, 
principles of natural justice should be read into standing orders which have 
· statutory force. 
Administrative Law: 
Principles of natural justice-Scope and meaning of 
Respondent No. 2 • Employee was unauthorisedly absent from duty 
for a long period. Consequently appellant Bank issued a show cause notice 
under clause 16 of the Bipartite Settlement. The said notice was sent by 
registered post at the correct address of the employee but it returned with 
the postal endorsement 'refused'. Respondent No. 2 ·employee neither 
submitted his explanation to the show cause notice nor reported for duty. 
Thus, on expiry of the notice period,· Bank passed a termination order 
285 
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B 
c 
D 
E 
F 
G 
H 
A 
B 
c 
286 
SUPREME COURT REPORTS 
[2000) 3 S.C.R. 
treating his absence as voluntary abandonment of service. On reference, 
Industrial Tribunal passed an Award holding that the termination order 
passed without holding any enquiry was illegal and therefore directed 
reinstatement of respondent No. 2 with continuity of service. Appellant-
Bank unsuccessfully challenged the said Award before the High Court. 
Hence the present appeal. 
On behalf of appellant-Bank it was contended that the principles of 
natural justice were inbuilt in clause 16 of Bipartite Settlement and there-
fore the action of the Bank in terminating the service of respondent No. 2 
under the said clause was not illegal. 
Allowing the appeal, the Court 
HELD : 1. Termination of service of respondent No. 2 - employed by 
following the requirements of clause 16 of the Bipartite Settlement, without 
holding any enquiry is not illegal a,nd violative of principles of natural 
D 
justice. An enquiry would have been necessary if the employee had submit-
ted his explanation which was not acceptable to the Bank or if he had 
reported for duty but was not allowed to join. Undue reliance on the 
principles of natural justice by the Tribunal and High Court has led to 
miscarriage of justice for the Bank. [300-A-D] 
E 
F 
2. Principles of natural justice are inbuilt in Clause 16 of the Bipartite 
Settlement. The requirements of principles of natural justice that (1) work-
man should know the nature of the complaint or accusation; (2) an oppor-
tunity to state his case; and (3) the management should act in fair, reason-
able and just manner, have been fully met in the instant case. When 
evidence was led before the Tribunal, Bank produced the registered covers, 
which had been received back with the endorsement "refused" and the 
addressee "not found during delivery time". The notice was sent to the 
correct address of employee and it was received back with the postal 
endorsement ''refused". Thus, a clear presumption arose in favour of the 
G 
Bank and against the employee. [299-A-D] 
3. Principles of natural justice and duty to act in just,· fair and 
Y 
reasonable manner have to be read in Certified Standing Orders which 
have statutory force. These can be applied by Labour Court and Industrial 
Tribunal even to relations between Management and workman though 
H 
based on contractual obligations. Further where domestic inquiry was not 
SYNDICATE BANK v. GENERAL SECY., SYNDICATE BANK STAFF ASSN. [D.P. WADHWA, J.) 287 
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held or it was vitiated for some reason the Tribunal or Court adjudicating 
A 
.... 
an industrial dispute can itself go into the question raised before it on the 
basis of the evidence

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