Management of Coimbatore District Central Co-operative Bank vs. Secretary, Coimbatore District Central Co-operative Bank Employees Association and Ors.

Facts

The management of Coimbatore District Central Co-operative Bank- the Appellant received a ‘strike notice’ from Coimbatore District Central Bank Employees Association (Union)-the Respondent, proposing to go on strike for suspension of certain employees and withholding of their salary by the Management.

A settlement had been arrived at between the Management and the Union and 134 employees gave up 'strike call' and resumed work. 53 employees refused to join duty and continued their illegal strike and acts of misconduct. Disciplinary proceedings were initiated against 53 workmen, they were placed under suspension and an inquiry was instituted.

The Management proceeded with the disciplinary inquiry ex parte against the workmen, held guilty of the charges and two punishments were awarded on the workmen; (i) stoppage of increment for 1- 4 years with cumulative effect; and (ii) non-payment of salary during the period of suspension. The workmen joined duty on January 17, 1973, and preferred to file an appeal which was dismissed by the Executive Committee.

Key Takeaways for Students

Legal Issue

1. Whether the punishment given under Administrative authority is correct or not?
2. Whether the High Court can reduce the quantum of punishment imposed by the administrative authority i.e. District Central Co-operative Bank?
3. Whether the High Court can substitute the decision of the administrative body by its own decision under Article 226 of the Constitution?

Holding

Regarding Punishment: At the inquiry, all the charges against the employees were established. The punishment imposed by Management is not excessive, harsh or disproportionate.

Reducing the quantum of punishment: After affording an opportunity of hearing to both parties, the Labour Court held that the inquiry was according to law. The High Court should not have interfered with the well-considered award passed by the Labour Court. It would not be proper to deprive 53 workmen who have received limited benefits under the order passed by the Division Bench of the High Court.

Substitution of Administrative decision: The high court under Art. 226 of the Constitution cannot substitute the discretionary powers that have been given to administrative bodies by their own decisions.

Final Decision Appeal Allowed

Ratio

The decision must be reasonable.