July 5, 2024
Administrative lawDU LLBSemester 4

Coimbatore District Central Cooperative Bank v.Coimbatore District Central Coop. Bank Employees Assn.(2007) 4 SCC 669

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[The Wednesbury principle has given way to the doctrine of proportionality.]
C.K. THAKKER, J. – actual matrix – 4. The appellant is Coimbatore District Central
Cooperative Bank having its head office at Coimbatore. It is having 17 branches in the
revenue district of Coimbatore. It is the case of the appellant Bank that the Coimbatore
District Central Cooperative Bank Employees Association (“the Union”) gave a “strike
notice” on 31-3-1972 which was received by the Management on 5-4-1972 proposing to go
on strike from 14-4-1972. The reason for such notice and going on strike was suspension of
certain employees and withholding of their salary by the Management. Since the strike call
was illegal and the notice was not in consonance with the provisions of the Industrial Disputes
Act, 1947 (hereinafter referred to as “the Act”), the action of going on strike was unlawful.
The Union was accordingly informed not to go on strike. The Labour Officer, Coimbatore in
the meanwhile commenced conciliation proceedings in connection with certain issues raised
by the Union. Despite proper advice by the Labour Officer, the employees commenced strike
from 17-4-1972. The strike was totally illegal and unlawful. On 19-4-1972, notice was issued
to the Union stating therein that the workmen should join duties by 22-4-1972 by tendering
unconditional apology. The employees accepted it. A settlement had been arrived at between
the Management and the Union and 134 employees gave up “strike call” and resumed work.
53 employees, however, refused to join duty and continued their illegal strike and acts of
misconduct. The illegal acts of employees affected the work of the Bank very badly. It was
alleged that not only did the workmen not join duty and continued illegal and unlawful strike,
but also prevented other employees from resuming duty and threatened them with dire
consequences if they returned for duty. Disciplinary proceedings were, therefore, initiated
against 53 workmen, they were placed under suspension and inquiry was instituted. The
employees were intimated of the charges levelled against them, which they denied. In spite of
notices, the workmen did not participate in the disciplinary proceedings and remained absent.
The Management was, therefore, constrained to proceed with the disciplinary inquiry ex parte
against them. By an order dated 6-1-1973, the workmen were held guilty of the charges and
an order of punishment was passed. By the said order, two punishments were awarded to the
workmen: (i) stoppage of increment for 1-4 years with cumulative effect; and (ii) nonpayment of salary during the period of suspension. According to the Bank, the case was an
appropriate one to impose extreme penalty of dismissal from service, but by taking liberal
view, the extreme punishment was not imposed on the employees and they were retained in
employment by the Bank. The workmen joined duty on 17-1-1973. They should have
accepted the order gracefully and appreciated the attitude adopted by the Management. The
workmen, however, did not do so. They preferred to file appeal which was dismissed by the
Executive Committee.

  1. The workmen, being aggrieved by the decision, raised an industrial dispute and the matter
    was referred to the Labour Court, Coimbatore by the Government under Section 10 of the
    Act. The Labour Court after extending opportunity of hearing to both the sides and
    considering the evidence on record framed the following two issues:
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  2. Whether the punishment of stoppage of 1 to 4 increments with cumulative effect on 1 to 53
    workers is justified?
  3. Whether the 53 workmen are entitled to be paid wages for the period of suspension?
  4. After considering the evidence in its entirety and relevant case-law on the point, the Court
    held that all the four charges levelled against the workmen were proved. It also held the
    inquiry to be legal, valid and in consonance with the principles of natural justice. The
    evidence established that threat was administered by the employees.
  5. The Labour Court concluded:
    “Unlike criminal cases it is not necessary that the evidence should be beyond doubt.
    Nevertheless, the witnesses have given clear evidence to prove charges. Therefore, we have to
    accept them and hold that Charges 1 to 4 have been proved against all the 53 employees.”
  6. On the basis of the above finding, the Labour Court held that it could not be said that the
    action of the Management could be described as illegal, unlawful or improper. Accordingly,
    the demands of the workmen were rejected and the reference was dismissed.
    Approach of the High Court
  7. Being aggrieved by the award passed by the Labour Court, the Union approached the High
    Court by filing a writ petition. The learned Single Judge did not disagree with the findings
    recorded by the Labour Court and held that the workmen were not entitled to wages for the
    period they had not worked. As to the second punishment, however, the learned Single Judge
    held that stoppage of 1 to 4 annual increments with cumulative effect was “harsh”. The
    penalty of stoppage of annual increments with cumulative effect had far-reaching
    consequences. It would adversely affect the workmen throughout their service and in
    retirement benefits to be received by them. It would further affect their families. Imposition of
    such punishment, according to the learned Single Judge, was “not valid in law” and liable to
    be set aside. The petition was, accordingly, partly allowed confirming the withdrawal of
    wages for the period of suspension, but by setting aside the order of punishment of stoppage
    of increments. The Management was directed to pay the arrears in respect of stoppage of
    increments to the workmen with “interest at the rate of 12% per annum” within sixty days
    from the date of receipt of the copy of the order.
  8. The Management was aggrieved by the above order passed by the learned Single
    Judge and preferred intra-court appeal before the Division Bench of the High Court. The
    Division Bench rightly noted that it is settled law that the question of choice and quantum of
    punishment is within the discretion of the Management. “But, the sentence has to suit the
    offence and the offender.” If it is unduly harsh or vindictive, disproportionate or shocks the
    conscience of the Court, it can be interfered with by the Court. Then referring to a leading
    decision of this Court in Ranjit Thakur v. Union of India [(1987) 4 SCC 611], the Division
    Bench held that the order passed by the learned Single Judge required modification. The
    Division Bench opined that proper punishment would be stoppage of increment/increments
    without cumulative effect on all 53 employees would serve the ends of justice. The Division
    Bench also held that the order passed by the learned Single Judge directing the Management
    to pay interest was not proper and was accordingly set aside. It is this order which is
    challenged by the Management in the present appeal.
    Rival submissions
    106
  9. The learned counsel for the appellant Bank contended that both, the learned Single Judge
    as well as the Division Bench of the High Court, were in error in interfering with the order of
    punishment passed by the Management particularly when the said action had been confirmed
    by a well-considered and well-reasoned award made by the Labour Court, Coimbatore. It was
    urged that once an inquiry has been held to be in consonance with rules of natural justice,
    charges had been proved and an order of punishment had been passed, it could not have been
    set aside by a “writ court” in judicial review. The Labour Court recorded a finding of fact
    which had not been disturbed by the High Court that principles of natural justice were not
    violated. The inquiry was conducted in consonance with law and all the charges levelled
    against the employees were established. If it is so, the High Court was clearly wrong in
    interfering with the award of the Tribunal. According to the counsel, the High Court was
    neither exercising appellate power over the action taken by the Management nor on quantum
    of punishment awarded. The Court was also not having appellate jurisdiction over the Labour
    Court. The jurisdiction of the High Court under Articles 226/227 of the Constitution was
    limited to the exercise of power of judicial review. In exercise of that power, the High Court
    could not substitute its own judgment for the judgment/order/action of either the Management
    or the Labour Court. The order of the High Court, therefore, deserves to be quashed and set
    aside. It was also urged that even if it is assumed that the High Court has jurisdiction to enter
    into such arena, then also, in the facts and circumstances of the case and considering the
    allegations levelled and proved against the workmen, it cannot be said that an order of
    stoppage of increment/increments with cumulative effect could not have been made. On the
    contrary, the matter was very serious which called for much more severe penalty, but by
    taking liberal view, the Management had imposed only a “minor” penalty. Such reasonable
    order could not have been set aside by the High Court. The counsel submitted that “banking
    service” is an “essential service”. It has public utility element therein and it was the duty of
    the employees connected with such service to discharge their duties sincerely, faithfully and
    wholeheartedly. In the instant case, not only the workmen refused to join duty, but they
    prevented other employees who had amicably settled the matter with the Management in
    discharging their duties by administering threat and by successfully obstructing the
    Management in the discharge of its obligations as public utility undertaking. Serious view,
    therefore, was called for. There was total and complete misconception on the part of the High
    Court in holding that the punishment was “harsh”. It was, therefore, submitted on behalf of
    the Management that the order passed by the learned Single Judge and modified by the
    Division Bench deserves to be set aside by confirming the action taken by the Management
    and approved by the Labour Court, Coimbatore.
  10. The learned counsel for the respondent Union, on the other hand, supported the order
    passed by the Division Bench of the High Court. According to him, the learned Single Judge
    was fully justified in partly allowing the petition observing that the punishment imposed on
    the workmen was “clearly harsh” and in setting aside that part of the punishment by which
    increment/increments was/were stopped. Since the punishment imposed by the Management
    was grossly disproportionate, the learned Single Judge was also right in directing the Bank
    Management to pay salary with 12% interest. It is no doubt true, stated the learned counsel,
    that the Division Bench partly set aside the direction of the learned Single Judge by
    modifying the punishment permitting stoppage of increment/increments of the workmen
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    without cumulative effect and by setting aside payment of salary with 12% interest, but as the
    said part of the order passed by the Division Bench has not been appealed against by the
    Union, it would remain. But no case has been made out by the Bank Management to interfere
    with the order of the Division Bench and the appeal deserves to be dismissed.
    Findings recorded
  11. We have given our most anxious and thoughtful consideration to the rival contentions of
    the parties. From the facts referred to above and the proceedings in the inquiry and final order
    of punishment, certain facts are no longer in dispute. A call for strike was given by the Union
    which was illegal, unlawful and not in consonance with law. Conciliation proceedings had
    been undertaken and there was amicable settlement of dispute between the Management on
    the one hand and the Union on the other hand. Pursuant to such settlement, 134 workmen
    resumed duty. 53 workmen, however, in spite of the strike being illegal, refused to join duty.
    Their action was, therefore, ex facie illegal. The workmen were, in the circumstances, placed
    under suspension and disciplinary proceedings were initiated. In spite of several
    opportunities, they did not cooperate with the inquiry and the inquiry officer was compelled
    to proceed ex parte against them. Four allegations were levelled against the workmen:
    (i) the employees did not come for work from 17-4-1972;
    (ii) they took part in illegal strike from that date i.e. 17-4-1972;
    (iii) they prevented other employees who returned for work from joining duty by
    administering threat to them; and
    (iv) they prevented the employees who came to receive wages on 17-4-1972.
  12. At the enquiry, all the charges levelled against the employees were established. In the
    light of the said finding, the Management imposed punishment of (i) stoppage of increment of
    1 to 4 years with cumulative effect; and (ii) non-payment of salary during period of
    suspension. In our considered opinion, the action could not be said to be arbitrary, illegal,
    unreasonable or otherwise objectionable. When the Union challenged the action and reference
    was made by the “appropriate Government” to the Labour Court, Coimbatore, the Labour
    Court considered all questions in their proper perspective. After affording opportunity of
    hearing to both the parties, the Labour Court negative the contention of the Union that the
    proceedings were not in consonance with principles of natural justice and the inquiry was,
    therefore, vitiated. It held that the inquiry was in accordance with law. It also recorded a
    finding that the allegations levelled against the workmen were proved and in view of the
    charges levelled and proved against the workmen, the punishment imposed on them could not
    be said to be excessive, harsh or disproportionate. It accordingly disposed of the reference
    against the workmen. In our considered opinion, the award passed by the Labour Court was
    perfectly just, legal and proper and required “no interference”. The High Court, in exercise of
    power of judicial review under Articles 226/227 of the Constitution, therefore, should not
    have interfered with the well-considered award passed by the Labour Court.
  13. The learned counsel for the Union, however, submitted that under the “doctrine of
    proportionality”, it was not only the power, but the duty of the “writ court” to consider
    whether the penalty imposed on workmen was in proportion to the misconduct committed by
    the workmen. Our attention, in this connection, was invited by both the sides to several
    decisions of English courts as also of this Court.
    Doctrine of proportionality
    108
  14. So far as the doctrine of proportionality is concerned, there is no gainsaying that the said
    doctrine has not only arrived in our legal system but has come to stay. With the rapid growth
    of administrative law and the need and necessity to control possible abuse of discretionary
    powers by various administrative authorities, certain principles have been evolved by courts.
    If an action taken by any authority is contrary to law, improper, irrational or otherwise
    unreasonable, a court of law can interfere with such action by exercising power of judicial
    review. One of such modes of exercising power, known to law is the “doctrine of
    proportionality”.
  15. “Proportionality” is a principle where the court is concerned with the process, method or
    manner in which the decision-maker has ordered his priorities, reached a conclusion or
    arrived at a decision. The very essence of decision-making consists in the attribution of
    relative importance to the factors and considerations in the case. The doctrine of
    proportionality thus steps in focus true nature of exercise – the elaboration of a rule of
    permissible priorities.
  16. de Smith states that “proportionality” involves “balancing test” and “necessity test”.
    Whereas the former (balancing test) permits scrutiny of excessive onerous penalties or
    infringement of rights or interests and a manifest imbalance of relevant considerations, the
    latter (necessity test) requires infringement of human rights to the least restrictive alternative.
  17. In Halsbury’s Laws of England (4th Edn.), Reissue, Vol. 1(1), para 78, it is stated:
    “The court will quash exercise of discretionary powers in which there is no reasonable
    relationship between the objective which is sought to be achieved and the means used to that
    end, or where punishments imposed by administrative bodies or inferior courts are wholly out
    of proportion to the relevant misconduct. The principle of proportionality is well established
    in European law, and will be applied by English courts where European law is enforceable in
    the domestic courts. The principle of proportionality is still at a stage of development in
    English law; lack of proportionality is not usually treated as a separate ground for review in
    English law, but is regarded as one indication of manifest unreasonableness.”
  18. The doctrine has its genesis in the field of administrative law. The Government and its
    departments, in administering the affairs of the country, are expected to honour their
    statements of policy or intention and treat the citizens with full personal consideration without
    abuse of discretion. There can be no “pick and choose”, selective applicability of the
    government norms or unfairness, arbitrariness or unreasonableness. It is not permissible to
    use a “sledgehammer to crack a nut”. As has been said many a time; “where paring knife
    suffices, battle axe is precluded”.
  19. In the celebrated decision of Council of Civil Service Union v. Minister for Civil Service
    [1985 AC 374 (HL)] Lord Diplock proclaimed:
    “Judicial review has I think developed to a stage today when, without reiterating any analysis
    of the steps by which the development has come about, one can conveniently classify under
    three heads the grounds on which administrative action are subject to control by judicial
    review. The first ground I would call ‘illegality’, the second ‘irrationality’ and the third
    ‘procedural impropriety’. That is not to say that further development on a case-by-case basis
    may not in course of time add further grounds. I have in mind particularly the possible
    adoption in the future of the principle of ‘proportionality’….” (emphasis supplied)
    109
  20. CCSU has been reiterated by English courts in several subsequent cases. We do not think
    it necessary to refer to all those cases.
  21. So far as our legal system is concerned, the doctrine is well settled. Even prior to CCSU2,
    this Court has held that if punishment imposed on an employee by an employer is grossly
    excessive, disproportionately high or unduly harsh, it cannot claim immunity from judicial
    scrutiny, and it is always open to a court to interfere with such penalty in appropriate cases.
  22. In Hind Construction & Engg. Co. Ltd. v. Workmen [AIR 1965 SC 917], some workers
    remained absent from duty treating a particular day as holiday. They were dismissed from
    service. The Industrial Tribunal set aside the action. This Court held that the absence could
    have been treated as leave without pay. The workmen might have been warned and fined.
    (But)
    “It is impossible to think that any other reasonable employer would have imposed the extreme
    punishment of dismissal on its entire permanent staff in this manner.”
    (Emphasis supplied)
    The Court concluded that the punishment imposed on the workmen was
    “not only severe and out of proportion to the fault, but one which, in our judgment, no
    reasonable employer would have imposed” (emphasis supplied)
  23. In Federation of Indian Chambers of Commerce and Industry v. Workmen [AIR 1972 SC
    763], the allegation against the employee of the Federation was that he issued legal notices to
    the Federation and to the International Chamber of Commerce which brought discredit to the
    Federation—the employer. Domestic inquiry was held against the employee and his services
    were terminated. The punishment was held to be disproportionate to the misconduct alleged
    and established. This Court observed that:
    “[T]he Federation had made a mountain out of a mole hill and made a trivial matter into one
    involving loss of its prestige and reputation.”
  24. In Ranjit Thakur referred to earlier, an army officer did not obey the lawful command of
    his superior officer by not eating food offered to him. Court-martial proceedings were
    initiated and a sentence of rigorous imprisonment of one year was imposed. He was also
    dismissed from service, with added disqualification that he would be unfit for future
    employment.
  25. Applying the doctrine of proportionality and following CCSU, Venkatachaliah, J. (as His
    Lordship then was) observed:
    “The question of the choice and quantum of punishment is within the jurisdiction and
    discretion of the court martial. But the sentence has to suit the offence and the offender. It
    should not be vindictive or unduly harsh. It should not be as disproportionate to the offence as
    to shock the conscience and amount in itself to conclusive evidence of bias. The doctrine of
    proportionality, as part of the concept of judicial review, would ensure that even on an aspect
    which is, otherwise, within the exclusive province of the court martial, if the decision of the
    court even as to sentence is an outrageous defiance of logic, then the sentence would not be
    immune from correction. Irrationality and perversity are recognised grounds of judicial
    review.” (emphasis supplied)
    Doctrine of proportionality: Whether applicable
  26. From the above decisions, it is clear that our legal system also has accepted the doctrine of
    proportionality. The question, however, is whether in the facts and circumstances of the
    110
    present case, the High Court was justified in invoking and applying the doctrine of
    proportionality. In our judgment, the answer must be in the negative. Normally, when
    disciplinary proceedings have been initiated and finding of fact has been recorded in such
    inquiry, it cannot be interfered with unless such finding is based on “no evidence” or is
    perverse, or is such that no reasonable man in the circumstances of the case would have
    reached such finding. In the present case, four charges had been levelled against the
    workmen. An inquiry was instituted and findings recorded that all the four charges were
    proved. The Labour Court considered the grievances of the workmen, negative all the
    contentions raised by them, held the inquiry to be in consonance with principles of natural
    justice and findings supported by evidence. Keeping in view the charges proved, the Labour
    Court, in our opinion, rightly held that the punishment imposed on workmen could not be said
    to be harsh so as to interfere with it.
  27. In our opinion, therefore, the High Court was not right in exercising power of judicial
    review under Articles 226/227 of the Constitution and virtually substituting its own judgment
    for the judgment of the Management and/or of the Labour Court. To us, the learned counsel
    for the appellant Bank is also right in submitting that apart from Charges 1 and 2, Charges 3
    and 4 were “extremely serious” in nature and could not have been underestimated or
    underrated by the High Court.
  28. In this connection, it is profitable to refer to a decision of this Court in Bengal
    Bhatdee Coal Co. v. Ram Probesh Singh [AIR 1964 SC 486]. In that case, the respondents
    were employees of the appellant. A strike was going on in the concern of the appellant. The
    respondents obstructed loyal and willing trimmers from working in the colliery and insisted
    those workmen to join them in the obstruction. A charge-sheet was served on the respondents
    and disciplinary inquiry was instituted. They were found guilty and were dismissed from
    service. Since another reference was pending, approval of the Industrial Tribunal was sought
    which was granted. In a reference, however, the Industrial Tribunal held that penalty of
    dismissal was uncalled for and amounted to victimisation. The Management approached this
    Court.
  29. Allowing the appeal, setting aside the order of the Tribunal and upholding the order of
    dismissal, this Court stated:
    “6. Now there is no doubt that though in a case of proved misconduct, normally the
    imposition of a penalty may be within the discretion of the management there may be cases
    where the punishment of dismissal for the misconduct proved may be so unconscionable or so
    grossly out of proportion to the nature of offence that the Tribunal may be able to draw an
    inference of victimisation merely from the punishment inflicted. But we are of opinion that
    the present is not such a case and no inference of victimisation can be made merely from the
    fact that punishment of dismissal was imposed in this case and not either fine or suspension. It
    is not in dispute that a strike was going on during those days when the misconduct was
    committed. It was the case of the appellant that the strike was unjustified and illegal and it
    appears that the Regional Labour Commissioner (Central), Dhanbad, agreed with this view of
    the appellant. It was during such a strike that the misconduct in question took place and the
    misconduct was that these thirteen workmen physically obstructed other workmen who were
    willing to work from doing their work by sitting down between the tramlines. This was in our
    opinion serious misconduct on the part of the thirteen workmen and if it is found- as it has
    111
    been found – proved punishment of dismissal would be perfectly justified.” (emphasis
    supplied)
  30. In M.P. Electricity Board v. Jagdish Chandra Sharma [(2005) 3 SCC 401] this Court held
    that dismissal for breach of discipline at workplace by employee could not be said to be
    disproportionate to the charge levelled and established and no interference was called for on
    the ground that such punishment was shockingly disproportionate to the charge pleaded and
    proved.
  31. As observed by this Court in M.P. Gangadharan v. State of Kerala [(2006) 6 SCC 162]
    the constitutional requirement for judging the question of reasonableness and fairness on the
    part of the statutory authority must be considered having regard to the factual matrix in each
    case. It cannot be put in a straitjacket formula. It must be considered keeping in view the
    doctrine of flexibility. Before an action is struck down, the Court must be satisfied that a case
    has been made out for exercise of power of judicial review. The Court observed that we are
    not unmindful of the development of the law that from the doctrine of “Wednesbury
    unreasonableness”, the Court is leaning towards the doctrine of “proportionality”. But in a
    case of this nature, the doctrine of proportionality must also be applied having regard to the
    purport and object for which the Act was enacted.
  32. It was then contended on behalf of 53 workmen that if the objectionable act on the part of
    the workmen was going on strike, all workmen ought to have been treated equally and evenhandedly. The Management was not right in reinstating 134 employees immediately by
    depriving similar benefit to 53 employees. It was, therefore, submitted that in the facts and
    circumstances of the case, the High Court was right in considering that aspect. Keeping in
    view the fact that they (134 workmen) had joined work and resumed duty, they were paid
    wages also. Since other employees (53 workmen) had not joined duty, the action of the
    Management of non-payment of salary may not be interfered with. But if they would be
    visited with other penal consequences of stoppage of increment/increments, the action would
    be arbitrary and unreasonable.
  33. We are unable to uphold the contention. In our considered opinion, the 53 employees
    cannot be said to be similarly situated to the 134 employees who had entered into an amicable
    settlement with the Management and resumed duty in 1972. It is settled law that equals must
    be treated equally and unequal treatment to equals would be violation of Article 14 of the
    Constitution. But, it is equally well established that unequal cannot be treated equally. Equal
    treatment to unequal would also be violation of “equal protection clause” enshrined by Article
    14 of the Constitution. So far as 134 employees are concerned, they accepted the terms and
    conditions of the settlement and resumed work. 53 workmen, on the other hand, did not
    accept the settlement, continued with the strike which was declared illegal and unlawful and
    in departmental inquiry, they were found guilty. Moreover, they resorted to unlawful actions
    by administering threat to loyal workers. 53 workmen, therefore, in our judgment, cannot be
    said to form one and the same class in which 134 employees were placed. 53 employees,
    therefore, cannot claim similar benefit which had been granted to 134 employees.
  34. In Union of India v. Parma Nanda [(1989) 2 SCC 177] a similar mistake was committed
    by the Central Administrative Tribunal which was corrected by this Court. In that case, P, an
    employee was charge-sheeted along with other two employees for preparing false pay bills
    and bogus identity card. All of them were found guilty. A minor punishment was imposed on
    112
    two employees, but P was dismissed from service since he was the “mastermind” of the plan.
    P approached the Central Administrative Tribunal. The Tribunal modified the punishment on
    the ground that two other persons were let off with minor punishment but the same benefit
    was not given to P. His application was, therefore, allowed and the penalty was reduced in the
    line of two other employees. The Union of India approached this Court. It was urged that the
    case of P was not similar to other employees inasmuch as he was the principal delinquent
    who was responsible for preparing the whole plan, was a party to the fraud and the Tribunal
    was in error in extending the benefit which had been given to other two employees.
    Upholding the contention, this Court set aside the order passed by the Tribunal and restored
    the order of dismissal passed by the authority against him.
  35. The principle laid down in Parma Nanda has been reiterated recently in Obettee (P) Ltd.
    v. Mohd. Shafiq Khan [(2005) 8 SCC 46]. In Obettee, M instigated the workers of the factory
    to go on strike. He did not allow the vehicles carrying the articles to go out of the factory and
    also administered threat to co-workers. Proceedings were initiated against three employees.
    Two of them tendered unconditional apology and assurance in writing that they would
    perform their duties diligently and would not indulge in strike. The proceedings were,
    therefore, dropped against them. M, however, continued to contest the charges levelled
    against him. He was held guilty and was dismissed from service. The Tribunal upheld the
    action. The High Court, however, held that the distinction made by the Tribunal between M
    and other two workmen was “artificial” and accordingly granted relief to M similar to one
    granted to other two employees.
  36. Setting aside the order of the High Court, upholding the action taken against him and
    restoring the order of the Tribunal, this Court observed that the cases of other two employees
    stood on a different footing and the High Court failed to appreciate the distinctive feature that
    whereas the two employees tendered unconditional apology, M continued to justify his action.
    The order of the High Court was, therefore, clearly unsustainable.
  37. It, therefore, cannot be said that the cases of 53 employees were similar to 134 employees
    and 53 employees were also entitled to claim similar benefit as extended by the Management
    to 134 employees.
  38. The net result of the above discussion would be that the decision rendered by the learned
    Single Judge and modified by the Division Bench of the High Court must be set aside. Certain
    developments, however, were brought to our notice by the learned counsel for the Union. It
    was stated that though in the departmental proceedings the workmen were held guilty, their
    services were not terminated. They were not paid wages for intervening period for which they
    had not worked, but were allowed to join duty and in fact they resumed work in the year
  39. This was done before more than three decades. The Labour Court did not grant any
    relief to them. Though the learned Single Judge allowed their petition and granted some
    relief, the order was modified by the Division Bench. The 53 employees are now performing
    their functions and discharging their duties faithfully, diligently and to the satisfaction of the
    appellant Bank. No proceedings have been initiated against them thereafter. “Industrial
    peace” has been restored. If at this stage, some order will be passed by this Court after so long
    a period, it may adversely affect the functioning of the Bank. It was further submitted that the
    grievance of the Bank has been vindicated and correct legal position has been declared by this
    113
    Court. The Court in the peculiar facts and circumstances of the case, therefore, may not
    interfere with a limited relief granted by the Division Bench of the High Court.
  40. In our considered view, the submission is well founded and deserves acceptance. Hence,
    even though we are of the view that the learned Single Judge was not right in granting
    benefits and the order passed by the Division Bench also is not proper, it would not be
    appropriate to interfere with the final order passed by the Division Bench. Hence, while
    declaring the law on the point, we temper justice with mercy. In the exercise of plenary power
    under Article 142 of the Constitution, we think that it would not be proper to deprive the 53
    workmen who have received limited benefits under the order passed by the Division Bench of
    the High Court.
  41. For the foregoing reasons, we hold that neither the learned Single Judge nor the Division
    Bench of the High Court was justified in interfering with the action taken by the Management
    and the award passed by the Labour Court, Coimbatore which was strictly in consonance with
    law. In peculiar facts and circumstances of the case and in exercise of power under Article
    142 of the Constitution, we do not disturb the final order passed by the Division Bench of the
    High Court on 3-11-2004 in Writ Appeal No. 45 of 2001.
  42. The appeal is accordingly disposed of in the above terms.

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