Supreme Court rules in favor of Bank in termination case under Bipartite Settlement

The Supreme Court allowed the appeal, setting aside the judgments of the High Court and the Tribunal. It ruled that the termination of the workman's services by the Bank under Clause 16 of the Bipartite Settlement was justified, as the Bank had fulfilled the requirements by sending notices to the correct address. The Court concluded that the workman had voluntarily retired from service, and no recovery or adjustment of wages paid under the Industrial Disputes Act was to be made by the Bank. No costs were awarded.

---

---

Issues: Whether the bank's action treating the employee as voluntarily retired for prolonged unauthorised absence under the bipartite settlement was valid without a domestic enquiry, and whether reinstatement with continuity of service was justified.

Analysis: The employee had remained absent for long periods and, after the bank issued notice to his last known address calling upon him to report for duty within the stipulated period, no satisfactory response was received. The notice had been sent to the correct address and returned with postal endorsement indicating refusal or non-availability, creating a presumption of service. The settlement clause itself incorporated the requirement of notice and an opportunity to explain, satisfying the core requirements of natural justice. In these circumstances, the bank was entitled to act under the settlement clause and treat the employee as having voluntarily retired. The Tribunal and the High Court erred in insisting on a further enquiry and in ordering reinstatement with continuity of service.

Conclusion: The bank's action was upheld, and the direction of reinstatement was set aside.

Final Conclusion: The employee was not entitled to reinstatement on the facts found, and the bank's termination action under the settlement clause was sustained.

Ratio Decidendi: Where a settlement clause provides for deemed voluntary retirement after notice and opportunity to explain prolonged unauthorised absence, compliance with that procedure satisfies natural justice and a separate domestic enquiry is not required if no explanation is offered.

---