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        Case ID :

        1993 (5) TMI 177 - SC - Indian Laws

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        Natural justice applies to statutory standing orders, making termination without enquiry or hearing invalid and unjustified. Termination of service under a statutory standing order that caused civil consequences could not be sustained without notice, enquiry, or an opportunity ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                        Provisions expressly mentioned in the judgment/order text.

                          Natural justice applies to statutory standing orders, making termination without enquiry or hearing invalid and unjustified.

                          Termination of service under a statutory standing order that caused civil consequences could not be sustained without notice, enquiry, or an opportunity to meet the allegation. The Court read the principles of natural justice into the standing order, holding that a statutory employment rule cannot operate arbitrarily or unfairly where the Industrial Disputes Act and Articles 14 and 21 require a fair, just, and reasonable procedure. The termination was therefore invalid for breach of natural justice, and reinstatement with partial back wages was granted.




                          Issues: Whether termination of service under the standing order, without enquiry or opportunity of hearing, was valid and whether the principles of natural justice had to be read into the standing order.

                          Analysis: The termination was founded on alleged absence beyond the period specified in the standing order, but no domestic enquiry was held and no opportunity was given to the workman to meet the allegation that he had reported for duty and was prevented from entering the establishment. The statutory scheme and the constitutional mandate were considered together. The definition of retrenchment and the requirement of procedure under the Industrial Disputes Act, 1947, as well as the guarantees under Articles 14 and 21 of the Constitution of India, were treated as requiring a fair, just and reasonable procedure where civil consequences result from termination of employment. A standing order having statutory force cannot be applied in a manner that is arbitrary or unfair.

                          Conclusion: The principles of natural justice were held to apply to the standing order, and the termination was held invalid for want of notice and enquiry. Relief by reinstatement with partial back wages was granted in favour of the appellant.

                          Ratio Decidendi: A termination of service that entails civil consequences must comply with the principles of natural justice unless they are expressly or by necessary implication excluded, and a statutory standing order cannot authorise arbitrary deprivation of employment without a fair opportunity of hearing.


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