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Issues: (i) Whether the Labour Appellate Tribunal had jurisdiction to set aside its ex parte order and restore the application under section 22 of the Industrial Disputes (Appellate Tribunal) Act, 1950. (ii) Whether the appellant had made out a prima facie case for permission to terminate the respondent's service under section 22 of the Industrial Disputes (Appellate Tribunal) Act, 1950.
Issue (i): Whether the Labour Appellate Tribunal had jurisdiction to set aside its ex parte order and restore the application under section 22 of the Industrial Disputes (Appellate Tribunal) Act, 1950.
Analysis: The Appellate Tribunal, while exercising jurisdiction under the Act, was held to have the powers of a civil court hearing an appeal under the Code of Civil Procedure, 1908. On that construction, the procedure for rehearing an ex parte appeal applied to proceedings before it. The Tribunal also retained inherent power to make orders necessary for the ends of justice and to prevent abuse of process. The respondent had not been served at the correct address, so there was sufficient cause for non-appearance when the matter was heard ex parte.
Conclusion: The Tribunal had jurisdiction to set aside the ex parte order and restore the application; this issue was decided against the appellant.
Issue (ii): Whether the appellant had made out a prima facie case for permission to terminate the respondent's service under section 22 of the Industrial Disputes (Appellate Tribunal) Act, 1950.
Analysis: Proceedings under section 22 require only a prima facie case for lifting the statutory ban on discharge or dismissal, and the Tribunal may refuse permission where mala fides, unfair labour practice, or victimisation appears. The evidence showed repeated complaints, but the employer did not hold a formal chargesheet-based enquiry and did not place material before the Tribunal sufficient to prove, even prima facie, the contents of the adverse reports relied upon. The record was treated as too incomplete to justify permission to terminate service.
Conclusion: No prima facie case was made out for termination of service; this issue was decided against the appellant and in favour of the respondent.
Final Conclusion: The refusal of permission to terminate the respondent's service was upheld, and the appeal failed.
Ratio Decidendi: Where a statute confers on a labour appellate tribunal the powers of a civil court hearing an appeal, the tribunal may set aside an ex parte order for sufficient cause and restore the matter, and permission to discharge a workman may be granted only when the employer establishes a prima facie case on adequate material and not where the record is too deficient to justify such relief.
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