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Labour & Industrial LawSupreme Court of India

The State of Uttarakhand v. Sureshwati

Civil Appeal · 2021 INSC 32Decided 20 Jan 2021
Civil Appeal No. 142 of 2021
Justice L. Nageswara Rao · Justice Navin Sinha · Justice Indu Malhotra

Background

The respondent had worked as a teacher and then as a clerk at a school in Haridwar, which later began receiving government grants-in-aid. She claimed her services were illegally terminated in March 2006 without any enquiry or compensation, and filed a complaint nine years after allegedly leaving service. The school's case, supported by an inspection and audit report, was that she had actually abandoned her job back in 1997 after her marriage and had not worked since, with another clerk having been engaged in her place in 2002. After conflicting rounds before the Labour Court and High Court, the Labour Court ultimately ruling against her for lack of evidence, but the High Court reversing that solely because no disciplinary enquiry had been held, the State of Uttarakhand (as the school's later administrator) appealed to the Supreme Court.

Decision Breakdown

The Supreme Court held that where no domestic/disciplinary enquiry has been held before an employee's discharge, the matter is not automatically decided in the employee's favour, rather, it is open to the employer to justify its action by leading evidence before the Labour Court, and the entire dispute is then examined on the merits of that evidence (citing a long line of precedent including Workmen of Motipur Sugar Factory and Firestone Tyre & Rubber Co.). The High Court had erred by setting aside the Labour Court's award solely on the "no enquiry held" ground without examining the evidence. On the merits, the Court found the School had proved the respondent abandoned her job in 1997, while she had failed to prove she had worked the requisite 240 days before her claimed 2006 termination, as the burden to prove continuous service rests entirely on the workman. The appeal was allowed, the High Court's judgment set aside, and the Labour Court's award (against the employee) restored.

Lesson Learnt

An employer's failure to hold a disciplinary enquiry before terminating an employee does not by itself guarantee the employee reinstatement: the dispute can still be decided against the employee on the actual evidence, and it is the workman's own burden to prove continuous employment (such as 240 days' work) to claim protection against termination.

The State of Uttarakhand v. Sureshwati – Legal Case Shots | LegalAware