Management Of Coimbatore District ... vs Secretary, Coimbatore District ...

The appellant is Coimbatore District Central Co- operative 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 Bank Employees Association ('Union' for short) gave a 'strike notice' on March 31, 1972 which was received by the Management on April 5, 1972 proposing to go on strike from April 14, 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 Labour Officer, the employees commenced strike from April 17, 1972. The strike was totally illegal and unlawful. On April 19, 1972, notice was issued to the Union stating therein that the workmen should join duties by April 22, 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 the workmen did 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 disciplinary proceedings and remained absent. The Management was, therefore, constrained to proceed with the disciplinary inquiry ex parte against them. By an order dated January 6, 1973, the workmen were held guilty of the charges and an order of punishment was passed. By the said order, two punishments were awarded on the workmen; (i) stoppage of increment for 1- 4 years with cumulative effect; and (ii) non-payment 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 January 17, 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.

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 reference was dismissed. APPROACH OF HIGH COURT 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 retrial 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.

Allowing the appeal, setting aside the order of the Tribunal and upholding the order of dismissal, this Court stated;

We are unable to uphold the contention. In our considered opinion, 53 employees cannot be said to be similarly situated to 134 employees who had entered into 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 violative of Article 14 of the Constitution. But, it is equally well-established that unequals cannot be treated equally. Equal treatment to unequals would also be violative 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.

The appeal is accordingly disposed of in the above terms. In the facts and circumstances of the case, there shall be no order as to costs.