Indian Airlines Ltd vs Prabha D. Kanan

J U D G M E N T (Arising out of SLP(C) No.22189 of 2005) WITH CIVIL APPEAL NO.4768 OF 2006 (Arising out of SLP(C) No. 6997 of 2006) Prabha D. Kanan Appellant Versus Indian Airlines Ltd. & Anr. Respondent S.B. SINHA, J.

Prabha D. Kanan (Respondent) joined service of the Corporation as an Air Hostess on 28th September, 1977. She was promoted as Deputy Manager in Inflight Service Department. On 18th June, 2002. She was put on duty in Flight IC-617-961 operating on sector Mumbai Hyderabad Bangalore Sharjah. When the flight landed at Hyderabad, she along with other crew members went for customs clearance from the Departure Hall to board the connecting flight being Flight No. 961 from Hyderabad to Sharjah via Bangalore. Immediately after take off, it was called back at the request of the Customs Authorities. Respondent was asked to deplane by Custom Authorities. She was arrested for carrying Indian currency amounting to Rs. 22,07,978/- along with foreign currency, viz., 180 UAE Dirhams, 13> Kuwaiti Dirhams, 3 Bahraini Dirhams and 20 Nepali Rupees. She is said to have made a confessional statement before the Custom Authorities in terms of Section 108 of the Customs Act that she had been carrying unauthorisedly the said amount. Her husband on the basis of her statement was also arrested. The arrest of Respondent and her involvement in a racket of dealing in foreign exchange in violation of Foreign Exchange and Regulation Act was extensively reported in newspapers on 19th June, 2002. Respondent was released on bail on 3rd July, 2002. Her services were terminated invoking Regulation 13 of the Regulations by the Board of Directors of the Corporation by a letter dated 9th August, 2002 stating:

Evidently, there is no provision for appeal since the decision is taken by the highest authority of the corporate entity, viz., Board of Directors which includes the Chairman also. Appellant is a body corporate. No appeal can be made against the order passed by the Chairman and the Board of Directors. The order being passed by a highest authority, the question of providing for appeal would not arise. Even in Tulsiram Patel (supra), this Court held that no appeal would be available from an order passed by the President of India. Regulation 13 is invoked when the termination of the services is effected by reason of some act on the part of the employee which does not amount to misconduct. It can be invoked:

The provisions, therefore, provide for inbuilt safeguards.

Rowley."

So far as the justifiability of the impugned order is concerned, we are of the opinion that the following facts are required to be taken into consideration.

Mr. Bhasin would submit that the provisions of the Regulations would apply to Respondent as:

As at present advised, we do not intend to enter into the said controversy. The judgment of this Court in Air India (supra) is binding on us. We have, therefore, no other option but to hold that Regulation 13 would not apply to the case of Respondent. However, despite the same, we are of the opinion that the interest of justice would be subserved if the nature of relief to Respondent granted by the High Court is upheld.

We, therefore, hold that although Regulation 13 is not unconstitutional but the same is not applicable in case of Respondent. However, we are furthermore of the opinion that in the peculiar facts and circumstances of this case and keeping in view the fact that she had put in 20 years of service she be paid eight years' salary towards both back wages as well as for loss of employment in future. This will be on the basis of her last drawn basic pay and dearness allowance. The Corporation will pay Respondent the amount refunded by her towards the provident fund and gratuity at the rate of interest provided under the Statutes governing them. The relief granted to Respondent shall, in our opinion, subserve the interest of justice.

Both the appeals are allowed in part and to the extent mentioned hereinbefore. No costs.