T. Raj Kumar, Guntur Dist. vs The Honble Labour Court, Another on 24 January, 2025

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Andhra Pradesh High Court – Amravati

T. Raj Kumar, Guntur Dist. vs The Honble Labour Court, Another on 24 January, 2025

APHC010378612007
                    IN THE HIGH COURT OF ANDHRA PRADESH
                                  AT AMARAVATI                                    [3504]
                           (Special Original Jurisdiction)

                   FRIDAY, THE TWENTY FOUR OF JANUARY
                     TWO THOUSAND AND TWENTY-FIVE

                                      PRESENT

 THE HONOURABLE SRI JUSTICE MAHESWARA RAO KUNCHEAM

                        WRIT PETITION NO: 4265/2007

Between:

T. Raj Kumar, Guntur Dist.                                              ...PETITIONER

                                         AND

The Hon'ble Labour Court Another and Others                      ...RESPONDENT(S)

Counsel for the Petitioner:

1. A VEERASEKHAR RAO

Counsel for the Respondent(S):

1. GP FOR LABOUR

2. SANISETTY VENKATESWARULU (SC FOR APSRTC)

The Court made the following ORDER:

This instant writ petition has been preferred on behalf of the

petitioner under Art. 226 of the Constitution of India, seeking the following

main prayer:-

“……to issue writ order or direction more particularly
one in the nature of writ of Certiorari and after calling for the
records in I.D.No.26/2000, dt. 11.02.2005 on the file of the
Hon’ble 1st respondent, in not granting any relief to the
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petitioner is illegal, arbitrary, and unjust and consequently
quash the same by granting increments and arrears to the
petitioner and pass such other orders….”

2. In the present writ petition, the Award dated 11.02.2005 made in

I.D No.26 of 2000 is called into question, wherein, the 1st respondent-

Labour Court, Guntur., with reference to Section 10-1(c) of Industrial

Disputes Act 1947, confirmed the penalty imposed by the 2nd respondent

in withholding the annual increment of the petitioner with cumulative effect

without conducting an enquiry.

Brief case of the petitioner:-

3. The petitioner upon joining the service as Conductor in the

respondent Corporation in the year 1976, was promoted to Junior

Assistant on 18.01.1992. When the petitioner was discharging his duties

in the year 1986, charges were framed against him regarding Cash &

Ticket irregularities, and Charge Sheet dated 24.02.1986 was issued.

4. Mainly, it is the case of the petitioner that, without conducting an

enquiry, the 2nd respondent had passed a final order dated 20.05.1986,

whereby petitioner’s annual increment which falls next due be withheld for

a period of six months, having the effect of postponing future increments.

5. Thereafter, the petitioner challenged the punishment order dated

20.05.1986, before the appellate authority, and the same was rejected as

Time barred. At last, finally the case landed in the 1st respondent-Labour
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Court under Section 10-1(c) of the Industrial Disputes Act, 1947, where

the punishment against the petitioner was confirmed.

Brief case of the Respondent-Corporation:-

6. In the counter-affidavit filed by the respondent-Corporation, it is

stated that the record was destroyed as case relates to old one and that

the petitioner’s appeal before the appellate authority was rejected as it

was time-barred and further contended that the 1st respondent-Labour

Court, after appreciating the evidence available on record has confirmed

the punishment inflicted against the petitioner. Thus, aggrieved by the

award dated 11.02.2005 made in I.D No.26 of 2000, the petitioner has

approached this Court by way of filing the present writ petition.

7. Heard Sri Y. Subba Rao, representing the learned counsel for the

petitioner and Sri Sanisetty Venkateswarlu, learned Standing Counsel for

the respondent Corporation as well as learned Government Pleader.

Consideration of this Court:

8. Perused the material on record.

9. The moot question emanated in the instant writ petition is whether

stoppage of increment with cumulative effect without conducting an

enquiry against the petitioner is legally sustainable or not ?

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10. Admittedly, the petitioner is a Conductor in the 2nd respondent

corporation. Therefore, the petitioner is governed by the service, conduct

and CC&A conditions, as envisaged under the APSRTC Regulations i.e.

APSRTC Employees (Service) Regulations, 1964, APSRTC Employees

(Conduct) Regulations, 1963 and APSRTC Employees (CC&A)

Regulations, 1967. Regulation 8 of APSRTC Employees (CC&A) reads

as under :-

Regulation 8 of APSRTC Employees (CC&A) Regulations
specifies the various penalties that may be imposed upon an
employee by the disciplinary authority. Regulations 12 (2) of
the said Regulations further provides that no order imposing
on an employee any of the penalties specified in terms (VII).
(VIII) and (X) of clause (1) of Regulation 8 shall be passed
except after an enquiry is held in the manner prescribed
under the Regulations. Thus, according to CC&A
Regulations major penalties can be imposed only after
conducting an enquiry as provided under the Regulations.”

11. In this context, it is appropriate to refer to the well settled legal

principle, held in Kulwant Singh Gill Vs. State of Punjab1, where the

prime question before the Apex Court was whether the imposing of the

Major penalty of stoppage of two increments with cumulative effect

without an enquiry is legal or not?

12. The Apex Court after perceiving the relevant provisions and also

examining Rule 5 of the Punjab Civil Services (Punishment and Appeal)

1
1991 Supp (1) SCC
5

Rules, 1970 categorically held that the penalty of withholding increments

with cumulative effect is a major penalty as the employment is reduced in

his time scale.

13. In fact, the very 2nd respondent-Corporation’s Managing Director &

Vice Chairman, he himself after noting the three Judge Bench of the

Hon’ble Supreme Court held in Kulwant Singh Gill‘s case issued circular

No.Lo.1/99 dated 19.02.1999, whereby and whereunder, referring Andhra

Pradesh State Road Transport Corporation Employees (CC & A)

Regulations, it was stated that major penalties can be imposed only after

conducting an enquiry only. For the sake of comprehensive view, the

relevant paras in Circular dated 19.02.1999 reads as under:-

“The Hon’ble Supreme Court in the case of Kulwant
Singh Gill Vs State of Punjab
. 1990 (1). LLJ. Page 1635
cumulative effect would amount to a major penalty and the
same cannot to imposed unless an enquiry is conducted and
the employee is held guilty of the misconduct. Based on the
said decision
of the Supreme Court, Several employees who
are imposed with the punishment of stoppage of increments
with cumulative effect are approaching the High Court and
Labour Court for setting aside the said punishment on the
ground that no enquiry is conducted before imposing the said
major penalty. Following the judgment of the Supreme Court,
the High Court and Labour Court as are allowing the said claims
and directing repayment of the incremental arrears withheld.
These claims are causing serious financial problems involving
repayment of the money recovered.

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In view of the decision of the Supreme Court. It is
necessary to conducting enquiry into the charges leveled
against an employees are serious in nature and may result in
imposing of punishment of with holding increment with
cumulative effect. All the disciplinary authorities are hereby
instructed not to impose the punishment of with holding the
increment with cumulative effect until an enquiry as
contemplated under the CC&A Regulations is conducted and
the charges leveled against the employees are proved in the
said enquiry.”

14. A plain reading of the Circular dated 19.02.1999 shows that the

very same 2nd Respondent’s Managing Director directed the Corporation

authorities to follow the circular scrupulously without any infraction.

15. The Apex Court in its later judgment in Punjab State Electricity

Board Vs. Raj Kumar Goel 2 , firmly reiterated that the punishment of

stoppage of increment with cumulative effect imposed, is a major

punishment. The relevant para of same is extracted hereunder for the

sake of comprehensive view:-

“9. At the very outset, we may clearly state that there is no
discord or dispute over the exposition of facts. The controversy has
arisen with regard to implementation of the order of punishment
imposed by the authority on the delinquent employee. The courts
below have opined that though it is mentioned in the order of
punishment that there is stoppage of five increments without
cumulative effect which is a minor punishment yet the manner of
implementation converts it to a major punishment. There can be no
cavil over the proposition that when a punishment of stoppage of an

2
(2014) 15 SCC 748
7

increment with cumulative effect is imposed, it is a major punishment.

In this regard, we may refer with profit to the decision in Kulwant
Singh Gill v. State of Punjab [Kulwant Singh Gill V. State of Punjab,
1991 Supp (1) SCC 504: 1991 SCC (L&S) 998 : (1991) 16 ATC 940]
wherein it has been held that withholding of increments of pay
simpliciter without any hedge over it certainly would be a minor
punishment but withholding of increments with cumulative effect, the
consequences being quite hazardous to the employee, it would come
in the compartment of major punishment. Proceeding further the two-
Judge Bench stated thus: (SCC pp. 507-08, para 4)

“4. … But when penalty was imposed withholding
two increments i.e. for two years with cumulative effect, it
would indisputably mean that the two increments earned
by the employee was cut off as a measure of penalty
forever in his upward march of earning higher scale of
pay. In other words the clock is put back to a lower stage
in the time scale of pay and on expiry of two years the
clock starts working from that stage afresh. The insidious
effect of the impugned order, by necessary implication, is
that the appellant employee is reduced in his time scale
by two places and it is in perpetuity during the rest of the
tenure of his service with a direction that two years’
increments would not be counted in his time scale of pay
as a measure of penalty. The words are the skin to the
language which if peeled off its true colour or its resultant
effects would become apparent.” After so observing, the
Court treated the said punishment to be a major penalty.
In said case while interpreting clause (v) of Rule 5 of the
same Regulations, the Court did not accept the reasoning
of the judgment rendered by the Division Bench of the
Punjab and Haryana High Court in Sarwan Singh v. State
of Punjab [Sarwan Singh v. State of Punjab, ILR (1985) 2
P&H 193].”

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16. Further, the High Court of Madhya Pradesh in R.D Pachoriya Vs.

State of Madhya Pradesh 3 has followed the above well-settled legal

principle coined by the Apex Court way back in the year 1991.

17. Reverting to the case on hand, it is apparent that the respondent-

Corporation has failed to demonstrate that they had conducted an

enquiry, before imposing the major punishment on the petitioner. The said

action is per se hit by the Dictum held in Kulwant Singh Gill way back in

the year 1990 itself.

18. In nutshell, the punishment imposed by the respondent-

Corporation, which was mechanically affirmed by the appellate authority

as well as the 1st respondent-Labour Court, is liable to be interdicted as it

is a fundamental breach of procedure established under the Law i.e.,

imposing the major penalty, without conducting an enquiry is highly anti-

thesis to the essential jurisprudential principles of Law.

19. Before parting with this case, it is pertinent to mention that the

Hon’ble Supreme Court in Kulwant Singh Gill case, through three-Judge

Bench, settled the Law in its unequivocal words. Furthermore, the 2nd

respondent Corporation itself issued the Circular dated 19.02.1999,

reiterating the principles established in the Kulwant Singh Gill case and

directing all authorities to follow the Circular scrupulously without

3
2022 SCC Online MP 5841
9

deviation. Despite the same, similar cases continue to arise, more

particularly, from the 2nd respondent. As one of the instrumentalities of the

State, which has merged with the State Government, the 2nd Respondent

should be more active demonstrate greater diligence and serve as a role

model for others.

20. In Som Prakash Rekhi Vs. Union of India4, the Apex Court way

back in the year 1980 through Justice V.R. Krishna Iyer, observed as

under:-

“70. Social justice is the conscience of our Constitution,
the State is the promoter of economic justice, the founding faith
which sustains the Constitution and the country is Indian
humanity. The public sector is a model employer with a social
conscience not an artificial person without soul to be damned or
body to be burnt.”

21. The Hon’ble Supreme Court of India reiterated in the case of State

of Jharkhand Vs. Harihar Yadav5 regarding the concept of social justice

and also how the State should stand as a Role Model in its vivid terms.

22. However, it is regrettable that the 2nd Respondent Corporation

continues to adopt a mechanical approach, awaiting repetitive approval

from the Constitutional Courts, even in cases like the present lis. This is

one of the reason for the pendency of cases before the Hon’ble Courts

and Forums, etc.

4
(1981) 1 SCC 449
5
(2014) 2 SCC 114
10

23. It is apt to state that in view of the unequivocal law settled in

Kulwant Singh Gill‘s Case by the Apex Court, the said precedent is

followed and applied unanimously by the High Courts across the nation,

including a recent case where the 2nd Respondent Corporation itself

involving in W.P No.20551/2006, Regional Manager, APSRTC Kadapa

Vs. Industrial Tribunal cum Labour Court, Ananthapur & Anr. In fact, the

2nd respondent issued circular dt:19.02.1999 as stated supra mandating

the purport of dictum held in Kulwant Singh Gill. Despite such explicit

circular, there is a serious non-adherence to the essence of the same.

24. This court has observed that, so many employees from poor

backgrounds are approaching the Industrial Tribunals, High Court to

follow the ratio held in Kulwant Singh Gill, which also contributes to the

unwarranted pendency of the cases and exacerbates the already

pressing issue of case backlog in various courts.

25. It is trite to note that, the petitioner is from a rural and poor

background, where there is lack of basic infrastructural facilities and he

has been forced by the circumstances to continue litigation for his

legitimate cause from the year 1986 to 2025 (approximately 39 years)

leading to multifarious problems i.e., physically, psychologically and

fiscally, which directly affects his Right to Life as enunciated in the Article

21 of the Constitution of India.

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26. At this juncture, I venture to request all the stakeholders in the

Justice Delivery System, more particularly, the State and its

instrumentalities to introspect their Internal Administrative wings by

applying well-established authoritative legal principles by the

Constitutional Courts. It is advisable to identify the empty formality cases

where the issues are squarely covered by Judicial parameters, more

particularly, in Labour related matters, where cause no longer survives,

and in other areas that could be mediated with other Public Departments,

to initiate appropriate steps to reach its logical end in a pragmatic way.

27. For the foregoing conclusion, the writ petition is allowed setting

aside the impugned Award dated 11.02.2005 made in I.D No.26 of 2000.

Consequentially, the respondent-Corporation shall disburse the service

benefits of the petitioner, within a period of eight (8) weeks, from the date

of receipt of a copy of this Order.

No costs. The miscellaneous applications pending, if any, shall

stand closed.

___________________________________
JUSTICE MAHESWARA RAO KUNCHEAM
Date: 24.01.2025
GVK
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33
THE HON’BLE SRI JUSTICE MAHESWARA RAO KUNCHEAM

WRIT PETITION No.4265 of 2007

Date: 24.01.2025

GVK

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