TMI Blog1969 (9) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... nal and order the appellant-company to pay to the respondent compensation equivalent to twelve months' salary at the rate of ₹ 307 per month with interest thereon at the rate of 6 per cent per annum from 17 July 1967 till payment - C.A. 1735 OF 1969 - - - Dated:- 12-9-1969 - SHELAT, J.M., VAIDYIALINGAM, C.A. AND DUA, I.D., JJ. JUDGMENT MR. J.M. Shelat, J. 1. The appellant-company is carrying on business in general insurance and has its registered office in Calcutta. It has a branch office in Delhi. On 18 July 1960, its Delhi branch appointed the respondent as a stenographer on a salary of Rs. 307 a month. No letter of appointment was then issued to the respondent, but on being asked to sign a pro forma Ex. M. 1, which contained certain terms and conditions of service, he filled it and signed the same on 21 July 1966. Presumably thinking that this was sufficient, the company did not issue a formal letter of appointment. On 2 April 1967 the respondent wrote to the company demanding a letter of appointment. In its reply dated 17 April 1967, Ex. M. 5, the company informed the respondent that his appointment was as a probationer lor one year with effect from 18 July ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y event, a case of termination of service simpliciter, his case was that the order terminating his services was in truth a punitive order dismissing him and was not in bona fide exercise of the company's power of termination and was there-fore not ft valid order. 3. A dispute having thus arisen, the respondent moved the Central Government who referred the question to the tribunal under Section 10(1) read with Section 2A of the Industrial Disputes Act, 1947. The tribunal, on evidence adduced by the parties, held (a) that the company had failed to prove that the respondent was appointed as a probationer for one year ; (b) that the order of terminating his services was not one of termination simpliciter, but was an order punishing the respondent and thus amounted to dismissal ; and (c) that such an order of dismissal, having been passed without holding any enquiry, was invalid and had, therefore, to be set aside. It directed reinstatement of the respondent and payment of half of his salary from the date of termination of his services till reinstatement. 4. In reaching this conclusion the tribunal was impressed by two allegations made by the respondent: firstly, that the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany. The management alleged, as has been done in the instant case, that she was appointed on probation for six months, that her work was found unsatisfactory and was, therefore, discharged in terms of the contract of service. The tribunal did not accept the company's case and held that its order of discharge amounted to dismissal which was wrongful an no enquiry giving her the opportunity of being heard wan hold. But, considering her employment as the secretary, the tribunal did not order reinstatement and instead directed the company to pay compensation equivalent to two years' salary. On a contention that the compensation was exorbitant, this Court, on appeal, reduced the amount of compensation to one year's salary on the ground that there were no special circumstances to warrant the award of two years' salary as compensation. Explaining the case of Assam Oil Company 1960-I L L. J. 687 (vide supra), where the Court had awarded compensation of Rs. 12,500, which was equivalent to two years' salary, the Court observed at p. 401 as follows: ...The labour court has relied upon the decision of this Court in Assam Oil Company, Ltd. v. its workmen 1960-I L.L. J. 587 (vide supra) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mall establishment. There can be no doubt that the position of a stenographer in such an establishment would be one of confidence and trust as he would be taking down dictation and typing out all kinds of matters including sometimes confidential and even secret matters. For example, a report of the working of this branch to the company's headquarters by the branch manager, or a report as regards the working of other rival insurance companies in Delhi area, or a report regarding promotion and even demotion of some of the members of the staff of the branch office, and such other matters would be of a highly confidential nature. If the branch manager were, for one reason or the other, to loss confidence and trust in a stenographer working under him, it would obviously be impossible for him to give dictation on such matters to such a stenographer. On the assumption that the respondent was made to take dictation and type out letters in connexion with other concerns in which the appellant-company was interested and the respondent was not paid any extra remuneration for each work, the respondent was on his admission, retaining with him surreptitiously copies of those communications. As th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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