Sterling Biotech Staff Co-Operative … vs The Deputy Commissioner Of Labour on 13 March, 2026

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    Madras High Court

    Sterling Biotech Staff Co-Operative … vs The Deputy Commissioner Of Labour on 13 March, 2026

                                                                                               W.P.No.16807 of 2019
    
    
                                      IN THE HIGH COURT OF JUDICATURE AT MADRAS
    
                                                 Reserved on              : 04.03.2026
    
                                                Pronounced on :                  13.03.2026
    
                                                              CORAM:
    
                                       THE HONOURABLE MR. JUSTICE T.VINOD KUMAR
    
                                                   W.P.No.16807 of 2019
                                                           and
                                                   WMP.No.16404 of 2019
    
    
                    Sterling Biotech Staff Co-operative Thrift
                    and Credit Society Limited Complex
                    Sterling Biotech Factory Complex
                    Sandynalla, Nilgiris – 643 237
                    Represented by its Chairman K.Murthy                                        ... Petitioner
    
                                                                    vs
    
                    1.The Deputy Commissioner of Labour
                    Authority under the Shops and Establishment Act, 1947
                    Coimbatore.
    
                    2.K.Mohammed Hussain                                                      … Respondents
    
                    Prayer: Writ Petition is filed under Article 226 of the Constitution of India,
                    praying to issue a Writ of Certiorari to call for the records of the 1 st respondent
                    relating to the impugned order dated 11.06.2018 and quash the same as illegal and
                    without jurisdiction.
    
    
    
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                                                                                                  W.P.No.16807 of 2019
    
                                      For Petitioner        : Mr.B.L.Jayakandan
                                      For Respondents       : Mr.R.L.Karthika, GA for R1
                                                              Mr.P.Gowtham
                                                              for Mr.S.Saravanan for R2
                                                                  ORDER
    

    Heard the learned counsel for the petitioner and the learned Government

    Advocate for the 1st respondent and the learned counsel for the second respondent

    SPONSORED

    and perused the records.

    2. This writ petition is directed against the order of the 1 st respondent

    herein passed under Section 41(2) of Tamil Nadu Shops and Establishments Act,

    1947 (herein after referred to as “Act 1947”).

    3. The petitioner herein is the respondent in the appeal adjudicated by the

    1st respondent herein. The second respondent herein is the appellant in the

    impugned order passed by the 1st respondent.

    4. The brief facts of the case are that the petitioner herein by order dated

    16.12.2015 had removed the second respondent from service of the Society

    alleging misconduct.

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    5. It is the further case of the petitioner that the 2 nd respondent during the

    period 2003-2004 onwards had resorted to various acts of misconduct,

    misappropriation, embezzlement and forgery, by which he had caused loss and

    brought disrepute to the Society and its members.

    6. The petitioner contended that since, the aforementioned acts of the 2 nd

    respondent are grave in nature, the petitioner by following due process of law of

    issuing charge memo, appointing enquiry officer, conducting enquiry and seeking

    explanation, had terminated the service of the petitioner.

    7. Petitioner further contends that aggrieved by the dismissal order dated

    16.12.2015, the 2nd respondent had availed the remedy of appeal; that on the

    appeal being rejected, had approached the 1st respondent authority and filed appeal

    under Section 41 of the Act 1947; that the 1 st respondent without considering the

    submissions made had allowed the appeal filed by the 2 nd respondent, holding that

    the dismissal order is not sustainable in law and therefore the question whether the

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    W.P.No.16807 of 2019

    charges levelled against the 2nd respondent are justified or not does not arise for

    consideration.

    8. It is the further contention of the petitioner that if only the 1 st

    respondent authority had found the impugned order is not sustainable in law on

    account of procedural violations as noted therein, the 1 st respondent ought to have

    remitted the matter back to the petitioner for fresh adjudication or alternatively the

    appellate authority ought to have examined the merits of the matter by himself, to

    arrive at a conclusion as to whether the charges levelled against the 2 nd respondent

    are of grave in nature warranting termination of his service or not.

    9. On behalf of the petitioner it is contended that the 1 st respondent

    instead of undertaking the said exercise, while holding that the administrative

    committee which passed the dismissal order, itself presided over as appellate

    authority and rejected the appeal and thus, the said action being contrary to the

    rules / bye-laws of the petitioner / Society, had held that the charges levelled

    against the 2nd respondent are justified or not need not be gone into.

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    10. On behalf of the petitioner it is contended that the action of the 1 st

    respondent in passing the impunged order allowing the appeal of the 2nd respondent

    in setting aside the dismissal order as affirmed by the first appellate authority is

    thus, vitiated and is liable to be set aside.

    11. Per contra, on behalf of the 1st respondent it is contended that the said

    authority acting as appellate authority has exercised powers under Section 41 of

    the Act 1947; that the order of the appellate authority is final and binding and as

    such the petitioner cannot assail the same by filing the writ petition.

    12. On behalf of the 2nd respondent it is contended that the 2nd respondent

    who was working as Chief Executive of the petitioner’s Society was visited with

    dismissal order for alleged violation / misconduct relating to a period 2003-2004

    and thereafter during the year 2009-2010; that for the alleged misconduct of the

    year 2003-2004, the 2nd respondent was awarded with the punishment of

    suspension for two days and as such the petitioner cannot make use of said

    misconduct once again for proceeding against 2 nd respondent by initiating

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    disciplinary action and issuing charge memo dated 18.08.2015, after a lapse of

    decade.

    13. On behalf of the 2nd respondent, it is further contended that it is only

    on account of change in Board of Directors during the year 2014, the 2 nd

    respondent has been placed under suspension initially on 31.07.2015 and thereafter

    was issued with charge memo; that he had submitted his explanation on

    22.08.2015; and that without considering the explanation submitted, he was issued

    with the dismissal order.

    14. It is further contended by the 2 nd respondent that as the order of

    dismissal, mentioned that an appeal can be preferred to the Board of Directors, he

    had preferred an appeal on 04.01.2016 and the Board of the petitioner rejected the

    appeal on 12.01.2016 by passing a cryptic and non speaking order without

    considering the grounds taken in the appeal.

    15. It is further contended that aggrieved by the rejection of the appeal

    by the Board of Directors of the petitioner, the 2nd respondent availed further

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    remedy of appeal under section 41 of the Act 1947 before the 1 st respondent; that

    the 1st respondent by considering the matter at length had set aside the dismissal

    order; and that the impugned order does not call for any interference.

    16. I have taken note of the respective contentions urged.

    17. Though on behalf of the writ petitioner submissions were sought to

    be made touching upon the merits of the dismissal order as well as the first

    appellate authority order and to contend that the 1 st respondent could not have

    passed the impugned order setting aside the dismissal of the 2 nd respondent herein

    for misconduct, misappropriation and forgery, it is to be noted that the power of

    judicial review by the High Court under Article 226 of the Constitution of India is

    circumscribed and is limited to correct errors of law or procedural errors leading to

    manifest injustice or violation of principles of natural justice.

    18. Time and again, it has been held that a writ Court under Article 226

    of the Constitution of India while examining the challenge to the orders of

    disciplinary authority or appellate authority does not act itself as appellate

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    authority by reappreciating or reevaluating the evidence on record; and that the

    scope of interference by writ Court in such matters is limited to examine as to

    whether the orders of the disciplinary authority by which the delinquent officer is

    visited with the punishment shocks the conscious of the Court; and that the

    punishment awarded is disproportionate to the proved articles of charges.

    19. The scope of interference by a writ Court has been succinctly stated

    in the decision of the Hon’ble Apex Court in the case of Deputy General Manager

    (Appellate Authority) and others V. Ajai Kumar Srivastava – 2021 SCC Online

    SC 4 wherein it is observed as under :-

    “22. The power of judicial review in the matters of disciplinary

    inquiries, exercised by the departmental/appellate authorities discharged by

    constitutional courts under Article 226 or Article 32 or Article 136 of the

    Constitution of India is circumscribed by limits of correcting errors of law

    or procedural errors leading to manifest injustice or violation of principles

    of natural justice and it is not akin to adjudication of the case on merits as

    an appellate authority which has been earlier examined by this Court

    in State of T.N. v. T.V. Venugopalan [State of T.N. v. T.V. Venugopalan,

    (1994) 6 SCC 302 : 1994 SCC (L&S) 1385] and later in State of T.N. v. A.

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    Rajapandian [State of T.N. v. A. Rajapandian, (1995) 1 SCC 216 : 1995

    SCC (L&S) 292] and further examined by the three-Judge Bench of this

    Court in B.C. Chaturvedi v. Union of India [B.C. Chaturvedi v. Union of

    India, (1995) 6 SCC 749 : 1996 SCC (L&S) 80] wherein it has been held as

    under : (B.C. Chaturvedi case [B.C. Chaturvedi v. Union of India, (1995) 6

    SCC 749 : 1996 SCC (L&S) 80] , SCC pp. 759-60, para 13)

    “13. The disciplinary authority is the sole judge of facts.

    Where appeal is presented, the appellate authority has coextensive

    power to reappreciate the evidence or the nature of punishment. In a

    disciplinary enquiry, the strict proof of legal evidence and findings on

    that evidence are not relevant. Adequacy of evidence or reliability of

    evidence cannot be permitted to be canvassed before the

    court/tribunal. In Union of India v. H.C. Goel [Union of

    India v. H.C. Goel, (1964) 4 SCR 718 : AIR 1964 SC 364] this Court

    held at SCR p. 728 (AIR p. 369, para 20) that if the conclusion, upon

    consideration of the evidence reached by the disciplinary authority, is

    perverse or suffers from patent error on the face of the record or

    based on no evidence at all, a writ of certiorari could be issued.”

    23. It has been consistently followed in the later decision of this

    Court in H.P. SEB v. Mahesh Dahiya [H.P. SEB v. Mahesh Dahiya,

    (2017) 1 SCC 768 : (2017) 1 SCC (L&S) 297] and recently by the three-

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    Judge Bench of this Court in Pravin Kumar v. Union of India [Pravin

    Kumar v. Union of India, (2020) 9 SCC 471 : (2021) 1 SCC (L&S) 103].”

    20. As the contours of examination challenging an order are well settled,

    the submissions made by the petitioner touching upon the merits of the matter

    cannot be considered. Thus, this Court is only required to see as to whether the

    impugned order passed by the 1st respondent suffers from error of law or

    procedural errors leading to manifest injustice, perversity or suffers from violation

    of principles of natural justice.

    21. Taking into consideration, the scope of interference by this Court as

    noted herein above, if the impugned order passed by the 1 st respondent is

    examined, it is to be noted that the 1st respondent while passing the impugned order

    had held that the dismissal order dated 16.12.2015 passed by the petitioner herein

    was issued contrary to the Clause 62 of certified Bye-laws of the petitioner’s

    management which provided for constituting executive committee or other

    committee or sub committee as may be considered necessary including forming of

    disciplinary proceeding committee as mentioned in Clause 65 of the Bye-laws

    which are approved by the Multi State Co-operative Societies Act, 2002.

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    The 1st respondent while holding as above ought to have set aside the appellate

    authority order impugned in appeal filed before him and remitted the matter back

    to the petitioner’s society for initiating proceedings in accordance with the

    provisions of the Act 2002 and complying with the Bye-laws of the society.

    22. Further, the 1st respondent being the Appellate Authority could have

    examined the merits of the matter on his own, as to whether the action of the

    petitioner / society in issuing the dismissal order is justified or not.

    The 1st respondent however did not delve into the merits of the appeal filed by the

    2nd respondent herein. On the other hand, the 1 st respondent while concluding that

    the order impugned in appeal before him to be contrary to the Bye-laws, had not

    only held the said order is not sustainable in law, but also held that the charges

    levelled against the 2nd respondent are justified or not does not arise, without

    examining the claim of the writ petitioner/Society.

    23. Since, Section 41(2) of the Act 1947 r/w.Rule 9 of Tamil Nadu

    Shops and Establishment Rules, 1948 confers power on the 1st respondent authority

    to decide an appeal filed by a person employed against notice of dismissal, the 1st

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    respondent acting as appellate authority and being a quasi judicial authority, ought

    to have considered the appeal filed by the 2 nd respondent herein and also the

    defence of the petitioner’s society.

    24. A perusal of the impugned order however shows that the 1 st

    respondent while allowing the appeal filed by the 2 nd respondent herein did not

    consider the merits of the case, and holding that the appellate order under

    challenge before him suffers from the procedural error had concluded that the

    charges levelled against the 2nd respondent / appellant are justified or not does not

    arise, without recording the basis to arrive at the said conclusion.

    25. It is trite law that mere procedural irregularity does not wipe out the

    charges by themselves. Equally, it is also well settled law that failure to follow

    strict procedural guidelines was a negligence and it did not mean that the entire

    proceedings were invalid, if the charges were proved. (See – (1) LIC of India V.

    A.Masilamani – (2013) 6 SCC 530; (2) Union of India and others V.

    P.Balasubrahmanayam – (2021) 5 SCC 662 and (3)Uttar Pradesh through

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    Principal Secretary, Department of Panchayati Raj, Lucknow V. Ram Prakash

    Singh – 2025 SCC online SC 891).

    26. Further, it is also to be noted that the 2 nd respondent herein could

    have approached the 1st respondent straight away without availing the remedy of

    appeal before the Board of Directors, as the dismissal order states that the aforesaid

    order was being issued with the approval of the Board of Directors, in which case a

    duty was cast on the 1st respondent to examine the matter on merits which as noted

    herein above, the 1st respondent had failed to do.

    27. Insofar as the findings of the 1 st respondent that the administrative

    committee which passed the dismissal order by itself had presided over in appeal

    as appellate authority, the principle of “nemo judex in causa sua” would get

    attracted. That being so, the 1 st respondent could have either set aside the

    impugned order and remitted the matter back to the petitioner / society or decide

    the matter on merits by himself, as to the charges levelled against the 2 nd

    respondent are justified or not warranting dismissal from service. The 1 st

    respondent however, without examining the matter on merit could not have

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    recorded his finding that the charges are justified or not does not arise, without

    even considering the case of the writ petitioner /society and also whether the action

    of the writ petitioner /society in issuing termination order is justified or not.

    28. In view of the above, this Court is of the considered view that the

    action of the 1st respondent, holding the action of the writ petitioner/society in

    passing the dismissal order and deciding the appeal by itself to be wrong, had itself

    committed error in not considering the appeal on merits and allowing the appeal

    straightaway without recording reasons. It is settled position of law that the

    reasons are the heart beat of the orders and in the absence of the reasons justifying

    the conclusion arrived at, the order stands vitiated.

    29. Since, the 1st respondent by the impugned order had held that the

    charges levelled against the 2nd respondent are ‘justified or not does not arise’

    without examining the matter on merit, the impugned order cannot be sustained.

    30. Accordingly, the writ petition is allowed by setting aside the

    impugned order dated 11.06.2018 passed by the 1 st respondent and the matter is

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    remitted back to the 1st respondent to consider the appeal filed by the 2nd

    respondent on merits and in accordance with law, after affording an opportunity of

    hearing to both the petitioner/Society as well as the 2 nd respondent/appellant. No

    order as to costs. Consequently, connected miscellaneous petition is closed.

    
    
    
                                                                                                 13.03.2026
    
                    Speaking order / Non-speaking order
                    Index    : Yes / No
                    Neutral Citation   : Yes / No
                    tsh
    
    
                    To
                    The Deputy Commissioner of Labour
                    Authority under the Shops and Establishment Act, 1947
                    Coimbatore.
    
    
    
    
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                                                                                      W.P.No.16807 of 2019
    
    
                                                                                  T. VINOD KUMAR, J.
    
    
                                                                                                       tsh
    
    
    
    
                                                                                Pre-delivery order made in
                                                                                   W.P.No.16807 of 2019
    
    
    
    
                                                                                              13.03.2026.
    
    
    
    
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