Karnataka High Court Upholds Tribunal's Order for Workman's Reinstatement and Back Wages Despite Jet Airways Liquidation
The Court directs release of deposited amount with interest, affirming rights crystallized prior to company's liquidation.
In a significant ruling, the Karnataka High Court has dismissed the writ petition filed by M/s Jet Airways (India) Pvt. Ltd., thereby upholding the Industrial Tribunal's award in favor of Sri Prashant Rao, a former employee of the company. The Tribunal had earlier found the disciplinary proceedings against Rao violative of the principles of natural justice, ordering his reinstatement with 50% back wages. Despite Jet Airways being under liquidation, the Court directed the release of Rs.13,00,000 along with accrued interest to Rao, reinforcing that the rights crystallized before the commencement of liquidation cannot be prejudiced.
The case dates back to the dismissal of Rao, who served as a Customer Service Assistant, by Jet Airways in 2008. Challenging this dismissal, Rao approached the Central Government Administrative Tribunal-Cum-Labour Court, which ruled in his favor in 2017. The Tribunal noted that the charges against Rao were not substantiated, and the disciplinary proceedings were flawed, violating natural justice principles. Consequently, Rao was awarded reinstatement with continuity of service and 50% of back wages.
Jet Airways, facing liquidation proceedings under the Insolvency and Bankruptcy Code, 2016, contested the Tribunal's decision in the Karnataka High Court. They argued that the reinstatement was untenable due to the cessation of business operations. However, the High Court emphasized that the company's liquidation does not negate the rights Rao earned before the liquidation process commenced.
The Court further explained that the interim relief granted during the writ petition's pendency merged with the final order upon dismissal of the petition. This reinforces the legal maxim "Actus curiae neminem gravabit," ensuring that no party is prejudiced by the Court's actions. Therefore, the Court ordered the release of the deposited amount to Rao, maintaining the equitable jurisdiction under Article 226 of the Constitution of India.
The judgment is pivotal in reinforcing the protection of employee rights against procedural lapses in disciplinary actions, even amidst the complexities of corporate liquidation. It underscores the judiciary's role in ensuring justice and equity, irrespective of corporate insolvency proceedings.
Bottom Line:
Dismissal from service - Industrial Tribunal found disciplinary proceedings against workman violative of principles of natural justice - Charges not proved - Reinstatement and 50% back wages ordered - Writ petition challenging award dismissed - Relief granted to workman despite company under liquidation.
Statutory provision(s):
- - Insolvency and Bankruptcy Code, 2016
- - Article 226 of the Constitution of India
- - Principles of natural justice
