In the case of Ramesh Chand v. Management of Delhi Transport Corporation, the Supreme Court of India highlighted key points regarding the justification of dismissal when a proper enquiry is conducted based on the charge sheet issued to the workman. Here are the practical implications derived from the judgment:
- The order of removal from service can be quashed if the management fails to substantiate the charges during the enquiry with compelling evidence before the Adjudicator.
- If the enquiry process is found to be flawed, the workman is entitled to reinstatement along with back wages.
- The initial burden lies on the employee to demonstrate that they were not gainfully employed post-termination to be eligible for back wages.
- Statements made by the workman regarding their employment status, such as being unemployed, hold significance in determining entitlement to back wages.
- If the management fails to provide evidence of the workman's alternative source of income, they may be liable to pay back wages upon setting aside the termination order.
- Back wages are not automatically granted upon reinstatement and are subject to specific conditions and circumstances.
- In cases where the workman changes their affidavit regarding unemployment status, the entitlement to back wages may be affected.
- Management is obligated to pay simple interest at 9% per annum if the awarded amount is not paid within the specified timeframe.
It is crucial for employers to adhere to fair and thorough enquiry processes when considering termination to avoid legal implications and potential liabilities.