Fraudulent Practice To Gain Public Employment Cannot Be Countenanced: Supreme Court Upholds Termination Of 38 Workmen By BCCL

The Supreme Court observed that fraudulent practice to gain public employment cannot be countenanced to be permitted by a Court of law.

The sanctity of public employment, as a measure of social welfare and a significant source of social mobility, must be protected against such fraudulent process which manipulates and corrupts the selection process, the bench of Justices Sanjay Kishan Kaul and Hrishikesh Roy observed.

Background

In this case, the Management of Bhalgora Area of M/s Bharat Coking Coal Limited terminated 38 workmen on the ground that they, in connivance with a Dealing Assistant and a Personnel Manager of the Bhalgora Area of BCCL, dishonestly secured appointments. Central Government Industrial Tribunal No.1 Dhanbad, answering the reference raised before it, concluded that the Management failed to substantiate the charge of manipulated appointment. The concerned workmen were directed to be reinstated with 50% back wages. Challenging this order, the management approached the High Court. The Single bench set aside the order of Tribunal. The Union approached the Division Bench by filing intra Court appeal. The Division Bench restored the Tribunal order.

Enough materials to justify action against the illegally appointed workmen

Upholding the Single Bench order, the Apex Court bench noted that enough materials were presented to the Tribunal to justify the action against the illegally appointed workmen, and as such the management cannot be made to suffer the consequence of the misconduct of their two errant employees against whom, disciplinary actions were taken by the Management.

"14. The learned Single Judge should not have been overruled by the impugned judgment by ignoring the key fact that the appointees did not figure in either of the lists, sponsored by the jurisdictional Employment Exchange and that they were beneficiaries of a fraudulent process. Enough materials were presented to the Tribunal to justify the action against the illegally appointed workmen, and as such the appellants cannot be made to suffer the consequence of the misconduct of their two errant employees against whom, disciplinary actions were taken by the Management. Moreover, the contradictory stand of the workmen at different stage would suggest that they were conscious and  of being appointed through a non-bonafide process. In any case, the appointments were contrary to the requirements of the 1959 Act", the court said.

'Parallel mechanism of Faustian Bargain'

Referring to judgments in Union of India Vs. M.Bhaskaran (1995) Supp. 4 SCC 100 and Chairman and Managing Director, Food Corporation of India & Ors. Vs. Jagdish Balram Bahira (2017) 8 SCC 670, the court observed:

"17. Fraudulent practice to gain public employment cannot be countenanced to be permitted by a Court of law. The workmen here, having hoodwinked the Government Undertaking in a fraudulent manner, must be prevented from enjoying the fruits of their illgotten advantage. The sanctity of public employment, as a measure of social welfare and a significant source of social mobility, must be protected against such fraudulent process which manipulates and corrupts the selection process. Employment schemes floated by the State for targeted groups, can absorb a finite number of workmen. To abuse the legitimate process therefore would mean deprivation of employment benefits to rightful beneficiaries. The Courts as sentinel of justice must strive to ensure that such employment programmes are not manipulated by deceitful middlemen, thereby setting up a parallel mechanism of Faustian Bargain. Often, desperate job aspirants' resort to such measures to compete for limited vacancies, but this Court cannot condone false projections so as to circumvent the statutorily prescribed procedure for appointments. Such illegal practices must be interdicted by the Courts.", the court said while allowing the appeal.

Case: Employers In Relation To The Management Of Bhalgora Area (Now Kustore Area) Of M/S Bharat Coking Coal Ltd. Appellant(S) Versus Workmen Being Represented By Janta Mazdoor Sangh
Citation: LL 2021 SC 424
Coram: Justices Sanjay Kishan Kaul and Hrishikesh Roy

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