TVS Finance and Service Ltd. vs H. Shiva Kumar

D.K. Jain and H.L. Dattu, JJ.—Leave granted. This appeal by special leave, is directed against order, dated 16 December, 2009. passed by a Division Bench of the High Court of Karnataka at Bangalore in W.A. No. 4225 of 2009. By the impugned order, the Appellate Bench while partly allowing the appeal preferred by the Respondent against order passed by the learned Single Judge on 3rd November, 2009. directing the Appellants herein to pay to the Respondent. 50 per cent, of the last drawn salary as interim measure from the date of his order till the disposal of the reference by the Labour Court, has modified the said order to the effect that the interim relief to the Respondent shall be payable from the date of his application before the Labour Court.

Assailing the order passed by the Division Bench, Sri Kasturi, learned Senior Counsel appearing for the Appellants, submits that the impugned order deserves to be set aside on the short ground that the order passed by the learned Single Judge has been modified to the detriment of the Appellant without notice to them. It is urged that the appellate Bench should not have interfered with a discretion-any order passed by the learned Single Judge.

Learned Counsel appearing for the Respondent, on the other hand, maintains that the impugned order is correct.

In our view, the impugned order cannot be sustained as the same has been passed in clear violation of the principles of natural justice. Given an opportunity, the Appellants might have explained that the directions issued by the learned Single Judge were fully justified and did not require any variation. We do not find any grave or exceptional circum-stances in the case warranting non-compliance with the cardinal rule of audi alteram partem. Therefore, the impugned order deserves to be quashed and we order accordingly. However, having regard to the fact that appeal before the Division Bench arose out of a purely interim arrangement, we do not deem it fit to remand the case back to the Appellate Bench for fresh consideration and would close the issue at this stage.

Consequently, the appeal is allowed and the impugned order is set aside with a direction that till the disposal of the reference by the Labour Court, the Respondent-workman will be entitled to the interim relief as directed by the learned Single Judge vide order, dated 3rd November, 2009.

The appeal stands disposed of accordingly, with no order as to costs.