(1.) This original petition on behalf of a cooperative society is to quash Ext. P1 order of the 1st respondent the appellate authority under the Kerala Shops and Commercial Establishments Act (hereinafter referred to as the Shops Act) directing reinstatement of the 2nd respondent, dismissed from the service of the society, with backwages.
(2.) The 2nd respondent was the Secretary of the society. He was dismissed from the service of the society with effect from 1/07/1985 for the misconduct alleged in the show cause notice served on him. The committee of the society on perusal of the books of accounts and records of the society was satisfied that the 2nd respondent was guilty of misconduct and on that finding a punishment of dismissal from service was imposed en him. The appellate authority under the Shops Act has held that the society is not entitled to adduce evidence in justification of the punishment imposed on the workman for the reason that the misconduct said to have been proved against the workman is not "supported by satisfactory evidence recorded at an enquiry held for the purpose" within the meaning of S.18(1) of the Shops Act.
(3.) A Division Bench of this Court in M/s. Kavitha Movie House v. Abdulkhader ( ILR 1979 (2) Ker. 326 ) has considered the scope of S.18 of the Shops Act and it was held that the termination of service of an employee for misconduct should be supported by satisfactory evidence recorded at an enquiry held for that purpose. The appellate authority has jurisdiction under sub-s. (3) to dismiss an appeal or direct the reinstatement of the employee with or without back wages or direct payment of compensation in lieu of reinstatement or grant such other relief as it deems fit. It is open to the appellate authority to deal with the evidence adduced at the domestic enquiry and assess it on merits either agreeing or disagreeing with the findings at the domestic enquiry. If the domestic inquiry is vitiated for non compliance to the principles of natural justice or for any other reason, it is open to the appellate authority to totally discard the domestic enquiry. In such cases the employer may request the appellate authority to conduct a de novo enquiry where he may seek to substantiate the charge and sustain the punishment against the employee. The Division Bench relies on the decisions in Chelur Agencies' case ( ILR 1976 (1) Ker. 590 ), M. A. K. and Sons v. P. Kumara Pillai ( 1966 KLT 640 ) and Ernakulam Cooperative Milk Supply Union v. K. G. Devassy ( 1973 KLT SN 25 ) as authorities ia support of the above proposition.