As per case facts, a company, originating from a women's self-help group, terminated an employee following complaints of anti-management activities and inappropriate behavior. The employee contested, alleging victimization. An internal ...
2026:MHC:564W.P.No.8122 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
Orders reserved on : 06.02.2026
Orders pronounced on : 11.02.2026
CORAM :
THE HON’BLE MR.JUSTICE D.BHARATHA CHAKRAVARTHY
W.P.No.8122 of 2021
and W.M.P.No.19603 of 2021
The Management,
Meadow Rural Enterprises Private Ltd.,
Rep. by its Chief Executive Officer,
85/3, Midugarapalli village,
H.C.F Post,
Hosur – 635 110,
Krishnagiri District. .. Petitioner
Versus
T.Rajeswari .. Respondent
Prayer : Writ Petition filed under Article 226 of the Constitution of India
seeking a Writ of Certiorari, calling for the records relating to
I.D.No.102/2019, dated 11.01.2021 on the file of the Labour Court, Hosur
and quash the same.
For Petitioner: Mr.N.Devaraj,
for Ms.S.Revathi
For Respondent: Mr.R.Rajaram
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ORDER
This Writ Petition is filed challenging the award, dated
11.01.2021 made in I.D.No.102 of 2019 by the Labour Court, Hosur. By
the said award, the Labour Court set aside the order of termination of the
respondent/worker, dated 11.12.2015 and directed the petitioner
management to reinstate the worker into service with 25% of back-wages.
Aggrieved by the same, the petitioner management is before this Court.
2. The brief factual matrix, in which the Writ Petition arises, is
that a voluntary agency namely, Mysore Resettlement and Development
Agency (known as ‘MYRADA’) works for upliftment of rural poor,
particularly, women. It had identified the women from the lowest strata
and had formed eight self-help groups who were collectively called as
‘MEADOW’. M/s.Titan Industries joined hands with the voluntary agency
in its endeavours. Initially, a piece of land was given to MEADOW and a
building was constructed. When the business developed, a company was
also incorporated under the name MEADOW Rural Enterprises Pvt. Ltd.
(the petitioner), and all the 64 women, who were part of the self-help
group, became the shareholders of the company also. As per Article 25 of
the Memorandum of Association, the voluntary agency has a right to
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appoint Directors and accordingly, one Sivarudrappa was appointed as the
Director and one K.P.Anandan, was appointed as the Chief Executive
Officer. In the year 2006, K.P.Anandan was replaced by one Suresh.
According to the respondent, when the new Chief Executive Officer,
Suresh, indulged in some malpractices including getting signatures in the
empty letter pads from the company shareholders etc., she resisted the
attempts and also brought to the notice of the appropriate authorities, on
account of which, the respondent was victimized.
3. According to the petitioner, on 18.07.2014, on behalf of all the
workers of MEADOW, a complaint was given to the Director. In the
complaint, it was stated that when 450 women were working in the
organization for the past three years, without reporting to any unit, the
respondent, Rajeswari, who is sitting idle in the Accounts Department, was
raising hue and cry as if nothing is correct and was questioning every
decision that was taken. She was using unparliamentary words on every
occasion. The words were specifically mentioned in the complaint. If any
other worker confronted her, she used to call the husband of the worker
and make unscrupulous allegations of extra marital affairs against them.
She is bringing in politicians inside the company and everyday, her
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atrocity was increasing. Therefore, it was prayed to take an action against
her.
4. Further, it is the case of the petitioner that three workers
namely, Pushpavathi, Naveena and Prabha gave complaints against the
respondent. The complaints state that the respondent being a co-worker,
was indulging in creating unnecessary problems for the past two years.
The petitioner had been advising her to correct herself, but, she has not
changed. She was indulging in activities adverse to the company,
management and the other poor women workers. She was writing letters
to outsiders by making false allegations against the company and creating
problems in working of the company. If directed to do any work, she
refused. She never used to report before the management authorities
whenever called. Thus, she was indulging in unjustifiable, illegal acts.
She was also indulging in bad actions against poor women workers and
therefore, action is to be taken against her.
5. Under the said circumstances, a show-cause notice, dated
28.07.2014 was issued to her stating that the complaints have been
received and several allegations had been made against the worker. Upon
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consideration thereof, the action was detrimental to the factory and the
management. Therefore, it called for an explanation within 48 hours from
the date of receipt of the memorandum, failing which, a disciplinary action
would be initiated as per the Standing Order No.19. Upon receipt of the
show-cause notice, the worker sent a reply on 02.08.2014. The reply states
that she was working with the MEADOW for the past 17 years. She is
also the shareholder for the past 15 years. There was no complaint against
her all this time. Suddenly, a complaint was made against her and she was
surprised. She sought for particulars of the persons who complained
against her and also wanted to know as to what had been the complaint
given against her. She submitted that if those were furnished to her, it
would enable her to give due reply thereof. Thereafter, on 09.08.2014, an
order was passed stating that the petitioner management was in receipt of
the explanation, dated 06.08.2014 and they were not satisfied with the
explanation. Considering the nature of allegations made, the worker would
be placed under suspension from 11.08.2014. Thereafter, it seems that for
more than one year, the disciplinary proceedings did not commence.
6. On 10.09.2014, a charge memorandum was issued to her. The
first portion of the charge memorandum states that the worker was
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indulging in anti-management activities for the past two years and several
complaints have been received against her from the other workmen and a
memo had been given. Therefore, it is decided to initiate disciplinary
proceedings and already, a show-cause notice, dated 28.07.2014 was
issued and the respondent was also suspended from 11.08.2014. Till date,
no explanation has been given by the respondent. Therefore, as per the
Standing Orders of the company, disciplinary action was initiated. The
Standing Order Nos.19(1), 9, 10, 20, 25, 28, 30, 32, 36, 41, 53 and 54 were
quoted and it was further stated that her action amounted to misconduct
under the said Standing Orders and requested her to submit her explanation
within three working days.
7. The respondent submitted her explanation on 16.09.2015. She
had categorically stated that she was placed under suspension without any
justification and the proceedings are by way of victimization. She did not
violate any of the Standing Orders. Merely because she had approached
the High Court with reference to the grievance of the workmen, she was
targeted. When salary hike had been stopped, she demanded the reasons in
writing. Under the said circumstances, the show-cause notice was issued.
Till the date, the allegations/complaints that were made against her were
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not furnished to her. Under the said circumstances, she presumes that
those are only false complaints and thus submitted her explanation.
8. Thereafter, the order, dated 22.09.2015 was passed appointing
a Domestic Enquiry Officer. Before the Domestic Enquiry Officer, upon
being questioned, the worker denied the charges. First, one Jyothi, an
Account Assistant was examined as the witness. She spoke about the fact
that the respondent did not go and join duty in the allocated unit and was
sitting at the Accounts unit along with yet another worker. When the
another worker had ultimately gone to some other unit, the respondent
alone persisted and was doing whatever work she could do in the said unit.
This apart, she has started indulging in activities detrimental to the
management and the company and therefore, it was decided to initiate
disciplinary proceedings against her. The witness further spoke about the
issue of memo, suspension and thereafter, issuing the charge
memorandum. Through her, the complaints were marked as Ex.M-1 to
Ex.M-4. Thereafter, the show-cause notice and the further proceedings
were marked as Ex.M-5 to Ex.M-11.
9. After that, the three employees, who gave identical
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complaints, namely, Pushpavathi, Naveena and Prabha, were examined
and they were also cross-examined by the worker.
10. Thereafter, the Enquiry Officer returned the finding that the
charges were proved, based on which, the worker was terminated from
service. Aggrieved thereby, the worker raised a dispute. The conciliation
not yielding any settlement, she filed a Claim Petition under Section 2-
A(2) of the Industrial Disputes Act, 1947 which was taken on file as
I.D.No.108 of 2016. In the Claim Petition, the specific prayer of the
respondent was to hold the findings of the Enquiry Officer as perverse and
that there was no evidence to prove the charges and to set aside the
termination order, dated 11.12.2014 and reinstate the respondent into
service with full back-wages, continuity of service and the other attendant
benefits.
11. The Claim Petition was resisted by the petitioner-
management by filing a counter. Before the Labour Court, no oral
evidence was let in by both the sides and the documents were marked by
way of consent as Ex.P-1 to Ex.P-32. The Labour Court, thereafter,
considered the case of the parties. It found that the details of the alleged
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misconduct were never put to the respondent and are vague. It further
found that there is no evidence to prove the allegations against the
respondent. The three workers who were the witnesses were cross-
examined and none of the charges stood proved. Accordingly, it set aside
the order of termination, dated 11.12.2015, however, ordered reinstatement
with continuity of service with only 25% of the back-wages. Aggrieved by
the same, the petitioner management is before this Court.
12. Mr.N.Devaraj, learned Counsel for the petitioner
management would submit that the Labour Court has found that none of
the employees, who have signed the Ex.M-1, was examined. The same is
incorrect as the three employees who had given the individual complaints,
were also signatories for the first complaint. Therefore, the finding of the
Labour Court is perverse. When the voluntary agency, in collaboration
with leading industry, is trying to give life to the poor and downtrodden
workmen by bringing in a corporate setup for the work, the respondent
never realized the same and indulged in speaking unparliamentary words
about every decision and the words were mentioned in the first complaint.
The charge is serious in nature.
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13. This apart, she has been making complaints about the
company involving the local M.L.A and thus, tried to bring in politicians
inside the company and created problem for the management. She gave
criminal complaint against the Chief Executive Officer and tried to restrain
him from performing his work, thereby pressurizing him, to assert her
supremacy. The co-employees, who are all women, who have been
working sincerely for the upliftment of the company, so that the
shareholders could get the profit, are all disturbed and annoyed by the
attitude of the respondent. When each and everyday, at each and every
occasion, the attitude, the words spoken and the deeds done are against the
co-workers against the company and against the management, the
company is justified in contending that it has lost confidence on the
respondent. Even if there is any flaw in the enquiry, reinstatement is
totally out of the question as day in and day out the respondent has been
indulging in mudslinging against the management and also against co-
workers. She has proven to be incorrigible. Therefore, the learned
Counsel would submit that the award of the Labour Court is to be
interfered with. The learned Counsel also took this Court in detail as to the
nature of the complaints made, the evidence let in in the Domestic
Enquiry, the cross-examination made by the worker and the other
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documents, including the complaints she has allegedly preferred before the
Police and the admission that she has approached the local M.L.A.
14. Per contra, Mr.R.Rajaram, learned Counsel would submit
that in this case no specific charge has been levelled. Only vague
allegations were made, for which, there is no proof. Only because of the
same, the worker did not insist upon the validity of the fairness of the
procedure and straightaway prayed about the prima facie evidence in
respect of the charges. In exercise of the powers under Section 11A of the
Industrial Disputes Act, 1947, the Labour Court had found that there is
absolutely no proof in respect of the so-called allegations and therefore,
ordered reinstatement with 25% back-wages. The learned Counsel would
submit that this is not a fit case where it can be held that the management
has lost confidence of the respondent and the compensation be ordered.
This is a case where the respondent has been acting in the best interests of
the other women workers and when she is questioning about the illegal
activities of the management. She was targeted and victimized. The
learned Counsel would also rely upon the judgment of the Bombay High
Court in Chowgule and Co. Vs. Chowgule Employees Union
1
.
12007-III-L.L.J.103
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15. I have considered the rival submissions made on either side
and perused the material records of the case.
16. The background facts were adverted supra. It can be seen
that originally, a show-cause notice was issued to the respondent by
mentioning about the complaints being received against her. Admittedly,
neither the complaints were enclosed with the show-cause notice nor the
allegations were extracted in the show-cause notice. Immediately, the
worker had given a reply stating that if the allegations are put across to her,
she would come up with the reply. The petitioner/management neither
denies the claim of the worker and asserts that already copies of the
complaints given nor furnishes the copies of the complaints. However, it
holds that the explanation is not acceptable and places the respondent
under suspension. Thus, the initiation of the proceedings i.e., the show-
cause notice on 28.07.2014, the reply of the worker given on 02.08.2014
and the suspension order, dated 09.08.2014 smack vindictive attitude of
the petitioner/management.
17. This apart, when the complaints were already received and
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when that is only the allegation, there was no justification for the
management to have kept quiet from the month of August, 2014 till the
month of September, 2015 after placing the worker under suspension. Be
that as it may, the charge memorandum merely states that already, the
allegations were made, show-cause notice was given, which all amount to
misconduct under various provisions of the Standing Order No.19 and
seeks for explanation. Thus, it can be seen that even the charge
memorandum did not categorically state as to which of those allegations
that are mentioned in the complaint that would amount to misconduct and
that is being considered by the management. Even with reference to the
said explanation, the reply of the worker is that she was never put across as
to what are the allegations against her. The management thereafter
proceeds to appoint a Domestic Enquiry Officer. Before the Domestic
Enquiry Officer, the first witness, Jyothi, spoke about the worker on her
own remaining in a particular department and doing the works as she likes.
18. In this case, if the charge against the worker is
insubordination in not going to a particular unit and working, absolutely,
nothing is on record as to any order was served on her to go and work in a
particular department and that she defied the same. Such kind of
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categorical allegations were never put in the enquiry for her to come up
with an explanation. The said Jyothi, thereafter only, spoke about the
initiation of disciplinary proceedings and the further proceedings and
nothing on the merits of the other charges. The other three employees,
though said to have given complaints on various dates, incidentally, gave
verbatim complaints. From the beginning to end, not even a word
changes. When they were examined, they did not specifically mention
about the bad words spoken, though they generally said that they saw the
worker standing at the gate and uttering the words. Neither they specified
the incidents and when they were specifically questioned as to whether the
worker had spoken ill about them, the answered in the negative.
19. Leaving the cross-examination apart, even taking their
evidence in chief, they had only stated that their complaints can be taken as
their statements. Even as per their statements, the first allegation that is
made is that for the past two years, the worker has been indulging in
several problems not heeding to the advice of the management and the co-
workers. The second allegation is that she has been making unscrupulous
and false allegations against the company detrimental to the interests of the
management and the other workers. Absolutely, no particulars whatsoever
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have been given or put across to the worker during the enquiry. The third
allegation is that whenever called by the management, the worker did not
report. There also, no details were spoken by the three witnesses. Thus,
the chief-examination of all the four witnesses is even taken as true, did
not make any specific and clear-cut allegations of any misconduct against
the respondent. Therefore, no exception whatsoever can be taken to the
findings of the Labour Court that the allegations are vague in nature and
even with reference to the allegations that are made, there is absolutely no
proof.
20. When the Labour Court considers all the exhibits that were
marked before it, which included the entire documentary and oral evidence
that was adduced during the enquiry and exercised its power under Section
11A of the Industrial Disputes Act, 1947, in the conspectus of the facts and
circumstances of the case, I am not able to hold that it is perverse or it is in
excess of the powers conferred under Section 11A of the Industrial
Disputes Act, 1947. The Labour Court is conferred with the powers to
consider the nature of the charges and the nature of evidence on record and
conclude as to whether the charges, as such, amount to misconduct and if
so, whether there is adequate evidence to prove the same. When there is
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no specific particulars with reference to each and every imputation that is
made and when the allegations are vague made and the evidence speak
only of general attitude and even more vague, no exception can be taken
for the said findings.
21. As a matter of fact, if the further documents that are pointed
out by the learned Counsel for the petitioner management are taken into
account, on every occasion, the respondent seems to have questioned about
the actions of the management and in the general interest of the worker. It
is another thing, whether they are true or not. At the same time, to an
extent, all the three workers, by their general observation, are speaking
about the fact that the worker’s language as inappropriate. Though, under
normal circumstances, it should be considered as a serious charge, one has
to take into account that this is an organisation arising from a self-help
group formed amongst the women of the lowest strata of the society and
the smell of the soil that is in the language of the worker, should be taken
into account along with the social background, in which, all the workers
arise and should not be considered divorced of their ground realities.
However, the respondent should understand that the agency is trying to
uplift them from those kinds of background into entrepreneurs and
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therefore, cannot pursue the same language and has to correct herself. In
any event, it can be seen that considering the overall circumstances, 75%
of back-wages is not granted and that should also be borne in mind with
reference to allegations.
22. For all the aforesaid reasons, this Writ Petition fails and is
accordingly dismissed. There shall be no order as to costs. Consequently,
connected miscellaneous petition is closed.
11.02.2026
Neutral Citation: yes
grs
To
The Labour Court,
Hosur.
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W.P.No.8122 of 2021
D.BHARATHA CHAKRAVARTHY, J.
grs
W.P.No.8122 of 2021
and W.M.P.No.19603 of 2021
11.02.2026
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Legal Notes
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