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Judgement :A.N Chaudhary Vs. Braithwaile and Co. Ltd. (2005) 6 SCC 231, Study Guides, Projects, Research of Law

A.N Chaudhary Vs. Braithwaile and Co. Ltd. (2005) 6 SCC 231

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A.N Chaudhary Vs. Braithwaile and Co. Ltd. (2005) 6 SCC 231
Facts of the Case:
The appellant, Amar Nath was the employee of Braithwaite & Co, a Government of India
undertaking. He was dismissed from service, through an order of dismissal passed by the
Chairman-cum-Managing Director (MD) of the Company, who was the Disciplinary
Authority. Under the regulations of Company, an appeal against an order of Disciplinary
Authority, lies with the Board of Directors (BOD) of company. Amar Nath Chowdhury
preferred an appeal before Board. The MD participated in deliberation of Board and appeal
was dismissed by non-speaking order.
Amar Nath (Appellant) filed a writ petition, before Calcutta High Court, under Article 226 of
Constitution of India. The High Court set aside the order of removal passed against the
appellant. The Division Bench of the High Court held that the order and judgement of the
learned single judge was erroneous. The order passed by the single judge was set aside and
writ petition was dismissed.
Legal Issues:
1) Whether the proceedings of the Board was vitiated on account of participation of
Disciplinary Authority while deciding the appeal preferred by the appellant?
2) Whether an authority can sit in appeal against its own order passed in capacity of
Disciplinary Authority?
Contentions by Appellant (Amar Nath Chowdhury)
1. The Chairman-cum-Managing Director of Braithwaite and Company, was disqualified to
have presided over and participated in the deliberation of the meeting of Board, which heard
and dismissed appeal.
2. The order of Appellant authority was vitiated on account of legal bias.
3. When an authority has earlier decided and prejudged the matter, he is disqualified to sit in
appeal against his own decision, as such as appeal would be an appeal from Caesar to Caesar
and filling of an appeal would be an exercise in futility.
Contentions by Respondent (Braithwaite & Co)
1. The Chairman-cum-Managing Director of Braithwaite and Company, had presided over
and participated due to ‘Doctrine of necessity’.
2. The Rule against Biasness is not available, when under the regulations framed by the
Company, the Disciplinary Authority, who happens to be Chairman-cum-Managing Director
was required to preside over the meeting of Board.
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A.N Chaudhary Vs. Braithwaile and Co. Ltd. (2005) 6 SCC 231

Facts of the Case: The appellant, Amar Nath was the employee of Braithwaite & Co, a Government of India undertaking. He was dismissed from service, through an order of dismissal passed by the Chairman-cum-Managing Director (MD) of the Company, who was the Disciplinary Authority. Under the regulations of Company, an appeal against an order of Disciplinary Authority, lies with the Board of Directors (BOD) of company. Amar Nath Chowdhury preferred an appeal before Board. The MD participated in deliberation of Board and appeal was dismissed by non-speaking order. Amar Nath (Appellant) filed a writ petition, before Calcutta High Court, under Article 226 of Constitution of India. The High Court set aside the order of removal passed against the appellant. The Division Bench of the High Court held that the order and judgement of the learned single judge was erroneous. The order passed by the single judge was set aside and writ petition was dismissed. Legal Issues:

  1. Whether the proceedings of the Board was vitiated on account of participation of Disciplinary Authority while deciding the appeal preferred by the appellant?
  2. Whether an authority can sit in appeal against its own order passed in capacity of Disciplinary Authority? Contentions by Appellant (Amar Nath Chowdhury)
  1. The Chairman-cum-Managing Director of Braithwaite and Company, was disqualified to have presided over and participated in the deliberation of the meeting of Board, which heard and dismissed appeal.
  2. The order of Appellant authority was vitiated on account of legal bias.
  3. When an authority has earlier decided and prejudged the matter, he is disqualified to sit in appeal against his own decision, as such as appeal would be an appeal from Caesar to Caesar and filling of an appeal would be an exercise in futility. Contentions by Respondent (Braithwaite & Co)
  4. The Chairman-cum-Managing Director of Braithwaite and Company, had presided over and participated due to ‘Doctrine of necessity’.
  5. The Rule against Biasness is not available, when under the regulations framed by the Company, the Disciplinary Authority, who happens to be Chairman-cum-Managing Director was required to preside over the meeting of Board.

Observation of the Court: What the Court is concerned with in the present case, is whether an authority can sit in appeal against its own order passed in the capacity of Disciplinary Authority. In Financial Commissioner (Taxation) Punjab and others vs. Harbhajan Singh – 1996 (9) SCC 281, it was held that the Settlement Officer has no jurisdiction to sit over the order passed by him as an Appellate Authority. In the present case, the subject-matter of appeal before the Board was whether the order of removal passed by the Disciplinary Authority was in conformity with law. It is not disputed that Shri S. Krishnaswami, the then Chairman-cum-Managing Director of the Company acted as a Disciplinary Authority as well as an Appellate Authority when he presided over and participated in the deliberations of the meeting of the Board while deciding the appeal of the appellant. Such a dual function is not permissible on account of established rule against bias. In a situation where such a dual function is discharged by one and the same authority, unless permitted by an act of legislation or statutory provision, the same would be contrary to rule against bias. In that view of the matter, in the present case, fair play demanded that Shri Krishnaswmai, the then Chairman-cum-Managing Director of the Company ought not to have participated in the deliberations of the meeting of the Board when the Board heard and decided the appeal of the appellant. Learned counsel appearing for the respondent, however, pressed into service the “Doctrine of Necessity’ in support of his contention. He contended that the rule against bias is not available when, under the regulations framed by the Company, the Disciplinary Authority who happened to be Chairman-cum-Managing Director of the Company was required to preside over the meeting of the Board and, therefore, the then Chairman-cum-Managing Director of the Company was not disqualified to preside over and participate in the meeting of the Board which dismissed the appeal of the appellant. the Court found no merit in the argument. Rule 3 (d) of the Company’s Conduct, Discipline and Appeal Rules (in short ’CDAR’) defines ’Board’ in the following terms: “Board means the proprietors of the Company and includes, in relation to exercise of powers, any committee of the Board/Management or any Officer of the Company to whom the Board delegates any of its powers.” In view of the aforesaid definition of the expression ’Board’, the Board could have constituted a committee of the Board/Management or any officers of the Company by excluding Chairman-cum-Managing Director of the Company and delegated any of its power, including the appellate power, to the such a committee to eliminate any allegation of bias against such an appellate authority. It is, therefore, not correct to contend that rule against bias is not available in the present case in view of the ’doctrine of necessity’. The Court was, therefore, of the view that reliance of the doctrine of necessity in the present case is totally misplaced. Decision of Supreme Court