Tasmac can’t take action against workers without proper inquiry: Madras HC

CHENNAI: Tasmac should follow the principles of natural justice and conduct a proper inquiry before penalising, transferring, or terminating any worker on disciplinary grounds, directed the Madras High Court on Tuesday.

The secretary of the Tamil Nadu Tasmac Salesmen Welfare Association filed a petition before the High Court challenging a circular issued by the managing director of the Tamil Nadu State Marketing Corporation (Tasmac) on July 24.

The impugned circular prescribes penalties for overcharging customers, and provides for apportioning the penalty amount between the salesperson and supervisor under certain circumstances. It also provides for progressive disciplinary action for subsequent infractions, including temporary removal from service, punitive transfer, and other disciplinary measures.

For a third alleged instance, the circular prescribes issuing a charge memo, conducting a formal inquiry and, upon proof of the alleged misconduct, termination of service.

When the matter came up for hearing before Justice K Surender, the petitioner's counsel contended that the circular imposes punitive consequences without ensuring a reasonable opportunity of being heard to the employees concerned. The petitioner argued that the summary procedure contemplated under the circular was arbitrary, violates the principles of natural justice, and runs counter to Articles 14 and 21 of the Constitution of India.

After hearing the plea, the court observed that no punitive action can be taken against a workman without following the principles of natural justice. It directed that any disciplinary action under the impugned circular dated July 24 must comply with the relevant service rules and statutory provisions. No worker should be penalised, transferred or terminated without a fair opportunity of defence through a proper inquiry, the court instructed before disposing of the petition.

After the TVK-led government came to power, the State-run liquor corporation brought in punitive action as part of its measures to curb instances of overcharging by salesmen at its retail stores. Adopting a carrot and stick strategy, it also hiked their salaries twice.