Beaten up, electrocuted and forced to resign

Feb 13 2013, 15:27 IST
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Beaten up, electrocuted and forced to resign. (Thinkstock) Beaten up, electrocuted and forced to resign. (Thinkstock)
SummarySC dismissed appeal of Atlas Cycle Ltd with costs, upheld Punjab and Haryana High Court’s order.

Labour court must take into account all material evidence when judging a case

The Supreme Court, while dismissing the appeal of Atlas Cycle (Haryana) Ltd with costs, upheld the Punjab and Haryana High Court’s order that directed the firm to reinstate its employee, who was allegedly beaten up, given electric shocks and forced to write his resignation letter.

In this case, Atlas Cycle (Haryana) Ltd vs Kitab Singh, the latter was charge-sheeted for committing theft. While Singh had resigned citing domestic circumstances, he had written to the Haryana chief minister complaining that he was beaten up by the management, given electric shock and forced to resign. However, these factors were not considered by the labour court on reference of dispute by the state government. On appeal, the high court passed the order of reinstatement with 25% back wages. The Supreme Court stated that since the labour court overlooked material evidence on record, the HC was justified in interfering with the finding of facts by the labour court.

The management argued that a direction for reinstatement of the workman in service was warranted, particularly when the management had completely lost confidence in the workman.

One-fourth deposit of purchase money mandatory in auctions

Dismissing the appeal of an auction purchaser in the case of CN Paramasivan vs Sunrise Plaza, the Supreme Court said that the provision for deposit of 25% of the purchase money in an auction sale under the Debt Recovery Act (DRT) is mandatory and such a relaxation cannot be given.

“The provisions of the rules requiring the deposit of 25% of the purchase-money immediately on the person being declared as a purchaser and the payment of the balance within 15 days of the sale are mandatory and upon non-compliance with these provisions there is no sale at all... in the circumstances of the present case, there was no sale and the purchasers acquired no rights at all,” the apex court said, adding that if there is a default on this, the property shall be resold immediately.

In this long, drawn-out legal battle of over two decades, the Indian Bank had advanced a loan to Sunrise Plaza, a partnership concern.

The partners of the firm had defaulted in repaying the loan, prompting the bank to move the DRT in 2001 for the recovery of the money. The property mortgaged with the bank was sold in a public auction in March 2003, which was challenged by

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