JUDGMENT

S. Saghir Ahmad, J.-Leave granted.

The respondent, K.G. Sangameswaran, who was employed with the appellant as an Accountant, was dismissed from service by order dated 5.7.1994. This order was passed for serious misconduct, including misappropriation on the part of and by the respondent during the period 1986-87 to 1992-93, for which criminal proceedings were also initiated against him.

2. This order was challenged by the respondent before the Appellate Authority under Section 41(2) of the Tamil Nadu Shops & Establishments Act, 1947 (for short, the Act ). The Appellate Authority, by its judgment dated 12.2.1996, allowed the appeal, set aside the order of dismissal and directed reinstatement of the respondent with full back-wages. It is against this judgment that the present appeal has been filed.

3. The order of dismissal by the appellant was set aside by the Appellate Authority (Respondent No. 2), principally on the ground that the order being an order of dismissal, could not have been passed under Section 41(1) of the Act without first holding a domestic enquiry into the allegations made against him.

4. The appellant, in their written statement filed before the Appellate Auth