2006 Supreme(Bom) 1157
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
(NAGPUR BENCH)
R.M.S. KHANDEPARKAR & S.R. DONGAONKAR, JJ.
The Divisional Controller, MSRTC, Buldhana- Appellant
Versus
Pramod Onkarrao Deshmukh- Respondent
Letters Patent Appeal No.168 of 1995 (Arising out of judgment dated 20/6/1995 in W.P.
No.1732/1995)
Decided on 26th July, 2006.
Advocates appeared
Mr. S. N. GAIKWAD, Adv. holding for V.G. WANKHEDE, Advocate for the Appellant.
Mr. R. B. KHAN, Adv. holding for Mr. B. M. KHAN, Advocate for the Respondent.
The responsibility of employees in fiduciary capacity, loss of confidence in the employee, and the proportionality of punishment are key legal principles established in the judgment.
Headnote:
Misappropriation - Employment Dismissal - Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 - [2000(11) CLR 568, 2001(88) FLR 912, (2005)2 SCC 481, (2003)3 SCC 605, (2006)2 SCC 255] - The court discussed the misconduct of the respondent, the fairness of the inquiry, and the proportionality of the punishment imposed by the management. Key legal provisions such as the responsibility of employees in fiduciary capacity, loss of confidence in the employee, and the proportionality of punishment were highlighted and influenced the court's decision to set aside the order of dismissal and confirm the order passed by the Labour Court.
Fact of the Case:
The respondent was dismissed from employment for misappropriating ticket fare from passengers without issuing tickets. The Industrial Court set aside the dismissal and directed reinstatement without back wages, which was challenged in the present appeal.
Finding of the Court:
The court found that the punishment of dismissal was not shockingly disproportionate to the proved misconduct and confirmed the order passed by the Labour Court, setting aside the Industrial Court's decision.
Issues: The main issue was whether the Industrial Court was justified in interfering with the punishment of dismissal imposed by the Corporation on the proved facts of misconduct on the part of the respondent.
Ratio Decidendi: The court held that the punishment of dismissal should not be interfered with unless found shockingly disproportionate to the proved misconduct. The misconduct related to misappropriation of money, resulting in loss of confidence in the employee, justifying the dismissal.
Final Decision: The appeal was allowed, setting aside the orders of the Industrial Court and the learned Single Judge, and confirming the order passed by the Labour Court. Stay was granted for a period of eight weeks.
2. The learned Advocate for the appellant, placing reliance on the decisions of the Apex Court in the cases of Janatha Bazar, etc. V s. Secretary Sahakari Noukarana Sangha etc. - 2000(11) CLR 568; Karnataka State Road Transport Corporation Vs. B.S. Hullikatti - 2001(88) FLR 912; Bharat Heavy Electricals Ltd. Vs. M. Chandrasekhar Reddy & others - (2005)2 SCC 481; Regional Manager, U. P. STRTC, Etawath & others Vs. Hoti Lal & another - (2003)3 SCC 605 and T.N.C.S. Corpn. Ltd. & others Vs. K. Meerabai, (2006)2 SCC 255, has submitted that the inquiry conducted in the matter having been found to be just and fair, there was no occasion for the Industrial Court to interfere in the punishment imposed by the management.
He further submitted that the quantum of punishment is always a discretion of the management and unless it is found to be shockingly disproportionate to the nature of misconduct established, the Industrial Court could not have interfered with the punishment imposed by the Corporation. In the case in hand, according to the learned Advocate for the appellant, the misappropriation clearly disclosed the misconduct of serious nature on the part of the respondent-Conductor, and that having been established, he had lost confidence of the management, and therefore, the order of dismissal of the respondent from the service could not have been interfered with and the punishment could have not been held to be shockingly disproportionate to the proved misconduct.
3. On the other hand, the learned Advocate appearing for the respondent, placing reliance on the decisions of the Apex Court in the cases of Scooters India Ltd., Lucknow Vs. Labour Court, Lucknow & others - 1989 SCC (L & S) 180; Colour-Chern Ltd. Vs. A.L. Alaspurkar & others - 1998(1) CLR 638 : [1998(2) ALL MR 73 (S.C.)] and of the Division Bench of this Court in Vikas Textiles Vs. Sarva Shramik Sangh - 1991(11) L.L.J. 451, has submitted that in absence of proper evidence regarding the stage at which the tickets were required to be issued, merely because the fare charges were collected, in absence of evidence of the time and alighting the bus and as to where the passengers had alighted the bus, was produced and