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IN THE HIGH COURT OF DELHI AT NEW DELHI
REKHA PALLI, J.
State Bank of India - Appellant
Versus
V.K. Bakshi - Respondent
Writ Petition (Civil) No. 1903 of 2018
Decided On : 18-09-2019
Labour Court - Industrial Disputes Act - Section 11-A - Provisions of Disciplinary Proceedings Settlement - [FACT OF THE CASE] The respondent, an employee of the petitioner bank, was dismissed from service for various charges including non-payment of credit card dues, issuing cheques without sufficient funds, and raising loans without approval. The Labour Court reduced the penalty from dismissal to stoppage of three increments with cumulative effect, considering the financial circumstances and unblemished service record of the respondent. [FINDING OF THE COURT] The Labour Court found that the respondent's actions did not amount to misconduct involving moral turpitude and therefore reduced the penalty imposed by the employer. [ISSUES] The main issue was whether the Labour Court was justified in invoking its discretionary power under Section 11-A of the Industrial Disputes Act. [RATIO DECIDENDI] The court held that Section 11-A confers wide powers upon the Labour Court to interfere in appropriate instances where the penalty imposed by the employer upon a workman is unjustified or arbitrary. [FINAL DECISION] The writ petition was dismissed, and the Labour Court's decision to reduce the penalty was upheld.
JUDGMENT :
REKHA PALLI, J.
1. The present writ petition under Article 226 of the Constitution of India assails the Award dated 04.05.2017 passed by the learned Central Government Industrial Tribunal cum Labour Court No.1 Karkardooma Court, Delhi, in ID No.26/2011 whereunder the learned Labour Court has, after coming to the conclusion that the respondent was guilty of Charges levelled against him, held that the punishment of dismissal from service imposed on the respondent by the petitioner/bank, was very grave and disproportionate as neither of these charges related to any moral turpitude on his part. The Labour Court has, accordingly, substituted the penalty of removal from service by reducing the same to stoppage of three increments with cumulative effect.
2. The case of the respondent/workman was that he was posted as a Senior Assistant in the petitioner/Bank. On 27.03.2006, the petitioner Management served him with a chargesheet setting out the following charges:-
"1. SBI Cards & payment Services Pvt. Ltd. have advised that you have not made the payment against the SBI Credit Cared No.0004006661011723314 since January 2004 despite various communications from them and by Zonal Office/branch. The present outstandings there against are Rs.28,181.35.
2. You have issued undernoted cheques without maintain sufficient crediting your account which were returned with the objection "Insufficient Funds" by Shakti Nagar branch:
(i) Cheque No.572915 dated 18.01.2015 for Rs. 11,020.00 favouring Northern India Paint Colour & Varsney Co. Ltd. returned on 12.05.2005.
(ii) Cheque No.110898 dated 15.06.2005 for Rs.1466.00 favouring G.E. Countrywide. Consumers Financial Services Ltd. returned on 16.06.2005."
3. You have raised loan from Everglad Chit Funds Pvt. Ltd. without obtaining specific approval from the competent authority. In this connection, an attachment order issued on 27.09.2003 by Civil Judge, Tis Hazari, Delhi for attachment of your salary to the extent of Rs.59,495/- due to the decree holder M/s Everglad Chit Funds Pvt. Ltd. was received at out Shakti Nagar Branch. Monthly instalment of Rs.2000/- of your salary is being remitted to the court and Rs.20,000/- (Approx) have so far been appropriated.
4. You raised loan of Rs.50,000/- from Indian National Co-op (NA)Thrift & Credit Society Ltd. Hissar on 04.07.2003 without seeking prior permission of the bank. Further, you issued an Account Payee cheque no. 403411 dated 25.09.2004 drawn of SBI, GT Karnal Road, Delhi for Rs.77,240/- in favour of the above society. Before the cheque could be presented, you closed the account. You were served with a legal notice on 13.10.2004 under section 138/141 of Negotiable Instruments Act on 01.10.2005, Hisar and Delhi Police Officials came to Shakti Nagar branch with nonbailable warrants issued by Judicial Magistrate, Hissar to arrest you and took you away at 2:00 pm.
5. The total deduction from the salary is 81.07% against the Bank's extent instructions that total deductions will not be more than 60% of the gross salary.
6. You have raised loan from undernoted Thrift & Credit Societies whereas as per extent instructions an employee cannot be member of more than one T & C Society:
(i) Bank Staff Co-op Urban SE T& C Society Ltd., Hissar.
(ii) International Co-op Non Agriculture T & C Society Ltd., Hissar.
(iii) ECBE Staff Co-op Credit Society Ltd., Meerut.
(iv) Indian National Co-op Non. Agri. T & C Society Ltd., Hissar.
(v) Bhartiay State Bank Karyakarta Co-op T& C Society Ltd., Kirti Nagar.
(vi) SBI Employees T & C Society Ltd., Ranjit Nagar, Delhi.
The aforesaid lapses, if established tantamount to "MAJOR MISCONDUCT" in terms of para 5 (e)(j) of Provisions of Disciplinary Proceedings Settlement dated 10.04.2002."
3. Although the respondent denied these charges in the departmental inquiry which was conducted against him by the petitioner management, all the charges were proved against him consequently leading to his dismissal from service on 03.05.2007. Aggrieved b
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