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2025 Supreme(Jhk) 1198

IN THE HIGH COURT OF JHARKHAND AT RANCHI 
SANJAY PRASAD, J.
Jharkhand Gramin Bank - Appellant 
Versus
Concerned Workman Mr. Awinash Kumar Sinha, S/o Late Lala Aditya Prasad - Respondent 
W.P. (L). No.3018 of 2012
Decided on : 28-04-2025

Advocates:
Advocate Appeared:
For the Appellant :Mr. Rajesh Kumar, Advocate, Mr. Amit Kumar, Advocate, Mr. Manindra Kumar Sinha, Advocate
For the Respondent:Mr. L.C.N. Sahdeo, Advocate, Mr. Shiv Kumar Sharma, Advocate

Judicial review of disciplinary action is warranted where punishment is shockingly disproportionate to the charges, emphasizing the requirement of adhering to natural justice and proportionality in sanctions.

Headnote:(A) Industrial Disputes Act, 1947 - Section 11A - Punishment of degradation in incremental scale deemed unjustified - Tribunal found that charges of misconduct were either not adequately proven or were minor mistakes rather than intentional irregularities - Court asserted that punishment must be proportionate to the misconduct - The decision of the Industrial Tribunal was upheld affirming the direction to upgrade the incremental stages and provide consequential benefits. (Paras 6, 11, 24, 49)

(B) Employment Law - Scope of judicial review in disciplinary actions - Court highlighted that disciplinary authorities have exclusive powers in fact-finding but may be reviewed for disproportionality in punishment - Emphasis on maintaining principles of natural justice throughout the process. (Paras 12, 30, 44)

Facts of the case:
The petitioner-Bank sought to quash the Tribunal's Award that deemed the degradation punishment of a clerk unjustified, asserting that the charges, stemming from supposed financial irregularities, were either unproven or insignificant. The Tribunal found the domestic enquiry to have errors and determined the punishment to be disproportionate.

Findings of Court:
The Court upheld the Tribunal's decision specifying that the charges lacked substantial evidence, and affirmed the Tribunal's conclusion that the punishment was harsh and called for modification.

Issues: Whether the charges were sufficiently proven; whether the punishment imposed by the disciplinary authority was disproportionate; and adherence to principles of natural justice during the domestic enquiry process.

Ratio Decidendi: The Tribunal's decision was upheld as it determined that the charges were either inadequately substantiated or concerned minor mistakes, emphasizing an appropriate, just, and fair approach to disciplinary proceedings.

Result: Writ petition dismissed, affirming the Tribunal's award.

Table of Content
1. factual background of the case (Para 2)
2. petitioner's arguments regarding the legality and fairness of the disciplinary action (Para 4 , 5 , 8 , 10 , 12 , 16)
3. assessment of the fairness of the disciplinary process. (Para 6 , 7)
4. court observations and findings on charges and disciplinary proceedings (Para 11 , 13 , 24 , 27 , 44)
5. requirement for articulate reasoning in judicial decisions. (Para 28 , 30 , 31)
6. analysis of disproportionate punishment and its validity (Para 34 , 38 , 43 , 47 , 49)
7. implication of non-compliance in disciplinary findings. (Para 36 , 40 , 41)
8. dismissal of writ petition (Para 51 , 52)

JUDGMENT :

SANJAY PRASAD, J.

This writ petition has been filed on behalf of the petitioner-Bank for the following reliefs:-

“(i) For the issuance of an appropriate writ/writs, order/orders, direction/directions or a writ in the nature of certiorari for quashing the Award passed by Sri Kishori Ram, Presiding Officer of the Industrial Tribunal No.2 at Dhanbad in Reference No.12 of 2006 dated 19.01.2012 whereby and wherein the punishment of degradation of 10 lower stage in incremental scale from 15.10.2001 passed by the Chairman and Disciplinary Authority to Respondent No.1 Sri Awinash Kumar Sinha Staff/Clerk-Cashier was held to be unjustified and directed the Management of the Bank to upgrade the aforesaid 10 lower stages in incremental scale with all consequential benefits.

(ii) For the issuance of a further appropriate writ, order or direction to quash the notification of Award by Govt. of India/Bharat Sarkar, Ministry of Labour/Shram Mantralaya, New Delhi dated 09.02.2012 whereby and wherein the Award of Reference No.12 of 2006 of the Central Govt. Industrial Tribunal Cum Labour Court No.2, Dhanbad in the Industrial Dispute between the management of Giridih Kshetriya Gramin Bank and their workmen was published and also for other ancillary reliefs.”

2. The case of the petitioner-Bank, in brief, is that the Respondent No.1 was employed as a Clerk-cum-Cashier at Jamua Branch of the erstwhile Giridih Kshetriya Gramin Bank from 08.03.1995 to 07.06.1996. The Respondent No.1 is alleged to have committed lapses irregularities and misconduct during the said period. He was issued a Charge sheet No.HO: IR:0073/97-98 dated 09.05.1997 served to the Respondent No.1 by the erstwhile Giridih Kshetriya Gramin Bank. Thereafter charge sheet were served upon him on 16.05.1997 for conducting irregularity on 10.08.1995 for sanctioning a loan of Rs.7500/- in the name of fictitious person Gokul Rana from then Manager of the Bank for committing misconduct on 20.11.1995 for posting two Debit Vouchers of Rs.5600/- cash and Rs.211.95 in his Account No.680 and causing loss of Rs.30/- for receiving payment of Rs.70/- on 22.11.1995 against withdrawal form dated 22.11.1995 and for not attending the duties on several dates in the year 1995.

3. Heard learned counsel for the petitioner and learned counsel for the State.

4. It is submitted that the impugned Award passed by the learned Presiding Officer of the Industrial Tribunal No.2, Dhanbad is illegal, arbitrary and not sustainable in the eye of law. It is submitted that the enquiry was fairly and properly conducted against the Respondent-Workman and the Disciplinary Authority, after considering the Enquiry Report and also considering the charges stand proved against the petitioner, had imposed the penalty of degradation of ten (10) incremental stage by taking lenient view instead of terminating the Respondent-Workman from the services. It is submitted that the scope of Domestic Enquiry is limited and the Tribunal cannot examine evidence led during Domestic Enquiry and cannot arrive at its own conclusion by merely stating that the enquiry was not bona fide and there was basic error of fact. The learned Tribunal was in error in passing the Award in favour of the Respondent-Workman because the Domestic Enquiry was not conducted in violation of principles of natural justice.

5. It is su

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