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2024 Supreme(Mad) 2755

IN THE HIGH COURT OF JUDICATURE AT MADRAS
R.Subramanian, C.Kumarappan, JJ.
The General Manager - Appellant
Versus
The Presiding Officer, Central Government Industrial Tribunal-Cum-Labour Court - Respondents
W.A.No.387 of 2024 and C.M.P.No.2582 of 2024
Decided On : 20-12-2024

Advocates Appeared:
For the Petitioner: Mr.P.Ragunathan for Mr.T.S.Gopalan & Co.
For the Respondent: Mr.Balan Haridas

The Labour Court holds the authority to modify disciplinary punishments, especially when considering mitigating factors such as long service and employee conduct, ensuring just outcomes in disciplinary matters.

Headnote:(A) Industrial Disputes Act, 1947 - Section 11(A) - Labour Court has jurisdiction to modify punishment in disciplinary matters - Employee dismissed for misappropriation; Tribunal modified punishment to compulsory retirement - No consideration of long service and mitigating factors by Disciplinary Authority. (Paras 2, 10, 12, 13)

(B) Judicial discipline - Courts must maintain a sense of justice and fairness; perverse findings not to be disturbed in normal circumstances. (Paras 11, 14)

Facts of the case:
The employee, after 30 years of service and promotion to clerk, was found guilty of misappropriating funds and dismissed. The Tribunal modified the punishment to compulsory retirement, considering the employee's age and service history.

Findings of Court:
The Tribunal's decision was justified based on the principles of justice, as the employee's prior service and circumstances were not considered by the Disciplinary Authority.

Issues: Whether the Tribunal’s modification of punishment was justified given the employee's long service and mitigating factors.

Ratio Decidendi: The court affirmed that while misconduct is serious, the assessment of punishment must include consideration of the employee's lengthy service and remorse.

Result: Writ Appeal dismissed.

Table of Content
1. background of employment and misconduct case (Para 1 , 2 , 3)
2. court's analysis on proportionality of punishment (Para 4 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14)
3. arguments regarding punishment and discretion (Para 5 , 6)
4. dismissal of writ appeal and closure of proceedings (Para 15)

JUDGMENT :

C.KUMARAPPAN, J.

The instant Writ Appeal has been filed assailing the order of the learned Single Judge dated 24.07.2023, confirming the order of the Tribunal imposing the punishment of compulsory retirement.

2.The brief facts which are necessary for the effective disposal of this appeal is that, the appellant herein was the petitioner before writ Court (hereinafter called as Management). The 2nd respondent/Labour Union is the petitioner before writ Court, who espoused the cause of the workmen one Mr.Manoharan (hereinafter called as employee). The employee joined in the respondent Bank (employer) as a Sub-Staff during 1980. After a period of 14 years, he was promoted as clerk. In the course of his employment, he was posted as Single Window Operator/Cashier at Red Hills Branch, during 2005. While he was serving there, he was served with a charge memorandum dated 09.12.2009, by and in which, he was charged for mis-appropriation of a sum of Rs.3,500/- on 12.06.2009, and a sum of Rs.13,000/- on 19.06.2008. Subsequently an enquiry was conducted and in the enquiry, the employee admitted his guilt. Based upon his admission, the employee was found guilty. After the receipt of the enquiry report, and after complying due procedure, the employee was dismissed from service vide order dated 06.08.2010.

3.After that, the 2nd respondent union raised an industrial dispute before the Central Government Industrial Tribunal cum Labour Court, Chennai. The Tribunal after having gone through the oral and documentary evidence, has concurred with the finding of the Enquiry Officer. However, modified the punishment of dismissal, to compulsory retirement. Aggrieved with such modification of punishment, the Management filed a writ petition, wherein the learned Single Judge confirmed the order of the Tribunal. Aggrieved by the same, the instant Writ Appeal has been filed.

4.We have heard Mr.Anand Gopalan, for Mr.T.S.Gopalan & Co., learned counsel appearing for the appellant, and Mr.Balan Haridas, learned counsel appearing for the 2nd respondent.

5.The learned counsel appearing for the Management would vehemently submit that, the Labour Court having concurred with the finding of the Enquiry Officer, it ought not have interfered with the punishment, as the imposition of punishment is an administrative function and would come within their exclusive domain. It is his further submission that the charge of misappropriation has been proved, and such misappropriation had to be dealt with higher degree of sensitivity, where the public at large had reposed great faith in the banking institution. To buttress his submission he relied upon the following judgments:- (i)Janatha Bazar (South Kanara Central Co- operative Wholedale Stores Ltd.,) reported in (2000) 7 SCC 517 ; (ii) State Bank of India and Another Vs. Bela Bagchi and Others reported in (2005) 7 SCC 435; (iii) State Bank of India Vs.Chaman Lal reported in 2008 SCC Online Del 736; (iv) Damoh Panna Sagar Rural Regional Bank and Another Vs. Munna Lal Jain reported in (2005) 10 SCC 84 ; (v) LIC of India Vs. R.Dhandapani reported in (2006) 13 SCC 613; (vi) Disciplinary Authority-Cum-Regional Manager Vs.Nikunja Bihari Patnaik reported in (1996) 9 SCC 69 ; (vii) Kerala Solvent Extractions Ltd., Vs.A.Unnikrishnan reported in (2006) 13 SCC 619

6.Contending contra, Mr.Balan Haridas would submit that, though the imposition of punishment would come within the administrative domain and had got discretion to impose punishment, if the Labour Court found any disproportionality of punishment, shocking it's conscience, then the Tribunal has power to interfere with the punishment under Section 11 (A) of the Industrial

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