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2026 Supreme(Mad) 563

IN THE HIGH COURT OF JUDICATURE AT MADRAS
D. Bharatha Chakravarthy, J.
A.Kannan - Petitioner
Versus
The Managing Director, M/s.Pondicherry Institute of Medical Sciences - Respondent
W.P.No.35138 of 2019
Decided On : 20-01-2026

Advocates Appeared:
For the Petitioner: Mr.P.R.Thiruneelankandan
For the Respondent: Mr.L.Sathish

An employee's dismissal must adhere to principles of natural justice and procedural fairness, with any breach rendering the dismissal legally unsustainable.

Headnote:(A) Constitution of India - Article 226 - Industrial Disputes Act, 1947 - The case revolves around a petition challenging the dismissal of an employee on grounds of misconduct involving receiving illegal gratification during a medical procedure. The employee’s conviction is linked to principles of natural justice and fair inquiry procedures. (Paras 1, 15, 18, 20)

(B) Legal Standards - The court scrutinizes the legitimacy of preliminary and final awards issued by the Labour Court, finding procedural shortcomings in handling of the domestic enquiry while emphasizing the necessity to furnish enquiry reports and uphold service rules fundamentally rooted in fairness to the employee. (Paras 12, 15, 16)

Facts of the case:
The petitioner, an Anesthesia Technician, faced allegations of illegally charging a patient for medication and, after an internal investigation, was dismissed. He contended that the dismissal was a result of coercive admissions and victimization rather than actual misconduct. (Paras 2-8)

Findings of Court:
The court found that the Labour Court’s proceedings were flawed, highlighting the necessity of following established legal standards for a fair inquiry. It deemed previous findings unsustainable, asserting procedural violations with respect to the principles of natural justice. (Paras 15-18)

Issues: Key issues include the legitimacy of the disciplinary inquiry, whether the preliminary award infringed upon legal due process, and entitlement to relief based on established misconduct. (Paras 12-19)

Ratio Decidendi: The court concluded that the failure to provide the petitioner with the enquiry report presented a significant breach of fair process, rendering both the preliminary and final awards invalid, while emphasizing that previous misconduct admissions did not preclude the necessity for a fair inquiry. (Paras 15-20)

Result: Writ Petition partly allowed; awards set aside; compensation of Rs.3,22,530/- ordered instead of reinstatement.

Table of Content
1. observations regarding procedural compliance and natural justice. (Para 1 , 7 , 12 , 15)
2. employee's allegations of misconduct leading to dismissal. (Para 2 , 3 , 4 , 5 , 6 , 8)
3. arguments presented by both parties regarding fairness. (Para 10 , 11)
4. conclusions regarding compensation rather than reinstatement. (Para 19 , 20)
5. final decision regarding the dismissal and compensation ordered. (Para 21)

ORDER :

D. Bharatha Chakravarthy, J.

This Writ Petition is filed with a prayer to call for the records pertaining to the impugned award dated 28.09.2017, made in ID(L).No.43 of 2014, on the file of the Industrial Tribunal-cum-Labour Court, Puducherry, to set aside the same and, consequently, to direct the respondent to reinstate the petitioner in his services with full back-wages, continuity of services, and all other attendant benefits.

2. The brief facts leading to the filing of this Writ Petition are that the petitioner was appointed in the respondent’s management on a contract basis with effect from 14.10.2010. After completion of probation, he was confirmed as a permanent workman with the designation ‘Anesthesia Technician’ with effect from 17.09.2012. On 05.01.2014, one Guna submitted a complaint to the management that her mother, namely, Pichaiyammal, aged 69 years, who was suffering from depression, had been admitted to the respondent hospital. On 03.02.2014, when she was taken to the Operation Theater for administering E.C.T., the workman present there enquired of them as to when she had been given E.C.T. treatment on the previous occasion and how much they had spent on the medicines. Thereafter, he informed that he had taken the medicine from the Theater itself and administered it to the patient, and therefore demanded a sum of Rs.300/- towards the same. On the same day evening, he came to the ward and collected the said sum of Rs.300/- from the complainant. The complainant became suspicious and, after enquiring with the physician, she made the complaint.

3. It is alleged that during a preliminary enquiry, the petitioner/workman admitted the same and made an endorsement on the reverse of the said complaint. The endorsement states that the workman, Kannan, admits that he received a sum of Rs.300/- from the complainant, the daughter of the patient. It further states that the amount was for E.C.T. medicines. He himself took the medicines from the Operation Theater stock, used the same, and admits the mistake. The complainant was also present at the enquiry, identified the workman, and reiterated the said fact. An endorsement was also obtained from her on the reverse of the complaint on 05.12.2014. The preliminary enquiry report also contains the signatures of the Head of the Anesthesia Department and three other officials.

4. Thereafter, on 15.02.2014, a charge memorandum was issued to the petitioner containing the following charge:-

“That you have illegally collected Rs.300/- from Ms. A. Guna, D/o.Patient Pitchaiyammal, P.I.M.S No.941906 for undergoing ECT procedure in the O.T on 03/02/2014 alleging that the amount was towards the cost of the medicines used for the procedure.

That the patient has given a complaint, dated 05/01/2014 and that during the preliminary investigation held on 05/02/2014 at 3.00 P.M you had accepted the fact that you had illegally received Rs.300/- from the complainant and you are also identified by Ms. A. Guna in the presence of the Addl. Medical Superintendent, Nursing Superintendent, Personal Manager & HOD-Department of Anaesthesia.

That the act committed by you amounts to serious misconduct involving fraud and dishonesty in connection with treatment of patient (Clause 17.2) of the Service Rules and you have not only cheated the patient but also adversely affected the reputation of the Institution.”

5. The petitioner submitted an explanation on 17.02.2014 stating that he obtained the money on account of his family circumstances and that he will not repeat the mistake. The relevant p

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