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408.LPA.141.2011.DOC

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

CIVIL APPELLATE JURISDICTION

LETTERS PATENT APPEAL NO.141 OF 2011

Maharashtra State Financial Corporation,

a Corporation established under the

State Financial Corporation Act,

having its Head office at

New Excelsior Building, 9^th floor,

Amrit Keshav Nayak Marg, Fort,

Mumbai-400 001. Appellant

versus

Nimba Jagannath Tamboli,

M-32, N-5/24/7,

Swami Vivekanand Nagar, New CIDCO,

Nashik-422 009. Respondent

_______

Ms.Tanaya Patankar i/by Ms.NutanPatankar for Appellant.

Mr.Vijay P.Vaidya with Mr.Mahendra Agvekar, Ms.Shraddha Chavan for the

Respondent.

_______

CORAM: G. S. KULKARNI &

AARTI SATHE, JJ.

Date of Reserving the Judgment : 11^th December 2025

Date of Pronouncing the Judgment : 24^th December 2025

JUDGMENT (Per : Aarti Sathe, J.) :-

1. This Letters Patent Appeal is directed against the judgment and order

dated 1^st March, 2011 (hereinafter referred to as `the impugned order’) passed by

the learned Single Judge in Writ Petition No. 5752 of 1999 dismissing the Writ

Petition filed by the Appellant Corporation (Original Petitioner), thereby

Digitally signed by

MANISH MANISH

SURESHRAO S THUR ATE TS EHRAO

THATTE Date: 2025.12.24

19:18:06 +0530 upholding the order passed by the Industrial Court on 2^nd September, 1999 in

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Manish Thatte

408.LPA.141.2011.DOC

Revision Application (ULP) No. 152 of 1997 thereby confirming the order passed

by the Labour Court in Complaint ULP No. 145 of 1990 which orders

reinstatement of the Respondent as the Respondent on being honourably acquitted

by the Sessions Court.

2. Briefly the facts are:-

i. The Appellant Corporation is incorporated under the State Financial

Corporations Act, 1951 and is engaged in financing small scale industries in the

state of Maharashtra. The service conditions of the employees of the Appellant

Corporation are governed by the Bombay State Financial Corporation (Staff)

Regulations, 1954 (hereinafter referred to as the Staff Regulations), which are

framed under the State Financial Corporations Act, 1951 with the prior approval

and sanction of the Reserve Bank of India;

ii. A criminal case No 298 of 1977 was registered against the

Respondent under Section 497 of the Indian Penal Code, 1860 before the Judicial

Magistrate First Class (JMFC) Nandurbar;

iii. On 1^st September 1983, the Respondent’s employment was

confirmed on the post of a clerk in the Appellant Corporation. It was the

Appellant’s case that at the time of appointment, the Respondent did not disclose

to the Appellant that a criminal case was pending against him;

iv. On 31^st March 1987, JMFC, Nandurbar passed an order convicting

the Respondent under Section 497 of the Indian Penal Code, 1860, and accorded

him a punishment of 6 months rigorous imprisonment and a fine in regard to

which the Appellant became aware of this only through newspaper articles

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Manish Thatte

408.LPA.141.2011.DOC

published and the Appellant was not informed of such conviction;

v. On 5^th April 1989, the Appellant taking recourse to Regulation 39 of

the Staff Regulations applicable to the Respondent’s employment, the Appellant

terminated the services of the Respondent. Under such regulation, the Appellant

is authorized to dismiss an employee who has been convicted of any offence

involving moral turpitude;

vi. On 4^th May 1989, the Respondent preferred a departmental appeal

under the provisions of the Staff Regulations assailing his dismissal. On 14^th May

1990 the departmental appeal preferred by the Respondent was decided. In such

order passed by the Appellant authority, it was categorically held as also informed

to the Respondent that as and when the Respondent is acquitted honourably, it

would be open for him to ask for reinstatement in service;

vii. Assailing such order of the appellate authority and the termination,

on 7^th August 1990, the Respondent filed Complaint (ULP) No. 145 of 1990

against the Appellant alleging unfair labour practice under Item 1(a) to 1(g) of

Schedule-IV of the Maharashtra Recognition