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2026 Supreme(Online)(Kar) 8726

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
D K Singh, T.M. Nadaf, JJ
THE GENERAL MANAGER – Appellant
Versus
THE PRESIDENT – Respondent
WRIT PETITION NO. 12904 OF 2020 (L-RES)



Advocates:
For the Appellants/Petitioners: T.P. Muthanna
For the Respondents: Kuttappa B.D.

Gross delay and laches in raising an industrial dispute can be grounds for dismissing the reference, and an employer cannot be penalized for the destruction of records after a significant period of inaction by the employee.

Headnote:The petition involves the Industrial Dispute Act, 1947, specifically Section 10, regarding the dismissal of an employee for gross misfeasance. The employee was dismissed in 1996 following a domestic inquiry into charges of unauthorized issuance of drafts and cheques. After a delay of ten years, the employee raised an industrial dispute, and the CGIT set aside the dismissal and awarded 50% back wages, primarily because the bank could not produce the inquiry records. The central issue is whether the CGIT erred in setting aside the punishment order despite the gross delay and laches of the workman in approaching the tribunal. The court reasoned that an employer cannot be expected to preserve records indefinitely when no legal challenge is pending, and the CGIT's failure to account for the ten-year delay rendered the award untenable. The Writ Petition stands allowed However, without costs.

THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO CALL FOR THE ENTIRE RECORDS LEADING TO PASSING OF THE AWARD DATED: 26.11.2019 IN CR.NO.51/2007 PASSED BY CGIT-CUM- LABOUR COURT, BENGALURU AND ISSUE A WRIT OF CERTIORARI, BY QUASHING THE AWARD DATED:26.11.2019 IN CR.NO.51/2007 PASSED BY THE LD. CGIT CUM LABOUR COURT, BANGALORE, ANNEXURE-'A' TO THE WRIT PETITION AND ETC.

THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE D K SINGH and HON'BLE MR. JUSTICE T.M.NADAF

ORAL ORDER

(PER: HON'BLE MR. JUSTICE D K SINGH)

The present Writ Petition has been filed impugning the order dated 26.11.2019 passed by the Central Government Industrial Tribunal-cum-Labour Court, Bengaluru (for short 'the CGIT') in CR 51/2007.

The Central Government vide order dated 07.03.2007 in exercise of the powers conferred by Clause (d) of Sub-Section (1) and Sub-Section 2(A) of Section 10 of the Industrial Dispute Act, 1947 (for short 'the Act'), referred the following dispute for adjudication:

"Whether the action of management of State Bank of Mysore in imposing the punishment of dismissal from the services on Shri C.Krishna Murthy, Ex-Daftary, State Bank of Mysore, J.S.S. College Branch, Mysore w.e.f. 05.09.1996 is legal and justified? If not, to what relief the workman is entitled and from which date?"

The respondent joined the service of the State Bank of Mysore in the year 1983 as Peon in Ponnampet branch. The State Bank of Mysore has got merged with State Bank of India in 2017.

The respondent faced the domestic inquiry in respect of the following charges:

"CHARGE I : You are alleged to have surreptitiously removed a draft leaf bearing No.TT/82/039276 from the draft book of our Krishnamurthypuram Branch and unauthorisedly wrote the draft for Rs.7,000.00 mentioning the date as 19-5-90 in favour of Smt.H.Suma drawn on our T.Narasipur Branch without the Bank's receiving any consideration. The signature of the drawing official differs with his specimen available on record. The draft was encashed at our T.Narasipur Branch on 21-5-90 causing financial loss to the Bank.

CHARGE II : You are alleged to have surreptitiously removed a draft leaf bearing No.OL/83/358945 from the draft book of our Krishnamurthypuram Branch and wrote the draft for Rs.24,000.00 mentioning the date as 21.7.90 in favour of Smt.Bhagyamma drawn on our A.D.B., Sugar Town, Mandya without the Bank's receiving any consideration. The signature of the drawing official differs with his specimen available on record. The draft was encashed at our A.D.B., Sugar Town, Mandya through the savings bank account of Smt.Bhagyamma maintained at our Guthalu Branch, Mandya, thus causing financial loss to the Bank.

CHARGE III : You are alleged to have raised a loan of Rs.10,728.00 from M/s.Manipal Finance Corporation, Mysore on 13th November, 1990 for purchase of Videocon T.V. without obtaining permission from the Bank. You are further alleged to have surreptitiously removed a cheque book bearing No.426961-426970 of our Krishnamurthypuram Branch, Mysore and have issued the cheques to the said Manipal Finance Corporation, Mysore giving the account No.5087 of Dr.J.M.Raman in repayment of the said loan with an intention to defraud the Manipal Finance Corporation, Mysore and brining discredit to the image of the Bank and our account holder, Dr.J.M.Raman. the cheque bearing No.426964 which was issued by you in favour of the said Manipal Finance Corporation has been returned unpaid."

The Charge sheet was issued on 27.04.1992. The Inquiry Officer conducted the inquiry in accordance with the relevant regulations of the Bank and in due observance of the principles of natural justice. The Inquiry Officer found the charges proved against the respondent. The disciplinary authority issued a show cause notice and passed the order of punishment of dismissal from service against the respondent on 29.08.

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