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2026 Supreme(Online)(Kar) 18071

THE HIGH COURT OF KARNATAKA
Anant Ramanath Hegde, J
Zenith Textiles – Appellant
Versus
T M Lokesh – Respondent
WRIT PETITION NO. 13011 OF 2020



Advocates:
For the Appellants/Petitioners: Vasuki K N, B C Prabhakar
For the Respondents: L Muralidhar Peshwa, Maitreyi Krishnan

A Labour Court's power under Section 11A of the Industrial Disputes Act, 1947, allows for the modification of a disproportionate penalty of dismissal, but relief such as continuity of service may be denied if the claimant pursued untenable legal proceedings, contributing to unreasonable delay.

Headnote:(A) Industrial Disputes Act, 1947 - Sections 11A, 33(2)(b) and 33-A - Dismissal - Reinstatement - Disproportionate penalty - Labour Court exercised discretion under Section 11A to reinstate the workman without back wages - Employer challenged the award citing 10 years' delay and valid prior internal approval - High Court held that while the Labour Court has the power to interfere with punishment when deemed disproportionate, the delay in raising the industrial dispute caused by the pursuit of untenable legal remedies necessitated a modification regarding continuity of service - Continuity of service denied during the period the workman pursued untenable proceedings.

Facts of the case:
The respondent a former operator was dismissed for misconduct in 2006. The industrial dispute was raised after the dismissal of the respondent’s Section 33-A complaint in 2016. The Labour Court set aside the dismissal, ordered reinstatement, but denied back wages while allowing continuity of service, which the petitioner challenged.

Findings of Court:
The Labour Court’s finding on the proportionality of the punishment was upheld, confirming the dismissal was disproportionate. However, the High Court modified the award to deny continuity of service for the period the respondent spent pursuing an untenable legal complaint.

Issues: Whether the labour court was justified in interfering with the penalty of dismissal under Section 11A and whether the delay in raising the dispute was justified.

Ratio Decidendi: While Labour Courts enjoy the power under Section 11A to mitigate disproportionate penalties, this power must be balanced with considerations of delay and the legitimacy of the legal proceedings previously engaged by the parties to justify the relief of continuity of service.

Result: Writ Petition allowed in part.

Table of Content
1. summary of facts leading to the termination and subsequent procedural history. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12)
2. listing of case laws relied upon by both parties. (Para 13 , 14 , 15 , 16)
3. court's analysis of the fairness of the enquiry and proportionality of the penalty. (Para 17 , 18 , 19 , 20 , 21 , 22)
4. discussion on delay and laches in raising the industrial dispute. (Para 23 , 24 , 25 , 26 , 27)
5. application of section 11a in mitigating the punishment of dismissal. (Para 28 , 29 , 30 , 31 , 32 , 33)
6. final order granting partial relief by limiting continuity of service. (Para 34 , 35 , 36 , 37 , 38)

CORAM: HON'BLE MR. JUSTICE ANANT RAMANATH HEGDE

CAV ORDER

The petitioner–Company has assailed the award dated 27.01.2020 in Reference No.15/2017 on the file of the Labour Court, Mysuru, directing reinstatement of the respondent–workman, whereby the penalty of dismissal from service dated 16.11.2006 has been set aside.

2. The award also directs reinstatement without back wages and allowances from the date of dismissal till reinstatement. However, the award directs continuity of service. The respondent–workman has accepted the award. In other words, the finding on misconduct is accepted by the workman.

3. The petitioner–employer is before this Court assailing the award primarily on the premise that the dispute is raised 10 years after the date of dismissal, and the Labour Court could not have interfered with the punishment when the misconduct is established.

4. The respondent-workman joined the petitioner Company as an Operator in the year 1995. The petitioner Company issued a charge memo dated 07.04.2006 to the respondent alleging certain misconducts from 03.02.2006 to 11.02.2006.

5. The charge memo dated 07.04.2006 contains the following charges:

(a) Unauthorized absence from the workplace during working hours;

(b) Causing damage or loss to the company’s property;

(c) Deliberate slowing down of work and instigating or coercing other workmen to slow down the work;

(d) Refusal to accept the charge sheet, notices, suspension orders, warning letters, show-cause notices, or any other communications offered for service by the Company.

(e) Slowdown or enticing workmen to slow down any performance of work; and

(f) Tampering with or sabotaging the Company’s property.

6. The respondent-workman did not submit any explanation to the said charge memo. The petitioner appointed an Enquiry Officer to enquire into the charges. The respondent did not participate in the enquiry. After considering the evidence, the Enquiry Officer, vide report dated 12.07.2006, held that the charges against the respondent are proved.

7. A copy of the enquiry report was sent to the respondent along with a memo dated 16.08.2006, calling upon the respondent to submit his reply, both on the findings of the Enquiry Officer and on the proposed punishment of dismissal from service. The notice sent along with the report is said to have been returned with an endorsement ‘not claimed’. Thereafter, the petitioner-Company dismissed the respondent vide order dated 16.11.2006.

8. The petitioner-Company contends that one more dispute concerning the respondent, not connected to the misconducts alleged, was pending consideration before the Industrial Tribunal, Mysuru (Tribunal) in Reference No.111/2004. Therefore, the petitioner filed an application under Section 33(2)(b) of the Industrial Disputes Act, 1947 (“Act, 1947”) seeking approval for the penalty of dismissal, and one month’s salary was also paid to the respondent as required under Section 33(2)(b).

9. The Tribunal, by order dated 12.04.2013, allowed the said application under Section 33(2)(b) of the Act, 1947, holding that the domestic enquiry was fair and proper, and granted approval to the order of dismissal. The respondent has not challenged the said order.

10. The respondent filed a complaint under Section 33-A of the Act, 1947, alleging that the provisions of the Act,

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