Case Note & Summary
The case involved a dispute between the U.P. State Road Transport Corporation and a bus conductor who was dismissed from service on charges of erasing way-bills and reselling tickets. The employee challenged his dismissal in civil court, arguing that he was not provided with carbon copies of important documents during the disciplinary enquiry, which he claimed caused him serious prejudice. The trial court dismissed his suit, and the first appellate court upheld this decision. However, the High Court allowed the employee's second appeal, concluding that the non-supply of documents had indeed prejudiced the employee's defense. The Corporation appealed to the Supreme Court, arguing that the High Court erred in interfering with the concurrent findings of the lower courts. The Supreme Court examined the case and found that the High Court had appropriately considered the implications of the missing documents and their potential impact on the enquiry's outcome. Given the lengthy litigation spanning over 25 years and the employee's age, the Supreme Court decided to award a lump sum compensation of Rs.35,000 to the employee, directing the Corporation to pay this amount without deducting income tax. The court also advised the employee to seek relief under Section 89 of the Income Tax Act for the lump sum payment. The appeal was disposed of without any order as to costs.
Headnote
A) Service Law - Disciplinary Enquiry - Non-supply of documents - Prejudice to employee - Service Law, 1961 - The High Court found that the non-supply of carbon copies of important documents during the enquiry caused serious prejudice to the employee, justifying its interference with the concurrent findings of the lower courts. Held that the employee's ability to defend himself was compromised due to the lack of access to these documents (Paras 780D-E). B) Compensation - Lump sum payment - Back wages - Service Law, 1961 - The court awarded a lump sum compensation of Rs.35,000 to the employee instead of subjecting the parties to indefinite execution proceedings, considering the long duration of litigation and the employee's age. The amount was to be paid without deducting income tax, and the employee was advised to apply for relief under Section 89 of the Income Tax Act, 1961 (Paras 780F; 781C-E).
Issue of Consideration
Whether the non-supply of carbon copies of important documents during the disciplinary enquiry caused prejudice to the employee.
Final Decision
The Supreme Court upheld the High Court's decision, awarding a lump sum compensation of Rs.35,000 to the employee and directing the Corporation to pay this amount without deducting income tax. The court also advised the employee to apply for relief under Section 89 of the Income Tax Act.
Law Points
- Service Law
- Disciplinary Enquiry
- Prejudice
- Compensation
- Income Tax Relief


