Bombay High Court Upholds Industrial Court's Order Setting Aside Penalty of Reduction in Pay with Cumulative Effect in MSRTC Driver's Disciplinary Case. Acquittal in Criminal Case Under Bombay Prohibition Act Does Not Automatically Exonerate Employee in Departmental Proceedings, But Penalty Must Be Proportionate to Misconduct.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
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Case Note & Summary

The petitioner, Maharashtra State Road Transport Corporation (MSRTC), challenged the judgment and order dated 13.7.2017 passed by the Industrial Court No.1, Kolhapur in Complaint (ULP) No.88 of 2016. The respondent, Bhupal Madhukar Pol, was employed as a driver with MSRTC. On 12.3.2015, while driving a bus on the Panji-Pune route, a surprise check was conducted by the Excise Department at 1:45 A.M. A box containing 12 bottles of liquor valued at Rs.6,400/- was found behind the driver's seat. The respondent was taken into custody and a panchnama was prepared. The Excise Department lodged a prosecution against the respondent under Section 65(E) of the Bombay Prohibition Act, 1949. The respondent was acquitted in the criminal case on 29.12.2015. Meanwhile, the respondent was suspended from service on 13.3.2015. After a preliminary enquiry, a chargesheet was issued on 9.5.2015 alleging recovery of the liquor bottles. A departmental enquiry was conducted, and the Enquiry Officer held the charges proved. The Disciplinary Authority imposed a penalty of reduction of basic pay by one stage with cumulative effect. The respondent filed a complaint before the Industrial Court challenging the penalty. The Industrial Court partly allowed the complaint, setting aside the penalty and directing reinstatement with continuity of service but without back wages. The MSRTC filed the present writ petition challenging the Industrial Court's order. The main legal issues were whether the Industrial Court was justified in interfering with the penalty and whether the acquittal in the criminal case automatically entitled the respondent to full back wages and setting aside of the penalty. The petitioner argued that the acquittal does not bar disciplinary proceedings and that the penalty was proportionate. The respondent argued that the penalty was disproportionate and that the acquittal should be considered. The court held that while acquittal in a criminal case does not automatically exonerate an employee in departmental proceedings, the penalty must be proportionate to the misconduct. The court found that the Industrial Court had correctly considered the acquittal and the evidence, and that the penalty of reduction with cumulative effect was disproportionate. The court upheld the Industrial Court's order, including the denial of back wages, as the respondent was found in possession of liquor bottles, which is a serious misconduct for a driver. The writ petition was dismissed.

Headnote

A) Service Law - Disciplinary Proceedings - Proportionality of Punishment - Possession of Liquor by Driver - The respondent, a driver with MSRTC, was found with 12 liquor bottles behind his seat during a surprise check by the Excise Department. He was acquitted in criminal case under Section 65(E) of Bombay Prohibition Act, 1949. In departmental proceedings, penalty of reduction of basic pay by one stage with cumulative effect was imposed. Industrial Court partly allowed complaint, setting aside the penalty and directing reinstatement with continuity but without back wages. Held that acquittal in criminal case does not automatically exonerate employee in departmental proceedings, but the penalty must be proportionate to the misconduct. The Industrial Court's order was upheld, as the penalty of reduction with cumulative effect was disproportionate. (Paras 1-16)

B) Service Law - Acquittal in Criminal Case - Effect on Departmental Proceedings - Standard of Proof - The respondent was acquitted in criminal case under Section 65(E) of Bombay Prohibition Act, 1949. The petitioner argued that acquittal does not bar disciplinary proceedings. Held that while acquittal is not binding on disciplinary authority, the fact of acquittal and the evidence in criminal case can be considered. In this case, the Industrial Court considered the acquittal and found that the penalty was disproportionate. (Paras 5-10)

C) Service Law - Back Wages - Denial of Back Wages - The Industrial Court directed reinstatement with continuity of service but without back wages. Held that denial of back wages was justified as the respondent was found in possession of liquor bottles, which is a serious misconduct for a driver. (Para 15)

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Issue of Consideration

Whether the Industrial Court was justified in interfering with the penalty of reduction of basic pay by one stage with cumulative effect imposed on the respondent-driver for possession of liquor bottles in the bus, and whether the acquittal in criminal case automatically entitles the employee to full back wages and setting aside of the penalty.

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Final Decision

The writ petition is dismissed. The Industrial Court's order dated 13.7.2017 is upheld. The respondent is entitled to reinstatement with continuity of service but without back wages.

Law Points

  • Proportionality of punishment
  • Acquittal in criminal case not binding on disciplinary proceedings
  • Standard of proof in departmental proceedings
  • Section 65(E) Bombay Prohibition Act
  • 1949
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Case Details

2023 LawText (BOM) (10) 173

Writ Petition No.3105 of 2018

2023-10-18

Sandeep V. Marne, J.

Mr. Yashodeep Deshmukh a/w Ms. Vaidehi Pradeep, Ms. Ameya Tawde for Petitioner; Mr. Kush Lahankar i/by Mr. S.R. Ganbavale for Respondent No.1

Maharashtra State Road Transport Corporation

Bhupal Madhukar Pol

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Nature of Litigation

Writ petition challenging Industrial Court order setting aside penalty of reduction of basic pay with cumulative effect imposed on a driver for possession of liquor bottles.

Remedy Sought

Petitioner (MSRTC) sought to quash and set aside the Industrial Court's order dated 13.7.2017 which partly allowed the respondent's complaint and set aside the penalty.

Filing Reason

The petitioner challenged the Industrial Court's order on the ground that the acquittal in criminal case does not bar disciplinary proceedings and that the penalty was proportionate.

Previous Decisions

Industrial Court partly allowed complaint (ULP) No.88 of 2016 on 13.7.2017, setting aside penalty of reduction of basic pay by one stage with cumulative effect, directing reinstatement with continuity but without back wages.

Issues

Whether the Industrial Court was justified in interfering with the penalty of reduction of basic pay by one stage with cumulative effect imposed on the respondent-driver. Whether the acquittal in criminal case under Section 65(E) of Bombay Prohibition Act, 1949 automatically entitles the employee to full back wages and setting aside of the penalty.

Submissions/Arguments

Petitioner argued that acquittal in criminal case does not bar disciplinary proceedings and that the penalty of reduction with cumulative effect was proportionate to the misconduct of possessing liquor bottles while on duty as a driver. Respondent argued that the penalty was disproportionate and that the Industrial Court correctly considered the acquittal and set aside the penalty, but denial of back wages was justified.

Ratio Decidendi

Acquittal in criminal case does not automatically exonerate an employee in departmental proceedings, but the penalty must be proportionate to the misconduct. The Industrial Court correctly considered the acquittal and found the penalty of reduction with cumulative effect disproportionate. Denial of back wages was justified as the respondent was found in possession of liquor bottles, which is a serious misconduct for a driver.

Judgment Excerpts

This writ petition filed by Maharashtra State Road Transport Corporation challenging Judgment and Order dated 13.7.2017 passed by Industrial Court No.1 Kolhapur in complaint (ULP) No.88 of 2016. The Industrial Court has partly allowed the complaint filed by Respondent challenging Order dated 12.07.2016 by which penalty of reduction of basic pay by one stage with cumulative effect is imposed on him. The Excise Department lodged prosecution against Respondent under Section 65(E) of the Bombay Prohibition Act, 1949. In that criminal case, Respondent came to be acquitted on 29.12.2015.

Procedural History

On 12.3.2015, respondent was found with liquor bottles during surprise check. Suspended on 13.3.2015. Chargesheet issued on 9.5.2015. Departmental enquiry held, charges proved. Disciplinary Authority imposed penalty of reduction of basic pay by one stage with cumulative effect on 12.7.2016. Respondent filed complaint (ULP) No.88 of 2016 before Industrial Court, Kolhapur. Industrial Court partly allowed complaint on 13.7.2017, setting aside penalty and directing reinstatement with continuity but without back wages. MSRTC filed Writ Petition No.3105 of 2018 before Bombay High Court. High Court dismissed writ petition on 18.10.2023.

Acts & Sections

  • Bombay Prohibition Act, 1949: Section 65(E)
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