Case Note & Summary
The judgment concerns two writ petitions arising from the same dispute between an employer, Shree Panchaganga Sahakari Sakar Karkhana Ltd., and an employee, Kallappa Narasappa Sangale. The employee was employed from 1.12.1969 and worked as a wireman from 16.12.1972. He was chargesheeted and dismissed after disciplinary proceedings for retaining the keys to the powerhouse without prior sanction. The employee filed Application (BIR) No.24 of 1982 before the Labour Court seeking reinstatement with continuity of service and full backwages. The Labour Court initially dismissed the application as barred by limitation. The employee appealed to the Industrial Court, which confirmed the dismissal. The employee then filed Writ Petition No.3512 of 1995 before the Bombay High Court, which set aside the orders of the Labour Court and Industrial Court and restored the application to the Labour Court, but directed that the employee would not be entitled to backwages from 7.6.1985 to 7.2.1995 due to his delay of almost 10 years in approaching the court. On remand, the Labour Court held that the employee had committed misconduct by retaining the keys, but found the punishment of dismissal too harsh and directed reinstatement with continuity of service but without backwages. Both parties appealed to the Industrial Court under Section 84 of the Bombay Industrial Relations Act. The Industrial Court dismissed both appeals on 4.10.1999 and directed that the salary deposited by the employer during the pendency of the appeal be returned. The employer filed Writ Petition No.1861 of 2000 challenging the reinstatement, and the employee filed Writ Petition No.6476 of 1999 seeking backwages. The High Court upheld the orders of the Labour Court and Industrial Court, finding no perversity in the finding of misconduct or the proportionality of the punishment. The court noted that the employee had already been reinstated and that the amount deposited by the employer had been invested as per earlier directions. The petitions were dismissed.
Headnote
A) Industrial Law - Misconduct - Proportionality of Punishment - Bombay Industrial Relations Act, 1946, Section 84 - Employee dismissed for retaining keys of powerhouse without sanction - Labour Court held misconduct proved but punishment of dismissal too harsh - Directed reinstatement with continuity of service but without backwages - Industrial Court upheld order - Held that punishment of dismissal was disproportionate to the misconduct (Paras 4-6). B) Industrial Law - Backwages - Limitation - Bombay Industrial Relations Act, 1946 - Employee delayed approaching court for 10 years - High Court in earlier writ petition directed no backwages for period from 7.6.1985 to 7.2.1995 - Labour Court on remand granted reinstatement without backwages - Held that employee not entitled to backwages due to delay (Paras 3-4).
Issue of Consideration
Whether the punishment of dismissal was disproportionate to the misconduct of retaining keys without sanction, and whether the employee is entitled to backwages.
Final Decision
Both writ petitions dismissed. Orders of Labour Court and Industrial Court upheld. Employee reinstated with continuity of service but without backwages. Amount deposited by employer to be returned to employer.
Law Points
- Proportionality of punishment
- misconduct
- reinstatement without backwages
- limitation period
- Bombay Industrial Relations Act
- 1946





