Case Note & Summary
The appellant, Hidayatali s/o Mehaboobali Sayyed, was employed as a Bus Conductor with the Maharashtra State Road Transport Corporation (M.S.R.T.C.). On 21 July 1994, while on duty on a bus plying from Aheri to Sironcha, a checking squad intercepted the bus at Rangaiyapalli and found that 21 passengers were travelling without tickets. Enquiry revealed that the appellant had collected fare from these passengers but had not issued tickets. Consequently, a charge sheet was served, and after a departmental enquiry, the appellant was dismissed from service. The appellant then filed a complaint under Section 28 read with Item I of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971, alleging unfair labour practice. The Labour Court, by judgment dated 28 October 2003, directed reinstatement with continuity of service but without back wages. The respondent Corporation challenged this order before the Industrial Court, which set aside the Labour Court's order on 5 September 2005. The appellant then filed a writ petition before the Bombay High Court, which was dismissed by the learned Single Judge on 3 August 2010. The present Letters Patent Appeal was filed against that dismissal. The legal issue was whether the dismissal constituted an unfair labour practice and whether the Industrial Court was justified in reversing the reinstatement order. The appellant argued that the punishment was disproportionate, while the respondent contended that the misconduct was serious. The Division Bench held that the misconduct of collecting fare without issuing tickets amounts to gross dishonesty and breach of trust, and the punishment of dismissal is proportionate. The court found no perversity in the Industrial Court's order and dismissed the appeal, upholding the dismissal.
Headnote
A) Industrial Law - Unfair Labour Practice - Dismissal for Misconduct - Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971, Section 28 read with Item I of Schedule IV - The appellant, a bus conductor, was dismissed for collecting fare from 21 passengers without issuing tickets. The Labour Court ordered reinstatement without back wages, but the Industrial Court set aside that order. The High Court upheld the Industrial Court's decision, holding that the misconduct of collecting fare without issuing tickets amounts to gross dishonesty and breach of trust, and the punishment of dismissal is proportionate. (Paras 2-5) B) Industrial Law - Reinstatement - Proportionality of Punishment - The court held that when an employee is found guilty of dishonesty, the punishment of dismissal cannot be considered disproportionate. The Labour Court's order of reinstatement was set aside as the misconduct was serious and involved moral turpitude. (Para 5)
Issue of Consideration
Whether the dismissal of a bus conductor for collecting fare from 21 passengers without issuing tickets constitutes an unfair labour practice, and whether the Industrial Court was justified in setting aside the Labour Court's order of reinstatement without back wages.
Final Decision
The Letters Patent Appeal is dismissed. The judgment and order of the learned Single Judge dated 03.08.2010 upholding the Industrial Court's order dated 05.09.2005 is confirmed. The dismissal of the appellant is upheld.
Law Points
- Unfair labour practice
- Reinstatement
- Back wages
- Misconduct
- Ticketless travel
- Bus conductor
- Departmental enquiry
- Proportionality of punishment




