Case Note & Summary
The petitioner, Pralhad Waman Lahane, was employed as a Banking Inspector at the Jalna District Central Co-operative Bank Ltd. He joined as a Clerk on 20/05/1985 and was dismissed from service on 23/03/2009 after a domestic enquiry found him guilty of misappropriation of Rs.13,76,298. He challenged the dismissal by filing Complaint (ULP) No.1/2011 before the Labour Court, which dismissed the complaint on 20/03/2012. He then filed Revision (ULP) No.38/2012 before the Industrial Court, which was dismissed on 06/09/2014. The petitioner approached the Bombay High Court by way of Writ Petition No.5426 of 2015. The main legal issue was whether the Labour Court and Industrial Court failed to frame the two mandatory preliminary issues regarding the fairness of the domestic enquiry and the findings of the Enquiry Officer. The petitioner argued that these issues were not framed, and the Industrial Court mechanically dismissed the revision without considering perversity. The respondent bank opposed the petition. The High Court, relying on its earlier judgment in MSRTC, Beed Vs. Syed Saheblal Syed Nijam, 2014(4) Mh.L.J. 687, held that the Labour Court must frame issues on the fairness of the enquiry and the findings of the Enquiry Officer. Since these issues were not framed, the proceedings were vitiated. The High Court set aside the orders of the Labour Court and Industrial Court and remanded the matter to the Labour Court for fresh consideration, directing it to frame the two preliminary issues and decide the complaint afresh. The writ petition was allowed.
Headnote
A) Service Law - Disciplinary Proceedings - Preliminary Issues - Labour Court must frame issues on (a) fairness of enquiry and (b) findings of Enquiry Officer when dismissal is based on domestic enquiry - Failure to frame such issues vitiates the proceedings - Held that the Labour Court's order dismissing complaint without framing these issues is unsustainable (Paras 3-5). B) Industrial Law - Revision - Perversity - Industrial Court must examine perversity in Labour Court's judgment while deciding revision - Mechanical dismissal without considering perversity is improper - Held that the Industrial Court failed to exercise its revisional jurisdiction properly (Paras 5-6).
Issue of Consideration
Whether the Labour Court and Industrial Court erred in not framing the two preliminary issues regarding fairness of the domestic enquiry and findings of the Enquiry Officer, and whether the Industrial Court mechanically dismissed the revision petition without considering perversity.
Final Decision
Writ Petition allowed. Impugned judgments of Labour Court dated 20/03/2012 and Industrial Court dated 06/09/2014 are set aside. The matter is remanded to the Labour Court for fresh consideration. The Labour Court shall frame the two preliminary issues regarding fairness of the domestic enquiry and findings of the Enquiry Officer and decide the complaint afresh. Rule made absolute accordingly.
Law Points
- Labour Court must frame issues on fairness of enquiry and findings of Enquiry Officer in disciplinary matters
- Industrial Court must examine perversity in revision
- Failure to frame preliminary issues vitiates proceedings


