Bombay High Court Dismisses MSRTC's Petition Challenging Industrial Court's Order Setting Aside Disproportionate Punishment. Industrial Court's Power to Interfere with Punishment Under MRTU and PULP Act Upheld — Permanent Stoppage of Increments for Outraging Modesty Found Disproportionate.

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

The Maharashtra State Road Transport Corporation (MSRTC) challenged the judgment of the Industrial Court, which had set aside the punishment of permanent stoppage of 3 increments (later reduced to 2) imposed on the respondent employee, a driver, for outraging the modesty of a lady passenger during a night journey. The employee was charge-sheeted on 06/09/2002, and after a departmental enquiry, the punishment was imposed on 12/03/2005. The first appeal reduced the punishment to permanent stoppage of 2 increments, and the second appeal was rejected on 21/02/2006. The employee then filed a complaint under the MRTU and PULP Act, 1971 before the Industrial Court, challenging the enquiry and findings. The Industrial Court initially allowed the complaint on 28/01/2013, but the MSRTC challenged this in WP No.3095/2013, which was allowed on 03/05/2014, directing the Industrial Court to frame issues on the fairness of the enquiry and the findings of the Enquiry Officer. Pursuant to this, the Industrial Court passed the impugned order on 31/10/2014, again setting aside the punishment and awarding costs of Rs.5,000/-. The MSRTC then filed the present writ petition. The High Court examined whether the Industrial Court could interfere with the quantum of punishment. It held that the Industrial Court, under Section 30(2) of the MRTU and PULP Act, has the power to examine proportionality of punishment. The Court found that the Industrial Court's order was based on a proper appreciation of evidence and law, and there was no perversity or error of law warranting interference. The High Court dismissed the writ petition, upholding the Industrial Court's order.

Headnote

A) Industrial Law - Disciplinary Proceedings - Proportionality of Punishment - MRTU and PULP Act, 1971, Section 30(2) - The Industrial Court, while exercising powers under the MRTU and PULP Act, can examine whether the punishment imposed is disproportionate to the misconduct. In this case, the employee was charged with outraging the modesty of a lady passenger, and the punishment of permanent stoppage of 3 increments (later reduced to 2) was held to be disproportionate. The Industrial Court set aside the punishment and directed restoration of original pay scale. The High Court upheld the Industrial Court's order, finding no perversity or error of law. (Paras 1-10)

B) Industrial Law - Unfair Labour Practice - Interference with Punishment - MRTU and PULP Act, 1971 - The Industrial Court has the jurisdiction to interfere with the quantum of punishment if it is shockingly disproportionate. The High Court, in writ jurisdiction, will not interfere with the Industrial Court's finding unless it is perverse or based on no evidence. The Industrial Court's order setting aside the punishment was upheld as it was based on a proper appreciation of evidence and law. (Paras 5-10)

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Issue of Consideration

Whether the Industrial Court was justified in setting aside the punishment of permanent stoppage of increments on the ground of proportionality, and whether the Industrial Court could interfere with the quantum of punishment under the MRTU and PULP Act, 1971.

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Final Decision

Writ petition dismissed. The Industrial Court's order dated 31/10/2014 is upheld. No order as to costs.

Law Points

  • Industrial Court can interfere with punishment if it is disproportionate to misconduct
  • MRTU and PULP Act
  • 1971
  • Section 30(2) of MRTU and PULP Act
  • principles of natural justice
  • proportionality of punishment
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Case Details

2016 LawText (BOM) (08) 23

Writ Petition No.5853 of 2015

2016-08-16

Ravindra V. Ghuge

Mr. D.S. Bagul for petitioners, Mr. R.B. Muley for respondent

Maharashtra State Road Transport Corporation and Another

Syed Saheblal Syed Nijam

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Nature of Litigation

Writ petition challenging Industrial Court's order setting aside punishment imposed by employer in disciplinary proceedings.

Remedy Sought

Petitioner (MSRTC) sought quashing of Industrial Court's order dated 31/10/2014 which set aside the punishment of permanent stoppage of increments and awarded costs.

Filing Reason

Petitioner aggrieved by Industrial Court's order allowing the employee's complaint and setting aside the punishment.

Previous Decisions

Industrial Court initially allowed complaint on 28/01/2013; High Court in WP No.3095/2013 quashed that order on 03/05/2014 and remanded for framing issues; Industrial Court passed impugned order on 31/10/2014.

Issues

Whether the Industrial Court was justified in setting aside the punishment on the ground of proportionality. Whether the Industrial Court could interfere with the quantum of punishment under the MRTU and PULP Act.

Submissions/Arguments

Petitioner argued that the Industrial Court exceeded its jurisdiction by interfering with the quantum of punishment, which was within the employer's domain. Respondent argued that the punishment was disproportionate and the Industrial Court correctly exercised its power under Section 30(2) of the MRTU and PULP Act.

Ratio Decidendi

The Industrial Court, under Section 30(2) of the MRTU and PULP Act, has the jurisdiction to examine whether the punishment imposed by the employer is proportionate to the misconduct. If the punishment is shockingly disproportionate, the Industrial Court can set it aside. The High Court, in writ jurisdiction, will not interfere with such finding unless it is perverse or based on no evidence.

Judgment Excerpts

The petitioner/Corporation is aggrieved by the judgment and order dated 31/10/2014 by which Complaint (ULP) No.12/2007 filed by the respondent/employee has been allowed and the impugned order of punishment dated 12/03/2005 directing stoppage of 3 increments permanently, has been set aside. I have heard Mr.Bagul, learned Advocate for the petitioner/Corporation and Mr.Muley, learned Advocate for the respondent at length.

Procedural History

Charge sheet issued on 06/09/2002; punishment order on 12/03/2005; first appeal partly allowed reducing punishment to stoppage of 2 increments; second appeal rejected on 21/02/2006; employee filed ULP complaint before Industrial Court; Industrial Court allowed complaint on 28/01/2013; MSRTC challenged in WP No.3095/2013; High Court quashed and remanded on 03/05/2014; Industrial Court passed impugned order on 31/10/2014; present writ petition filed on 2015; decided on 16/08/2016.

Acts & Sections

  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 (MRTU and PULP Act): Section 30(2)
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