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 increments) 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 the findings. The Industrial Court initially allowed the complaint on 28/01/2013, but the Corporation challenged this in WP No.3095/2013, and the High Court remanded the matter on 03/05/2014, directing the Industrial Court to frame two issues regarding 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, setting aside the punishment and awarding costs of Rs.5,000/-. The Corporation then filed the present writ petition. The High Court held that the Industrial Court had the power to interfere with the quantum of punishment if it was disproportionate, but the Industrial Court had not properly considered the proportionality aspect. The High Court set aside the Industrial Court's order and remanded the matter back to the Industrial Court to decide the quantum of punishment afresh, while upholding the award of costs.
Headnote
A) Industrial Law - Disproportionate Punishment - MRTU and PULP Act, 1971, Section 30(2) - The Industrial Court has the power to interfere with the quantum of punishment if it is found to be disproportionate to the misconduct. The court held that the punishment of permanent stoppage of 2 increments for outraging modesty of a lady passenger was disproportionate, and directed the Industrial Court to consider the quantum of punishment afresh. (Paras 8-10) B) Industrial Law - Enquiry Fairness - MRTU and PULP Act, 1971 - The Industrial Court must frame specific issues regarding the fairness of the departmental enquiry and the findings of the Enquiry Officer before deciding the complaint. The High Court earlier remanded the matter for this purpose. (Paras 6-7) C) Industrial Law - Costs - MRTU and PULP Act, 1971 - The Industrial Court awarded costs of Rs.5,000/- to the employee, which was upheld by the High Court as the Corporation had acted arbitrarily. (Para 10)
Issue of Consideration
Whether the Industrial Court was justified in setting aside the punishment of permanent stoppage of increments on the ground of disproportionality, and whether the Industrial Court could interfere with the quantum of punishment under the MRTU and PULP Act, 1971.
Final Decision
The High Court set aside the Industrial Court's order dated 31/10/2014 and remanded the matter back to the Industrial Court to decide the quantum of punishment afresh, after giving an opportunity of hearing to both sides. The award of costs of Rs.5,000/- was upheld.
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





