High Court of Judicature of Bombay Quashes Industrial Court's Order Granting Backwages in Forgery Case Under MRTU and PULP Act. Forgery Held Not Minor or Technical Misconduct; Employer Entitled to Withdraw Deposited Amount.

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

The case arose from a complaint under the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 filed by an employee of a cooperative bank challenging his dismissal for misconduct. The employee, a bank clerk, had altered his date of birth in pension scheme documents to appear four years younger and supported the change with a purported school document, amounting to forgery. Following a departmental inquiry, the bank dismissed him from service. The Labour Court, in a Part I judgment, held the inquiry to be fair and the findings not perverse; this order was not challenged by the employee. Subsequently, the Labour Court dismissed the employee's complaint, finding the punishment proportionate. However, the Industrial Court, in revision, set aside the Labour Court's decision and awarded 75% backwages from the date of termination until the employee's superannuation, holding that the punishment was harsh. The bank filed a writ petition before the High Court. The primary legal issue was whether the Industrial Court could interfere with the punishment when the misconduct of forgery was not of a minor or technical character under Item 1(g) of Schedule IV of the MRTU and PULP Act, and when the fairness of the inquiry had attained finality. The employee argued that the inquiry was unfair, he had not derived any benefit from the forgery, and leniency should be shown based on precedents like Colour Chem v. A.L. Alaspurkar and State of U.P. v. Sharda Prasad. The bank contended that forgery was a grave misconduct warranting dismissal and that the Industrial Court's interference was perverse. The High Court noted that because the employee had not challenged the Part I judgment, the inquiry's fairness and findings were conclusive. Examining proportionality, the court held that forgery is not a misconduct of minor or technical character; its gravity is not diminished by the lack of actual benefit. The court distinguished Colour Chem, which involved sleeping on duty, and Sharda Prasad, which involved a retirement after date-of-birth correction by a Janma Kundali. Following Ram Saran v. I.G. of Police CRPF, the court emphasized that leniency in forgery cases would amount to rewarding dishonesty. The Industrial Court's award of backwages was found to be perverse and a case of misplaced sympathy. Consequently, the writ petition was allowed, the Industrial Court's judgment was quashed, and the employee's revision was dismissed. The bank was permitted to withdraw the deposited amount of Rs.7,88,569 with accrued interest; the employee was not required to refund interest already withdrawn. The court refused to stay its judgment.

Headnote

A) Labour Law - Unfair Labour Practice - Proportionality of Punishment - Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971, Item 1(g) of Schedule IV - The employee committed forgery by altering his date of birth to extend service tenure. Held: Forgery is not a misconduct of minor or technical character; it does not attract Item 1(g) for interference with the punishment of dismissal, regardless of whether the employee derived actual benefit. The gravity is measured by the nature of the act, not its success. (Paras 13, 17-18)

B) Labour Law - Enquiry - Finality of Findings - Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971, Section 44 - The Labour Court's Part I judgment upholding the fairness of the enquiry and the findings of the enquiry officer was not challenged. Held: Once the enquiry is sustained, the charges stand proved and the court need not entertain submissions challenging the enquiry. (Paras 7-10)

C) Labour Law - Backwages - Misplaced Sympathy - Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971 - Industrial Court awarded 75% backwages despite proven forgery. Held: Awarding backwages for forgery is perverse and amounts to rewarding dishonesty; the order was quashed and the writ petition allowed. (Paras 18-19, 21)

D) Precedent - Forgery and Leniency - Judicial Approach - The court distinguished Colour Chem (sleeping on duty) and Sharda Prasad (date of birth correction on Janma Kundali) and followed Ram Saran, holding that forgery never warrants leniency. (Paras 14-16)

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Issue of Consideration

Whether the Industrial Court could interfere with the punishment of dismissal and award 75% backwages when the employee's misconduct of forgery was proved and the Labour Court had upheld the dismissal, especially in light of the unchallenged findings of a fair enquiry.

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Final Decision

The writ petition is allowed; the Industrial Court's judgment dated 23.8.2012 is quashed and set aside; Revision (ULP) No. 990 of 2011 stands dismissed; the petitioner may withdraw the deposited amount of Rs.7,88,569/- with accrued interest; the respondent need not refund already received quarterly interest; stay is refused; Civil Application disposed of.

Law Points

  • Legal points not extracted
  • Forgery is a serious misconduct not of minor or technical character
  • Item 1(g) of Schedule IV of MRTU and PULP Act is inapplicable to forgery
  • Unchallenged Part I judgment on enquiry fairness and findings makes charges proved
  • Awarding backwages for forgery is perverse and amounts to misplaced sympathy
  • Leniency in forgery cases would reward dishonesty
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Case Details

2026 LawText (BOM) (05) 162

Writ Petition No. 8747 of 2012 with Civil Application No. 10732 of 2016

2016-08-02

Ravindra V. Ghuge, J.

Citation not available

Shri Gaware N.V., Shri Shermale K. N.

The Chief Executive Officer, The Ahmednagar District Central Cooperative Bank Limited, Ahmednagar & Anr.

Prakash Ramchandra Waghmare

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Nature of Litigation

Writ petition challenging Industrial Court's order granting backwages in a case of dismissal for forgery

Remedy Sought

The petitioner management sought to quash the Industrial Court's judgment awarding 75% backwages and to uphold the Labour Court's order upholding the dismissal

Filing Reason

The Industrial Court had erroneously interfered with the punishment and awarded backwages despite proven forgery and an unchallenged fair enquiry

Previous Decisions

Labour Court Part I judgment upheld fairness of enquiry; Labour Court final judgment dated 7.9.2011 dismissed complaint and held dismissal proportionate; Industrial Court allowed revision on 23.8.2012 and awarded 75% backwages

Issues

Whether the Industrial Court could interfere with the punishment of dismissal and award backwages when the misconduct of forgery was proved and not of a minor or technical character Whether the Industrial Court's order was perverse in light of the unchallenged enquiry findings

Submissions/Arguments

The employee contended that the forgery was based on a corrected school document, the enquiry was unfair, no actual benefit was derived, and leniency should be shown as per Colour Chem vs. A.L. Alaspurkar and State of U.P. vs. Sharda Prasad The bank argued that forgery is a serious misconduct, the enquiry was fair and unchallenged, and the Industrial Court's interference was perverse and amounted to misplaced sympathy

Ratio Decidendi

Forgery is not a misconduct of minor or technical character under Item 1(g) of Schedule IV of the MRTU and PULP Act. When a fair enquiry's findings are unchallenged and proved, and the misconduct is grave, the Labour Court's decision to uphold dismissal cannot be interfered with. Awarding backwages for forgery is perverse and amounts to misplaced sympathy that rewards dishonesty. Leniency in forgery cases is unwarranted.

Judgment Excerpts

Item 1(g) would be attracted only if the misconduct appears to be of a minor or technical character. In my view, an act of forgery, notwithstanding the fact that the concerned employee, could not derive advantage of his act upon being apprehended by the employer, does not render the act to be of a minor or technical character. An act of forgery can never be countenanced and showing leniency towards an employee on the basis that because he was apprehended, he could not derive an advantage, would amount to showing misplaced sympathy. In my view, this act of misplaced sympathy by the Industrial Court has virtually rewarded the respondent with 75% backwages for committing forgery.

Procedural History

The employee filed a complaint under the MRTU and PULP Act before the Labour Court. The Labour Court, by Part I judgment, held the departmental enquiry to be fair and the findings not perverse, which was not challenged. The Labour Court dismissed the complaint on 7.9.2011, upholding the dismissal. The employee filed Revision (ULP) No. 90 of 2012 before the Industrial Court, which allowed it on 23.8.2012, setting aside the Labour Court's judgment and awarding 75% backwages. The bank filed the present writ petition. During pendency, the employee filed Civil Application No. 10732 of 2016 seeking withdrawal of the deposited amount.

Acts & Sections

  • Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971: Section 44, Item 1(g) of Schedule IV
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