Gujarat High Court Upholds Employer's Disciplinary Action in Misconduct Case — Reinstatement Award Quashed. Charge-Sheet Issued Before Superannuation Validates Continuation of Inquiry After Retirement Under Service Regulation 72.

High Court: Gujarat High Court In Favour of Prosecution
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Case Note & Summary

The petitioner, Dakshin Gujarat Vij Company Ltd., challenged the judgment and award dated 01.01.2025 passed by the learned Industrial Tribunal, Vadodara in Reference (I.T.) No. 14 of 2023. The respondent-workman, Ramanbhai Mathurbhai Tadvi, was employed as a Surveyor in the Ankleshwar Rural Division Office of the petitioner. A charge-sheet was issued to him on 24.05.2012 for serious misconduct involving dishonesty, misappropriation, fraud, and cheating. The respondent attained the age of superannuation on 27.06.2014 and was relieved from service as per Service Regulation 72. A domestic inquiry was conducted after giving full opportunity to the respondent, and the inquiry officer submitted findings. A second show-cause notice was issued, and the inquiry report was supplied. The disciplinary authority imposed the penalty of dismissal from service. The respondent raised an industrial dispute, which was referred to the Tribunal. The Tribunal set aside the penalty and ordered reinstatement with full back wages. The High Court, exercising jurisdiction under Articles 226 and 227 of the Constitution of India, held that the Tribunal's award was perverse and without jurisdiction. The Court noted that the charge-sheet was issued before superannuation, and therefore the disciplinary proceedings could continue after retirement. The Court also found that the Tribunal had exceeded its jurisdiction under Section 11A of the Industrial Disputes Act by substituting its own view for that of the disciplinary authority without finding any procedural defect. Consequently, the High Court quashed and set aside the impugned award and dismissed the reference.

Headnote

A) Industrial Law - Disciplinary Proceedings - Continuation After Superannuation - Service Regulation 72 - Where a charge-sheet is issued before the date of superannuation, the disciplinary inquiry can validly continue even after the employee attains retirement age, and the employer is entitled to pass a penalty order after retirement. The Tribunal's interference with such penalty was held to be perverse and without jurisdiction. (Paras 3-8)

B) Industrial Law - Reinstatement - Back Wages - Section 11A, Industrial Disputes Act, 1947 - The Tribunal's award of reinstatement with full back wages was set aside as the misconduct of dishonesty and misappropriation was proved in a domestic inquiry. The High Court held that the Tribunal exceeded its jurisdiction by substituting its own view for that of the disciplinary authority without finding any procedural infirmity. (Paras 9-12)

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Issue of Consideration

Whether the Industrial Tribunal erred in setting aside the penalty of dismissal and ordering reinstatement with back wages, despite the charge-sheet being issued before superannuation and the inquiry being completed after retirement.

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Final Decision

The High Court allowed the petition, quashed and set aside the impugned award dated 01.01.2025 passed by the learned Industrial Tribunal, Vadodara in Reference (I.T.) No. 14 of 2023, and dismissed the reference.

Law Points

  • Disciplinary inquiry can continue after superannuation if charge-sheet was issued before retirement
  • Service Regulation 72
  • Industrial Disputes Act 1947 Section 11A
  • Articles 226 and 227 of Constitution of India
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Case Details

2026 LawText (GUJ) (03) 190

R/Special Civil Application No. 8525 of 2025

2026-03-03

Hemant M. Prachchhak

Mr. Dipak R. Dave for the Petitioner, Mr. Krishnan M. Ghavariya and Ms. Ashlesha M. Patel for the Respondent

Dakshin Gujarat Vij Company Ltd.

Ramanbhai Mathurbhai Tadvi

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Nature of Litigation

Petition under Articles 226 and 227 of the Constitution of India challenging the award of the Industrial Tribunal which set aside the penalty of dismissal and ordered reinstatement with back wages.

Remedy Sought

The petitioner sought quashing of the reference order dated 04.02.2023 and the award dated 01.01.2025, and rejection of the respondent's reference.

Filing Reason

The petitioner challenged the Tribunal's award as perverse and without jurisdiction, arguing that the disciplinary proceedings were validly initiated before superannuation.

Previous Decisions

The Industrial Tribunal, Vadodara, by award dated 01.01.2025 in Reference (I.T.) No. 14 of 2023, set aside the penalty of dismissal and ordered reinstatement with full back wages.

Issues

Whether the Industrial Tribunal erred in setting aside the penalty of dismissal and ordering reinstatement with back wages despite the charge-sheet being issued before superannuation. Whether the disciplinary inquiry could continue after the employee's superannuation when the charge-sheet was issued prior to retirement.

Submissions/Arguments

The petitioner argued that the charge-sheet was issued on 24.05.2012, before the respondent's superannuation on 27.06.2014, and therefore the disciplinary proceedings could validly continue after retirement as per Service Regulation 72. The respondent argued that the inquiry was completed after superannuation and the penalty was imposed without jurisdiction.

Ratio Decidendi

Where a charge-sheet is issued before the date of superannuation, the disciplinary inquiry can validly continue after the employee attains retirement age, and the employer is entitled to pass a penalty order after retirement. The Industrial Tribunal exceeded its jurisdiction under Section 11A of the Industrial Disputes Act by substituting its own view for that of the disciplinary authority without finding any procedural infirmity.

Judgment Excerpts

That, for the serious act of misconduct committed by the respondent, which amounts dishonesty, misappropriation to fraud, and cheating with the petitioner, charge sheet was issued against him on 24.05.2012. That, the respondent attained the age of superannuation on 27.06.2014 and accordingly, as per Service Regulation 72, the respondent was relieved from service. The Tribunal has committed an error in setting aside the penalty of dismissal and ordering reinstatement with back wages.

Procedural History

Charge-sheet issued on 24.05.2012; respondent superannuated on 27.06.2014; domestic inquiry conducted; penalty of dismissal imposed; respondent raised industrial dispute; reference made to Industrial Tribunal, Vadodara as Reference (I.T.) No. 14 of 2023; Tribunal passed award on 01.01.2025 setting aside penalty and ordering reinstatement with back wages; petitioner filed Special Civil Application No. 8525 of 2025 before Gujarat High Court; High Court allowed petition on 03.03.2026.

Acts & Sections

  • Industrial Disputes Act, 1947: Section 11A
  • Constitution of India: Articles 226, 227
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High Court Gujarat High Court Upholds Employer's Disciplinary Action in Misconduct Case — Reinstatement Award Quashed. Charge-Sheet Issued Before Superannuation Validates Continuation of Inquiry After Retirement Under Service Regulation 72.
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