Gujarat High Court Upholds Labour Court Award Denying Reinstatement to Driver Terminated for Consuming Liquor on Duty. Termination Upheld as Employer's Disciplinary Action Was Justified Despite Criminal Acquittal.

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

The judgment pertains to two Special Civil Applications arising from the same Labour Court award. The employee, Mukesh Bavanjibhai Parghi, was a driver with the Gujarat State Road Transport Corporation. He was terminated for consuming liquor while on duty on the route from Jhalod to Jasdan. A criminal case was filed against him, but he was acquitted. Despite the acquittal, the employer terminated his services without holding a departmental inquiry. The employee challenged the termination before the Labour Court in Reference (LCR) Case No. 49/2018, which was dismissed. The employee then filed Special Civil Application No. 5796 of 2020 seeking quashing of the Labour Court award and reinstatement with back wages. The employer also filed Special Civil Application No. 9351 of 2020 challenging the same award, presumably on other grounds. The High Court heard both petitions together. The court noted that the employee was terminated for misconduct of consuming liquor while on duty, which is a serious offense for a driver. The Labour Court had dismissed the reference, finding the termination justified. The High Court upheld the Labour Court's decision, holding that the acquittal in the criminal case does not automatically entitle the employee to reinstatement, as the standard of proof in criminal and disciplinary proceedings is different. The court also held that the punishment of termination was proportionate given the nature of the job and safety concerns. The petitions were dismissed, and the Labour Court award was upheld.

Headnote

A) Service Law - Termination - Disciplinary Proceedings - Acquittal in Criminal Case - The employee, a driver, was terminated for consuming liquor while on duty. He was acquitted in the criminal case. The Labour Court dismissed his reference. The High Court held that the acquittal does not automatically entitle the employee to reinstatement as the standard of proof in criminal and disciplinary proceedings is different. The employer's action was based on misconduct and the Labour Court's finding that the termination was justified was not perverse. (Paras 3-6)

B) Industrial Disputes Act, 1947 - Section 11A - Proportionality of Punishment - The High Court held that the punishment of termination for consuming liquor while on duty as a driver is proportionate, considering the nature of the job and safety of passengers. The Labour Court's refusal to interfere with the punishment was upheld. (Paras 5-6)

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Issue of Consideration

Whether the Labour Court was justified in dismissing the reference of the employee who was terminated for consuming liquor while on duty, despite his acquittal in criminal proceedings, and whether the punishment of termination was proportionate.

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Final Decision

Both Special Civil Applications are dismissed. The Labour Court award dated 22.11.2019 in Reference (LCR) Case No. 49/2018 is upheld.

Law Points

  • Termination without departmental inquiry
  • Acquittal in criminal case does not automatically entitle reinstatement
  • Industrial Disputes Act
  • 1947 Section 11A
  • Proportionality of punishment
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Case Details

2026 LawText (GUJ) (03) 478

R/Special Civil Application No. 5796 of 2020 with R/Special Civil Application No. 9351 of 2020

2026-03-06

Hemant M. Prachchhak

Khushbu D Chhaya, Hamesh C. Naidu, Mrunal Dholaria

Mukesh Bavanjibhai Parghi

The Division Controller & Anr.

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Nature of Litigation

Service matter - challenge to Labour Court award dismissing reference against termination

Remedy Sought

Employee sought quashing of Labour Court award and reinstatement with back wages; employer sought quashing of the same award

Filing Reason

Employee was terminated for consuming liquor while on duty; Labour Court dismissed his reference

Previous Decisions

Labour Court dismissed Reference (LCR) No. 49/2018 on 22.11.2019

Issues

Whether the Labour Court was justified in dismissing the reference of the employee who was terminated for consuming liquor while on duty, despite his acquittal in criminal proceedings. Whether the punishment of termination was proportionate.

Submissions/Arguments

Employee argued that he was terminated without any inquiry and despite acquittal in criminal case. Employer argued that the termination was justified due to misconduct of consuming liquor while on duty.

Ratio Decidendi

Acquittal in a criminal case does not automatically entitle an employee to reinstatement in disciplinary proceedings as the standard of proof is different. The punishment of termination for consuming liquor while on duty as a driver is proportionate considering safety concerns.

Judgment Excerpts

The facts of the present case, in nutshell, are that the employee was serving with employer as a driver and his services came to be terminated on the ground that he had consumed liquor while he was on duty... Heard Ms.Khushbu Chhaya, learned counsel for the petitioner and Mr.Hamesh Naidu, learned counsel for respondent No.1 – employer at length.

Procedural History

Employee terminated in 2015; criminal case filed; employee acquitted; employee filed Reference (LCR) No. 49/2018 before Labour Court; Labour Court dismissed reference on 22.11.2019; employee filed SCA 5796/2020 and employer filed SCA 9351/2020 before High Court; High Court heard both and dismissed them on 06.03.2026.

Acts & Sections

  • Constitution of India: Articles 226, 227
  • Industrial Disputes Act, 1947: Section 11A
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High Court Gujarat High Court Upholds Labour Court Award Denying Reinstatement to Driver Terminated for Consuming Liquor on Duty. Termination Upheld as Employer's Disciplinary Action Was Justified Despite Criminal Acquittal.
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