High CourtDivision BenchAppeal allowed; punishment of removal upheld; L...

U.P.S.R.T.C v. RAM KISHAN ARORA

Case / Petition Number:Civil Appeal No. 2410 of 2007
Neutral Citation:[2007] 6 S.C.R.

Case Details & Bench

Court
High Court
Hon'ble Judges
  • S.B. Sinha
  • Markandey Katju
Judgment Date
2007-05-09
Court Decision / Holding
Appeal allowed. The punishment of removal imposed by the disciplinary authority is upheld. The Labour Court’s order directing reinstatement with full back wages and the High Court’s substitution of the punishment are set aside. There shall be no back wages. The matter is remitted to the effect that the punishment deemed appropriate remains removal, in light of the serious misconduct; the decision restores the discipline framework for fiduciary positions.
Final Disposition
Appeal allowed; punishment of removal upheld; Labour Court order and High Court substitution set aside; no back wages awarded; reinstatement with two increments was not sustained in writ jurisdiction.

Parties to the Case

Appellants / Petitioners

  • U.P.S.R.T.C

Respondents

  • RAM KISHAN ARORA

Legal Representation & Advocates

Counsels for Petitioners

  • • Pradeep Misra

Counsels for Respondents

  • • C.L. Sahu
  • • Rishabh Sahu
  • • Hema Sahu

Case Synopsis & Summary

The case concerns termination of a conductor of the Uttar Pradesh State Road Transport Corporation for misconduct during a bus check, including obstruction of the inspection process and misbehavior with authorities. The inquiry found the charges proved and the employee was dismissed. The employee challenged the order; the Labour Court directed reinstatement with full back wages, and a writ petition by the Corporation partly succeeded, directing reinstatement with stoppage of two increments with cumulative effect and denying back wages. The Supreme Court allowed the Corporation’s appeal, holding that dismissal was a proportionate punishment given the serious nature of the alleged criminal breach of trust in a fiduciary position and that the High Court erred in substituting the punishment without giving reasons. It emphasized the limited scope of writ jurisdiction in questions of quantum of punishment and cited several precedents to reinforce the rule that courts should not substitute punishment lightly and must record reasons for any such change. The judgment clarifies that, absent exceptional circumstances, the normal approach is to uphold the disciplinary authority’s assessment, while remitting for reconsideration if a court finds disproportionality; it also reiterates that misconduct in fiduciary duties calls for strict action to maintain public trust.

Provisions of Law Cited

Article 226 of the Constitution of India

Legal Doctrines & Maxims

  • Misconduct of a serious nature when committed by a person holding a position of trust (criminal breach of trust) warrants stern punishment.
  • Labour Court has jurisdiction to consider quantum of punishment but its role is limited; it should not substitute its opinion for that of the Disciplinary Authority without reasons.
  • Writ jurisdiction cannot ordinarily be used to reassess or substitute the quantum of punishment; substitution requires reasons and exceptional circumstances.
  • If the punishment appears disproportionate, the Court may remit to the employer for reconsideration rather than substituting a lighter punishment, and even then it must record reasons.”,

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that the punishment of removal was appropriate given the serious misconduct and the fiduciary nature of the respondent’s duties. It argues that the High Court exceeded its writ jurisdiction by substituting the punishment without recording reasons, and that once guilt is established, quantum of punishment should be reassessed only with clear justification, otherwise deference should be shown to the disciplinary authority and established precedents limit interference.

Contentions of Respondents

The respondent did not file a cross-appeal; the argument recognized by the Court was that the High Court’s power to substitute the punishment under writ jurisdiction requires clear reasons, and without such reasons, the substitution is not permissible. The respondent’s case rested on the established findings of gross misconduct and the procedural context; the central issue identified was whether the High Court could substitute the punishment awarded by the disciplinary authority.

Cited Precedents (4)

Case NameCitationTreatmentExplanation
Anand Regional Coop. Oil Seedsgrowers' Union Ltd. v. Shaileshkumar Harshadbhai Shai[2006] 6 SCC 548PositiveLabor Court’s limited role in quantum of punishment; deference to disciplinary authority’s judgment is warranted under established precedents.
UP. State Road Transport Corporation, Dehradun v. Suresh Pal[2006] 8 SCC 108PositiveDescribes the need for recording reasons when altering punishment; mere disproportion is not sufficient.
Amrit Vanaspati Co. Ltd. v. Khem Chand and Anr.[2006] 6 SCC 325PositiveHigh Court cannot interfere with Labour Court findings in writ jurisdiction; reinforces limited scope of writs in matters of punishment.
Regional Manager, U.P. SRTC v. Hoti LalSCC p.606PositiveEmphasizes requirement of reasons for any substitution of punishment and limits on interference.

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Extracted Judgment Text

Exact text extracted from official judgment records.

## U.P.S.RT.C _v._ # RAM KISHAN ARORA ## MAY09, 2007 ## [S.B. SINHA AND MARKANDEY KA TJU, JJ.] _Labour Laws-Dismissal from service-By Disciplinary Authority-On charge of criminal breach of trust-Industrial dispute-Labour court directing reinstatement of workman with full back wages-In Writ Jurisdiction,_ C _punishment of dismissal reduced to stoppage of two increments by High Court-On appeal, held : Punishment of dismissal appropriate, in view of serious nature of misconduct-High Court not right in reducing the punishment in exercise of writ jurisdiction, without assigning any reason-Constitution of India, 1950-Article 226-Writ Jurisdiction._ D Respondent was employed as a conductor with the appellant-Corporation. While the respondent was on duty on a bus, the bus was checked by an inspection team. Respondent obstructed the checking process and also misbehaved with the authorities. Charges were issued against him. The same were proved in the departmental proceedings. Appointing authority removed him from service. Departmental appeal thereagainst was also dismissed. E Respondent raised industrial dispute. Labour Court directed his reinstatement with full back wages. Writ Petition by the employer was partly allowed directing his reintstatement with stoppage of two increments with cumulative effect. Back wages were denied. Hence the present appeal by the Corporation. ## Allowing the appeal, the Court F HELD: 1. The punishment of removal imposed by the disciplinary authority is correct. The commission of a criminal breach of trust by a person holding a position of trust is a misconduct of serious nature. The charges levelled against the respondent having been proved, the High Court in exercise G of its jurisdiction under Article 226 of the Constitution of India was not at all justified in reducing the punishment and imposing the punishment of stoppage of two increments only. [Paras 11and6) (21!)-B; 208-8, C) 2. The High Court has not arrived at the conclusion that the quantum 205 206 --( SUPREME COURT REPORTS [2007] 6 S.C.R. A of punishment imposed upon the respondent was disproportionate to the gravity of his misconduct Even in such a situation, the course which would have been ordinarily open to the High Court was to remit the matter to the employer for reconsideration of the question in regard to the quantum of punishment The High Court without assigning any reason could not have substituted its opinion B to that of the Disciplinary Authority. [Para 7] (208-C, Df c _Anand Regional Coop. Oil Seedsgrowers' Union Ltd._ v. _Shaileshkumar Harshadbhai Shai,_ (2006] 6 6 SCC 548; _UP.State Road Transport Corporation, Dehradun_ v. _Suresh Pal,_ (2006] 8 SCC 108 and _Amrit Vanaspati Co. Ltd._ v. _Khem Chand and Anr.,_ (2006] 6 SCC 325, relied on. CIVIL APPELLATE JURISDICTION: Civil Appeal No. 2410 of2007. / From the Final Judgment and Order dated 05.08.2005 of the High Court ofUttaranchal at Nainital in Writ Petition No. 1169 of 200 I (M/S)(Old No. 1209 of2000. D Pradeep Misra for the Appellant. C.L. Sahu, Rishabh Sahu and Hema Sahu for the Respondent. The Judgment of the Court was delivered by - E S.B. SINHA, J. I. Leave granted. 2. Respondent was working with the appellant - Corporation constituted under the Road Transport Corporation Act as a conductor. He was discharging his duties in the said capacity in the bus bearing registration No. UP-078/2932 F plying on Dehradun Bhukki route. The said bus was checked by an inspection team. 35 passengers were travelling in the said bus without any travelling ticket although the respondent allegedly had realised fare from them. He obstructed in the checking process by threatening and abusing the authorities. He even did not permit them to make any entry in the way bill. A report in regard to his misconduct was submitted whereupon a chargesheet was issued G on 4.04.1996. One Shri T.K. Vishen, Assistant Regional Manager, Dehradun was appointed as the Enquiry Officer. The Enquiry Officer was transferred and in his place one Shri R.K. Gupta prepared the Enquiry Report. The charges of misconduct stood proved against him in the departmental proceedings. Upon issuance of a second show cause notice and upon consideration of the cause shown by him, the appointing authority came to the opinion that it will H 207 U.P.S.R.T.C v. RAM KISHAN ARORA (S.B. SINHA, J.] I_ the interest of the Corporation to keep the respondent in service. He was, therefore, removed from service by an order dated 7.11.1997. A departmental appeal preferred by the respondent thereagainst was also dismissed. He thereafter raised an industrial dispute. 3. The Labour Court inter alia held that the finding of guilt arrived at against the respondent in the departmental proceeding was perverse. It was B further found that the Enquiry Officer Shri T.K. Vishen having been transferred, Shri R.K. Gupta could not have submitted the Enquiry Report. The Labour Court, therefore, directed reinstatement of the respondent with full back wages. A writ application questioning the correctness of the said award was filed by the appellant herein wherein a learned Single Judge of the Uttaranchal C High Court held: "6. I am not in full agreement with the findings recorded by the learned Tribunal. The Tribunal ought not to have recorded the finding that there is no evidence of record regarding the critical behaviour against the officials. Shri Damodar Kala, the eyewitness produced by D the employers, who stated on oath that at the time of checking, some wrangling between the workman and the officials were going on. The Respondent No. 3 had himself completed/forged the details on the way bill. Therefore, I find that there was some bad intention on the part of Respondent No. 3. The critical behaviour of Respondent No. 3 was also proved against the officials. E E 7. Therefore, in my opinion, in view of the facts and circumstances of the case; I find some fault in the behaviour of the Respondent No. 3. The critical behaviour of Respondent No. 3 against the officials is shocking one. Therefore, it is provided that Respondent No. 2 shall be reinstated in service with stoppage of two increments with F cumulative effect. However, he shall not be entitled for any back wages. 8. The writ petition is partly allowed. The Respondent No.2/ Workman shall be reinstated in service with stoppage of two increments with cumulative effect. However, it is made clear that he will not be entitled G for any back wages." 4. The Appellant Corporation alone is before us in this appeal. The respondent has not filed any appeal. H 208 ~ "i SUPREME COURT REPORTS [2007] 6 S.C.R. A 5. The respondent, having not questioned the finding arrived at by the High Court, as noticed hereinbefore, that he was guilty of commission of a serious misconduct, the only question which arises for consideration is as to whether it was open to the High Court to substitute the punishment awarded by the disciplinary authority. B 6. It is now well-settled that commission of a criminal breach of trust by a person holding a position of trust is a misconduct of serious nature. The charges levelled against the respondent having been proved, in our opinion, the High Court in exercise of its jurisdiction under Article 226 of the Constitution of India was not at all justified in reducing the punishment and imposing the punishment of stoppage of two increments only. c 7. The High Court has not arrived at the conclusion that the quantum of .punishment imposed upon the respondent was disproportionate to the gravity of his misconduct. Even in such a situation, the course which would have been ordinarily open to the High Court was to remit the matter to the D employer for reconsideration of the question in regard to the quantum of punishment. The High Court without assigning any reason could not have substituted its opinion to that of the disciplinary authority. _}_ ... 8. In _Anand Regional Coop. Oil Seedsgrowers' Union Ltd._ v. _Shai/eshkumar Harshadbhai Shai,_ [2006] 6 SCC 548, this Court opined: E "The Labour Court although has jurisdiction to consider the question in regard to the quantum of punishment but it had a limited role to play. It is now well settled that the industrial courts do not interfere with the quantum of punishment unless there exist sufficient reasons therefor." F G H 9. In _UP. State Road Transport Corporation, Dehradun_ v. _Suresh Pal,_ [2006] 8 SCC I 08, this Court stated the law, thus: "Normally, the courts do not substitute the punishment unless they are shockingly disproportionate and if the punishment is interfered or substituted lightly in the punishment in exercise of their extraordinary jurisdiction then it will amount to abuse of the process of court. If such kind of misconduct is dealt with lightly and the courts start substituting the lighter punishment in exercising the jurisdiction under Article 226 of the Constitution then it will give a wrong signal in the society. All the State Road Transport Corporations in the country -" 209 U.P.S.R.T.C v. RAM KISHAN ARORA (S.B. SINHA, J.) have gone in red because of the misconduct of such kind of incumbents, A therefore, it is time that misconduct should be dealt with an iron hand and not leniently. Learned counsel for the appellant invited our attention to a decision of this Court in _Regional Manager, U.P. SRTC_ v. _Hoti Lal wherein,_ this Court has very categorically held that a mere statement that it is disproportionate would not suffice to substitute B a lighter punishment. This Court held as under: (SCC p.606) "The court or tribunal while dealing with the quantum of punishment has to record reasons as to why it is felt that the punishment was not commensurate with the proved charges. The scope for interference is very limited and restricted to exceptional cases. In the impugned order C of the High Court no reasons whatsoever have been indicated as to why the punishment was considered disproportionate. Failure to give reasons amounts to denial of justice. A mere statement that it is disproportionate would not suffice. It is not only the amount involved but the mental set-up, the type of duty perfonned and similar relevant circumstances which go into the decision-making process while D considering whether the punishment is proportionate or disproportionate. If the charged employee holds a position of trust where honesty and integrity are inbuilt requirements of functioning, it would not be proper to deal with the matter leniently. Misconduct in such cases has to be dealt with iron hands. Where the person deals with public money or is engaged in financial transactions or acts in E a fiduciary capacity, the highest degree of integrity and trustworthiness is a must and unexceptionable. Judged in that background, conclusions of the Division Bench of the High Court are not proper." In view of the above observation made by this Court there remains F nothing more to be added." 10. In _Amrit Vanaspati Co. Ltd._ v. _Khem Chand and Anr.,_ [2006] 6 SCC 325, this Court held: " .. .In cur opinion, the High Court while exercising powers under writ jurisdiction cannot deal with aspects like whether the quantum of G punishment meted out by the management to a workman for a particular misconduct is sufficient or not. This apart, the High Court while exercising powers under the writ jurisdiction cannot interfere with the factual findings of the Labour Court which are based on appreciation of facts adduced before it by leading evidence. In our opinion, the H 210 SUPREME COURT REPORTS [2007] 6 S.C.R. A High Court has gravely erred in holding that the evidence of Respondent I was not considered by the Labour Court and had returned the finding that the evidence of Respondent I did not inspire any confidence. We are of the opinion that the High Court is not right in interfering with the well-considered order passed by the Labour Court confirming the order of dismissal...." B 11. For the reasons aforementioned, the impugned judgment cannot be sustained. It is set aside accordingly. The award of the Labour Court is also set aside and the punishment of removal imposed by the disciplinary authority is upheld. The appeal is allowed. In the facts and circumstances of C this case, there shall be no order as to costs. Appeal allowed. KKT. _}-_