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Issues involved: Interpretation of misconduct in employment, jurisdiction of Labour Court u/s 11(A), reinstatement of employee without back wages.
In the present case, the respondent, a Conductor, was charge-sheeted for not issuing tickets to passengers and was ultimately removed from service for carrying passengers without tickets. The Labour Court, invoking its jurisdiction u/s 11(A), upheld the misconduct finding but directed the respondent's reinstatement without back wages. The High Court's Single Judge set aside this decision, which was later reversed by the Division Bench, leading to the current appeal. The Supreme Court referred to a previous case, Karnataka State Road Transport Corporation Vs. B.S. Hullikatti, where it was established that conductors carrying passengers without tickets or issuing tickets at lower rates could be considered dishonest or gross negligence, justifying dismissal. The Court emphasized that such actions result in financial loss to the Transport Corporation, making retention of such employees unsuitable. Therefore, orders of dismissal in such cases should not be overturned. Additionally, the Court agreed with the Single Judge's observation that the Labour Court overstepped by interfering with the punishment of dismissal. While u/s 11(A), the Labour Court can adjust the punishment, it must do so judiciously. Given the Conductor's primary duty to issue tickets and collect fares for the Corporation, failure to do so warrants dismissal rather than reinstatement. Consequently, the Court allowed the appeal, setting aside the Division Bench's order and restoring that of the Single Judge, with no costs incurred.
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