Labour Court Can’t Reduce Dismissal After Proven Misconduct | HC

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  • Last Updated on 23 December, 2025

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Labour Court interference with employer’s punishment

Case Details: TATA Consultancy Services Ltd. vs. Vinit Jain - [2025] 181 taxmann.com 284 (HC-Bombay)

Judiciary and Counsel Details

  • Sandeep V. Marne, J.
  • B.D. Birajdar & Ms Komal Deshmukh, Advs. for the Petitioner.
  • Avinash Belge, Adv. & Ms Priyanka B. Chavan, AGP for the Respondent.

Facts of the Case

In the instant case, the Respondent-employee was dismissed from the service of the petitioner-employer on charges of insubordination, late reporting for duty, etc. Since no disciplinary inquiry was held by the petitioner-employer while dismissing the respondent, the petitioner chose to justify its action by leading evidence before the Labour Court.

The Labour Court held that charges relating to insubordination and late reporting for duty were proved, whereas the balance of charges were not proved against the respondent. The Labour Court, however, found that the punishment of dismissal from service was not proportionate to the proved misconduct and, accordingly, directed the reinstatement of the respondent with 50% back wages and continuity with effect from the date of dismissal.

Before the High Court, the petitioner submitted that once serious charges of insubordination were proved, the Labour Court could not have interfered in the quantum of punishment.

It was noted that the Labour Court could not wear the employer’s glasses and decide whether the employee’s conduct was grave or not. Further, the Labour Court had committed a jurisdictional error by addressing the quantum and proportionality of the penalty.

High Court Held

The High Court held that the Labour Court had grossly erred in recording a casual finding of punishment being disproportionate to prove misconduct by substituting itself in place of the employer, as if it was exercising appellate jurisdiction over the wisdom of the employer in choosing the exact nature of the penalty. Thus, the impugned award passed by the Labour Court was indefensible and liable to be set aside.

List of Cases Reviewed

  • Order of Labour Court, Mumbai in Reference (IDA) No.40 of 2015 Award dated 23 March 2017 (para 16) set aside
  • Sarabhai M. Chemicals v. M. S. Ajmere 1979 taxmann.com 480 (Bom.) (para 12) followed

List of Cases Referred to

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied