Withholding Increments Without Enquiry Unsustainable | HC

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  • Last Updated on 21 January, 2026

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Withholding Of Increments Without Enquiry

Case Details: T. Raj Kumar vs. Labour Court - [2025] 181 taxmann.com 850 (HC - Andhra Pradesh)

Judiciary and Counsel Details

  • Maheswara Rao Kuncheam, J.
  • A. Veerasekhar Rao for the Petitioner.
  • Sanisetty Venkateswarulu, SC for the Respondent.

Facts of the Case

In the instant case, the petitioner was a conductor in the respondent corporation. The charges were framed against him regarding cash and ticket irregularities. Without conducting an enquiry, the respondent had passed a final order whereby the petitioner’s annual increment was withheld for a period of six months, having the effect of postponing future increments.

The petitioner challenged the punishment order before the appellate authority, which was rejected as time-barred. The dispute was thereafter carried to the Labour Court under Section 10-1(c) of the Industrial Disputes Act, 1947, where punishment against the petitioner was confirmed.

It was apparent that the respondent had failed to demonstrate that they had conducted an enquiry before imposing major punishment on the petitioner. Further, the punishment imposed by the respondent, which was mechanically affirmed by the appellate authority as well as the Labour Court, was to be interdicted as it was a fundamental breach of procedure established under law.

High Court Held

The High Court held that since the stoppage of increment with cumulative effect without conducting an enquiry against the petitioner was not legally sustainable, the impugned order passed by the Labour Court was to be set aside.

List of Cases Reviewed

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