Supreme Court Upholds Bus Conductor Dismissal for Short-Changing Passengers

Karnataka State Road Transport Corporation Versus B.S. Hullikatti

Karnataka State Road Transport Corporation Versus B.S. Hullikatti - 2001 (2) SCC 574, 2001 (1) SCR 487 Issues Involved: Allegation of misconduct against a Bus Conductor leading to dismissal, fairness of domestic inquiry, reinstatement with back wages, application of res ipsa loquitur principle, responsibility of Bus Conductors in fare collection.

In the instant case, a Bus Conductor was dismissed from service based on allegations of collecting a higher fare from passengers than the tickets issued. The Labour Court found the domestic inquiry unfair, but concluded that the Conductor issued lower denomination tickets. However, it was not proven that he collected the higher fare. The Labour Court set aside the dismissal and ordered reinstatement with full back wages. The Single Judge initially awarded 50% back wages but later rectified the order to full back wages. The appeal to the Supreme Court challenged the reinstatement with full back wages.

The Supreme Court noted that the Conductor had short-charged 35 passengers, indicating either dishonesty or gross negligence. Considering the Conductor's long service and previous guilt findings, the principle of res ipsa loquitur applied. Bus Conductors have a fiduciary duty to collect correct fares, and any misconduct in fare collection can lead to financial loss for the Corporation. The Court criticized misplaced sympathy by Labour Courts in such cases and emphasized the importance of collecting correct fares.

The Court opined that the dismissal should not have been set aside, but due to the respondent's superannuation during the proceedings, reinstatement was allowed without back wages. The respondent was entitled to retiral benefits only. The Court disposed of the appeal accordingly, considering the special circumstances of the case.