Supreme Court Upholds Dismissal for Misappropriation in Transport Corporation Case

U.P. State Road Transport Corporation Versus Vinod Kumar

U.P. State Road Transport Corporation Versus Vinod Kumar - 2007 AIR 1044, 2007 (12) SCR 1018, 2008 (1) SCC 115, 2007 (13) JT 404, 2007 (13) SCALE 690 Issues:
1. Excessive punishment in comparison to charges levelled against the respondent.
2. Validity of the enquiry proceedings and quantum of punishment.
3. Misconduct of misappropriation of funds by the respondent.

Analysis:
1. The respondent, a Conductor in the U.P. State Road Transport Corporation, was found conducting a bus with passengers without tickets. The Enquiry Officer partially proved the charges against the respondent, leading to the Punishing Authority removing the respondent from service and forfeiting the balance salary for the suspension period. The Labour Court, without challenging the legality of the inquiry, substituted the removal with stoppage of one increment and full back-wages. The High Court upheld the finding of excessive punishment but reduced back-wages to 50%. The Supreme Court emphasized that dismissal is appropriate for misappropriation, citing precedents, and restored the Punishing Authority's decision.

2. The respondent focused on the Enquiry Officer's conclusions and the punishment quantum, not challenging the legality or fairness of the inquiry. The Supreme Court held that without contesting the inquiry's validity, the Labour Court should not interfere with the findings. It reiterated that dismissal is suitable for misappropriation, rejecting misplaced sympathy for the employee. Citing a previous case, the Court emphasized loss of confidence as the key factor, not the amount misappropriated, and reinstated the Punishing Authority's decision.

3. The Supreme Court referred to a previous judgment highlighting that possession of excess money without explanation is misconduct. It emphasized that the respondent's actions were grossly negligent, justifying dismissal to prevent financial loss to the employer. The Court criticized the focus on evidence from passengers, stating that possession of excess money alone was sufficient to establish guilt. By following this precedent, the Court set aside the High Court's decision and reinstated the Punishing Authority's order for the respondent's removal from service without any costs.