High Court finds Enquiry Officer's conclusions supported by evidence; orders reconsideration of dismissal proportionality.
The Bombay High Court, presided over by Justice Sandeep V. Marne, delivered a significant judgment on June 18, 2026, in the case of Abhyudaya Co-operative Bank Ltd. v. Smita Virendra Patil, overturning previous decisions by the Labour Court and the Industrial Court. The case revolved around allegations of misconduct against Smita Virendra Patil, a bank employee, for bringing policemen to her workplace and filing multiple complaints against the bank with various authorities.
The High Court scrutinized the Labour and Industrial Courts' findings, which had previously labeled the Enquiry Officer's conclusions as perverse and unsupported by evidence. The High Court disagreed, stating that the Enquiry Officer's findings were indeed backed by evidence, particularly regarding Patil's act of bringing policemen to the bank to question her transfer, which was deemed misconduct.
Justice Marne highlighted that the Labour Court misinterpreted the charge against Patil, focusing incorrectly on her compliance with the transfer order rather than the act of involving police. The judgment emphasized that such conduct was misconduct, regardless of the absence of violent or abusive behavior during the incident.
Furthermore, the Court addressed the second charge concerning Patil's complaints to various authorities, which the Labour Court had dismissed as non-misconduct due to a lack of evidence of reputation damage. Justice Marne pointed out that the mere act of involving external authorities in internal grievances could constitute misconduct, affecting the bank's reputation and operations.
The High Court set aside the lower courts' orders and directed the Labour Court to reassess the proportionality of the dismissal penalty imposed on Patil. The judgment underscored the necessity for the Labour Court to consider the gravity of the misconduct and the appropriateness of the punishment.
This decision mandates the Labour Court to expedite proceedings, reflecting the case's longstanding nature since 2014, with a directive to conclude within six months.
Bottom line:-
Domestic Enquiry - Principles of fairness and preponderance of probability - Labour Court and Industrial Court erred in holding findings of Enquiry Officer as perverse; findings supported by evidence on record.
Statutory provision(s): Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971, Section 44.
Abhyudaya Co-operative Bank Ltd. v. Smita Virendra Patil, (Bombay) : Law Finder Doc id # 2926502
