SMT SEETHA vs THE MANGEMENT OF KARNATAKA POWER TRANSMISSION
- Court
- Karnataka High Court
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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
TH
DATED THIS THE 28 DAY OF OCTOBER, 2026
BEFORE
THE HON'BLE MR. JUSTICE H.T. NARENDRA PRASAD
WRIT PETITION NO. 17067 OF 2018 (L-TER)
BETWEEN:
SMT SEETHA
W/O. SRI H. MURALIDHAR
AGED ABOUT 60 YEARS
R/AT NO.132, TELECOM LAYOUT
NEAR GANESH TEMPLE
SUNKADAKATTE, BENGALURU - 560091.
…PETITIONER
(BY SRI. L MURALIDHAR PESHWA., ADVOCATE)
AND:
1. THE MANAGEMENT OF KARNATAKA
POWER TRANSMISSION
CORPORATION LIMITED
REP. BY ITS MANAGING DIRECTOR
HEAD OFFICE: CAUVERY BHAVAN
K.G. ROAD, BENGALURU - 560009.
2. THE GENERAL MANAGER
KARNATAKA POWER TRANSMISSION
CORPORATION LIMITED
HEAD OFFICE: CAUVERY BHAVAN
K.G. ROAD, BENGALURU - 560009.
…RESPONDENTS
(BY SRI.H V DEVARAJU, ADVOCATE FOR R1 & R2)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226
AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO CALL
FOR THE RECORDS PERTAINING TO THE AWARD DATED:
15.5.2017 MADE IN REFERENCE NO.32/2009 ON THE FILE OF
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA
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THE PRESIDING OFFICER, PRINCIPAL LABOUR COURT,
BENGALURU VIDE ANNEXURE-L AND ETC.
THIS PETITION, COMING ON FOR PRELIMINARY HEARING
IN ‘B’ GROUP, THIS DAY, ORDER WAS MADE THEREIN AS
UNDER:
CORAM: HON'BLE MR. JUSTICE H.T. NARENDRA PRASAD
ORAL ORDER
1. This writ petition is filed under Articles 226 and 227
of the Constitution of India, challenging the award dated
15.05.2017 passed by the Labour Court, Bengaluru, in
Reference No.32/2009, whereby the reference has been
dismissed.
2. For the sake of convenience, the parties are referred
to by their respective rankings before the Labour Court.
The petitioner herein is referred to as the First Party, and
the respondents are referred to as the Second Party.
3. The brief facts of the case are that the First Party
was appointed as a Junior Assistant on compassionate
grounds in the Karnataka Power Transmission Corporation
Limited (for short, ‘KPTCL’) w.e.f. 26.09.1980. While she
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA
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was working as an Assistant in the 6th Sub-Division at
Sunkadakatte, Bengaluru, certain charges were levelled
against her in 2005, alleging that she had remitted an
amount lesser than the amount collected, tampered with
entries in the counterfoils of challans, committed
temporary misappropriation of Rs.1,23,20,665/- and
permanent misappropriation of Rs.35,55,805/-.
Accordingly, a charge memo dated 03.12.2005 was issued
to her. Being dissatisfied with her reply to the charge
memo, the disciplinary authority initiated a departmental
enquiry. The Enquiry Officer submitted a report based on
the Special Audit Report, holding that the charges levelled
against her were proved. On the basis of the said report,
the disciplinary authority dismissed the First Party from
service by order dated 01.09.2007. Aggrieved by the order
of dismissal, the First Party raised an industrial dispute,
which was referred by the State Government to the Labour
Court, Bengaluru, in Reference No.32/2009. The Labour
Court, by the impugned award dated 15.05.2017,
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA
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dismissed the reference. Being aggrieved by the said
award, the First Party has approached this Court.
4. Learned counsel appearing for the First Party
contended that the Labour Court had rightly held that the
departmental enquiry conducted by the Second Party was
not fair and proper, thereby placing the burden on the
management to prove the charges levelled against the
First Party. However, while adjudicating the dispute on
merits, the Labour Court relied solely on the alleged
admission made by the First Party in the apology letter
dated 22.06.2005, marked as Ex.M-40, and proceeded to
hold that the charges against her stood proved. The First
Party had categorically deposed that her signature on
Ex.M-40 had been obtained forcibly and that she had
admitted to a shortage of only Rs.1,21,878/- upon being
persuaded by the officials. Except for Ex.M-40, the Second
Party had neither produced any other relevant records nor
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HAREKOPPA THIMMANNA GOWDA
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adduced sufficient evidence to establish the alleged
misappropriation.
4.1. Learned counsel further contended that the
Labour Court had recorded a finding of misappropriation to
the tune of more than Rs.35,00,000/- based on the
Special Audit Report. Despite a specific direction issued by
the Labour Court to produce the relevant records
pertaining to the charges levelled against the First Party,
the Second Party failed to produce the same. In the
absence of such records, the Labour Court was not
justified in concluding that the charges against the First
Party had been proved.
4.2. Learned counsel further submitted that the
evidence adduced on behalf of the Second Party disclosed
that the First Party was not solely responsible for the
remittance of cash and that two other employees were
also facing similar allegations. Nevertheless, the Labour
Court erroneously held the First Party alone responsible for
the alleged misappropriation. The specific case of the First
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA
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Party was that she had remitted the cash collected at the
counter and was unaware of any misappropriation,
particularly when the keys to the cash box were also
accessible to the other officials. It was contended that the
Labour Court had failed to consider these material aspects.
4.3. Lastly, learned counsel submitted that a criminal
case in C.C.No.36085/2010 had been registered against
the First Party and two other officials on the basis of the
same allegations. The witnesses examined in the criminal
case were also the witnesses in the departmental
proceedings. Subsequently, the First Party and the other
officials were acquitted by order dated 03.09.2024. At the
time of passing the impugned award, the criminal case
was still pending. On these grounds, learned counsel
sought to set aside the impugned award and allow the writ
petition.
5. Per contra, learned counsel appearing for the Second
Party submitted that the First Party had herself admitted
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA
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in writing, through Ex.M-40, that there was a shortage of
Rs.1,21,878/-. It was contended that, in view of the said
admission regarding the shortage, no further documents
were necessary to establish her misconduct. Learned
counsel further submitted that the Special Audit Report
clearly established misappropriation of more than
Rs.35,00,000/- by the First Party and that the examination
of the Deputy Collector of Accounts had further
substantiated the allegations. It was also contended that
the First Party had been acquitted in the criminal case on
the benefit of doubt and that such acquittal could not, by
itself, invalidate the departmental proceedings.
Accordingly, learned counsel sought dismissal of the writ
petition.
6. Heard the learned counsel for the parties and
perused the writ papers.
7. It is not in dispute that, while the First Party was
working as an Assistant in the 6th Sub-Division at
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA
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Sunkadakatte, Bengaluru, a charge memo dated
03.12.2005 was issued to her and two other officials,
namely, Sri.M.Devaraj, Accounts Officer, and
Sri.Puttaswamy, Assistant Accounts Officer, in connection
with the alleged misappropriation of funds. The articles of
charge levelled against the First Party and the other two
officials, as contained in the charge memo, read as
follows:
ARTICLES OF CHARGES
1. You, Smt.Seetha have been working as Assistant
(now under suspension) in N-6 Sub-Division,
BESCOM, Bangalore from 14.01.2003 to 22.06.2005.
Though you were expected to carry out the duties of
the General Cashier of the Sub-Division as stipulated
in Para 42.01, 42.06, 43.08 (f to i), 44.04, 45.01,
46.03, 50.02, 50.04 to 50.08 of KEB Accounts
Manual Volume I and Sl.No.4 under Activity 6: Cash
section work of KPTCL Working Instructions Manual
Sub Division, You have failed to do so. You have
committed the acts of
i) Remitting lesser amount than the actual amount
collected and to be remitted into the Bank and
tampering the entries made in the counter foil of the
challan
ii) Making fictitious entries in the cash book and
denomination registers.
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA
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iii) Using bogus pass sheets to support the entries
made in respect of remittance.
iv) Temporary misappropriation of Rs.1,23,20,665/-
and permanent misappropriation of Rs.35,55,805/-.
v) Not pasting the Counter foil of challans, after
remittance in the remittance book.
vi) Not tallying the figures of closing balance of cash
in the cash Register and in the denomination
register.
vii) Not signing cash book on 15.11.2003,
08.03.2005 and 10.03.2005.
viii) Not signing in the denomination register on 22
days.
The exact dates, reference, quantum of amount in
respect of all the acts referred to item (i) to (viii)
have been furnished in the Special Audit Report
enclosed to this notice.
Your above said acts which are grave in nature are
misconduct as per Regulation 3(1) (i), (ii) and (iii)
and item no.(i), (vii), (xviii) of Annexure-B read with
Regulation 33 of KEB Employees' Service (Conduct)
Regulation 1988.
II. You, Sri.N.Devaraj, Accounts Officer, were
working as Assistant Accounts Officer (Cash Officer)
in N-6 Sub-Division, BESCOM, Bangalore from
01.11.2002 to 07.07.2004. As a cash Officer, you
were responsible for carrying out the duties as
stipulated in para 50.09 to 51.03 of KEB Accounts
Manual volume 1 and Sl.No.4&5 of Activity 6: Cash
section work of KPTCL Working Instructions Manual
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA
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Sub- Division. But you have failed to observe the
following acts of Smt.Seetha, General Cashier.
i) Remitting lesser amount than the actual amount
collected and to be remitted into the bank and
tampering the entries made in the counter foil of the
challan.
ii) Making fictitious entries of remitance in the cash
book and denomination registers.
iii) Using bogus pass sheets to support the entries
made in respect of remittance.
iv) Temporary misappropriation and permanent
misappropriation of cash.
v) Not pasting the Counter foil of challans, after
remittance in the remittance book.
vi) Not tallying the figures of closing balance of cash
in the cash Register and in the denomination
register.
vii) Not signing cash book on 15.11.2003.
viii) Not signing in the denomination register on 15
days.
The exact dates, reference, quantum of amount in
respect of all the acts referred to item (i) to (viii)
have been furnished in the Special Audit Report
enclosed to this notice.
Your above said failure amounts to misconduct as
per Regulation 3(ii) and (iii), 2 and item (viii) of
Annexure-B read with Regulation 33 of KEB
Employees' Service (Conduct) Regulations 1988.
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA
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III. You, Sri. Puttaswamaiah, Senior Assistant have
been working as Cash Officer in N-6 Sub-Division,
BESCOM, Bangalore from 08.07.2004 to 22.06.05.
As a cash Officer, you were responsible for carrying
out the duties as stipulated in para 50.09 to 51.03 of
KEB Accounts Manual volume 1 and Sl.No.4&5 of
Activity 6: Cash section work of KPTCL Working
Instructions Manual Sub Division. But you have failed
to observe the following acts of Smt.Seetha, General
Cashier, N6 Sub Division, BESCOM, Bangalore.
i) Remitting lesser amount than the actual amount
collected and to be remitted into the bank and
tampering the entries made in the counter foil of the
challan.
ii) Making fictitious entries of remittance in the cash
book and denomination registers.
iii) Using bogus pass sheets to support the entries
made in respect of remittance.
iv) Temporary misappropriation and permanent
misappropriation of cash.
v) Not pasting the Counter foil of challans, after
remittance in the remittance book.
vi) Not tallying the figures of closing balance of cash
in the cash Register and in the denomination
register.
vii) Not signing in the denomination register on 8
days.
viii) Not signing cash book on 08.03.2005 and
10.03.2005.
The exact dates, reference, quantum of amount in
respect of all the acts referred to item (i) to (viii)
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA
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have been furnished in the Special Audit Report
enclosed to this notice.
Your above said failure amounts to misconduct as
per Regulation 3(ii) and (iii), 2 and item (viii) of
Annexure-B read with Regulation 33 of KEB
Employees' Service (Conduct) Regulations 1988.
8. Being dissatisfied with the reply submitted by the
First Party to the charge memo, the Second Party initiated
a departmental enquiry. The Enquiry Officer, relying on
the Special Audit Report, held the charges levelled against
the First Party to be proved. Based on the enquiry report,
the disciplinary authority, by order dated 01.09.2007,
dismissed the First Party from service. Insofar as the other
two officials, namely, Sri M. Devaraj and Sri Puttaswamy,
are concerned, minor penalties were imposed. Aggrieved
by the order of dismissal, the First Party raised an
industrial dispute, which was referred by the State
Government to the Labour Court, Bengaluru, in Reference
No.32/2009. The reference made reads as under:
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA
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9. On the basis of the pleadings of the parties, t he
Labour Court, has framed the following issues:
1. Whether II party management proves that D.E.
held against the Ist party was fair, proper and
under natural justice?
2. whether the Ist party proves that the punishment
imposed by the management is harsh, arbitrary
and disproportionate to the alleged misconduct?
Addl. Issue No.1 was treated as preliminary issue
10. To prove the case, First Party has examined herself
as WW-1 and marked 17 documents. The Second Party
has examined 4 witnesses as MW-1 to 4 and marked 49
documents. After hearing the parties, the Labour Court
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA
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has answered the Reference No.1 in the affirmative,
Additional/preliminary issue No.1 in the negative and
Reference No.2 as per the final order. Consequently,
dismissed the reference.
11. Since there were allegations against the First Party of
tampering with ledger entries, she filed an application
before the Labour Court seeking production of the ledger
and other relevant documents. The Labour Court, by order
dated 02.09.2015, directed the Second Party to produce
the said documents. However, the documents were not
produced. To prove the charges, the Second Party
examined its witnesses. MW-1 has categorically stated
that all three officials were responsible for handling the
cash and that the keys to the cash box were accessible to
all three officials. The Labour Court, however, solely on
the basis of the admission allegedly made by the First
Party in Ex.M-40 that she had not remitted Rs.1,21,878/-
to the cash chest, which was found to be short, concluded
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA
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that she had misappropriated the amount. Further, relying
on the Special Audit Report, the Labour Court concluded
that there was misappropriation of more than
Rs.35,00,000/-. The Labour Court has not discussed the
evidence of MW-1 to MW-4 in its award. It is also relevant
to note that the order of acquittal passed in
C.C.No.36085/2010 was not available before the Labour
Court, as the criminal case was pending at the time of
passing the impugned award.
12. In view of the above facts and circumstances of the
case, this Court is of the opinion that the matter requires
to be remitted back to the Labour Court to reconsider the
matter afresh in accordance with law.
13. Accordingly, the following order:
ORDER
a) The writ petition is allowed.
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA
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b) The impugned award dated 15.05.2017 passed
by the Labour Court, Bengaluru, in Reference
No.32/2009, is hereby set aside.
c) The matter is remitted to the Labour Court,
Bengaluru, for fresh consideration in
accordance with law.
d) The parties shall not be permitted to adduce
any additional evidence, and the matter shall
be decided on the basis of the evidence already
available on record.
e) The Labour Court shall reconsider the matter
afresh, taking into consideration the
observations made hereinabove and the order
of acquittal dated 03.09.2024 passed in
C.C.No.36085/2010, and shall dispose of the
reference within four months from the date of
receipt of a copy of this order.
Digitally Signed by NARENDRA PRASAD
HAREKOPPA THIMMANNA GOWDA
(H.T. NARENDRA PRASAD)
JUDGE
DM
LIST NO.: 1 SL NO.: 14