Gujarat High Court
Employment and Labour LawCivil Procedure and Evidence

A permanent employee’s dismissal without a charge-sheet and fair inquiry is unsustainable.

SHRI MANAGING DIRECTOR, THE KARMACHARI COOPERATIVE BANK LIMITED vs ARUNBHAI T SHAH

Gujarat High CourtJUDGMENT: October 16, 20262 MIN READSOURCE JUDGMENT
A permanent employee’s dismissal without a charge-sheet and fair inquiry is unsustainable.. SHRI MANAGING DIRECTOR, THE KARMACHARI COOPERATIVE BANK LIMITED vs ARUNBHAI T SHAH. Gujarat High Court. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The workman, employed as a clerk from 1986 and confirmed in 1994, was suspended over an allegation that he had left his cash counter without permission in July 2007. Following an inquiry that found the charges proved, the Bank dismissed him on 1 January 2008.

Source reference: para. 3–6

The Labour Court found the inquiry unfair and contrary to natural justice, permitted the Bank to lead evidence, and concluded that the allegations were not established; it set aside the dismissal and ordered reinstatement with continuity of service and wages for the intervening period.

Source reference: para. 10–18

The Industrial Court affirmed that decision, and the Single Judge dismissed the Bank’s writ petition.

Source reference: para. 19–22

In appeal, the Bank challenged the Single Judge’s reliance on Section 11-A of the Industrial Disputes Act, 1947, and argued that dismissal was justified.

Source reference: para. 24–25
02

Issues

Whether Section 11-A of the Industrial Disputes Act, 1947, applied to the proceedings under the Bombay Industrial Relations Act, 1946, such that the Single Judge’s reliance on it required remand

Source reference: para. 24–26, 31–33

Whether the dismissal could be sustained where no charge-sheet was issued, the workman was not afforded a proper opportunity to defend himself, and the evidence led before the Labour Court did not establish the allegations

Source reference: para. 27–33
03

Law Applied

Section 42(4) of the Bombay Industrial Relations Act, 1946, was the provision under which the workman first sought a change to the dismissal order.

Source reference: para. 7

The Court stated that a permanent employee could not be punished without an inquiry in which a charge-sheet was issued and the employee was given an opportunity to defend himself.

Source reference: para. 27

It also observed that, in proceedings under Articles 226 and 227 of the Constitution, findings of fact based on proper appreciation of evidence would ordinarily not be disturbed.

Source reference: para. 30

Although the Bank disputed the applicability of Section 11-A of the Industrial Disputes Act, 1947, the Court held that the Single Judge’s observations on that provision were immaterial to the result.

Source reference: para. 31–33
04

Reasoning

The Labour Court and Industrial Court had found that no charge-sheet was issued and that the disciplinary process was vitiated; the Labour Court also found the Bank’s evidence unreliable, including because the alleged apology was not produced and the witnesses’ accounts did not establish the charge.

Source reference: para. 14–16, 20, 28–29

Those concurrent factual findings were supported by the record and were not a basis for interference under Articles 226 or 227.

Source reference: para. 30

Accordingly, the dispute over Section 11-A did not affect the outcome: the dismissal could not stand because the workman had been dismissed without the required process and the allegations were not established.

Source reference: para. 31–33
05

Holding

The Court rejected both the Bank’s challenge to the reliance on Section 11-A and its contention that dismissal was justified.

It dismissed the Letters Patent Appeal, discharged the Rule, and directed that pending applications be consigned to the records.

Source reference: para. 34–35
06

Acts & Sections Cited

1 provisions across 1 statute referred to in this judgment. Each provision opens on LawLens.

Bombay Industrial Relations Act, 19461

Gujarat High Court

Original Court PDF

SHRI MANAGING DIRECTOR, THE KARMACHARI COOPERATIVE BANK LIMITEDvsARUNBHAI T SHAH

Gujarat High Court · October 16, 2026

Click to open original judgment

Original judgment, available to read, download and summarize on LawLens.in

Click to open original judgment