Karnataka HC Sends Power Utility Assistant’s Dismissal Challenge Back For Fresh Decision After Labour Court Relied On Apology Letter In Alleged ₹35.5-Lakh Misappropriation Case

The petitioner, a KPTCL Assistant, was dismissed after a departmental inquiry found charges of cash-remittance irregularities and misappropriation proved.

The Labour Court dismissed her industrial reference, having found the inquiry fair and proper.

In its merits assessment, it relied on an apology letter (Ex.M-40) and a Special Audit Report.

The petitioner challenged the award, arguing that relevant records had not been produced despite a Labour Court direction and that the evidence did not establish her individual responsibility.

A criminal case arising from the same allegations, which was pending when the Labour Court made its award, later resulted in her acquittal on 3 September 2024.

The petition was brought under Articles 226 and 227 of the Constitution of India, which provide the basis for the High Court’s supervisory and constitutional review of the Labour Court’s award.

The judgment cites no specific statutory provision governing the merits, nor any precedent.

It proceeds on the basis that the Labour Court’s determination required reconsideration where material evidence and the non-production of directed records had not been adequately addressed; the criminal acquittal was also to be considered on remand.

The High Court noted that the Labour Court had treated Ex.M-40 as evidence of misappropriation and relied on the Special Audit Report, but had not discussed the testimony of MW-1 to MW-4.

MW-1 had stated that three officials handled the cash and could access the cash-box keys.

The relevant records had also not been produced despite the Labour Court’s direction.

In these circumstances, the Court considered that the award required fresh assessment.

Because the acquittal occurred after the award, it directed the Labour Court to take that order into account on remand, without treating the acquittal as itself determinative.

It remitted the reference to the Labour Court for fresh consideration on the existing evidence, with no additional evidence to be adduced.

The Labour Court was directed to consider the High Court’s observations and the criminal acquittal order and dispose of the reference within four months of receiving the High Court’s order.