ISSUE:
Whether the Labour Court had the jurisdiction to interfere with the termination despite upholding the validity of the disciplinary inquiry?
Whether the Labour Court acted judicially in exercising its discretion under Section 6(2A) to reinstate the workman with 75% back wages?
RULE:
Labour Court’s Power Under Section 6(2A): The Labour Court, even after finding the inquiry fair and charges proved, has the discretion to interfere with the punishment if it deems the termination disproportionate. Judicial discretion must be exercised not arbitrarily but in the interests of justice, ensuring the punishment is not excessive.
Principle of Proportionality in Punishment: The Labour Court is empowered to substitute dismissal with a lesser penalty where justice demands it. The court must balance discipline with fairness, recognizing that an employee should not suffer a punishment harsher than warranted by the circumstances.
Justice Tempered with Mercy: Judicial review in labour matters extends beyond procedural validity; it encompasses considerations of equity, fairness, and reformation. The Labour Court may set aside termination if it finds reinstatement serves the broader interests of justice, ensuring an opportunity for the workman to reform.