LI Network
Published on: December 18, 2023 at 13:39 IST
The Rajasthan High Court has emphasized the importance of fair treatment for employees, cautioning employers against unjustly depriving employees of their livelihood based on stigmatic grounds.
In a case involving Kotak Mahindra Bank and a Senior Branch Manager accused of fraudulent activities, the court quashed the bank’s termination order, stating that it was illegal and stigmatic.
Justice Arun Monga directed the bank to comply with the Labor Commissioner’s order, which deemed the termination illegal and called for the manager’s reinstatement with consequential benefits.
The Court noted that a stigmatic order cannot be sustained without a proper inquiry, violating principles of natural justice. The decision highlighted the need for caution before taking away an employee’s right to livelihood on grounds of alleged misconduct.
While the bank sought permission for a fresh inquiry, the court declined, citing the bank’s prejudiced conduct against the employee.
The Court emphasized that a post-decisional inquiry would likely be prejudicial, and an impartial inquiry could not be guaranteed.
The bank argued that the Senior Branch Manager was not a workman under the Rajasthan Shops and Commercial Establishments Act, but the court found that the manager was indeed an employee, and the Act applied. The court referred to relevant provisions, emphasizing the need for proper evidence and inquiry to support dismissal for misconduct.
In response to the bank’s technical argument about the Labor Officer’s order, the Court clarified that no pre-notice preliminary judicial hearing was required, and the bank’s failure to participate in the proceedings waived its right to raise technicalities later.
Case title: Kotak Mahindra Bank Ltd., Through Authorized President & Ors. v. Aaraj Sharma & Anr.