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2000 INSC 143
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  • Article 226 of the Constitution
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U.P. State Road Transport Corporation v. Respondent  |  Supreme Court of India

Factual and Procedural Background

Respondent 1 was appointed as a Conductor in the U.P. State Road Transport Corporation on 28-5-1965 and confirmed on 1-4-1972. On 11-2-1981, while manning Bus No. UTY 1918, he allegedly issued short-distance tickets to 11 passengers. A charge-sheet dated 6-6-1981 led to a departmental inquiry under the U.P. State Road Transport Corporation Employees (Other than Officers) Service Regulations, 1981. By order dated 29-3-1982, his services were terminated; a departmental appeal was dismissed on 4-4-1983.

The respondent then filed a claim before the U.P. State Public Services Tribunal, which was dismissed on 24-1-1994. In writ proceedings, the Allahabad High Court on 12-2-1998 reinstated him with 25 % back wages. The Corporation appealed to the Supreme Court, leading to the present decision.

Legal Issues Presented

  1. Whether the High Court, after upholding the validity of the disciplinary inquiry, could interfere with and reduce the punishment of dismissal imposed on the respondent.

Arguments of the Parties

Appellant (U.P. State Road Transport Corporation)

  • Because both the Tribunal and the High Court found the departmental inquiry proper, the High Court had no jurisdiction to interfere with the quantum of punishment.
  • Reliance was placed on an unreported Supreme Court decision (U.P. SRTC v. Om Prakash Pandey) where interference with punishment was disapproved.

Respondent

  • The High Court rightly considered the totality of the circumstances and found the penalty of dismissal disproportionate to the charge.
  • Only the boarding point of the passengers was disputed; all passengers had valid tickets, making the misconduct minor.
  • The respondent deserved at least 75 % back wages, yet the High Court limited relief to 25 %.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
U.P. SRTC v. Om Prakash Pandey (unreported) High Court interference with punishment was set aside when misconduct was serious (passengers without tickets). Distinguished; here all passengers had tickets and only the boarding point was in dispute.
B.C. Chaturvedi v. Union of India, (1995) 6 SCC 749 Court may modify penalty if it "shocks the conscience"; may itself impose appropriate punishment in rare cases. Cited to affirm that courts can interfere with disproportionate penalties in exceptional situations.
Colour-Chem Ltd. v. A.L. Alaspurkar, (1998) 3 SCC 192 Punishment that is “shockingly disproportionate” can be judicially reviewed and altered. Relied upon to validate the High Court’s reduction of punishment.

Court's Reasoning and Analysis

The Supreme Court examined the nature of the misconduct and the evidentiary basis for the disciplinary finding. The only material relied upon was the waybill and the Transport Inspector’s report, both lacking corroboration from passenger testimony. The Court observed that:

  • The passengers could easily have been examined because the bus operated within the city, yet no statements were recorded.
  • The disputed issue concerned only the point of boarding—“High Court” versus “Zero Road”—with a fare difference of ₹0.30 per passenger; no allegation of passengers travelling without tickets existed.
  • Consistent with B.C. Chaturvedi and Colour-Chem, judicial interference is permissible where the punishment shocks the conscience. Given the minor nature of the lapse and weak evidentiary support, dismissal from service was deemed shockingly disproportionate.

Consequently, the Court found the High Court’s exercise of discretion proper and declined to substitute its own view on penalty.

Holding and Implications

APPEAL DISMISSED.

The High Court’s order directing reinstatement with 25 % back wages stands affirmed. The decision underscores that, even after a valid disciplinary inquiry, courts may intervene where the penalty is grossly excessive relative to the proven misconduct. No broader precedent was set beyond reaffirming established principles on proportionality of punishment in service jurisprudence.

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    U.P State Road Transport Corpn. And Others v. Mahesh Kumar Mishra And Others

    S. Saghir Ahmad, J.— Leave granted.

    2. Respondent 1 (hereinafter referred to as “the respondent”) was appointed on 28-5-1965 in the U.P State Road Transport Corporation as Conductor on which post he was confirmed on 1-4-1972.

    3. On 11-2-1981, while the respondent was on duty on Bus No. UTY 1918, it was checked by the Transport Inspector and 11 passengers were found to have been issued short-distance tickets. On 12-2-1981, the Transport Inspector submitted his report which was followed by a preliminary inquiry. A charge-sheet was issued to the respondent on 6-6-1981 on the basis of which a regular departmental inquiry was held under the U.P State Road Transport Corporation Employees (Other than Officers) Service Regulations, 1981. After inquiry, the services of the respondent were terminated by order dated 29-3-1982. This order was challenged in a departmental appeal, filed by the respondent, which was rejected on 4-4-1983. The respondent, thereafter, approached the U.P State Public Services Tribunal (for short “the Tribunal”) for quashing of the termination order on a number of grounds including that the inquiry was not properly held, but the Tribunal, by its judgment dated 24-1-1994, dismissed the claim petition. This order was challenged by the respondent in a writ petition in the Allahabad High Court which, by its judgment dated 12-2-1998, partly allowed the writ petition and directed that the respondent shall be reinstated in service but he would be paid 25 per cent of the back wages only. It is against this judgment that the present appeal has been filed.

    4. The principal contention raised by the learned counsel for the appellants is that it having been found by the U.P State Public Services Tribunal as also by the High Court that the inquiry held by the appellants was proper, there was no occasion for the High Court to interfere on the quantum of punishment. This proposition is seriously contested by the counsel for the respondent who submitted that the whole matter had to be examined in the background of the entire facts and since the High Court considered the totality of the circumstances and came to the conclusion that the punishment, inflicted upon the respondent, was disproportionate to the nature of charge against him, it was justified in ordering reinstatement and though the respondent, in the circumstances of the case, should have been allowed at least 75 per cent of back wages, he was allowed back wages only to the extent of 25 per cent.

    5. The bus which was checked by the Transport Inspector was meant to ply within the District of Allahabad and was not a long-distance bus. The allegation against the respondent was that though the passengers had boarded the bus at the “High Court” for “Manauri” for which they should have been charged Rs 1.80, they were issued tickets from “Zero Road” to “Manauri” and they were charged only Rs 1.50 The only evidence on the basis of which the respondent was punished was the waybill and the tickets which had not been punched. The passengers were not examined at the trial nor was the statement of any passenger recorded at the time when the bus was checked so that it could be ascertained whether they had boarded the bus at the “High Court” or at “Zero Road”. Reliance was placed by the disciplinary authority and the Tribunal on the report of the Transport Inspector which also bears the signature of the respondent. This document was relied upon by the disciplinary authority as also by the Tribunal on the ground that if the contents of the report were not correct, the respondent ought not to have signed the report and he should have protested then and there. Since this was not done, the inference drawn by the disciplinary authority as also by the Tribunal was that whatever was written in the report was correct and it was on that basis that the respondent was held to be guilty.

    6. It was in the background of these circumstances that the High Court exercised its discretion under Article 226 of the Constitution and interfered with the quantum of punishment inflicted by the disciplinary authority. It may be that the order of dismissal was held to be valid and proper by the U.P State Public Services Tribunal but the Tribunal also overlooked the fact that though sufficient evidence could have been collected at the spot to indicate that the passengers to whom tickets were issued by the respondent had boarded the bus at the “High Court” and not at “Zero Road” but this was not done. It was a bus plied in the city itself and, therefore, the passengers, who were available in the bus, being local passengers, could have been approached at the spot for stating whether they had boarded the bus at the “High Court” or at “Zero Road”. Learned counsel for the appellants has placed reliance upon an unreported decision of this Court in U.P SRTC v. Om Prakash Pandey in which the order of the High Court, by which interference was made with the punishment inflicted upon the delinquent employee of the Corporation, was set aside. This case is clearly distinguishable on the ground that a number of passengers were allowed to travel without tickets and, therefore, the misconduct imputed to the employee was serious. This is not the case here as the respondent had issued tickets to all the passengers, who were found travelling in the bus, but the dispute was only with regard to the spot or place at which they had boarded the bus. To put it differently, the dispute was whether they had boarded the bus at “Zero Road” or at the “High Court”. In these circumstances, the High Court was justified in interfering with the quantum of punishment.

    7. A three-Judge Bench of this Court in B.C Chaturvedi v. Union of India (1995) 6 SCC 749, (1996) 32 ATC 44 laid down as under:

    “18. A review of the above legal position would establish that the disciplinary authority, and on appeal the appellate authority, being fact-finding authorities have exclusive power to consider the evidence with a view to maintain discipline. They are invested with the discretion to impose appropriate punishment keeping in view the magnitude or gravity of the misconduct. The High Court/Tribunal, while exercising the power of judicial review, cannot normally substitute its own conclusion on penalty and impose some other penalty. If the punishment imposed by the disciplinary authority or the appellate authority shocks the conscience of the High Court/Tribunal, it would appropriately mould the relief, either directing the disciplinary/appellate authority to reconsider the penalty imposed, or to shorten the litigation, it may itself, in exceptional and rare cases, impose appropriate punishment with cogent reasons in support thereof.”

    8. This will show that not only this Court but also the High Court can interfere with the punishment inflicted upon the delinquent employee if, that penalty, shocks the conscience of the Court. The law, therefore, is not, as contended by the learned counsel for the appellants, that the High Court can, in no circumstance, interfere with the quantum of punishment imposed upon a delinquent employee after disciplinary proceedings.

    9. Another three-Judge Bench of this Court in Colour-Chem Ltd. v. A.L Alaspurkar (1998) 3 SCC 192 has also laid down the same proposition and held that if the punishment imposed is shockingly disproportionate to the charges held proved against the employee, it will be open to the court to interfere.

    10. As pointed out earlier, the order of the High Court though extremely brief, must have been based on overall consideration of the facts of the case and it must have exercised its jurisdiction only when it was shocked to notice that though all the passengers had been issued tickets, the only dispute was with regard to the point at which they had boarded the bus for which the punishment of dismissal from service was highly disproportionate.

    11. We have already noticed above that instead of charging a fare of Rs 1.80, the respondent had charged a fare of Rs 1.50 from the passengers. While the appellants maintained that the passengers had boarded the bus at the “High Court” and were to alight at “Manauri”, the respondent contended that the passengers had boarded the bus at “Zero Road” and were to get down at “Manauri” and, therefore, he had rightly charged Rs 1.50 from those passengers. This fact could have been established beyond doubt if any of those passengers was examined at the domestic inquiry, or the Transport Inspector, who checked the bus, could have recorded their statements at the spot. This was not done and reliance was placed only upon the report of the Transport Inspector which was signed by the respondent also. It was not a case where the passengers were allowed to travel without tickets so that the amount of fare charged from the passengers could be pocketed by him.

    12. Under these circumstances, we do not agree with the contention of the counsel for the appellants, that the High Court should not have interfered with the quantum of punishment inflicted upon the respondent. The appeal is, therefore, dismissed but without any order as to costs.

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    U.P State Road Transport Corpn. And Others v. Mahesh Kumar Mishra And Others
    (Mar 15, 2000)