The Supreme Court of India, on September 30, held that once the order of termination was approved by the Industrial Tribunal on appreciation of evidence led before it, thereafter the findings recorded by the Industrial Tribunal were binding between the parties and no contrary view could have been taken by the Labour Court contrary to the findings recorded by the Industrial Tribunal.

Bench of Justices M. R. Shah and Krishna Murari heard an appeal against impugned judgment and order passed by the Division Bench of the Rajasthan High Court at Jaipur whereby the Division Bench of the High Court had dismissed the said appeal challenging the order passed by the Single Judge dismissing the writ petition filed by the appellant confirming the order passed by the Labour Court setting aside the order of termination passed against the workman. Hence, the Rajasthan State Road Transport Corporation preferred the present appeal.

The workman was serving on the post of Conductor. A departmental enquiry was initiated against him alleging not issuing the tickets to 10 passengers though he collected the amount of tickets. In the department inquiry he was found guilty for the misconduct alleged. The employer – Rajasthan State Road Transport Corporation terminated his services. The termination order was upheld. 

An appeal was preferred before the Labour Court whereby the order of termination was set aside. The decision of the Labour Court was challenged before the High Court and hence the instant appeal was moved.

The Court observed that, "once the order of termination was approved by the Industrial Tribunal and the management was permitted to lead the evidence and prove the misconduct before the Court and thereafter on appreciation of evidence the order of termination was approved, thereafter the fresh reference under Section 10 of the I.D. Act challenging the order of termination was not permissible. It is required to be noted that the order dated 21.07.2015 passed by the Industrial Tribunal which as such is a higher forum than the Labour Court had attained the finality."

"Though the aforesaid fact was pointed out before the High Court, the High Court has not at all considered and/or appreciated the same and has confirmed the judgment and award passed by the Labour Court for setting aside the order of termination which as such was approved by the Industrial Tribunal," the Court noted.

Court held that the judgment and award passed by the Labour Court confirmed by the High Court was unsustainable. It was held that the High Court had committed a very serious error in dismissing the writ petition/writ appeal confirming the judgment and award passed by the Labour Court setting aside the order of termination. 

The Court held that the judgment pronounced by the High Court was unsustainable.