1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO.4110 OF 2007 Maharashtra State Road Transport Corporation. ...Petitioner. Vs. Shri Sanatan Janardhan Patil. ...Respondent. .... Mr. G.S. Hegde i/b. G.S. Hegde & Asso. for the Petitioner. Ms. P.V. Badadare for the Respondent. ..... CORAM : DR.D.Y.CHANDRACHUD, J. October 7, 2008. P.C. The Respondent was engaged as a bus driver by the Petitioner on 6th January 1995 and an accident took place in the course of which a pedestrian was killed. A chargesheet was issued to the workman on 8th January 1998. After the disciplinary proceeding was held, an order of punishment was passed by which the pay scale of the Respondent was reduced by three stages in the time scale of pay permanently. In a departmental appeal the penalty was modified to a reduction of pay by two stages. The Respondent preferred a complaint of unfair labour practices. The Industrial Court 2 by its impugned order dated 2nd August 2006 maintained the order of punishment by which the pay scale was reduced by two stages. However, the word 'permanently' was deleted and the Petitioner was directed to restore the two stages which were reduced in the pay scale after the expiry of three years from 11th February 2002. Counsel appearing on behalf of the Petitioner assailed the reasoning of the Industrial Court and submitted that in view of Rule 7 of the Discipline and Appeal Rules, the penalty which was issued is in accordance with law. On the other hand, Counsel appearing on behalf of the Respondent supported the reasoning of the Industrial Court. Rule 7 of the Discipline and Appeal Procedure for employees of the Maharashtra State Road Transport Corporation is to the following effect: “7. The following punishments may be awarded for good and sufficient reasons, for committing any of the misconducts/minor lapses and delinquencies mentioned in the Schedules 'A' & 'B' commensurate with the gravity of the misconduct/minor lapses and delinquencies. 3 Classes of Punishment Appealable or misconduct. Non-appealable Minor lapses (a) Warning. ) Non-appealable and (b) Reprimand. ) delinquencies (c) Fine upto 1/10th Non-appealable of the pay. if the amount is not more than Rs.50/-. (d) Recovery from Non-appealable pay of the whole or part of pecuniary loss caused to the Corpn. by negligence or breach of orders, if it does not exceed 1/10th of pay of the employee. Acts of (a) Recovery from pay Appealable. misconduct. of whole or part of pecuniary loss caused to the Corpn. by negligence or breach of orders if exceeding 1/10th of wages. (b) Withholding increment for a period not exceeding three annual -do- increment. (c ) Stoppage of promotion -do- for a period not exceeding 3 years. (d) Reversion to a next -do- below the substantive post held by employee charged. (e) Reduction to lower pay -do- 4 by not more than 3 stages in the time-scale of pay of the post substantively held by an employee charged. (f) Discharge from service -do- of the Corporation. (g) Dismissal from service -do- of the Corporation.” (emphasis supplied) Clause (e) provides for a reduction to a lower pay by not more than three stages in the time-scale of pay of the post substantively held by the employee who is charged. When the pay of the employee is reduced to the extent of three stages in the time- scale of pay, this reduction operates irrevocably. There is no question of reversing the reduction in the time-scale of pay after the expiry of three years. However, after the pay scale of the employee is reduced by upto three stages, the employee is not thereafter barred from earning normal increments to which he would be otherwise eligible. However, the reduction of pay scale upto three stages is not reversed. It is thereafter that the employee is entitled to earn his normal increments. 5 In these circumstances, the order that was passed by the Industrial Court directing the Petitioner to restore the two stages which were reduced from the pay scale of the Petitioner after 11th February 2002, was manifestly erroneous. The order of the Labour Court shall accordingly stand modified by setting aside the declaration of unfair labour practices. The direction in regard to the restoration of the two stages after the expiry of a period of three years shall also stand set aside. The imposition of the penalty of a reduction in the time scale of pay by two stages for an act of misconduct is maintained. The petition shall stand allowed in the aforesaid terms. There shall be no order as to costs. ....