MANAGEMENT UTKAL MACHINERY LTD. vs WORKMEN, MISS SHANTI PATNAIK

The Supreme Court held that the termination of an employee's services must be based on a bona fide exercise of management power, and if found to be mala fide or an act of victimization, the Industrial Tribunal can intervene. In this case, the Tribunal ruled that the respondent's discharge was improper as there was no evidence of unsatisfactory work and no proper enquiry was conducted, thus awarding her compensation. The Court modified the compensation amount from Rs. 9,600 to Rs. 4,800, finding no special circumstances to justify the higher amount.