L. MICHAEL & ANR. vs M/S. JOHNSTON PUMPS INDIA LTD.

The Supreme Court held that under the Industrial Disputes Act, 1947, an employer must disclose the grounds for termination when challenged as mala fide or colourable. The Court emphasized that the Labour Court erred in not probing the bona fides of the employer's action, which was merely based on the employer's suspicion without tangible evidence. The Court reinstated the employee with back wages, asserting that the power to terminate must be exercised in good faith and not as a cover for illegitimate motives.