Janatha Bazar (South Kanara Central vs Vs

The Supreme Court held that reinstatement of employees found guilty of misappropriation is unjustified, even with partial back wages, as established under Section 11A of the Industrial Disputes Act, 1947. The Court emphasized that a proved act of misappropriation cannot be rewarded, and the Labour Court's decision to reinstate the employees despite clear findings of misconduct was erroneous. The Court upheld the dismissal of the employees and set aside the orders of reinstatement and back wages.