Janatha Bazar (South Kanara Central ... vs The Secretary, Sahakari Noukarara ...

The Supreme Court held that the Labour Court's decision to reinstate employees found guilty of misappropriation under the Industrial Disputes Act, 1947, specifically Section 10 and Section 11A, was unjustified. The Court emphasized that a proved act of misappropriation cannot be rewarded with reinstatement or back wages, as it undermines the integrity of the employment relationship. The Court overturned the High Court's confirmation of the Labour Court's order, reinforcing that misappropriation should not be tolerated in employment contexts.