JANATHA BAZAR(S.K.CENT.COOP.W.STORES LTD vs SECY.,SAHAKARI N. SANGHA

The Supreme Court held that the Labour Court's order of reinstatement with 25% back wages for employees found guilty of misappropriation under Section 10 of the Industrial Disputes Act, 1947, was unjustified. The Court emphasized that a proved act of misappropriation cannot be rewarded, and reinstatement in such cases undermines the integrity of the employment relationship. The Court set aside the High Court's confirmation of the Labour Court's award, reinforcing that misappropriation should lead to dismissal without reinstatement.