Uttaranchal Transport Corporation vs Sanjay Kumar Nautiyal

The Supreme Court upheld the decision of the Labour Court reinstating Sanjay Kumar Nautiyal with 50% back wages, finding that the punishment of stoppage of two increments without cumulative effect was appropriate given the circumstances. The Court emphasized that while misappropriation of public money is a serious offense, the nature of the misconduct and the employee's service record warranted a lesser penalty. The judgment clarified the application of principles under the Industrial Disputes Act, particularly regarding the proportionality of punishment in service matters.