State Bank Of Patiala vs General Secretary, Staff Union And Ors

The Supreme Court held that the dismissal of the respondent godown-keeper was justified due to gross misconduct under the Industrial Disputes Act, 1947, specifically referencing Section 11A. The Court found that the respondent's actions of allowing a borrower to remove pledged goods without authorization and replacing them with inferior quality goods severely compromised the bank's security. The Court overturned the Labour Court's decision to reduce the penalty, reinstating the dismissal as appropriate given the circumstances.