STATE BANK OF PATIALA vs GENERAL SECRETARY, STAFF UNION .

The Supreme Court upheld the decision of the Punjab & Haryana High Court, which confirmed the Labour Court's order substituting the dismissal of the respondent godown-keeper with a lesser penalty of stoppage of increments under Section 11A of the Industrial Disputes Act, 1947. The Court found that while the respondent was guilty of misconduct for allowing the removal of pledged goods without authorization, the punishment of dismissal was disproportionate. The Court emphasized the need for proportionality in disciplinary actions against employees.