Dismissing employee who abets crime not disproportionate: HC

MADURAI: The Madras High Court Bench here today ruled that regardless of whether an employee had directly or indirectly caused loss to his employer through an act of crime, dismissal from service was not a disproportionate punishment as a "loss of confidence" was suffered by the recruiter in his staff.

Justice M Venugopal was hearing a petition filed by the Cumbum Urban Cooperative Society challenging the order of the Madurai Labour Court passed in Oct 2004, directing it to reinstate with back wages a clerk, who was dismissed for abetting the misappropriation of funds by the society's secretary.

Justice Venugopal said the loss of confidence suffered by the employer in his employee would be the "primary factor in deciding the quantum of punishment", rather than technical issues like whether the employee was directly or indirectly involved in the crime.

Justice Venugopal held that the Society had rightly dismissed the the clerk, M Dinakaran, accused of abetting the the secretary, who had embezzled Rs 3.37 lakh. The judge ruled that Dinakaran had "acted against the interest of his employer without exercising an impeccable standard of honesty and integrity".

"The Society has lost the confidence upon the employee, the labour court cannot exercise its discretion and set aside the order of termination. The labour court view is illogical and illegal. Hence this court interferes with the award of the court to prevent an aberration of justice", the judge ruled.

Observing that the society secretary had embezzled Rs 3.37 lakh deposited by its customers who redeemed their pledged jewels, Justice Venugopal said the clerk had not brought the act to the notice of the Special Officer of the Society despite being aware of it.

"This showed he had connived or aided or abetted the misdeeds of the secretary. If he is retained in employment then it will be against the interest of the society", the judge held.