Labour Courts Cannot Overturn Management’s Decision On Mere Hypothesis: Supreme Court

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Labour Courts Cannot Overturn Management’s Decision On Mere Hypothesis

Case: Standard Chartered Bank Vs RC Srivastava

Coram: Justice Ajay Rastogi and Justice Abhay S Oka

Case No: Civil Appeal 6092 of 2021

Court Observation: “If a piece of evidence is on record which could support the charge which has been levelled against the delinquent unless it is per se unsustainable or perverse, ordinarily is not to be interfered by the Tribunal, more so when the domestic enquiry has been held to be fair and proper”

“The decision of the Labour Court should not be based on mere hypothesis. It cannot overturn the decision of the management on ipse dixit. Its jurisdiction under Section 11­A of the Act 1947 although is a wide one but it must be judiciously exercised. Judicial discretion, it is trite, cannot be exercised either whimsically or capriciously. It may scrutinize or analyse the evidence but what is important is how it does so”

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Labour Courts, Management’s Decision