In Brief
A bank promoted an employee to godown-keeper with the duty to protect pledged goods held as security. He was explicitly instructed not to permit removal of these goods without written permission. The employee allowed a borrower to remove pledged goods with an understanding they would be replaced, but the borrower replaced them with inferior quality goods, diminishing the security value. Following an inquiry, the employee was dismissed. The Labour Court substituted dismissal with a 5-increment stoppage, which the High Court upheld. The Supreme Court reversed the High Court and Labour Court orders, reinstating the dismissal, finding that failure to protect pledged security breached a fundamental duty warranting dismissal."
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