DISCIPLINARY PROCEEDINGS & BURDEN OF PROOF IN EMPLOYMENT | LABOUR LAW

(2026 SCMR 105)

Saeed Ahmed v. Nestlé Pakistan Limited

Court: Supreme Court of Pakistan
Bench: Muhammad Ali Mazhar, J., Syed Hasan Azhar Rizvi, J. & Aqeel Ahmed Abbasi, J.
Date of Decision: 23 July 2025
Citation: 2026 SCMR 105
Case No.: C.P.L.A. No. 1285-K of 2022
Appeal From: Judgment dated 11.10.2022 passed by the High Court of Sindh, Karachi in C.P. No. D-4469 of 2019

Central Legal Issue

Whether dismissal from service can be sustained when misconduct is not proved through credible evidence in a domestic inquiry?

Factual Background

The petitioner was a permanent workman under the Industrial and Commercial Employment (Standing Orders) Ordinance, 1968 and Industrial Relations Act, 2012.
In September 2015, he underwent a dental procedure and submitted a medical reimbursement bill of Rs. 10,000 under the employer’s approved policy.
On 01.12.2015, he was issued a show-cause notice alleging that the bill was bogus/fake.
A domestic inquiry was conducted, culminating in dismissal from service.
The petitioner filed a grievance before NIRC:
- Single Bench: Upheld dismissal
- Full Bench: Set aside dismissal and ordered reinstatement
The employer challenged the Full Bench order before the Sindh High Court, which restored the dismissal.
The employee approached the Supreme Court.

Statutory Framework Involved

Relevant Laws

Industrial & Commercial Employment (Standing Orders) Ordinance, 1968
- Standing Orders 1(b) & 12
Industrial Relations Act, 2012
Constitution of Pakistan, Article 199

Burden of Proof in Disciplinary Proceedings

Employer Must Prove Misconduct

The Supreme Court reaffirmed that:

In disciplinary proceedings, the primary burden of proof squarely lies on the employer.
Misconduct must be proved on preponderance of evidence, which must be:
- Clear
- Credible
- Logically probative

📌 Key Holding:
No presumption of guilt can be drawn against an employee in the absence of reliable and corroborated evidence.

Failure to Produce the Star / Key Witness

Fatal Defect in the Inquiry

Multiple dental receipts were available on record showing conflicting amounts (Rs. 7,000 vs Rs. 10,000).
The doctor or dental clinic representative was the most material witness to verify:
- Which receipt was genuine
- Whether the bill was forged or inflated

Inquiry Officer’s Lapse

The Court held that:

The inquiry officer failed in his duty by not summoning:
- The doctor, or
- A representative of the dental clinic
Without such evidence, truth could not be unearthed.
The burden could not be shifted to the employee to call management witnesses.

📌 Finding:
The omission to examine the star witness destroyed the evidentiary value of the inquiry.

Domestic Inquiry: Purpose & Minimum Standards

Inquiry Is Not an Empty Formality

The Court emphasized that:

A domestic inquiry is not a ritual or rubber-stamp exercise.
Even though an inquiry officer is not a judicial officer:
- Natural justice
- Fair hearing
- Reasoned decision-making
  are minimum non-negotiable requirements.

📌 Observation:
A casual or perfunctory inquiry destroys the substratum of disciplinary proceedings.

Quantum of Punishment & Employer’s Prerogative

Punishment Presupposes Proof of Misconduct

The Court clarified that:

Determination of punishment is indeed the employer’s prerogative, but only after misconduct is established.
Courts may interfere with punishment where:
- Misconduct is not proved, or
- The penalty is shockingly disproportionate, or
- Due process is violated

📌 Principle:
Proportionality analysis arises only after guilt is lawfully established.

Role of Constitutional Jurisdiction (Article 199)

Limits of Writ Jurisdiction

The Supreme Court reiterated that:

Writ of certiorari may be issued where:
- Authority acts without or in excess of jurisdiction
- Natural justice is violated
- There is an error apparent on the face of record
- The decision is tainted by mala fides, bias, or illegality

📌 Finding:
The High Court exceeded its constitutional jurisdiction by interfering with a well-reasoned Full Bench decision of NIRC.

Supreme Court’s Final Determination

Restoration of NIRC Full Bench Judgment

The Court held that:

The Full Bench of NIRC passed a rational, judicious, and lawful judgment.
The Sindh High Court’s judgment was unsustainable in law.

FINAL ORDER

Petition converted into appeal
Appeal allowed
Judgment of the High Court of Sindh set aside
Judgment of the Full Bench of NIRC restored
Dismissal declared unlawful

Ratio Decidendi (Key Legal Principle)

In disciplinary proceedings, misconduct must be affirmatively proved by the employer through credible evidence. Failure to examine the most material witness is fatal to the inquiry, and dismissal based on such defective proceedings is unlawful.

Why This Judgment Is Important

Strengthens employee protection in disciplinary matters
Reinforces burden of proof on employer
Curtails arbitrary dismissals
Clarifies limits of High Court’s writ jurisdiction
Elevates standards of fair domestic inquiries

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