The question whether the Central Administrative Tribunal could interfe

The question whether the Central Administrative Tribunal could interfere with penalty awarded by the competent authority on the ground that it is excessive or disproportionate to the misconduct proved, was examined by the Supreme Court of India in which one of the following cases ?

Excel Wear vs. Union of India
Sagir Ahmad vs. State of Uttar Pradesh
L. Chandra Kumar vs. Union of India
Union of India vs. Shri Parma Nanda
This question was previously asked in
UPSC CISF-AC-EXE – 2022
The correct answer is Union of India vs. Shri Parma Nanda.
– The question of whether the Central Administrative Tribunal (CAT) can interfere with the quantum of penalty imposed by the disciplinary authority on the ground of proportionality was extensively examined by the Supreme Court in the case of Union of India vs. Shri Parma Nanda (AIR 1989 SC 1185).
– The Supreme Court held in this case that the Tribunal has the power to judicially review the findings of the disciplinary authority and the punishment imposed. However, the Tribunal should not sit as an appellate authority substituting its own view on the penalty. It should only interfere with the quantum of punishment if it is shockingly disproportionate to the misconduct proved or if there is some procedural irregularity leading to miscarriage of justice.
– Excel Wear vs. Union of India dealt with the validity of provisions restricting the employer’s right to close down an undertaking.
– Sagir Ahmad vs. State of Uttar Pradesh concerned the fundamental right to carry on trade or business and the state’s power to create monopolies.
– L. Chandra Kumar vs. Union of India is a landmark judgment where the Supreme Court declared the power of judicial review of the High Courts and the Supreme Court over decisions of Tribunals as part of the basic structure of the Constitution. While it dealt with the jurisdiction of Tribunals, the Parma Nanda case is more specifically about the scope of review of the proportionality of penalty by administrative tribunals.
– The principle laid down in Parma Nanda regarding the proportionality review by tribunals has been reiterated and followed in numerous subsequent judgments.
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