CHENNAI: The Madras High Court has said any disciplinary action taken against employees of the retail liquor outlets of Tasmac must be in compliance with the statutory provisions and natural justice.
It is a well-settled principle of industrial jurisprudence that no punitive action can be taken against a workman without adhering to the rules of natural justice, said Justice K Surender in a recent order passed on the petition filed by Tasmac salesmen union against the July 24, 2026, circular regarding action and penalty for collecting money in excess of the maximum retail price in the outlets.
The union filed the petition alleging the impugned circular prescribes penalties for alleged excess-price sales and provides for the apportionment of the penalty amount between the salesperson and the supervisor under certain circumstances.
“Any penalty imposed on an employee must be preceded by a fair and proper domestic inquiry. The employees concerned must be afforded a reasonable and meaningful opportunity to show cause, examine witnesses, and put forth their case before any liability or punishment is fastened upon them,” the judge stated.
He held the guidelines in the impugned circular cannot override the statutory protection available to workers under the applicable standing orders and labour laws. Therefore, it is made clear that any disciplinary action or punishment initiated or imposed pursuant to the impugned circular dated 24.07.2026 shall strictly comply with the principles of natural justice, relevant service rules, and statutory provisions, he said.