The proportionality of punishment can be challenged in a proceeding before the Labour Court as per ID Act 1947 and there is no provision for further appeal/revision therefrom. But the general principle that the High Court under Article 227 (Supervisory jurisdiction) can look into the matter from the perspective of whether the punishment is shockingly disproportionate, or that any settled legal principle has been violated or that the Labour Court has breached principles of natural justice. There are various instances wherein High Court and the Supreme Court have interfered in the punishment ordered by the Labour Court.
During the Justice Krishna Iyer, DA Desai, Chinnappa Reddy & Venkitachaliah (1980's to 1990's) days the Supreme Court was too generous to the errant employee, and used to give some relief or the other. We had set a standard that on proving the charge of theft, dishonesty, fraud etc termination is the only punishment. We were hard put to defend the punishment during this period on the proportionality principle.