In **Surekha Domaji Bele v. Executive Engineer, Testing Division, MSEDCL**, the Supreme Court reiterated that **dismissal from service is the severest punishment and should be reserved only for cases involving grave misconduct** such as corruption, bribery, moral turpitude, misappropriation, substantial financial loss, or complete unfitness for service. The Court held that disciplinary authorities must apply the **doctrine of proportionality**, considering factors like the employee's long service, nature of misconduct, service record, and actual loss caused before imposing dismissal. In this case, although misconduct such as indiscipline and insubordination was proved, there was no allegation of corruption, financial loss, or moral turpitude. The Court also held that a fresh show-cause notice was mandatory after the earlier inquiry was declared invalid, and clarified that suspension pending inquiry is merely preventive and cannot operate as an additional punishment. Consequently, the dismissal was set aside, subsistence allowance was directed to be paid, and the employer was asked to reconsider an appropriate penalty.