SUPREME COURT OF INDIA
Narinder Mohan Arya
Vs
United India Insurance Company Limited and Others
Appeal (Civil) 7645 of 2004
(S. B. Sinha and Dalveer Bhandari, JJ)
05.04.2006
S. B. SINHA, J.
The appellant herein was appointed as an Inspector by the first respondent. He was at the material time posted at Hisar. He issued four insurance cover notes in favour of one M/s Aman Singh Munshi Lal (firm) on 21.10.1976. The payment in respect of all four cover notes was made by one cheque. The three cover notes were issued against goods to be transported through railways and one cover note for the goods to be transported by road. The cover notes were despatched from Hisar to its divisional office at Sirsa which were received on 23.10.1976. On 22.10.1976 bales of cotton despatched by the firm caught fire. The appellant was on leave from 23.10.1976 to 30.10.1976. He was in Chandigarh on 23.10.1976. The said firm raised a claim in respect of the loss of goods suffered by it in the said incident of fire.
However, in respect of the said incident a disciplinary proceeding was initiated against the respondent on or about 11.1.1978 on an allegation of antedating one insurance cover note for Rs. 1 lakh after the said fire broke out on 22.10.1976 which is said to have been issued on 31.10.76. In the departmental proceedings the Enquiry Officer found him guilty of the said charge, whereupon he was removed from service by an order of the Disciplinary Authority dated 24.7.79. No second show cause notice however, was served upon him. He preferred a departmental appeal in terms of Rule 37 of the General Insurance (Conduct, Discipline & Appeal) Rules , 1975 (Rules). The said appeal was dismissed by an order dated 29.9.1980.
In the meanwhile, the 'firm' filed a suit against the respondent herein for
recovery of the insured sum of Rs. 1, 22, 795.64. The appellant herein was also
impleaded as a party defendant therein. In the said suit, inter alia, the
following issues were framed :
"2. Whether valid contract of insurance was entered into between the
plaintiff and defendant No. 1 through deft. No. 2?
3. Whether the contract of insurance entered into between the plaintiff firm
and defendant no. 1 through cover note No. 09643 dated 21.10.76 is void ab-initio
having been obtained in collusion with defendant No. 2 after the destruction of
the goods through fire."
On or about 7.10.1980 the trial court decreed the said suit for a sum of Rs.
98, 550.16 on a finding that the said cover note was not antedated. For
arriving at the said finding, reliance was placed on the opinion of the
handwriting expert.
The first respondent herein being aggrieved by and dissatisfied with the said
judgment and decree dated 7.10.1980 passed in Suit No. 50/59 of 1978-79 preferred
an appeal before the said High Court which was dismissed by an order dated
4.10.1982. The matter was not carried further.
After delivery of the judgment by the civil court the appellant filed a
memorial bringing to the notice of the Chairman-cum-Managing Director of the
company thereabout, which was dismissed summarily stating:
"I have considered the Memorial dated 15.11.80 submitted by Shri N.M.
Arya against the order No. NRO: PER:80:3287 dated 29th September, 1980 of the
Appellate Authority, rejecting his appeal and confirming the penalty of removal
from service.
I have also considered the Enquiry Proceedings and the relevant records.
I do not find any reason to interfere with the order of the Appellate Authority
and the Competent Authority. The Memorial is rejected."
He filed a writ petition before the High Court of Punjab and Haryana against
the said orders which was marked as Civil Writ Petition No. 3232 of 1981. The writ
petition filed by the appellant was allowed by the High Court directing the
respondent to reinstate him in service with continuity of service and full back
wages including the benefit of seniority and promotion. The High Court in
support of its judgment relied upon the judgment of the civil court. However,
the first respondent filed a Letters Patent Appeal thereagainst before the said
High Court which was marked as LPA No. 344 of 1991. By an order dated 16.3.94
the said appeal was dismissed. A Special Leave Petition filed thereagainst by
the first respondent was marked as SLP (c) No. 11383/94 and by a judgment and
order dated 29.7.94 this Court remitted the matter back to the learned Single
Judge of the High Court opining that:
"From the above facts it becomes evident that the departmental
proceedings against the respondent had concluded in his removal from service.
That conclusion was passed on the evidence placed before the Enquiry Officer
which was evaluated by the Disciplinary Authority as well as the Departmental
Appellate Authority. In a collateral suit filed by the consignor for damages
for loss of goods by fire the defence was that the cover was antedated. While
examining that defence was that the cover was antedated. While examining that
defence the civil court came to the conclusion that the same was not proved.
That, however, cannot dislodge the decision earlier taken in the departmental
inquiry based on the material and evidence placed at the said enquiry. The
correctness or otherwise of the conclusion reached by the departmental
authorities would depend on the enquiry recorded and the ultimate conclusion
reached by the authorities can be shaken only on an evaluation of that record.
Even if a suit had been filed for setting aside the removal order, the civil
court could not have acted as an appellate authority. Therefore, the finding
recorded in the suit cannot dislodge the finding recorded, in the enquiry
concluded earlier in point of time. Otherwise the decision of the civil court
would appear to be one by an appellate authority against the departmental
enquiry on a record that was not before the Disciplinary Authority."
A learned Single Judge of the High Court after remittance of the matter by this
Court allowed the said writ petition by an order dated 11.1.2002. However, on a
Letters Patent Appeal filed by the respondent No.1 herein, by an order dated
13.3.2002 the Division Bench of the High Court remanded the matter again to the
learned Single Judge directing him not to be influenced by the finding of the
Civil Court on issue No. 2 and 3 in the suit filed by the said firm. The writ
petition filed by the appellant herein was dismissed by an order dated
22.5.2002. The Letters Patent Appeal filed by the appellant herein has been
dismissed by the impugned judgment.
Mr. Puneet Bali, learned counsel appearing on behalf of the appellant in support of the appeal inter alia submitted:
(1) keeping in view the fact that the subject matter of dispute in the civil
suit as also that of the disciplinary proceedings was the same, and same
evidences have been adduced, the judgment and decree passed by the Civil Court
was binding upon the first respondent.
(2) the High Court in the first round of the litigation not only considered
voluminous records of the disciplinary as also the civil court proceedings and
noticed the findings of fact arrived at, which were relevant for disposal of
the writ petition filed by the appellant; but while passing the impugned
judgment, it refused to do so as a result whereof the appellant had gravely
been prejudiced.
(3) A bare perusal of the report of the Enquiry Officer would show that the
findings recorded therein were based on no evidence.
(4) The order of the appellate authority being a non-speaking one the same was
liable to be set aside.
(5) While disposing of the Memorial, the Chairman-cum-Managing Director was
bound to take into consideration the relevant fact namely the judgment and
decree passed by the civil court.
Mr. Sudhir Kumar Gupta, learned counsel appearing on behalf of the respondent,
on the other hand, would submit that in view of the fact that the civil Court
could not have acted as an appellate authority over the order passed by the
disciplinary authority, the High Court's opinion is unassailable.
The Enquiry Officer in his report dated 5.5.79 recorded the allegations made as
against the appellant in the disciplinary proceedings in the following terms:
"The brief facts of the case appear to be that Sh. N.M. Arya issued a
cover note No. 09643 dated 21.10.76 covering a consignment of cotton bales
valued for Rs. One lac in transit from Hansi to Phulwari Shariff by Truck No.
HRR 7297 covering the risk of Marine Insurance T.P.N.D. and water damage
charging a premium of Rs. 165/- plus Rs. 1/- as stamp duty totalling Rs. 166/-.
This consignment while awaiting transhipment at the U.P. border near Ghaziabad
caught fire on 22.10.76 resulting into heavy damage to the stock of cotton
bales. It is alleged that the cover note No. 09643 was issued on or after
22.10.76 after the fire had broken out antedating the date of issue on
21.10.76. This is only one charge and that is that the cover note No. 09643 was
issued after the fire damage to the consignment had taken place and cover note
was antedated to 21.10.76."
Before the Enquiry Officer three witnesses were examined on behalf of the first
respondent being S/Shri A.R.Sethi, D.D. Jain and K.L. Manchanda whereas the
appellant herein besides examining himself examined the S/Shri Ferozilal Jain,
B.B. Jain and N.M. Arya. The Enquiry Officer noticed that there was no direct
oral or documentary evidence or eye witness to prove the charge. MW-1 stated
that although 23.10.1976 was the date put on the said envelop as having been
received on that date, he allegedly saw them lying on his table when he
returned to his office on 25.10.76. He further accepted that a telegram Ext.
M-3 dated 24.10.76 was received from the said firm claiming loss "by fire
for goods under the cover note in question". MW-3 Shri K.L. Manchanda was an
assistant in the Sirsa branch. He alleged that he did not receive the cover
note in question on 23.10.1976. Mr. D.D. Jain was an Inspector of the company.
He alleged that a representative of the firm had approached him on 22.10.1976
to take a transit insurance cover of cotton bales from Hansi to Phulwari
Shariff by road transport w.e.f. 21.10.1976 which he refused. He was, however,
offered a sum of Rs. 15, 000/- to Rs. 20, 000/- as temptation to cover the risk
of the cotton bales already damaged. He not only declined the offer, but he
intimated thereabout to Shri S.P. Malhotra, the Branch Manager at Hisar. The
Enquiry Officer noticed:
"Apart from these two witnesses the charge sheeted employee himself had
examined as a witness. I observe from the statement of the Management witness
that none of them are able to give direct account as to the conduct of the
charge sheeted employee with regard to the alleged mis- conduct."
It was further noticed that in the register the date of the cover note was
originally written as 22.10.1976. For the afore-mentioned purpose, the Enquiry
Officer took help of magnifying glass and on the basis of doubt created in his
mind as to the veracity of the contention of the appellant, came to the
conclusion that the same was despatched only on 23.10.1976. In the said report
it has been accepted that the appellant emphatically denied any over writing in
the said despatch register. The Enquiry Officer proceeded on a hypothesis as
regard the delay in conveying the information to the company by 48 hours by the
said Firm.
Ordinarily, we would not have referred to the findings of the Enquiry Officer.
He was entitled to draw his own inference and so long as the inference drawn by
him is supported by some materials on record, it is well settled that a Court
of judicial review would not interfere therewith. We have further noticed
hereinbefore marked features of this case which make this case stand apart from
other cases.
The self-same issue fall for consideration before a competent Civil Court. In
the Civil Court a hand writing expert was examined who was of the opinion that
instead and place of altering the despatch register from 23rd to 22nd it was
really the other way round, namely, it was originally 22nd but the same had
been altered to 23rd. Before the Civil Court also both Mr. A.R. Sethi and Mr.
D.D. Jain were examined. Some of the witnesses on behalf of the respondent were
also examined. The Civil Court held :
"If the original entry had been 23/10, then the figure '3' would have
been written as written in the next serial number and it only shows that the
original figure was 22. An effort has been made to convert it into 23. So, it
is just possible that defendant No.1 after taking into possession the despatch
register might have tried to convert it into 23 just to create confusion."
As regard the purported forgery committed by the appellant herein the Civil
Court observed that respondent No.1 miserably failed to prove the same. It was
held:
"In view of my discussion above, I hold that a valid contract of
insurance was entered into between the plaintiff and defendant No.1 through
defendant No.2 through cover note No.09643 dated 21.10.76 Ex P-10 and it had
not been obtained by plaintiff firm in collusion with defendant No.2 after the
destruction of the goods through fire. Accordingly, both these issues decided
in favour of the plaintiff and against the contesting defendants."
The first appellate court also went into the said question in great details and
came to the following conclusion :
"It is further to mention that on the same day, three more cover notes
Ex.P.7 to Ex.P.9 with regard to three other consignments were issued by
defendant No.2 in favour of the plaintiff firm, the correctness of which was
not challenged at any stage. It is also fruitful to note that defendant no.1
got encashed the cheque pertaining to all the cover-notes. A resume of the
above facts would show that the plaintiff successfully proved that a valid
contract of insurance had come into existence and it was rightly held so by the
learned trial court under issue no.2."
It is not in dispute that the second appeal preferred by the respondent against
the said judgment was dismissed. The said decree has also been acted upon. It
attained finality.
On an earlier round of litigation, i.e. in the writ proceedings the appellant
succeeded both before the learned Single Judge as also the Division Bench. The
High Court proceeded on the basis that the findings of the Civil Court would
prevail over the findings of the Enquiry Officer. However, this Court did not
agree with the said findings on the ground that the scope of the jurisdiction
of the Civil Court in a matter arising of the departmental proceedings in a
suit filed by a third party impleading both the parties herein as defendants
and the principle of res judicata will have no application as even if a suit
was filed for setting aside the order of removal, the civil court could not
have acted as an appellate authority. This Court, however, had no occasion to
consider as to what extent the judgment and decree passed by the civil court
would have been relevant in the subsequent departmental proceeding. It was also
not suggested that the civil court would have no jurisdiction to interfere with
the order of penalty even if the same was found to be based on no evidence.
It is, however, beyond any controversy that when a crucial finding like forgery
was arrived at on an evidence which is non est in the eyes of law, the civil
court would have jurisdiction to interfere in the matter.
This Court remitted the matter back to the learned Single Judge of the High
Court for disposal on other points raised by the appellant in the writ
petition.
The learned Single Judge as noticed hereinbefore directed the appointment of a
fresh enquiry officer on the premise that the judgment of the Civil Court is a
relevant piece of evidence.
The Division bench, however, set aside the said judgment stating that in view
of the unequivocal observations made by this Court as regard the findings recorded
in the civil suit by the firm cannot dislodge the findings recorded by the
enquiry officer and in that view of the matter the learned Single Judge was not
justified in quashing the punishment. The Division Bench observed that the
judgment of the Single Judge suffers from mutually destructive findings.
In its judgment, after remand, the learned Single Judge quoted almost the
entire order of the Enquiry Officer and without discussing the issues raised
therein held:
"(1) When these types of acts are committed by an employee to the
disadvantage of the employer, these are committed in secrecy and in conspiracy
with the person affected by the accident
(2) It is a settled principle of law that High Court cannot sit as a court of
appeal over the findings of the appellate authority and that is the reason the
Hon'ble Supreme Court in various judgments said that while dealing with such
like cases, we have to make a distinction whether it is a case of "some
evidence" or of "no evidence"...
(3) The sufficiency of proof like a criminal charge is not required in the
departmental proceedings nor the strict provisions of Indian Evidence Act are
applicable. The moment it is established to the conscious of the Court that the
opinion formulated by the inquiry officer could be reasonably formulated by an
ordinary prudent man, then in such eventuality such decision of the Inquiry
Officer should not be interfered with."
By reason of the impugned judgment the Division Bench dismissed the intra-court
appeal filed by the appellant summarily.
In our opinion the learned Single Judge and consequently the Division Bench of
the High Court did not pose unto themselves the correct question. The matter
can be viewed from two angles. Despite limited jurisdiction a civil court, it
was entitled to interfere in a case where the report of the Enquiry Officer is
based on no evidence. In a suit filed by a delinquent employee in a civil court
as also a writ court, in the event the findings arrived at in the departmental
proceedings are questioned before it should keep in mind the following: (1) the
enquiry officer is not permitted to collect any material from outside sources
during the conduct of the enquiry. [See State of Assam & Anr. V. Mahendra
Kumar Das & Ors.[ : (2) In a domestic enquiry fairness in the
procedure is a part of the principles of natural justice [See Khem Chand V.
Union of India & Ors., and State of Uttar Pradesh v. Om Prakash
Gupta, . (3) Exercise of discretionary power involve two elements:- (i) Objective
and (ii) subjective and existence of the exercise of an objective element is a
condition precedent for exercise of the subjective element. [See K.L. Tripathi
V. State of Bank of India & Ors. [ : (4) It is not possible to
lay down any rigid rules of the principles of natural justice which depends on
the facts and circumstances of each case but the concept of fair play in action
is the basis. [See Sawai Singh V. State of Rajasthan [ (5) The enquiry
officer is not permitted to travel beyond the charges and any punishment
imposed on the basis of a finding which was not the subject matter of the
charges is wholly illegal. [See Director (Inspection & quality Control)
Export Inspection Council of India & Ors. Vs. Kalyan Kumar Mitra & Ors.
[ 1987 (2) CLJ 344. (6) Suspicion or presumption cannot take the place of
proof even in a domestic enquiry. The writ court is entitled to interfere with
the findings of the fact of any tribunal or authority in certain circumstances.
[See Central Bank of India Ltd. V. Prakash Chand Jain, , Kuldeep Singh v.
Commissioner of Police and Others, .
We may notice that this Court in Ramendra Kishore Biswas V. State of Tripura
& Ors. 3 was clearly of the opinion that
a civil suit challenging the legality of a disciplinary proceeding and consequent
order of punishment is maintainable. Even this Court in its order dated
29.7.1994 said so. It is interesting to note that in the celebrated judgment of
this Court in State of U.P. v. Mohammad Nooh this Court opined:
"On the authorities referred to above it appears to us that there may
conceivably be cases and the instant case is in point-where the error,
irregularity or illegality touching jurisdiction or procedure committed by an
inferior court or tribunal of first instance is so patent & loudly
obtrusive that it leaves on its decision an indelible stamp of infirmity or
vice which cannot be obliterated or cured on appeal or revision. If an inferior
court or tribunal of first instance acts wholly without jurisdiction or
patently in excess of jurisdiction or manifestly conducts the proceedings
before it in a manner which is contrary to the rules of natural justice and all
accepted rules of procedure and which offends the superior court's sense of
fair play the superior Court may, we think, quite properly exercise its power
to issue the prerogative writ of certiorari to correct the error of the court
of tribunal of first instance, even if an appeal to another inferior court or
tribunal was available and recourse was not had to it or if recourse was had to
it, it confirmed what ex facie was a nullity for reasons aforementioned. This
would be so also the more if the tribunals holding the original trial and the
tribunals hearing the appeal or revision were merely departmental tribunals
composed of persons belonging to the departmental hierarchy without adequate
legal training and background and whose glaring lapses occasionally come to our
notice." (Emphasis supplied)
Yet again in Sher Bahadur V. Union of India & Ors. 9 this Court observed:
"It may be observed that the expression "sufficiency of
evidence" postulates existence of some evidence which links the charged
officer with the misconduct alleged against him. Evidence, however voluminous
it may be, which is neither relevant in a broad sense nor establishes any nexus
between the alleged misconduct and the charged officer, is no evidence in law.
The mere fact that the enquiry officer has noted in his report, "in view
of oral, documentary and circumstantial evidence as adduced in the enquiry",
would not in principle satisfy the rule of sufficiency of evidence. Though, the
disciplinary authority cited one witness Shri R.A. Vashist, Ex. CVI/Northern
Railway, New Delhi, in support of the charges, he was not examined. Regarding
documentary evidence, Ext. P-1, referred to in the enquiry report and adverted
to by the High Court, is the order of appointment of the appellant which is a
neutral fact. The enquiry officer examined the charged officer but nothing is
elicited to connect him with the charge. The statement of the appellant
recorded by the enquiry officer shows no more than his working earlier to his
re-engagement during the period between May 1978 and November 1979 in different
phases. Indeed, his statement was not relied upon by the enquiry officer. The
finding of the enquiry officer that in view of the oral, documentary and
circumstantial evidence, the charge against the appellant for securing the
fraudulent appointment letter duly signed by the said APO (Const.) was proved,
is, in the light of the above discussion, erroneous. In our view, this is
clearly a case of finding the appellant guilty of charge without having any
evidence to link the appellant with the alleged misconduct. The High Court did
not consider this aspect in its proper perspective as such the judgment and
order of the High Court and the order of the disciplinary authority, under
challenge, cannot be sustained, they are accordingly set aside."
It is also of some interest to note that the first respondent itself, in the civil suit filed by the firm relied upon a copy of the report of the Enquiry Officer. The first respondent, therefore, itself invited comments as regard the existence of sufficiency of evidence/acceptability thereof and, thus, it may not now be open to them to contend that the report of the Enquiry Officer was sacrosanct.
We have referred to the fact of the matter in some details as also the scope of
judicial review only for the purpose of pointing out that neither the learned
Single Judge nor the Division Bench of the High court considered the question
on merit at all. They referred to certain principles of law but failed to
explain as to how they apply in the instant case in the light of the
contentions raised before it. Other contentions raised in the writ petition also
were not considered by the High Court.
We may for the aforementioned purpose take note of the extant rules operating in the field. Requirements of consideration in an appeal from an order of the disciplinary authority by the appellate authority is contained in Rule 37 whereas the provisions as regards filing of a memorial are contained in Rule 40 thereof, which read as under:
"37. Consideration of Appeals- (1) In case of an appeal against an
order of suspension, the appellate authority shall consider whether in the
light of the provisions of Rule 20 and having regard to the circumstances of
the case the order of suspension is justified or not and confirm or revoke the
other accordingly.
(2) In the case of an appeal against an order imposing any of the penalties specified in Rule 23, the appellate authority shall consider:
(a) Whether the procedure prescribed in these Rules has been complied with and
if not, whether such non-compliance has resulted in failure of justice;
(b) Whether the findings are justified; and
(c) Whether the penalty imposed is excessive, adequate or inadequate, and pass
orders:
I. setting aside, reducing, confirming or enhancing the penalty; or
II. remitting the case to the authority which imposed the penalty or to any
other authority with such direction as it may deem fit in the circumstances of
the case.
"40 Memorial An employee whose appeal under these Rules has been rejected
by the Chairman/Chairman-cum-Managing Director or in whose case such appellate
authority has enhanced the penalty either on appeal under Rule 24 or on review
under Rule 39 (2) may address a memorial to the Chairman/Chairman-cum-Managing
Director in respect of that matter within a period of a 6 months from the date
the appellant received a copy of the order of such appellate authority."
The appellate authority, therefore, while disposing of the appeal is required
to apply his mind with regard to the factors enumerated in sub-rule 2 of Rule
37 of the Rules. The judgment of the civil court being inter parties was
relevant. The conduct of the appellant as noticed by the civil court was also
relevant. The fact that the respondent has accepted the said judgment and acted
upon it would be a relevant fact. The authority considering the memorial could
have justifiably came to a different conclusion having regard to the findings
of the civil court. But, it did apply its mind. It could have for one reason or
the other refused to take the subsequent event into consideration, but as he
had a discretion in the matter, he was bound to consider the said question. He
was required to show that he applied his mind to the relevant facts He could
not have without expressing his mind simply ignored the same.
An appellate order if it is in agreement with that of the disciplinary
authority may not be a speaking order but the authority passing the same must
show that there had been proper application of mind on his part as regard the
compliance of the requirements of law while exercising his jurisdiction under
Rule 37 of the Rules.
In Apparel Export Promotion Council V. A.K. Chopra [ 0 which has heavily been relied upon by Mr. Gupta, this
Court stated:
"The High Court appears to have overlooked the settled position that in
departmental proceedings, the disciplinary authority is the sole judge of facts
and in case an appeal is presented to the appellate authority, the appellate
authority has also the power/and jurisdiction to re-appreciate the evidence and
come to its own conclusion, on facts, being the sole fact-finding
authorities." (Emphasis supplied)
The appellate authority, therefore, could not ignore to exercise the said
power.
The order of the appellate authority demonstrates total non-application of
mind. The appellate authority, when the rules require application of mind on
several factors and serious contentions have been raised, was bound to assign
reasons so as enable the writ court to ascertain as to whether he had applied
his mind to the relevant factors which the statute requires him to do. The
expression 'consider' is of some significance. In the context of the rules, the
appellate authority was required to see as to whether (i) the procedure laid
down in the rules was complied with; (ii) the Enquiry Officer was justified in
arriving at the finding that the delinquent officer was guilty of the
misconduct alleged against him; and (iii) whether penalty imposed by the
disciplinary authority was excessive.
In R.P. Bhatt V. Union of India [ this Court opined:
"The word "consider" in Rule 27(2) implies "due
application of mind". It is clear upon the terms of Rule 27(2) that the
Appellate Authority is required to consider (1) whether the procedure laid down
in the Rules has been complied with; and if not, whether such non-compliance
has resulted in violation of any provisions of the Constitution or in failure
of justice; (2) whether the findings of the disciplinary authority are
warranted by the evidence on record; and (3) whether the penalty imposed is
adequate; and thereafter pass orders confirming, enhancing etc. the penalty, or
may remit back the case to the authority which imposed the same. Rule 27(2)
casts a duty on the Appellate Authority to consider the relevant factors set
forth in clauses (a), (b) and (c) thereof.
There is no indication in the impugned order that the Director General was
satisfied as to whether the procedure laid down in the Rules had been complied
with; and if not, whether such non- compliance had resulted in violation of any
of the provisions of the Constitution or in failure of justice. We regret to
find that the Director General has also not given any finding on the crucial
question as to whether the findings of the disciplinary authority were
warranted by the evidence on record. It seems that he only applied his mind to
the requirement of clause (c) of Rule 27(2) viz. whether the penalty imposed
was adequate or justified in the facts and circumstances of the present case.
There being non-compliance with the requirements of Rule 27(2) of the Rules,
the impugned order passed by the Director General is liable to be set
aside."
In paragraph 13 of the memorial the appellant at the first opportunity raised a
contention that the order of the appellate authority was not a speaking order
at all, besides drawing the attention of the Chairman-cum Managing Director to
the subsequent event namely the judgment and decree passed by the civil court.
The said authority again did not apply its mind while passing his order dated
31st March, 1981. When such a contention was raised, it was obligatory on the
part of the Chairman-cum-Managing Director while exercising its statutory
jurisdiction to show that he had applied his mind to the contentions raised.
Such application of mind on his part is not apparent from the order. The
departmental proceedings are quasi criminal in nature.
Under certain circumstances, a decision of a civil court is also binding upon
the criminal court although, converse is not true. [See M/s Karamchand Ganga
Pershad & Anr. V. Union of India & Ors. . However, it is also
true that the standard of proof in a criminal case and civil case is different.
We may notice that in Capt. M. Paul Anthony V. Bharat Gold Mines Ltd. &
Anr. 1993 (3) SCC 679 this Court observed:
"Since the facts and the evidence in both the proceedings, namely, the departmental proceedings and the criminal case were the same without there being any iota of difference, the distinction, which is usually drawn as between the departmental proceedings and the criminal case on the basis of approach and burden of proof, would not be applicable to the instant case."
We may not be understood to have laid down a law that in all such circumstances
the decision of the civil court or the criminal court would be binding on the
disciplinary authorities as this Court in a large number of decisions points
point that the same would depend upon other factors as well. See e.g.
Krishnakali Tea Estate V. Akhil Bharatiya Chah Mazdoor Sangh & Anr. [
and Manager, Reserve Bank of India Bangalore V. S. Mani & Ors. [
. Each case is, therefore, required to be considered on its own facts.
It is equally well settled that the power of judicial review would not be
refused to be exercised by the High Court, although despite it would be lawful to
do so. In Manager, Reserve Bank of India Bangalore (supra) this Court observed:
"The findings of the learned Tribunal, as noticed hereinbefore, are
wholly perverse. It apparently posed unto itself wrong questions. It placed
onus of proof wrongly upon the appellant. Its decision is based upon irrelevant
factors not germane for the purpose of arriving at a correct finding of fact.
It has also failed to take into consideration the relevant factors. A case for
judicial review, thus, was made out."
In that case also, in view of the admissions made by the Management witness, it
was found that tribunal's findings were based on no evidence and, thus,
irrational. This Court also noticed that the circumstances relied upon by the
tribunal were wholly irrelevant stating:
"The circumstances relied upon, in our opinion, are wholly irrelevant for the purpose of considering as to whether the respondents have completed 240 days of service or not. A party to the lis may or may not succeed in its defence. A party to the lis may be filing representations or raising demands, but filing of such representations or raising of demands cannot be treated as circumstances to prove their case."
The Judgment and order of the learned Single Judge suffers from several infirmities.
He had observed that 'the disadvantages of an employer as such acts are
committed in secrecy and in conspiracy with the person affected by the
accident'. No such finding has been arrived at even in the disciplinary
proceedings nor any charge was made out as against the appellant in that
behalf. He had no occasion to have his say thereupon. Indisputably, the writ
court will bear in mind the distinction between some evidence or no evidence
but the question which was required to be posed and necessary should have been
as to whether some evidence adduced would lead to the conclusion as regard the
guilt of the delinquent officer or not. The evidence adduced on behalf of the
management must have nexus with the charges. The Enquiry Officer cannot base his
findings on mere hypothesis. Mere ipso dixit on his part cannot be a substitute
of evidence.
The findings of the learned Single Judge to the effect that 'it is established
with the conscience (sic) of the Court reasonably formulated by an Enquiry Officer
then in the eventuality' may not be fully correct inasmuch as the Court while
exercising its power of judicial review should also apply its mind as to
whether sufficient material had been brought on record to sustain the findings.
The conscience of a court may not have much role to play. It is unfortunate
that the learned Single Judge did not at all deliberate on the contentions
raised by the appellant. Discussion on the materials available on record for
the purpose of applying the legal principles was imperative. The Division Bench
of the High Court also committed the same error.
The matter may be considered from another angle. The order of the disciplinary
authority, in view of the statutory provisions, merged with the order of the
appellate authority as also that of the Chairman-cum-Managing Director as the
appellate proceedings are in continuation of the original proceedings and,
thus, the doctrine of merger shall apply. [See Kunhayammed & Ors. V. State
of Kerala & Anr. .
A revisional jurisdiction as is well known involves exercise of appellate
jurisdiction. [See Shankar Ramchandra Abhyankar V. Krishnaji Dattatraya Bapat,
and Nalakath Sainuddin v. Koorikadan Sulaiman, 2.
Mr. Bali, learned counsel appearing on behalf of the appellant raised a contention
that the disciplinary proceedings was vitiated as the authorities acted mala
fide and with a biased attitude. We do not find any substance therein.
For the foregoing reasons the impugned judgments cannot be sustained which are
set aside accordingly. Although, the consequence of setting aside of the said
orders would have been to remit the matter back to the disciplinary authority
for consideration of the matter afresh on merit, but having regard to the fact
that the disciplinary proceedings were initiated against the appellant as far
back in 1976, we refrain ourselves from doing so. He indisputably, have
suffered a lot. However, the question which arises is what relief should be
granted to the appellant. The appellant shall be reinstated in service. We,
however, while directing reinstatement of the appellant, keeping in view of the
fact that no work had been taken from him, direct that only 50% of the back
wages shall be payable. The appeal is allowed with the abovementioned
directions.
In the facts and circumstances of the case the parties shall bear their own
costs.