Order Of Dismissal Set Aside On Ground Of Breach Of Principle Of Natural Justice: SC Remits Case To Disciplinary Authority

The Bench also observed, "Applying the law laid down by this Court in the aforesaid decisions to the facts of the case on hand and as the order of dismissal has been set aside on the ground that the same was in breach of principles of Natural Justice, the High Court ought to have remitted the case concerned to the Disciplinary Authority to conduct the inquiry from the point that it stood vitiated and to conclude the same after furnishing a copy of the Inquiry Report to the delinquent and to give opportunity to the delinquent to submit his comments on the Inquiry Officer's Report."

AAG Shri Amit Anand Tiwari appeared on behalf of the Appellant and Senior Advocate Shri S Nagamuthu appeared for the Respondent.

In this case, a departmental inquiry was initiated against the Respondent, who was a Panchayat Assistant. The allegation against him was that he committed a misappropriation of funds pertaining to Samuthram Panchayat in connivance with the erstwhile President of the said Panchayat. An order was punishment was passed against the Respondent.

The order of punishment appeared before the High Court. The High Court quashed the order of dismissal and remanded the matter for fresh disposal observing that no inquiry whatsoever was held as required under the law. On remand, the inquiry was conducted after affording an opportunity to the Respondent to defend his case.

However, without giving a copy of the Inquiry Report to the Respondent, and without calling for his comments on the Inquiry Officer's Report, a fresh order was passed. Consequently, the Respondent filed a writ petition before the High Court.

The Single Judge of the High Court allowed the writ petition, and ordered reinstatement with back wages. The Division Bench of the High Court also upheld the order passed by the Single Judge.

The order of the Division Bench of the High Court was appealed against in the Supreme Court.

Relying on the judgments passed in the cases of State of Uttar Pradesh and Ors. Vs. Rajit Singh and Chairman, Life Insurance Corporation of India and Ors. Vs. A. Masilamani, the Court held that "it is required to be noted that the learned Single Judge has set aside the order of dismissal passed by the Disciplinary Authority on the ground that the same was in breach of principles of Natural Justice, in as much as, the copy of the Inquiry Officer's Report was not furnished to the delinquent and his comments were not called for on the Inquiry Officer's Report. It is to be noted that the respondent – delinquent was facing the departmental inquiry with respect to a very serious charge of misappropriation. Therefore, the High Court ought to have remitted the matter back to the Disciplinary Authority to conduct the inquiry from the point that it stood vitiated."

To that end, the Supreme Court held that the appeal succeeded in part. The case was remitted to the Disciplinary Authority to conduct the inquiry from the point that it stood vitiated, and the Authority was directed to conclude the same after furnishing a copy of the Inquiry Officer's Report and after giving an opportunity to the Respondent to submit his comments on the Inquiry Officer's Report, within a period of 6 months.

Regarding the violation of the principles of natural justice, the Court held that "considering the fact that earlier also the dismissal order was set aside on the ground that the same was found to be in breach of principles of Natural Justice and the matter was remitted back and thereafter again when the fresh order of dismissal has been passed, which is again found to be in violation of principles of Natural Justice and again the matter is to be remitted back, we allow the present appeal with costs to be paid by the appellant to the respondent - delinquent quantified at Rs. 50,000/-, which shall be paid to the respondent – delinquent within a period of six weeks from today."