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Factual and Procedural Background

The petitioner, an Ex-Assistant Works Superintendent of the Karnataka State Road Transport Corporation, challenged by way of writ petition an order of the Deputy General Manager and Divisional Controller which imposed the penalty of removal from service (order dated 18-5-1981).

The factual sequence, drawn from the opinion, is:

  • 24-3-1971: A departmental inquiry was instituted against the petitioner alleging irregularities resulting in loss of tyres at Mercara Depot; simultaneously the petitioner was prosecuted in the Criminal Court (Additional Munsiff and First Class Magistrate, Mercara) on the same subject matter.
  • 8-4-1971: The petitioner was acquitted by the Magistrate (Annexure-B).
  • 20-6-1972: The General Manager issued an order (Annexure-C) dropping the departmental inquiry and treating the period of suspension as duty.
  • 13-3-1973: A second departmental inquiry was instituted against the petitioner on the same charge (Annexure-D).
  • 27-5-1974: The petitioner filed his final statement in the second inquiry.
  • Thereafter there was an extended period of inaction (over four years) on any further steps based on the inquiry report.
  • 9-5-1979: The petitioner was promoted as Assistant Works Superintendent by an order of the General Manager (Annexure-A); that promotion order did not expressly reserve liberty to impose disciplinary penalties.
  • 18-5-1981: The Deputy General Manager made the impugned order dismissing the petitioner from service (Annexure-N), which is the subject of this writ challenge.

Legal Issues Presented

  1. Whether a second departmental inquiry can be held (and disciplinary action imposed) in respect of the same charge when a prior inquiry was dropped by the disciplinary authority on the basis of an acquittal and the period of suspension was treated as duty.
  2. Whether the conduct of promoting the petitioner after his reply to a show-cause notice, without expressly reserving the right to impose disciplinary penalty, amounts to abandonment of further disciplinary proceedings such that there is no authority to later impose dismissal.
  3. If an inquiry that was effectively terminated (by dropping it and treating suspension as duty) is to be reopened, whether the rules of natural justice must be complied with before reopening.

Arguments of the Parties

Petitioner's Arguments (as advanced by Sri S.G. Bhat)

  • The General Manager's order dated 20-6-1972 (Annexure-C) dropping the earlier inquiry and treating suspension as duty left no legal authority for the Deputy General Manager to pass the later impugned order of dismissal.
  • After the petitioner had submitted his reply to the show-cause notice and subsequently was promoted to the next higher cadre by the General Manager, the second inquiry must be deemed to have been abandoned; therefore the Corporation had no power to impose dismissal thereafter.
  • Where an inquiry has been dropped and suspension treated as duty (i.e., the employee exonerated), reopening the matter before instituting fresh proceedings would require compliance with principles of natural justice.
  • The inquiry conducted was contrary to the Corporation's regulations because the petitioner was denied reasonable opportunity to defend himself.

Respondent's Arguments (as advanced by Sri H.G. Balakrishna)

  • The Corporation retained the power to hold a departmental inquiry despite the petitioner’s acquittal in the criminal case; accordingly the General Manager's earlier decision to drop the inquiry did not bar reopening the matter and passing final disciplinary orders.
  • The rules of natural justice are inapplicable to the administrative decision to reopen or continue inquiries, as argued by the respondent.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
T.V. Gowda v. State of Mysore, WP No. 693 of 1970 (13-12-1973) The proposition that where an act amounts to both misconduct and a penal offence, a departmental inquiry can be held even if the employee has been prosecuted and acquitted in a criminal court. The court accepted this position as not contested by the petitioner, and used it to distinguish the broader principle from the narrower issue in the case (i.e., reopening an inquiry already dropped by the disciplinary authority).
Lal Audhraj Singh v. State of Madhya Pradesh, 1968 SLR 88 (MP) Authority relied on for the legal position that where proceedings have been treated as abandoned or the authority has exonerated an employee, reopening or subsequent disciplinary action may not be permissible. The court cited this decision to support the proposition that the respondents could not lawfully proceed after effectively abandoning the inquiry and promoting the petitioner without reservation.
P. Andrews v. District Educational Officer, 1966 2 Mys. L.J. 324 Decision of the Division Bench of the Karnataka High Court relevant to the principle that abandonment or conduct amounting to abandonment of disciplinary proceedings prevents later imposition of penalties. The court relied on this authority, together with Lal Audhraj Singh, to uphold the petitioner’s contention that further proceedings were abandoned and therefore the later dismissal order was impermissible.

Court's Reasoning and Analysis

The Court proceeded in structured steps, applying the facts to established legal principles as reflected in the opinion:

  1. The Court acknowledged the established rule (from T.V. Gowda) that a departmental inquiry can lawfully proceed even when criminal proceedings on the same facts resulted in acquittal. The petition did not dispute this general proposition.
  2. The decisive question, however, was narrower and factual: whether a second departmental inquiry could be conducted in respect of the same charge where an earlier inquiry had been dropped by the disciplinary authority on the basis of the criminal acquittal and the suspension period had been treated as duty.
  3. The Court recited the timeline: initial inquiry instituted 24-3-1971; criminal acquittal 8-4-1971; General Manager’s order dropping the inquiry and treating suspension as duty (20-6-1972); a second inquiry instituted 13-3-1973; petitioner filed final statement 27-5-1974; prolonged inaction; promotion on 9-5-1979 without an express reservation about disciplinary proceedings; and the impugned dismissal order dated 18-5-1981.
  4. On the first contention, the Court held there is no power under the regulations to reopen and inquire into a charge which had been dropped on the basis of an acquittal or where the disciplinary authority had exonerated the employee; absent a specific power to reopen on specified grounds, a second inquiry is without authority. Hence the Court upheld the petitioner's first contention.
  5. On the second contention, the Court reasoned that the promotion granted by the General Manager (9-5-1979), given after the petitioner had filed his reply to the show-cause notice and with no express reservation that disciplinary action remained open, indicated that further disciplinary proceedings were abandoned. The promotion—assessed on service records and suitability—implied acceptance of the petitioner’s explanation and fitness for higher duty. The Court relied on the authorities Lal Audhraj Singh and P. Andrews to support that conclusion and accepted the petitioner’s second contention.
  6. On the third contention, the Court observed that treating suspension as duty pursuant to the General Manager’s order meant the petitioner had been exonerated. Reopening such proceedings, even if mistakenly done earlier or for other reasons, would require compliance with rules of natural justice because reopening a terminated matter has significant adverse consequences for the employee. The Court therefore accepted the petitioner’s third contention.
  7. As the Court found for the petitioner on the first three contentions, it did not find it necessary to decide the fourth contention (that the petitioner was denied a reasonable opportunity in the inquiry).
  8. On that basis, the Court concluded that the Deputy General Manager had no authority to pass the impugned order of dismissal and therefore quashed it.

Holding and Implications

Holding:

IMPUGNED ORDER QUASHED.

The court made the Rule absolute, quashed the order dated 18-5-1981 passed by the Deputy General Manager imposing dismissal, and directed that the petitioner shall be entitled to all consequential benefits.

Implications:

  • Direct effect: The petitioner’s dismissal order is set aside and he is entitled to consequential benefits as a result of the quashing.
  • Broader implications: The opinion rests on established principles and cited authorities to determine that a disciplinary inquiry dropped and where suspension is treated as duty amounts to exoneration; absent specific statutory/regulatory power and compliance with natural justice, reopening such a matter is impermissible. The opinion does not assert that it is announcing a novel legal doctrine beyond applying these principles to the specific facts; no broader new precedent beyond the application to these facts is expressly claimed in the text.

Order made by: Rama Jois, J. — Rule made absolute; impugned order quashed; petitioner entitled to consequential benefits.

    Kamath v. K.S.R.T.C

    Rama Jois, J.:—

    The petitioner, an Ex-Assistant Works Superintendent of the Karnataka State Road Transport Corporation (Corporation for short) has presented this Writ Petition praying for quashing the order made by the Deputy General Manager and Divisional Controller imposing the penalty of removal from service against the petitioner.

    2. The facts of the case, in brief, are as follows: A departmental inquiry was instituted against the petitioner on 24-3-1971 alleging that certain irregularities had been committed by the petitioner which bad resulted in the loss of tyres in Mercara Depot. The petitioner was also prosecuted before the Court of the Additional Munsiff and Firs Class Magistrate, Mercara. The subject matter of the charge against the petitioner in the said criminal case was the same as the one in respect of which the departmental inquiry was commenced against the petitioner. By the order dated 8-4-1971 passed by the Magistrate (Annexure B) the petitioner was acquitted of the charge. After the petitioner was acquitted, the General Manager of the Corporation made an order dropping the proceedings, a copy of which is produced as Annexure-C. It reads:

    “In view of the acquittal of the delinquent Sri A.G Kamath, Depot Manager, in the Court by the Hon'ble Additional Munsiff and I Class Magistrate, Mercara, before the departmental enquiry could be proceeded into the alleged report against him, the enquiry ordered No. MST CO EST DFL 1808 dated 24-3-71 is hereby dropped. The suspension period undergone by the delinquent is treated as duty”.

    After about 9 months thereafter, once again a departmental inquiry was instituted against the petitioner on the same charge as per order dated 13-3-1973 (Annexure-D). In the inquiry the petitioner filed his final statement on 27-5-1974. Thereafter nothing was communicated to the petitioner for over four years about the further steps taken on the basis of the inquiry report. By the order of the General Manager dated 9-5-1979 (Annexure-A) the petitioner was promoted as Assistant Works Superintendent, The promotion order reads:

    “K.S.R.T.C CENTRAL OFFICE, BANGALORE No. KST: CO: EST: E2 : 1464 : 79-80 Dt 9-5-1979.

    GENERAL ESTABLISHMENT ORDER No. 4000

    Read: 1. C.R No. 2996 dated 16-11-74 giving directions to fill up the promotional vacancies by granting temporary promotions according to Provisional Gradation List 1972 published by the State Government in Karnataka Gazette dated 22-1-72.

    2. C.R No. 4088 dated 10-3-1979, according approval for relaxation of Educational and Service qualifications prescribed in the Cadre and Recruitment Regulations in respect of 66 Chargemen for filling up the promotionl vacancies to the post of Assistant Works Supdt./Jr. Foreman/Technical Superintendent.

    Pursuant to the C. Rs referred to above, the following Chargemen of the Mechnical Engineering Department are temporarily promoted as Asst. Works Superintendent/Junior Foreman, as detailed hereunder, with immediate effect and posted to the places shown against each of them.

    Sl. No. Name of Sriyuths Sl. No. in Gr. list of 1972 Place of Working Post to which promoted place of posting 9 A.G Kamath M/54 Hassan Dn. A.W.S Hassan Depot Hassan Dn.

    The above promotions will be effective from the dates they take over charge of the higher posts to which they are promoted and their seniority in the promoted cadre is maintained as per the Provisional Gradation List.

    The promotions are temporary and subject to review at any time or after finalisation of the Provisional Gradation List.

    The promotees are placed on probation in the promoted posts for a period of one year with effect from the dates they take over charge of the higher posts, during which period their performance will be watched and their confirmation in the promoted posts will be subject to satisfactory service.

    The promotees are granted (7) days joining time including transit with pay, TA and DA and intervening Sundays and Holidays, if any, wherever there is change in headquarters.

    Sd/- General Manager”

    After about two years from the date of the said promotion, the impugned order was made by the Deputy General Manager on 18-5-1981 (Annexure-N) imposing the penalty of dismissal from service, against the petitioner.

    3. Sri S.G Bhat, Learned Counsel for the petitioner, urged the following contentions:

    (i) In view of the order made by the General Manager on 20-6-1972 (Annexure-C), dropping the inquiry ordered earlier against the petitioner and also treating the entire period of suspension as duty, there was no legal authority for the Deputy General Manager to pass the impugned order.

    (ii) After the submission of the reply to the show-cause notice by the petitioner as he was promoted to the next higher cadre by the General Manager, the second inquiry against the petitioner must be deemed to have been abandoned and, therefore, there was no further power on the part of the Corporation or its officers to impose the penalty of dismissal.

    (iii) Once the inquiry instituted against the petitioner was dropped and the period of suspension was treated as duty, the matter came to an end and therefore if the said order was sought to be reviewed and the inquiry sought to be instituted in respect of the same subject matter, before reopening the matter principles of natural justice must have been complied with.

    (iv) The inquiry conducted was contrary to the regulations, in that the petitioner was denied reasonable opportunity to defend himself in the inquiry.

    4. Sri H.G Balakrishna, Learned Counsel appearing for the Corporation, however, submitted, as follows: It was always open for the Corporation to hold a departmental inquiry notwithstanding the acquittal of the petitioner in the Criminal Court. Therefore even though at one stage the General Manager had dropped the inquiry, there was no legal bar to reopen the matter and to pass final orders in the inquiry. The rules of natural justice are inapplicable to such an administrative decision.

    5. There can be no doubt that when an alleged act or omission by a civil servant amounts to a misconduct as well as an offence under the penal law of the land, a departmental inquiry can be held against an employee even if he had been prosecuted in a Criminal Court for the offence and he had been acquitted by a Court of competent jurisdiction. (Sea: T.V Gowda v. State of Mysore . WP No. 693 of 1970 Dated 13-12-1973.). That position in law cannot and is not at all, questioned by the petitioner. The precise question that arises for consideration in this case is, can there be a second departmental inquiry in respect of the same charge of which a servant of the Corporation had been exonerated by the competent authority in a departmental inquiry. From the facts stated earlier, it may be seen that the petitioner was placed under suspension and a departmental inquiry was instituted against him by an order made on 24-3-1971. Simultaneously, he was also prosecuted in the Criminal Court and the subject matter of the charge was the same, namely, the loss of tyres. The petitioner was acquitted by an order of the Magistrate dated 8-4-1971 (Annexure-B). One year and two months thereafter by an order made by the General Manager of the Corporation (Annexure-C dated 20-6-1972) on a consideration of the order of acquittal made by the Magistrate, the inquiry ordered against the petitioner was dropped and what is more significant was the period of suspension undergone by the petitioner was treated as duty. The clear effect of such an order was the order of acquittal made by the Criminal Court itself was accepted by the authority as the basis to exonerate the petitioner of the charges levelled against him in the departmental inquiry and accordingly the inquiry was dropped. There is no power under the regulations to reopen and inquire into a charge in respect of which, inquiry was dropped on the basis of an order of acquittal made by the Magistrate or where a Corporation servant was exonerated of the charges by an order made by the competent disciplinary authority. In the absence of conferment of specific power for reopening the inquiry and on specified grounds a second inquiry is without the authority of law. Therefore I uphold the first contention of the petitioner.

    6. The second contention, namely, that having regard to the facts of this case, it must be held that the respondents had abandoned the inquiry and therefore they had no authority to pass the impunged order, is also sound. The material facts are not in dispute. After the second inquiry was held, a show cause notice was issued to the petitioner and the petitioner furnished his reply to the show cause notice on 27-5-1974 (Annexure-K). After nearly five years thereafter on 9-5-1979 the petitioner was promoted to the next higher post by the order of the General Manager. There is no condition in the said order to the effect that the promotion was being given to the petitioner without prejudice to the imposition of any penalty in the inquiry. It is no doubt true that in the order of promotion it is stated that the promotion given under that order was temporary and subject to review. It is an usual condition imposed in all promotion orders when seniority of officers are not finalised as in such a case the promotions are liable to be reviewed after it is finalised. But the fact remains that there is no condition in the order of promotion that in the case of the petitioner liberty to pass order in the disciplinary proceedings had been reserved. In the absence of such express reservation, it should be presumed that having regard to the work and conduct of the petitioner, not only the petitioner was considered suitable to continue in the lower post, but was also considered suitable for higher post. When the General Manager had, on consideration of the service records of the petitioner, adjudged that the petitioner was suitable for being promoted to the higher post, it pre-supposes that the explanation of the petitioner submitted in his reply to the show-cause notice weighed with the authority and, therefore, they were convinced that far from there being any ground to impose penalty the official is fit for promotion and should be promoted. Therefore it must be held that further proceedings in the departmental inquiry were abandoned and in view of it, it was impermissible for the Deputy General Manager to pass the impugned order and impose the penalty of dismissal. This legal position is evident from the decision of the Madhya Pradesh High Court in Lal Audhraj Singh v. State of Madhya Pradesh . 1968 SLR 88 MP. and also from the Division Bench decision of this Court in P. Andrews v. District Educational Officer . 1966 2 Mys. L.J 324.. For these reasons, the second contention urged for the petitioner has also got to be accepted.

    7. Under the provisions of the service regulations of the Corporation, the period of suspension of a servant of the Corporation cannot be treated as duty, unless he is exonerated of the charge in the inquiry during the pendency of which he was placed under suspension. Therefore, when by the order dated 20-6-1972 (Annexure-C) of the General Manager the suspension period was treated as duty, it means that the petitioner was exonerated of the charge and, therefore, even assuming that such an order was passed by mistake or there was any other good ground for reopening the matter, that could have been done only after complying with the rules of natural justice, as the reopening of the proceedings which had so terminated, has both civil and evil consequences as the petitioner would have to face an inquiry on a charge of which he had already been exonerated. Therefore the third contention urged for the petitioner has also to be accepted.

    8. As the petitioner is entitled to succeed on the first three contentions, it is unnecessary for me to consider the fourth contention, namely, that the petitioner had been denied of a reasonable opportunity in the inquiry.

    9. For the reasons aforesaid, I make the following order:

    (i) Rule made absolute.

    (ii) The impugned order made by the Deputy General Manager dated 18-5-1981 is quashed.

    (iii) The petitioner shall be entitled to all the consequential benefits.

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    Comments

    Kamath v. K.S.R.T.C
    (Nov 26, 1982)