Login
  • Bookmark
  • PDF
  • Share
  • CaseIQ

Dhruba Pada Ghosh v. Bank Of Baroda & Ors.

Calcutta High Court
May 14, 2001
Smart Summary (Beta)

Structured Summary of the Opinion (Ashok Kumar Mathur, C.J.)

Factual and Procedural Background

The petitioner (appellant) was employed as a Cash Clerk by Bank of Baroda and was directed to perform additional duties as Head Cashier (Category 'C') at the Lake Market Branch while remaining posted at 8, India Exchange Place, Calcutta-1. He received a special pay of Rs. 172 per month and was entrusted with keys to the strong room and cash safe bearing numbers B1 SP 10490, S 10895/2, B1 35077, R 11103 and L 11052. It was alleged that duplicate keys were kept at the Bank's Bhawanipore Branch.

On 16 April 1985 the petitioner arrived late and observed that duplicate keys had been brought from Bhawanipore on the signatures of the Accountant and the on-duty Head Cashier. On 23 April 1985 he was asked to explain an alleged cash shortage dated 18 April 1985; he denied any shortage. On 6 May 1985 he was suspended and charged with misappropriation of Rs. 1,00,000. An enquiry found him grossly negligent, tampering with bank records and acting prejudicially to the bank; he received a show-cause notice and was ultimately dismissed by the Disciplinary Authority.

The petitioner appealed to the Appellate Authority, which affirmed the dismissal. He then filed a writ petition before the High Court (Single Judge). The Single Judge set aside the Appellate Authority's order, directed the petitioner to file a fresh appeal detailing his grievances, and ordered the Appellate Authority to hear the petitioner and pass a reasoned order within three months. The petitioner (appellant) filed the present appeal against the Single Judge's order dated 3 February 1992.

Legal Issues Presented

  1. Whether the Single Judge erred in remitting the matter to the Appellate Authority instead of deciding the writ petition on merits.
  2. Whether the Disciplinary Authority (and, by extension, the Appellate Authority) was required to pass a detailed, speaking/reasoned order when it agreed with the findings of the Enquiry Officer.

Arguments of the Parties

Appellant's Arguments

  • The Single Judge should have examined the entire case on merits and decided the matter rather than directing the petitioner to approach the Appellate Authority afresh.
  • The Single Judge's order was not a speaking order.
  • Both the Disciplinary Authority's order and the Appellate Authority's order were not speaking/reasoned orders and that defect warranted interference.

Respondent's Arguments

  • The Disciplinary Authority is not required under the Bipartite Settlement to pass a detailed speaking order when it concurs with the Enquiry Officer's findings.
  • Chapter XIX (Clause 19.12) of the Bipartite Settlement requires only that the delinquent be given notice of proposed punishment and the procedural safeguards set out in that clause; detailed reasons from the disciplinary authority agreeing with the enquiry report are not mandated by the settlement.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Ramana Dayaram Shetty v. The International Airport Authority of India, AIR 1979 SC 1628 Principle that when a procedure is laid down by an authority it must be held to its standards (emphasis on procedural adherence). The court held this precedent was not relevant because the Bipartite Settlement did not require the Disciplinary Authority to give a detailed speaking order when agreeing with an Enquiry Officer; the Settlement requires only notice of proposed punishment under Clause 19.12.
Dr. Amarjit Singh Ahluwalia v. The State of Punjab, AIR 1975 SC 984 Principle that administrative instructions, though not law, should not be departed from without rational justification. The court held this decision was of no help because there was no settled procedure in the Bipartite Settlement that mandated a detailed speaking order by the Disciplinary Authority when it agreed with the Enquiry Officer.
Sukhdev Singh v. Bhagatram Sardar Singh Raghuvanshi, AIR 1975 SC 1331 General authority on administrative procedure and adherence to established instructions. The court indicated this case likewise did not aid the appellant because the Bipartite Settlement did not impose the specific requirement argued for by the appellant.
Union of India v. K. Rajappa Menon, AIR 1970 SC 748 Rule that a disciplinary authority is not obliged to discuss evidence in detail; it suffices to give findings on each charge and practical, reasonable compliance with the rule is acceptable. The court relied on this principle to hold that where a disciplinary authority accepts the Enquiry Officer's findings, detailed restatement of evidence or exhaustive discussion is not obligatory and the requirement is fulfilled by affirming the findings.
Ram Kumar v. State of Haryana, AIR 1987 SC 2043 Where the punishing authority agrees with the Enquiry Officer, it need not restate or re-discuss evidence; acceptance of findings and reasons suffices and does not violate natural justice. The court cited this to reinforce that the disciplinary authority's acceptance of the enquiry report negates the need for a separate detailed speaking order.
Indian Institute of Technology, Bombay v. Union of India, 1991 Supp (2) SCC 12 A disciplinary authority accepting the enquiry officer's findings need not furnish detailed reasons in its order where the report and reasons have been communicated and the delinquent has been given opportunity to reply. The court applied this reasoning to conclude that further detailed reasons were unnecessary when the disciplinary authority accepts the Enquiry Officer's findings and the delinquent has been informed and given opportunity to show cause.

Court's Reasoning and Analysis

The court proceeded by applying the procedural terms of the Bipartite Settlement (specifically Clause 19.12 of Chapter XIX) to the facts and to the appellant's challenge. The court analyzed two related points: (a) the nature and extent of procedural requirements under the Bipartite Settlement when an Enquiry Officer finds charges established, and (b) whether the Single Judge was correct to remit the matter to the Appellate Authority rather than decide the writ petition on merits.

On the first point, the court examined Clause 19.12 which prescribes the procedure for disciplinary cases: issuance of a charge-sheet, adequate time for defence, right to representation, right to cross-examine and produce evidence, and a hearing as to the nature of proposed punishment if charges are established. The court emphasized that the Bipartite Settlement does not require the Disciplinary Authority to write a detailed, line-by-line reasoned order when it concurs with the Enquiry Officer's findings; rather, the essential procedural requirement is that the delinquent be given notice of proposed punishment and the opportunity to be heard.

The court reinforced that construction with binding and persuasive Supreme Court authorities (Union of India v. K. Rajappa Menon; Ram Kumar; Indian Institute of Technology, Bombay v. Union of India), each of which the court summarized as holding that a disciplinary order affirming the enquiry findings need not restate detailed reasoning or discuss the evidence afresh. The court expressly rejected reliance on authorities invoked by the appellant (Ramana Dayaram Shetty and Amarjit Singh Ahluwalia) as inapplicable to the contractual/procedural scheme under the Bipartite Settlement which does not impose the detailed-speaking-order requirement argued by the appellant.

On the second point, the court considered the Single Judge's remedial choice. The Single Judge had set aside the Appellate Authority's order and remitted the matter back to that authority, directing a fresh appeal containing all grievances and a reasoned decision within three months. The High Court bench in the present appeal observed that remittal to the Appellate Authority was a proper mechanism to afford the delinquent the opportunity to present all grievances and obtain a reasoned order; accordingly, there was no legal basis to interfere with the Single Judge's order in the manner urged by the appellant. The court therefore concluded there was no merit in the appeal.

The court then gave specific directions: the appellant may file an appeal before the Appellate Authority within one month from the date of receipt of the judgment copy, and the Appellate Authority was directed to dispose of the appeal within two months after hearing the petitioner.

Holding and Implications

APPEAL DISMISSED.

Direct consequences for the parties:

  • The High Court dismissed the appeal and upheld the view that the disciplinary and appellate process under the Bipartite Settlement does not mandate a detailed speaking order from the Disciplinary Authority when it accepts the Enquiry Officer's findings.
  • The appellant is permitted to file an appeal before the Appellate Authority within one month of receiving a copy of this judgment; the Appellate Authority must dispose of that appeal within two months after hearing the petitioner.
  • No order as to costs was made.

Broader implications: The opinion applies and reiterates settled Supreme Court principles (as cited) that disciplinary authorities need not duplicate the Enquiry Officer's detailed reasoning when they accept the enquiry report; beyond the direct directions to the parties, the opinion does not purport to lay down any novel or broader precedent beyond applying those established authorities and the Bipartite Settlement.

Composition: Ashok Kumar Mathur, C.J. (bench opinion), with Girish Chandra Gupta, J. concurring (order concluding "Appeal dismissed").

Show all summary ...

Ashok Kumar Mathur, C.J:— This is an appeal directed against the order passed by a learned Single Judge of this Court dated 3rd February, 1992, whereby the learned Single Judge directed the petitioner to make a fresh appeal detailing all his grievances as taken by him before the Appellate Authority and the direction has been given that the Appellate Authority shall hear the petitioner and pass a reasoned order on merits, and it was directed that the decision is to be taken within three months from the date of communication of this order and he set aside the order of the Appellate Authority. Aggrieved against this order dated 3rd February, 1992 of the learned Single Judge the present appeal has been filed by the appellant/petitioner.

2. Brief facts which are necessary for disposal of this appeal are: the petitioner was appointed as a “Cash Clerk” in the Bank of Baroda and was posted at his office at 8, India Exchange Place, Calcutta-1, while working as a Cash Clerk he was directed by the Regional Manager to perform the duties of Head Cashier, Category ‘C’ in the Bank's Lake Market Branch in addition to his normal duties of a Cash Clerk. Petitioner was given a special pay of Rs. 172/- per month. Petitioner was provided keys relating to strong room and Cash Safe, namely the keys of the Right Drawer and Left Drawer of the Cash Safe bearing Numbers B1 SP 10490, S 10895/2, B1 35077, R 11103 and L 11052 respectively. It is also alleged that there are duplicate keys which are being kept at Bank's Bhawanipore Branch and whenever it is necessary these duplicate keys are brought from Bhawanipore Branch. It is alleged that on 16th April, 1985 due to some personal business petitioner went to office after schedule time and he found that duplicate keys of the Iron Safe, Strong Room etc. were brought from the Bhawanipore Branch on the signature of the Accountant and the Head Cashier who was on duty before the arrival of the petitioner. Thereafter on 23rd April, 1985 petitioner received a letter from the respondent No. 4 asking him to submit an explanation for alleged shortage of cash on 18th April, 1985. Petitioner informed the respondent that there was no such shortage. Thereafter on 6th of May, 1985 petitioner was placed under suspension for contemplating enquiry on account of shortage of cash worth Rs. 1,00,000/- on 18th April, 1985. Petitioner was served with the charge-sheet for misappropriation of the sum of Rs. 1,00,000/-. Thereafter inquiry was conducted. Ultimately the Enquiry Officer submitted a Report and found the petitioner grossly negligent in performing his duties and it was further found that he tampered with the Bank's record, committed an act prejudicial to the interest of the Bank and it is unbecoming of a Bank employee. Thereafter petitioner was given a show-cause notice and ultimately the Disciplinary Authority passed the order of dismissal against the petitioner. Petitioner thereafter preferred an appeal before the Appellate Authority and the Appellate Authority affirmed the order passed by the Disciplinary Authority and dismissed the appeal filed by the petitioner. Aggrieved against this order the appellant-petitioner filed writ petition before this Court. The learned Single Judge after considering the matter this case back to the Appellate Authority for reconsideration of the matter and to pass a reasoned order in accordance with law. Aggrieved against the order passed by the leaned Single Judge the present appeal has been preferred.

3. Learned Counsel for the appellant submits that the learned Single Judge should have examined the whole case on merits and thereafter he should have decided the matter instead of directing the petitioner to approach the Appellate Authority. Therefore the order passed by the learned Single Judge is not a speaking order. It is also submitted that the order passed by the Disciplinary Authority is not a speaking order and likewise the order passed by the Appellate Authority.

4. In this connection learned Counsel for the appellant has invited our attention to a decision of the Apex Court in the case of Ramana Dayaram Shetty v. The International Airport Authority of India, reported in AIR 1979 Supreme Court page 1628, wherein it has been observed that when a procedure has been laid down by the authority then the authority must be rigorously held to its standards by which it professes it action to be judged. In the present case this case has no relevance for the simple reason that the procedure as laid down in the Bipartite Settlement it is nowhere required that the Disciplinary Authority agreeing with the Enquiry Officer is required to give a detailed reason. According to the procedure what is, required is that after the report of the Enquiry Officer has been received finding the delinquent guilty if the disciplinary authority agrees with the finding then under Clause 19.12 an opportunity of hearing should be given to the delinquent with regard to the nature of the proposed punishment on account of charges being established against him. Therefore this judgment has no relevance. Similarly our attention was also invited to a decision of the Apex Court in the case of Dr. Amarjit Singh Ahluwalia v. The State of Punjab, reported in AIR 1975 Supreme Court page 984. In this case also it was observed that whenever such administrative instructions are issued though they do not have force of law but the State Government on its own could not depart from that without rational justification. In this case as we have already mentioned above there is no such procedure by which it is laid down that the Disciplinary Authority is required to pass a speaking order when the Disciplinary Authority agrees with the finding of the Enquiry Officer. Similar view has been taken in the case of Sukhdev Singh v. Bhagatram Sardar Singh Raghuvanshi, reported in AIR 1975 Supreme Court page 1331. Therefore these judgments are of no help.

5. In the Bipartite Settlement which has been brought to our notice there is no provision under which it makes incumbent on the authority to pass a detailed speaking order in the event of agreeing with the decision of the Enquiry Officer finding the delinquent guilty of the charges. In Bipartite Settlement what is required is that the delinquent is only entitled to a notice for proposed punishment on the basis of the charges established against him. Learned Counsel for the respondent has strenuously urged before us that the Disciplinary Authority has agreed with the finding of the Enquiry Officer and they are not required to pass a detailed speaking order. Learned Counsel has also emphasised on the Chapter XIX of the Bipartite Settlement as mentioned above that the delinquent is entitled to a notice for the proposed punishment. Relevant Rule reads as under:

“19.12 The procedure in such cases shall be as follows:

(a) An employee against whom disciplinary action is proposed or likely to be taken shall be given a charge-sheet clearly setting forth the circumstances appearing against him and a date shall be fixed for enquiry, sufficient time being given to him to enable him to prepare and give his explanation so also to produce any evidence that he may wish to tender in his defence. He shall be permitted to appear before the officer conducting the enquiry, to cross-examine any witness on whose evidence the charge rests and to examine witness and produce other evidence in his defence. He shall also be permitted to be defended:

(i)(x) by a representative of a registered trade union of bank employees of which he is a member on the date first notified for the commencement of the enquiry;

(y) where the employee is not a member of any trade union of bank employees on the aforesaid date, by a representative of a registered trade union of employees of the bank in which he is employed;

(ii) at the request of the said union by a representative of the State federation or all India organisation to which such union is affiliated;

(iii) with the Bank's permission, by a lawyer.

He shall also be given a hearing as regards the nature of the proposed punishment in case any charge is established against him.

(b) Pending such inquiry he may be suspended, but if on the conclusion of the enquiry it is decided to take no action against him he shall be deemed to have been on duty and shall be entitled to the full wages and allowances and to all other privileges for the period of suspension; and if some punishment other than dismissal is inflicted, the whole or a part of the period of suspension, may at the discretion of the management, be treated as on duty with the right to a corresponding portion of the wages, allowance, etc.

(c) In awarding punishment by way of disciplinary action the authority concerned shall take into account the gravity of the misconduct, the pervious record, if any, of the employee and any other aggravating or extenuating circumstances that may exist. Where sufficiently extenuating circumstances exist the misconduct may be condoned and in case such misconduct is of the ‘gross’ type he may be merely discharged, with or without notice or on payment of a month's pay and allowances, in lieu of notice. Such discharge may also be given where the evidence is found to be insufficient to sustain the charge and where the bank does not, for some reason or other, think it expedient to retain the employee in question any longer in service. Discharge in such cases shall not be deemed to amount to disciplinary action.

(d) If the representative defending the employee is an employee of the same bank at an outstation branch within the same State, he shall be relieved on special leave (on full pay and allowances) to represent the employee and be paid one return fare. The class of fare to which he will be entitled would be the same as while travelling on duty. In case of any adjournment at the instance of the bank, he may be asked to resume duty and if so, will be paid fare for the consequential journey. He shall also be paid 50% of the halting allowance for the period he stays at the place of the enquiry for defending the employee as also for the days of the journeys which are undertaken at the bank's cost.

(e) and enquiry need not be held if:

(i) the misconduct is such that even if proved, the bank does not intend to award the punishment of discharge or dismissal; and

(ii) the bank has issued a show cause notice to the employee advising him of the misconduct and the punishment for which he may be liable for such misconduct; and

(iii) the employee makes a voluntary admission of his guilt in his reply to the aforesaid show cause notice.

However, if the employee concerned requests a hearing regarding the nature of punishment, such a hearing shall be given.”

6. As per the ratio laid down by the Apex Court, those who laid down the procedure, shall be slain by their procedure. Now in the present case by virtue of Bipartite Settlement to which the petitioner is also bound by such settlement and as per the procedure laid down in the aforesaid settlement the delinquent is only required to be served with a notice for the proposed punishment on account of charges being found proved by the Enquiry Officer.

7. Learned Counsel for the respondent has invited our attention to a decision in The Union of India v. K. Rajappa Menon, reported in AIR 1970 Supreme Court 748, wherein it is observsed as under:

“Rule 1713 does not lay down any particular form or manner in which the disciplinary authority should record its finding on each charge. All that the rule requires is that the record of the enquiry should be to give its findings on each charge. This does not and cannot mean that it is obligatory on the disciplinary authority to discuss the evidence and the facts and circumstances established at the departmental enquiry in details and write as if it were an order or a judgment of a judicial tribunal.

Where the disciplinary authority after giving consideration to the record of the proceedings of the departmental inquiry agreed with the findings of the Enquiry Officer that all the charges mentioned in the charge-sheet has been established, it meant that he was affirming the findings on each charge and that fulfils the requirement of the Rule. The Rule after all has to be read not in a pedantic manner but in a practical and reasonable way.”

8. Similar view has been taken in the case of Ram Kumar v. State of Haryana, reported in AIR 1987 Supreme Court page 2043. In paragraph 8 thereof it has observed as under:

“When the punishing authority agrees with the findings of the Enquiry Officer and accepts the reasons given by him in support of such findings it is not necessary for the punishing authority to again discuss evidence and come to the same findings as that of the Enquiry Officer and give the same reasons for the findings. When by the impugned order of termination of service the punishing authority has accepted the findings of the Enquiry Officer and the reasons given by him, the question of non-compliance with the principles of natural justice would not arise and it is also incorrect to say that the impugned order is not a speaking order.”

9. Similarly in the case of Indian Institute of Technology, Bombay v. Union of India, reported in 1991 Supp (2) Supreme Court Cases page 12, it has been held as under:

“Service Law - Departmental enquiry - Final order of punishment - Speaking or reasoned order - When disciplinary authority in his order merely accepting the findings and punishment proposed along with the supporting reasons of the Enquiry Officer, the order need not furnish detailed reasons - Enquiry relating to a short question as to whether writing of certain letters by the delinquent, which he admitted, constituted misconduct or not - Report of Enquiry Officer accepted by disciplinary authority and a copy of the report sent to delinquent asking him to show cause why penalty of removal from service should not be imposed on him - Order then passed stating that after considering the report and delinquent's reply to the show cause, it had been concluded that there was no reason to alter the decision regarding penalty of removal already taken - In the circumstances, held, more detailed reasons in the order not necessary.”

10. In view of the aforesaid decision of the Supreme Court it is not necessary for the disciplinary authority to give a detailed reasoned speaking order while punishing the delinquent if they agree with the finding of the Enquiry Officer's Report. More so, in the present case the learned Single Judge has only remitted the whole case back to the Appellate Authority which could have provided full opportunity to the delinquent to make all his grievances before it (Appellate Authority) and pass an appropriate order on the contention raised by the Appellate Authority. Therefore, there was no occasion for the delinquent to have approached this Court instead of approaching the Appellate Authority making out all his grievances. The learned Single Judge has also set aside the order of the Appellate Authority and remitted the case back to the Appellate Authority where the delinquent could have full opportunity to make all his grievances. As per the settlement a regular appeal is maintainable, and the learned Single Judge felt persuaded to dispose of the whole petition on the short ground and remitted the case back to the Appellate Authority giving a full hearing to the petitioner. Hence we are satisfied that no ground is made out to interfere in this appeal. Now it is open for the appellant to file an appeal before the Appellate Authority within one month from the date of receipt of copy of the judgment and the Appellate Authority is directed to dispose of the appeal of the appellant within two months thereafter after hearing the petitioner.

Hence, as a result of the above discussion we do not find any merit in the appeal and the same is disposed of in the light of the above observations.

No order as to costs.

Girish Chandra Gupta, J.: I agree.

Appeal dismissed.