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Smart Summary

Factual and Procedural Background

The appellant, a Manager in the United Commercial Bank at Chandigarh, was dismissed from service by an order dated 6 February 1986. His departmental appeal failed, prompting him to file a writ petition in the High Court. A learned Single Judge allowed that writ petition and set aside the dismissal on the ground of breach of natural justice. The Bank’s management succeeded in a Letters Patent Appeal before a Division Bench, which reinstated the dismissal order. The appellant then approached the Supreme Court by special leave, resulting in the present decision.

Legal Issues Presented

  1. Whether refusal by the disciplinary authority to permit the appellant to cross-examine key witnesses whose certificates and inspection report formed the basis of the charges violated the principles of natural justice and deprived the appellant of a reasonable opportunity of defence.
  2. Whether the Bank’s failure to assist in procuring defence witnesses, who were its own officers, constituted a further denial of fair hearing.

Arguments of the Parties

Appellant's Arguments

  • The enquiry was vitiated because the appellant was denied the right to cross-examine Mr. V. P. Jindal, Mr. J. R. Sharma, Mr. Rajinder Paul and Mr. B. B. Bhatia, whose certificates and inspection-cum-investigation report constituted the principal evidence against him.
  • The Bank unfairly required the appellant to produce defence witnesses, all of whom were Bank officers under the management’s control, without providing assistance to secure their presence.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Court examined the disciplinary authority’s order, which emphasized reliance on a “comprehensive” inspection-cum-investigation report and several certificates authored by Bank officers. Although those officers formally appeared before the Enquiry Officer to prove the documents, the appellant was not afforded any chance to cross-examine them. The Court held that this omission amounted to a denial of reasonable opportunity and violated the principles of natural justice.

On the second grievance—lack of assistance to secure defence witnesses—the Court noted that, when queried, the appellant could not name any specific officer he wished to call. Accordingly, that contention was rejected.

Finding the enquiry legally infirm for denial of cross-examination, the Court set aside the proceedings from the stage of the Enquiry Officer’s report and directed that a fresh enquiry be conducted, expressly allowing the appellant to cross-examine the four officers and permitting completion of the enquiry on the entirety of the material thereafter.

Holding and Implications

Appeal Allowed; order of dismissal set aside. The enquiry stands quashed from the point of the Enquiry Officer’s report. The Bank must hold a de novo enquiry with full opportunity for the appellant to cross-examine the four key officers. Pending the fresh enquiry, the appellant will remain under suspension from the date of this judgment and receive subsistence allowance according to applicable rules. He must report to the Zonal Manager on 1 March 1994 and cooperate so that the enquiry is completed preferably by the end of May 1994. The decision provides relief to the appellant but establishes no broader precedent beyond reaffirming the necessity of cross-examination to meet the requirements of natural justice.

    S.C Girotra v. United Commercial Bank (Uco Bank) And Others

    Order

    1. Leave granted. Heard on merits.

    2. The appellant was employed as Manager in the United Commercial Bank, Punjab at Chandigarh when he was dismissed from service by order dated 6-2-1986. His appeal against the order of dismissal having failed, he filed a writ petition in the High Court. The learned Single Judge allowed the writ petition and set aside the order of dismissal on the ground that the same was passed in breach of the principles of natural justice. The management then preferred a Letters Patent Appeal before the Division Bench which has been allowed. Hence this appeal by special leave.

    3. Admittedly, the disciplinary authority while making the order of dismissal stated as under:

    “The presenting officer has submitted 28 exhibits, most of which are in the form of certificates of Shri Rajinder Paul and B.B Bhatia, Officer and the then Assistant Manager of the branch, while one document (PEX-26) is in the form of inspection/investigation report of Shri V.P Jindal and Shri J.R Sharma. The certificates and inspection-cum-investigation report are most comprehensive documents.
    Inspection-cum-Investigation report has been prepared by two senior officers of the then Division Office, Punjab Division, Chandigarh, after their painstaking efforts of about two months. This has been substantiated by various certificates of the two officers of the branch.
    All the four officers appeared before the Enquiry Officer and testified to their authorship of the documents. Their certificates/Inspection-cum-Investigation Report comprehensively cover all the allegations/charges made/levelled in the charge-sheet. They have also been supported by other documents.”

    From the above extract it is clear that the report on which reliance was placed by the disciplinary authority was a comprehensive document in which conclusions were reached against the appellant on the basis of materials including the books and records of the bank as well as some certificates issued by officers of the bank which constituted evidence in support of the charges levelled against the appellant. It is also clear that no opportunity was given to the appellant to cross-examine either the makers of that report, Mr V.P Jindal and Mr J.R Sharma or the officers who had granted such certificates which formed evidence to prove the charges which led to the order of dismissal passed by the disciplinary authority, even though those persons were examined for the purpose of proving the documents relating to them. In our opinion, the grievance made by the appellant that refusal of permission to cross-examine these witnesses was denial of reasonable opportunity of defence to the appellant, is justified.

    4. It has also been urged by the learned counsel for the appellant that certain witnesses who were officers of the bank and whom the appellant wanted to examine in his defence could not be examined because the management required the appellant to produce those witnesses without rendering any assistance for procuring their presence even though officers of the bank were amenable only to control of the bank's management. However, the appellant could not specify the name of any such persons in response to our query at the hearing. This grievance does not, therefore, merit any consideration.

    5. In view of the infirmity in the inquiry indicated earlier, it is appropriate that the inquiry proceedings are set aside from the stage of the enquiry report and the respondent-bank is directed to conduct the inquiry afresh from that stage giving the appellant due opportunity to defend himself. For this purpose the appellant should be given the opportunity to cross-examine V.P Jindal, J.R Sharma, Rajinder Paul and B.B Bhatia who were examined by the management in support of the charges. The Enquiry Officer must then conclude the inquiry and make the report on the entire materials before him. Further action must then be taken in accordance with law based on the finding given by the Enquiry Officer. In the circumstances of the case, we also direct that the appellant shall remain under suspension from today and he be dealt with according to the rules and regulations applicable to him in this behalf. The appellant, during the period of his suspension commencing from today shall be paid subsistence allowance at the current rates in accordance with the rules. The appellant shall report to the Zonal Manager, Chandigarh Zone of the respondent-bank on 1-3-1994 for taking further directions in this behalf and he shall fully cooperate with the authorities to enable completion of the inquiry as early as possible and preferably by the end of May 1994.

    6. Consequently the appeal is allowed in this manner with the result that the order of dismissal made against the appellant is set aside and his writ petition is allowed in the terms indicated. No costs.

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    S.C Girotra v. United Commercial Bank (Uco Bank) And Others
    (Feb 18, 1994)