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Tarlochan Singh v. State Of Punjab

Punjab & Haryana High Court
Oct 21, 1974
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Factual and Procedural Background

The plaintiff (appellant) was employed as a conductor with Punjab Roadways, Chandigarh. By an order dated 15 November 1967 the General Manager, Punjab Roadways, Chandigarh, terminated his services. The appellant challenged that order and sought a declaration that the termination was illegal and that he should be continued in the service of the State of Punjab.

Procedurally, the trial Court dismissed the suit. The District Judge, Chandigarh, affirmed the trial Court's judgment and dismissed the first appeal. The plaintiff then filed this Regular Second Appeal to this Court. The learned Judge before whom the appeal was listed for motion directed that it be heard by a Division Bench. The matter was thereafter considered by the Court in this opinion.

Legal Issues Presented

  1. Whether the order of dismissal passed by the punishing authority was cryptic and lacked reasons, and whether that defect rendered the order invalid.
  2. Whether the order communicated to the appellant differed from the order purportedly passed by the punishing authority and whether a reasoned order was required to be communicated.
  3. Whether the dismissal was based on legal evidence—specifically, whether hearsay (statements said to have been made by passengers to a Checking Inspector) could sustain a finding of embezzlement without production of the passengers as witnesses.
  4. Whether certain documents relied upon by the Enquiry Officer but not produced in evidence could be relied upon at this stage (and whether the appellant may raise that point on appeal having not pleaded or raised it below).
  5. Whether the Traffic Manager was properly authorised to conduct the enquiry and whether that objection, not raised below, could be taken for the first time in this Court.

Arguments of the Parties

Appellant's Arguments

  • The punishing authority passed a cryptic, sketchy order of dismissal; a reasoned order should have been passed and communicated to the appellant so that he could effectively challenge it on appeal.
  • The order actually communicated to the appellant (D.11) was not the same as the reasoned order said to have been passed (D.9); the communicated order merely stated termination and return of government articles without reciting reasons.
  • The order of dismissal was based on evidence that was not legally admissible: witnesses (passengers) who allegedly paid fares without receiving tickets were not produced for cross-examination, and the Checking Inspector's statement of what passengers told him amounted to hearsay and could not sustain the finding of embezzlement.
  • Certain documents taken into account by the Enquiry Officer were not produced in evidence (though this point was not pleaded in the plaint nor raised below).
  • The Traffic Manager (who conducted the enquiry) was not authorised by the punishing authority to do so (also not raised below).

The opinion does not contain a detailed account of any arguments advanced by the respondent(s) in the record; the Court's reasons focus on the appellant's contentions and the legal authorities applied.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Prag Das Umar Vaishal v. Union of India and others, Civil Appeal No. 657 of 1967 (decided 17 Aug 1967) Recording of reasons and disclosure thereof in disciplinary/quasi-judicial orders is not a mere formality; affected party must be apprised of reasons to enable an effective challenge on appeal. The Court applied this ratio to hold that the punishing authority's order was sketchy/cryptic for not addressing the appellant's objections and thus was improper.
Shri H.K. Khanna, Ex. S.A.S. Accountant v. The Union of India, Ministry of Finance, New Delhi, 1971(1) S.L.R. 618 Disciplinary proceedings are quasi-judicial; final order must contain reasons which are to be communicated to the delinquent so he may effectively challenge them. The Court relied on this case to reinforce that the punishing authority should have given reasoned order and communicated the reasons to the appellant.
Vijey Singh Yadava v. The State of Haryana and others, 1971(1) S.L.R. 720 Similar principle that disciplinary/quasi-judicial orders must contain reasons communicated to the delinquent. Used as additional authority to support the conclusion that the impugned order was improper for being sketchy and not dealing with objections.
Union of India v. H.C. Goel, AIR 1964 SC 364 Under Article 226 the High Court can inquire whether a government's conclusion (basis for dismissal) is supported by any evidence at all; writ of certiorari available if ultimate conclusion is based on no evidence. The Court invoked this decision to justify examining whether the order of dismissal was based on legal evidence or mere hearsay; thereby the Court held it could review the evidentiary basis of the punishment.
Jagannath Parsad Sharma v. The State of Uttar Pradesh and others, AIR 1961 SC 1245 Although tribunals/enquiry officers are not bound by formal rules of evidence, they cannot rely on purely hearsay evidence in disciplinary enquiries; reliance on hearsay would be contrary to equity and natural justice. The Court cited this authority to hold that the Checking Inspector's account of passengers' statements amounted to inadmissible hearsay and could not sustain the finding of embezzlement.
Shri Ram Rattan v. The State of Punjab, R.S.A. No. 1152 of 1971 (decided 22 Dec 1972) Supports the principle that hearsay evidence is not admissible as the basis for disciplinary findings in enquiries. Referred to as a similar case; used to reinforce the conclusion that there was no legal evidence of the alleged embezzlement.

Court's Reasoning and Analysis

The Court's analysis proceeds in several discrete steps, each grounded in facts from the enquiry record and established legal principles as reflected in cited authorities.

  1. Background of disciplinary process and orders:
    • A charge-sheet with allegations of misappropriation and misconduct was served on the appellant; he denied the allegations and an enquiry was ordered.
    • The Traffic Manager was appointed Enquiry Officer, conducted the enquiry and reported that the charges were proved. On that report a show-cause notice was issued, the appellant replied and was given a personal hearing by the General Manager.
    • The General Manager's file order (D-9) stated the charge of misappropriation in six cases was fully proved and that services may be terminated; the communicated order (D-11) merely recorded termination and return of government articles without setting out reasons or addressing the appellant's objections.
  2. Requirement of reasoned orders and communication of reasons:
    • The Court held that the punishing authority is quasi-judicial and must record and communicate reasons sufficient to enable the delinquent to challenge the decision on appeal; while no rigid form is required, reasons must be stated.
    • The Court applied Prag Das Umar Vaishal, H.K. Khanna and Vijey Singh Yadava to conclude that the impugned order was sketchy, did not deal with the appellant's objections, and therefore did not properly apply the mind of the punishing authority.
    • Because the order communicated to the appellant did not contain the reasons or indicate that a detailed order existed on file, the communication itself was deficient and this ground made the order liable to be quashed.
  3. Evidentiary basis of the finding of embezzlement:
    • One key charge was that the appellant collected fares without issuing tickets. Passengers who allegedly paid fares were produced before the Enquiry Officer, but the Enquiry Officer's adverse conclusion relied significantly on the Checking Inspector's statement that passengers had told him they had paid fares without receiving tickets.
    • The appellant contended that the passengers themselves should have been produced so they could be cross-examined. The Court agreed: hearsay evidence (statements of passengers as recounted by the Inspector) does not constitute legal evidence to sustain a finding against the delinquent, subject to recognized exceptions.
    • The Court reviewed authorities and standard statements from Halsbury's and Phipson on hearsay, and relied on Supreme Court decisions including Union of India v. H.C. Goel and Jagannath Parsad Sharma to determine that the Court may examine whether the dismissal rests on any evidence and that disciplinary enquiries cannot base conclusions on purely hearsay evidence.
    • Applying these principles, the Court concluded there was no legal evidence before the Enquiry Officer that the appellant had embezzled fares; the Inspector’s account did not fall within recognised exceptions to the hearsay rule and was not admissible to prove guilt.
  4. Other procedural points raised late:
    • The appellant argued that certain documents considered by the Enquiry Officer were not placed in evidence; however, he had not pleaded this in the plaint nor raised it before the trial Court, and the first appellate Court declined to permit the point. The present Court accepted that view and refused to allow the point to be raised for the first time in this Court.
    • Similarly, the contention that the Traffic Manager was not authorised to conduct the enquiry was not raised below; the Court held the appellant could not take that point for the first time in this second appeal.
  5. Conclusion of reasoning:
    • Because the finding of embezzlement was based on inadmissible hearsay and there was no legal evidence to sustain the charge that led to termination, and because the punishing authority failed to record and communicate adequate reasons addressing the appellant's objections, the Court found the order of dismissal illegal.

Holding and Implications

Holding: The appeal is accepted. The Court held that the order of dismissal was illegal and ineffective and granted relief to the plaintiff-appellant.

Direct implications for the parties:

  • The decree granted is that the order of dismissal is illegal and ineffective and the plaintiff continued to be in the service of the defendant (i.e., reinstatement in effect by declaration).
  • The plaintiff-appellant was awarded costs, including costs of the Courts below.

Broader implications:

  • The decision applies established principles rather than announcing new law: disciplinary/quasi-judicial orders must contain and communicate reasons; courts may examine whether a dismissal is supported by any legal evidence; hearsay cannot form the basis of disciplinary findings unless an exception applies.
  • The opinion does not purport to lay down new precedent beyond applying existing authorities; its effect is the quashing of the particular dismissal order on the bases stated above.

Show all summary ...

R.N. MittaL, J. - This Regular Second Appeal has been filed by the plaintiff against the judgment and decree of the District Judge, Chandigarh, dated November 18, 1972. 2. Briefly, the facts of the case are that the plaintiff was working as a conductor with the Punjab Roadways, Chandigarh. The General Manager, Punjab Roadways, Chandigarh, terminated his services by order dated November 15, 1967. He challenged the order of termination of his services and sought a declaration that the order of termination was illegal and consequently, he continued in the service of the State of Punjab. The suit was dismissed by the trial Court. He went up in appeal before the District Judge, Chandigarh, who affirmed the judgment and decree of the trial Court and dismissed the appeal. The plaintiff came up in second appeal to this Court. The learned Judge before whom it was listed for motion hearing, ordered that the appeal be heard by a Division Bench. That is how this appeal has come up before us. 3. The first contention of the learned counsel for the appellant is that the punishing authority passed a cryptic order of dismissal against the appellant. He further states that the order of dismissal conveyed to him was not the same as was passed by him. According to the learned counsel, a reasoned order should have been passed by the punishing authority and the same should have been conveyed to the appellant. 4. We have given a thoughtful consideration to the argument of the learned counsel for the appellant. It may be mentioned that a charge-sheet was served upon the appellant with summary of allegations relating to misappropriation and misconduct on his part. He in his reply denied the allegations. After considering the matter, the General Manager ordered that an enquiry be held against the appellant. Mr. Dalip Singh, Traffic Manager of the Punjab Roadways, was appointed as the Enquiry Officer, who after holding an enquiry in the charges made a report that they had been proved against him. A show-cause notice was issued by the General Manager on the basis of the report of the Enquiry Officer. The appellant filed a reply against the show-cause notice. The General Manager after receipt of the reply held that the charge of misappropriation of the Government revenue in six different cases, had been fully proved. In view of that he ordered that the services of the appellant be terminated with immediate effect. The aforesaid order (D-9) is as follows :- "I have very carefully examined the enquiry proceedings against Shri Tarlochan Singh C. 78 (U.S.). I have examined his reply to the show-cause notice and given him a personal hearing. The charge of misappropriation in Government revenue in six different cases has been fully proved. The cases are of a serious nature and show the extent to which the conductor was habituated to committing fraud. The prosecution had given evidence about the charge relating to gross misconduct. There is nothing in the cross-examination to rebut this allegation, nor any defence was produced. Although the Enquiry Officer has not discussed this incident, he has held that all charges have been proved. However, the charges relating to fraud are serious enough to merit different punishment. His services may be terminated with immediate effect." Thereafter the following order (D.11) was communicated to the appellant :- "The services of Shri Tarlochan Singh son of Shri Bhagwan Singh C. No. 78 are hereby terminated w.e.f. 16th November, 1967 (F.N.). He should deposit all the Government articles issued to him from time to time immediately." The appellant had filed objections against the show-cause notice. The General Manager did not deal with the objections in the order passed by him. He says that he had examined his reply to the show-cause notice and given him a personal hearing. He does not give the objections and reasons for rejecting them. The order shows that the General Manager did not properly apply his mind while passing the impugned order. The punishing authority is a quasi-judicial authority and his order is subject to appeal etc. As a quasi-judicial authority, it was incumbent upon him to write a reasoned order so that the appellate authority while rejecting the representation of a Government servant and punishing him. No hard and fast principles can be laid down as to what should be written in the order. It is not necessary that he should write a detailed order, but it is required that he should record reasons in the order so that the delinquent can effectively challenge them in appeal etc. It has been held in Prag Das Umar Vaishal v. Union of India and others, Civil Appeal No. 657 of 1967, decided on August 17, 1967, that recording of reasons and disclosure thereof is not a mere formality. It was further observed that the party affected by the order has a right to approach that Court in an appeal and an effective challenge against that order could be raised only if the party aggrieved was appraised of the reasons in support of the order. This judgment was followed by a learned Single Judge of this Court in Shri H.K. Khanna, Ex. S.A.S. Accountant v. The Union of India, Ministry of Finance, New Delhi, 1971(1) S.L.R. 618. It was observed in the above case that the disciplinary proceedings against a Government servant, whether original or appellate, are quasi-judicial in nature and that the final order has to contain the reasons which have to be communicated to the delinquent officer in order to enable him to effectively challenge those reasons in appeal or in other statutory proceedings available to him. Similar view was taken by another learned Single Judge in Vijey Singh Yadava v. The State of Haryana and others, 1971(1) S.L.R. 720. Applying the above ratio to the present case, it will be seen that it is not a proper order as the punishing authority has not dealt with the objections of the appellant in the order. It is sketchy and cryptic and does not contain the reasons. 5. The second part of the contention of the learned counsel is equally forceful. The order conveyed to the appellant was different than the one passed by the punishing authority. It only said that his services had been terminated and he should deposit all the Government articles issued to him from time to time immediately. It had not even been mentioned in the order that some detailed order had been passed on the file. It was the duty of the quasi-judicial authority to have communicated a reasoned order to the appellant so that he could contest that order effectively before the appellate authority. Same view was taken in H.K. Khanna and Vijey Singh Yadav cases (supra). The order of the punishing authority is also liable to be quashed on this ground. 6. The second contention of the learned counsel for the appellant is that the order has been passed by the punishing authority without any legal evidence. One of the charges against the appellant was that at the time of checking, it was detected that he had charged fares from some of the passengers but had not issued tickets to them. Thus he had embezzled various amounts taken by him from the passengers. It is an admitted case that the passengers who had paid the fare to the appellant & to whom the tickets were not issued, were produced as witnesses before the Enquiry Officer. The Checking Inspector who checked the buses, gave statement to that effect. On the basis of his statement, the Enquiry Officer made an adverse report against the appellant and the punishing authority terminated his services. The contention of the learned counsel for the appellant is that the passengers should have been produced as witnesses so that the appellant could get an opportunity to cross-examine them. The statement of the Inspector that the passengers made statements before him that they had paid the requisite amount for the tickets but the same had not been issued, was not sufficient to hold the appellant guilty of the charge. We find force in this contention of the learned counsel for the appellant. The first question that arises is whether this Court can go into the matter that the services of the appellant were terminated on evidence which was not legal. This matter has been decided by the Supreme Court in Union Of India v. H.C Goel., AIR 1964 SC 364, wherein Gajendragadkar, J., as he then was, while speaking for the Court, observed as follows :- "In dealing with a writ petition filed by public servants who have been dismissed or otherwise dealt with so as to attract Article 311(2), the High Court under Article 226 has jurisdiction to enquire whether the conclusion of the Government on which the impugned order of dismissal rests is not supported by any evidence at all. Although the order of dismissal which may be passed against a Government servant found guilty of misconduct, can be described as an administrative order, nevertheless the proceedings held against such a public servant under the statutory rules to determine whether he is guilty of the charges framed against him are in the nature of quasi-judicial proceedings and there can be little doubt that a writ of crtiorari, for instance, can be claimed by a public servant if he is able to satisfy the High Court that the ultimate conclusion of the Government in the said proceedings, which is the basis of his dismissal, is based on no evidence." The aforesaid observations show that while determining the validity of the order of punishing authority, the Court can go into the matter as to whether the order of punishing authority is based on legal evidence or not. 7. The second question that arises for determination is whether the production of the passengers was necessary in the present case or not. No doubt it is true that the strict rules of evidence are not applicable to the enquiries before the Enquiry Officer, still general principles of evidence are to be followed so that the interests of the delinquent are safeguarded. It is a well-founded principle of law that hearsay evidence is no evidence. It is based on the general principle that no inference can be drawn against the delinquent from the statement of a person to whom he had no opportunity to cross-examine. There are some exceptions to the aforesaid principle. It has been laid down in para 533 of Halsbury's Laws of England, Third Edition, Volume 15 that as a general rule, a statement made by a person not called as a witness is inadmissible to prove the truth of the fact stated. The term `hearsay' in the above connection imports a purpose and not a quality. It is further stated that a statement is hearsay if tendered to prove the truth of the facts asserted, it is sometimes called original evidence if its relevance depends on the fact that it was made, and not on the fact that it was true. The reasons for rejection of such a statement have been given in para 534, which is as follows :- "The reasons advanced for the rejection of hearsay are numerous, among them being the irresponsibility of the original declarant, the depreciation of truth in the process of repetition, the opportunities for fraud which its admission would offer, and the waste of time involved in listening to idle rumour. The two principal objections, however, appear to be the lack of an oath administered to the originator of the statement, and the absence of opportunity to cross-examine him." The most important exceptions to the above rule have been given in para 535 which is as follows :- "The general rule against hearsay has been related in relation to various classes of statements, of which the most important are (1) admissions and confessions; (2) statements by deceased person; (3) statements in public documents; and (4) statements in documents admissible under the Evidence Act, 1938. ... ... ... ..." The same exceptions have been mentioned by Phipson on Evidence in para 661 (Tenth Edition). The evidence of the Inspector stating that the appellant had taken the fare from the passengers whereas he had not issued tickets to them, does not fall within any of the aforesaid exceptions. His statement is also not admissible under any section of the Evidence Act, 1872. No doubt the provisions of the Evidence Act, 1872 do not apply to the enquiries. The Enquiry Officer has, however, to follow such procedure in recording evidence which does not deny delinquent a fair opportunity of defending himself. In case hearsay evidence is allowed to be brought on the record, the delinquent is likely to be prejudiced. In the aforesaid view we are fortified by the observations of Supreme Court in Jagannath Parsad Sharma v. The State of Uttar Pradesh and others, AIR 1961 SC 1245, wherein it has been observed that even though the Tribunal is not bound by formal rules relating to procedure and evidence, it cannot rely on evidence which is purely hearsay, because to do so in an enquiry of this nature, would be contrary to rules of equity and natural justice. A similar case came up before a learned Single Judge of this Court in Shri Ram Rattan v. The State of Punjab, R.S.A. No. 1152 of 1971, decided on December 22, 1972, in which a similar view was taken. In view of the aforesaid observations, we are of the opinion that there was no legal evidence before the Enquiry Officer regarding the payment of the amount of fare to the appellant. The statement of the Inspector on that question could not be taken into consideration by the Enquiry Officer and punishing authority for reaching the conclusion that the appellant had embezzled the amount. The services of the appellant had been terminated on account of the charge of embezzlement. The order of termination is, therefore, illegal and liable to be quashed. 8. The third contention of the learned counsel for the appellant is that certain documents had been taken into consideration by the Enquiry Officer which had not been produced in evidence. The plea was not taken by him in the plaint. He also did not raise that point before the trial Court. The first appellate Court did not allow him to raise the same for the aforesaid reasons. The view taken by the first appellate Court in our opinion is correct. In the circumstances he cannot be allowed to take the point in this Court. 9. The last contention of the learned counsel for the appellant is that the Traffic Manager had not been authorised to conduct the enquiry by the punishing authority and therefore, the enquiry conducted by him is illegal. The appellant did not take this point either in the trial Court or before the first appellate Court. He cannot be allowed to raise this question for the first time in this Court. 10. For the reasons recorded above, we accept the appeal with costs and grant a decree to the plaintiff to the effect that the order of dismissal is illegal and ineffective and he continued to be in service of the defendant. The plaintiff-appellant shall also be entitled to costs of the Courts below. Man Mohan Singh Gujral, J. - I agree. Appeal accepted.