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  • Rule 55-A of the relevant Rules
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Citation Codes
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Disposition
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  • Rule 55-A of the relevant Rules
Smart Summary

Factual and Procedural Background

The appellant, a confirmed Stamp Clerk, was placed under suspension on 6-5-1982 after allegations of serious misconduct, including misappropriation of money and issuing false certificates. A departmental inquiry ensued: a charge-sheet was served, an inquiry officer conducted the proceedings, and a report finding several charges proved was submitted. Relying on that report, the disciplinary authority dismissed the appellant from service.

Challenging the dismissal, the appellant filed Claim Petition No. 1081 of 1984 before the U.P. Public Services Tribunal, which was dismissed. A writ petition to the High Court met the same fate when a Division Bench affirmed the Tribunal’s decision. The present civil appeal was therefore filed before the Supreme Court of India.

Legal Issues Presented

  1. Whether the failure to supply copies of relied-upon documents to the appellant vitiated the disciplinary proceedings for breach of natural justice.
  2. Whether non-furnishing of the inquiry officer’s report caused prejudice and rendered the dismissal invalid, particularly in light of Rule 55-A and subsequent case law.
  3. Whether the departmental inquiry was conducted in accordance with law and afforded the appellant adequate opportunity to defend himself.
  4. Whether the penalty of dismissal was grossly disproportionate to the charges proved.

Arguments of the Parties

Appellant's Arguments

  • Copies of the documents relied on during the inquiry were never furnished despite requests, denying a fair opportunity of defence.
  • The inquiry was not properly conducted, and the appellant was not given a real chance to present evidence.
  • The inquiry officer’s report was withheld, causing serious prejudice and violating Rule 55-A as interpreted in State of U.P. v. Harendra Arora.
  • Even if the charges were proved, dismissal was shockingly disproportionate; reliance was placed on decisions such as Mehnga Singh and M.A. Khalsa where lesser penalties were ultimately imposed.

Respondents' Arguments

  • Supported the concurrent findings of the Tribunal and High Court that the inquiry and dismissal were lawful.
  • Maintained that the appellant had been granted inspection of documents and never specifically sought copies.
  • Emphasised that the events occurred prior to Union of India v. Mohd. Ramzan Khan, when furnishing the inquiry report was not mandatory, and that no prejudice was shown in any event.
  • Argued that the seriousness of the proved charges fully justified dismissal.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Union of India v. Mohd. Ramzan Khan (1991) 1 SCC 588 Post-1991 obligation to furnish inquiry report to delinquent officer. Held inapplicable because the appellant’s proceedings pre-dated the ruling; hence furnishing the report was not mandatory.
State of U.P. v. Harendra Arora (2001) 6 SCC 392 Even where rules require supply of the inquiry report, the delinquent must show resulting prejudice. Used to underline that the appellant failed to demonstrate any prejudice from non-receipt of the report.
Mehnga Singh v. Inspector General of Police (1995) 5 SCC 682 Reduction of penalty on facts considered exceptional. Distinguished; court found circumstances here far more serious, so no basis to reduce penalty.
M.A. Khalsa v. Union of India 1988 Supp SCC 436 Modification of dismissal in peculiar facts despite misappropriation charge. Distinguished on facts; court affirmed dismissal in the present case.

Court's Reasoning and Analysis

The Supreme Court first examined the record and agreed with the High Court that the appellant had been granted inspection of the documents used against him. No evidence was produced that he ever requested copies. Accordingly, the allegation of denial of documents was rejected.

On the contention that the inquiry was defective, the Court noted that by letter dated 18-9-1982 the inquiry officer invited the appellant to submit his defence; the appellant responded on 21-9-1982 that he would produce none. In those circumstances, the inquiry could not be faulted.

Addressing the non-supply of the inquiry report, the Court observed that the disciplinary proceedings occurred before the decision in Mohd. Ramzan Khan, when furnishing such a report was not obligatory. Even if Rule 55-A was read as requiring it, Harendra Arora demanded proof of prejudice, which the appellant failed to establish, particularly after having declined to lead any defence evidence.

The Court rejected the plea that repayment of misappropriated funds mitigated the offence, holding that restitution does not erase the underlying misconduct. Given the gravity of the proven charges—misappropriation and falsification of records—the punishment of dismissal was found proportionate. Authorities cited by the appellant for a lesser penalty were held distinguishable.

Holding and Implications

The appeal is dismissed.

All concurrent findings upholding the dismissal of the appellant from service stand affirmed. The decision affects only the parties; no new legal principle was created beyond reaffirming existing standards on supply of inquiry reports and proportionality of punishment.

    Narendra Nath Bhalla v. State Of Uttar Pradesh And Others

    Order

    1. The appellant was a confirmed employee and was working as a Stamp Clerk. On finding certain irregularities and misconduct said to have been committed by him he was kept under suspension on 6-5-1982. A chargesheet also was issued to him; the inquiry officer was appointed who after completing the inquiry submitted a report holding that certain charges were proved against him. The disciplinary authority on consideration of the inquiry report, the materials placed on record and looking to the charges held proved agreed with the inquiry report and passed an order dismissing the appellant from service. The appellant filed Claim Petition No. 1081 of 1984, before the U.P Public Services Tribunal, challenging the correctness and validity of the order of dismissal from service. The said Tribunal dismissed the claim petition. He filed a writ petition before the High Court assailing the order passed by the Tribunal. The Division Bench of the High Court, after considering the rival contentions in the light of the materials placed on record for consideration, dismissed the writ petition affirming the order passed by the Tribunal. Hence, the appellant is before us in this appeal.

    2. The learned counsel for the appellant contended that the documents on which reliance was placed during the inquiry against the appellant, were not at all furnished to him in spite of the request made by him; no proper inquiry was held at all; report of the inquiry was also not furnished to the appellant which seriously prejudiced his case and the punishment imposed on the appellant was grossly and shockingly disproportionate even to the charges proved against him.

    3. The learned counsel for the respondents in his argument supported the impugned judgment.

    4. Before considering the respective contentions we perused the nature of the charges levelled against the appellant, which are serious. They include charges of misappropriation and issuing false certificate.

    5. The Division Bench of the High Court has recorded in the impugned order that the appellant was allowed inspection of documents; no material placed on record shows that the appellant had as a matter of fact sought for copies of those documents. On the other hand, it was found that the letters were given by the appellant seeking inspection of the documents which was allowed. In this view, the contention that the documents were not supplied to the appellant in spite of the request made by the appellant cannot be accepted. The complaint as to not holding a proper inquiry was also considered by the High Court. It is reflected in the impugned order that by the letter dated 18-9-1982 the inquiry officer asked the appellant to submit his reply and to produce his defence. The appellant in his letter dated 21-9-1992, addressed to the inquiry officer, mentioned that he would not produce any defence. In view of this, it cannot be said that the inquiry was not held as alleged by the appellant. The contention that the inquiry report was not furnished to the appellant and consequently prejudice was caused to him also cannot be accepted for the simple reason that the case relates to the period prior to Union of India v. Mohd. Ramzan Khan (1991) 1 SCC 588, (1991) 16 ATC 505. The High Court has clearly noticed in the impugned order that furnishing of inquiry report prior to Mohd. Ramzan Khan case (1991) 1 SCC 588, (1991) 16 ATC 505 was not mandatory. The learned counsel for the appellant relying on the decision of this Court in State of U.P v. Harendra Arora (2001) 6 SCC 392 and pointing out to para 23, in particular, urged that in terms of Rule 55-A of the relevant Rules, furnishing of inquiry report was mandatory. A reading of the very para 23 clearly shows that even if the rule provides for furnishing copy of the inquiry report still it was obligatory on the appellant to show that non-furnishing of such a report caused prejudice to him. In the light of the facts of the present case, it has not been shown as to how any prejudice was caused to the appellant by mere non-furnishing of the inquiry report even when he said that he had no defence to produce.

    6. Learned counsel for the appellant also submitted that the appellant has already paid back the money which was held proved against him that he had misappropriated. Mere repayment of money does not absolve him of serious charge of misappropriation. The last submission that the punishment imposed on the appellant is too harsh also does not appeal to us, having regard to the serious nature of charges including the misappropriation of money and issuing a receipt on plain paper and reflecting it in the official record as something else. The decision in Mehnga Singh v. Inspector General of Police (1995) 5 SCC 682, (1995) 31 ATC 437 relied on by the learned counsel for the appellant does not help him as that is a case which governs the facts of that case. The other decision relied on for the same purpose is M.A Khalsa v. Union of India 1988 Supp SCC 436. Even this decision does not help the appellant in any way as can be seen from the very facts and the opinion expressed therein that the order of dismissal having regard to the serious nature of the charge of misappropriation was felt appropriate. However, the penalty was modified on the peculiar facts of that case. Under these circumstances, we find no merits in this appeal. Consequently, it stands dismissed with no order as to costs.

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    Narendra Nath Bhalla v. State Of Uttar Pradesh And Others
    (Feb 13, 2003)