JUDGMENT

Shah J.- Leave granted.

2. The notice issued by this Court is limited to the interpretation given by the High Court to Regulation 60 of the Food Corporation of India (Staff) Regulations, 1971 (hereinafter referred to as "the Regulations") which prescribes the procedure for imposing minor penalties. In Writ Petition No. 14152 of 1989 filed by respondent No.1 - Assistant Manager (Quality Control) at Kakinada challenging the order imposing penalty of recovery of Rs. 7356/- from his pay by 21 monthly installments on the ground of dereliction of his duties, which caused loss to the Corporation, learned Single Judge held that once the employee denies the charge, it is incumbent upon the authorities to conduct an inquiry by giving an opportunity to him and render findings on the charges, otherwise there is every scope for the disciplinary authority to misuse the power under Regulation 60. The Court, therefore, set aside the order imposing minor penalty as the procedure contemplated for imposing major penalty was not followed. In appeal, the Division Bench of the High Court by judgment and order dated 18th November, 1997 confirmed the same by observing - "where the employ