JUDGMENT

Phukan, J.-In this appeal by special leave, Union of India has assailed the judgment of the Central Administrative Tribunal, Ernakulam Bench passed in Original Application No. 956 of 1994.

2. Briefly stated the facts are as follows.

The respondent was holding the post of Cardamom Settlement Officer, Devicolam, Kerala during the period from 7.12.1982 to 14.7.1985. While working in that capacity he gave sanction to three persons for felling of trees for the purpose of letting in sufficient sum light in their cardamom plantation subject to certain conditions including permissions to be obtained from the Forest Department. There is no dispute that during the period while the respondent was serving in the said capacity no felling of trees took place. After the transfer of the respondent from that post, due to felling of trees there was public out cry and an inquiry was conducted; respondent was put under suspension and thereafter departmental proceeding was drawn up against him on four charges. The Inquiry Officer held that charges No. 1 and 2 were partially proved and charges No.3 and 4 were fully proved. The report was accepted and as during the period of inquiry the respondent retired from service the penalty of reduction of 50% of pension was imposed. The application filed by the respondent before the Central Administrative Tribunal was allowed by the impugned judgment and hence the present appeal.

3. We quote below the four charges and the findings of the Inquiry Officer:

1. That you, Sri K.A. Kittu, IAS, while holding charge of the post of Cardamom Settlement Officer, Devicolam, (1) by proceeding No. A2-588/84 dated 10-10-1984 issued sanction for felling of 660 trees in 26-5-hs. Of Cardamom Estate at Kurisupara in Pallivasal Unreserve, in Sl.No. 1393 and234 of Pallivasal village, to Sri Thomas Sebastian, Karipparambil, Kottayam for the ostensible purpose of shade regulation in the Cardamom Plantation, treating the said Thomas Sebastian and two others for whom he held power of attorney, as "lessees" of the land after conferring on them the status of "lease offerees" in a contrived manner in collusion with the Special Deputy Tehsildar, Cardamom Settlement, Devicolam (Sri K. Ramakrishnan), acted without jurisdiction and in an extraordinary way, altogether by passing the Assistant Settlement Officer, Kumily, who is the primary statutory authority for lease of Government land for Cardamom cultivation including grant of permission for felling of trees under rules 7 to 9 of the Rules for lease of Government lands for Cardamom Cultivation. 1961.

2. by letter No. A2-588/84 dated 25-9-1984 addressed to the said Sri Thomas Sebastian demanded Cardamom dues, as defaulters, fixing the amount of arrears as Rs. 69,154/- for the period from 1954 to 1984, got it remitted, thereby to bring him and the two others he represented, within the definition or "lessee" under rule 2(e) of the Cardamom Lease Rules and for permitting felling of trees, though no demand had been raised or communicated to the parties previously in Form VI, leave alone issue of formal lease in Form VII prescribed under the Cardamom Lease Rules by the statutory authority, viz. the Assistant Settlement Officer, and this was done when the stay order issued by Government in communication No. 12252/E3/80/RD dated 7-3-1980 against regularisation of encroachments on Government Lands was in force.

3. handled your office file No.A2-588/84 right through at your personal level and issued proceedings dated 10-10-1984, 12.12.1984, 15.2.1985, 19-2-1985 and 27-2-1985 regarding felling of trees etc. prescribing conditions which would appear to safeguard the interest of Government, but actually intended to extend to the said Sri Thomas Sebastian undue benefits/wrongful gain by permitting felling of 660 trees, mostly superior species, first identifying the trees and then marking them on the ground for making available to him trees of h