Judgment

MATHEW, J.-This is an appeal by Special Leave filed by the Union of India from the judgment in appeal under Clause 10 of Letters Patent of the Delhi High Court confirming the decision of a learned Single Judge allowing Civil Writ No. 716-D of 1964 filed by the Respondent by quashing the order made by the President on 23rd April, 1963 compulsorily retiring the Respondent from service.

2. The Respondent, Shri Sardar Bahadur, was employed as a Section Officer in the Ministry of Commerce and Industry in the Steel and Cement Section (B) which along with other sections like Industries Act and Industrial Policy etc. was under the control of Shri P. S. Sundaram, Deputy Secretary in that Ministry at that time.

3. In April, 1956, the Ministry invited applications for grant of licences to set up steel re-rolling mills.

4. On June 14, 1956, one Shri Nand Kumar representing Messrs Ram Sarup Mam Chand and Messrs Mam Chand and Company of Calcutta applied for five licences to set up steel re-rolling mills. He also handed over on June 25, 1956 to the respondent a cheque for Rs. 2,500 drawn on the Punjab Co-operative Bank Limited in favour of Shri P. S. Sundaram. The cheque was certified by the bank as good for payment up to September 24, 1956. At the back of the cheque, there was a signature which purported to be that of Shri P. S. Sundaram. It may be noted at this stage that Shri P. S. Sundaram, the Deputy Secretary had denied that signature to be his. Above the signature the respondent wrote the words :-

"Please pay to Shri Sardar Bahadur."

Lower down the respondent wrote the following words :-

"Please collect and credit the amount into my account. First payee s endorsement may kindly be guaranteed on my behalf and risk."

This cheque was duly sent to the account of the respondent and the amount of Rs. 2500 was credited to his account in the State Bank of India, New Delhi.

5. The respondent was prosecuted by the Special Police Establishment on the allegations that the amount covered by the cheque was taken by him as illegal gratification for using his official position illegally and in corrupt manner in order to procure licences for Messrs Ram Sarup Mam Chand of Calcutta who had filed applications in that behalf and that the signature of Shri P. S. Sundaram had been forged by him. The respondent was charged with offences punishable under Section 5(2) read with Section 5(1)(d) of the Prevention of Corruption Act, 1947 and Sections 161, 467 and 471 of the Indian Penal Code. The respondent was acquitted of all the charges on June 20, 1960. Thereafter it was proposed to hold an inquiry against him under Rule 15 of the Central Civil Services (Classification, Control and Appeal) Rules, 1957 on the basis of the following charges :-

1. "That he failed to inform Shri P. S. Sundaram, Deputy, Secretary, Ministry of Commerce and Industry, New Delhi, that a cheque for Rs. 2,500 in the name of Shri Sundaram had been issued by Shri Nand Kumar of Messrs Ram Sarup Mam Chand and Messrs Mam Chand &. Company of Calcutta, whose applications for grant of licences for establishing steel-re-rolling mills were pending in the Ministry of Commerce and Industry, as security in connection with the said applications when he knew that no such deposit was to be made;

2. That he failed to inform Shri P. S. Sundaram that the said Shri Nand Kumar had given him a cheque bearing Shri Sundaram s signature and had asked him to deposit it in his account which he had done after asking the bank (instead of showing the cheque first to Shri Sundaram himself) to guarantee the said signature of Shri Sundaram ; and

3. That he borrowed a sum of Rs. 2,500 (the amount covered by the cheque referred to above) from the said Shri Nand Kumar, without obtaining previous sanction of the Government and placed himself under pecuniary obligations to the extent of Rs. 2,500 and thereby also contravened Rule 13(5) of the Civil Services (Conduct) Rules, 1955."

6. The enquiry was held and the Inquiring Offi