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2006 Supreme(SC) 175

2006(2) Supreme 369
Supreme Court of India
(From Kerala High Court)
S.B. Sinha and P.P. Naolekar, JJ.
Chairman & M.D., Bharat Pet. Corpn. Ltd. & Ors. —Appellants
versus
T.K. Raju —Respondent
Civil Appeal No. 8548 of 2003
Decided on 24-2-2006
Counsel for the Parties :
For the Appellants : T.R. Andhyarujina, Sr. Advocate, Sameer Parekh, P.H. Parekh (for M/s. P.H. Parekh & Co.) Advocates.
For the Respondent : M.N. Krishnamani, Sr. Advocate, N.M. Verghese, Ms. Tessy Paul and S.R. Setia, Advocates.

Important PointInterference with quantum of punishment by Court should not be done in a routine manner.

Headnote:Service Law—Punishment of dismissal of services—Power of judicial review in such matters was limited—Interference with quantum of punishment should not be done in a routine manner—Respondent was Senior Sales Officer in Sales Dept. of appellant, collected diverse amounts from distributors purported to be by way of ‘Short Term Hand Loans’ and same were not repaid to some of them—He was found guilty in disciplinary proceedings on charges in terms of Rules 4 and 22 r/w clauses 4, 6, 20, 22, 31, 37 of Rule A in Part III of Conduct, Discipline & Appeal Rules for Management Staff—Punishment of dismissal from service was imposed—High Court held that principles of natural justice were complied and there was no violation of Rules, but quantum of punishment was disproportionate to charges of misconduct and remitted matter—Appeal—High Court was not correct in its conclusion that some of charges were vague and indefinite—Charges must be considered on a holistic basis—It could not be said that quantum of punishment was wholly disproportionate to charges—Impugned judgment was liable to be set aside. (Paras 8 to 17)

JUDGMENT

S.B. Sinha, J.—The Respondent was a Senior Sales Officer (LPG) in the Sales Department at Bombay Office of the Appellants. The Chief Divisional Manager of the Cochin Divisional Office under whom the Respondent had been working received complaints from All India LPG Distributors Federation (Kerala Circle) alleging financial irregularities on the part of the Respondent. Allegedly, the Respondent collected diverse amounts from the distributors purported to be by way of ‘Short Term Hand Loans’. The same had not been repaid to some of them. On or about 27.7.1992, a charge memo was served upon the Respondent alleging:

"That in November 1991 you had taken the loan of Rs. 5000/- from M/s. Rose Flames, Cochin and the said amount was repaid by you only after a period of five months i.e. only after show cause notice Ref. C. PERS. STF dated December 10, 1991 was served on you by CDM, Cochin Divisional Office. At that time you had also taken one DPR (Differential Pressure Regulator) from the aforesaid Distributor which has not been returned or replaced by you.

You had taken a loan of Rs. 1,000/- from Jyothi Gas, Tripunithura and the said amount was returned only after a period of about 2 weeks. You had also taken a DPR (Differential Pressure Regulator) from this Distributor which was returned only in February 1992 after a period of more than an year.

You had taken a loan of Rs. 10,000 in July 1991 from M/s. Krishna Gas, Ernakulam which amount has not been returned by you. Furthermore, you have also solicited further loan from this distributor.

You had also taken a loan of Rs.1,000/- from M/s. Cherukara Gas Agencies, Alleppey during July 1991 which was returned by you after a period of 30 days.

You had demanded a loan of Rs. 10,000/- from M/s. Seena Gas who had subsequently given you Rs. 5,000/- on September 7, 1991 which has not been returned by you till date.

You had taken a loan of Rs. 10,000/- from M/s. Maria Flames for finalising a house site which has not been returned till now. On assuming charge as LPG Sales Officer in the month of April 1991, you had demanded Rs. 5000/- again from this distributor. When the distributor explained his difficulties you had demanded at least Rs. 2000/- which was not paid by the distributor. On 6.11.91 on your visit to the distributor for an inspection, you demanded an LPG stove which was given to you on credit which amount has also not been settled by you.

You had taken articles and availed services worth Rs. 2487/- from our dealer M/s. K.P. Varghese & Sons on credit. This amount has also not been settled by you so far.

You had taken supplies of petrol on credit from M/s. K.K. Abraham, Ernakulam during the period April 1990 and a sum of Rs. 2329.90 due for the supplies has not yet been paid."

2. A disciplinary proceeding was initiated against the Respondent. He was found guilty therein. The said charges were levelled against him purported to be in terms of Rules 4 and 22 of Part II read with Clauses 4, 6, 20, 22, 31 and 37 of Rule A in Part III of the Conduct, Discipline and Appeal Rules for the Management Staff (for short "the Rules").

3. The Management in the said departmental enquiry examined Mr. Jayaraman, Secretary of the Federation. Other distributors being eight in number were also examined. The said witnesses were also cross-examined by the Respondent. An enquiry report was submitted before the disciplinary authority and the latter by an order dated 5.12.1994 imposed a punishment of dismissal of services upon the Respondent. He performed a statutory appeal thereagainst before the Chairman and the Managing Director of the Appellant-Corporation who was the designated appellate authority. The said appeal was dismissed by the appellate authority by an order dated 6.6.1995 stating :

"Having come to the conclusion that charges were duly proved and established against Sri Raju, as above, I feel I have considered the question of punishment. I feel that any one of eight charges, if proved, against Sri Raju






























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