JUDGMENT :

A.K. SIKRI, J.

Leave granted.

2. This appeal is preferred against the final judgment and order dated June 26, 2013 in Writ Appeal No. 1279 of 2010 passed by the High Court of Judicature at Madras whereby the Division Bench of the High Court has modified the punishment imposed by the disciplinary authority of appellant No.1, i.e. Life Insurance Corporation of India (hereinafter referred to as the 'LIC') on the respondent employee in a departmental enquiry.

3. Insofar as facts are concerned, it is sufficient to note that a charge-sheet was served upon the respondent with the allegations of tampering with the premium position and other records pertaining to 17 insurance policies, which resulted in settlement of surrender value payments, though these policies had not acquired surrender value. It was alleged in the charge-sheet that by this act of the respondent, pecuniary loss was caused to the LIC. These charges stood proved in the enquiry held against the respondent by the Enquiry Officer vide Report dated December 23, 1997. Based on the said Report, the disciplinary authority issued show-cause notice to the respondent proposing the following punishment:

(i) Recovery of los