IMPORTANT POINT
No leniency should be shown in matter of punishment in proved case of misconduct.

JUDGMENT

PRAFULLA C. PANT, J.

This appeal is directed against judgment and order dated 27.8.2009, passed by the High Court of Judicature at Allahabad, in Special Appeal No. 1167 of 1999, whereby said Court has partly allowed the appeal, and substituted the punishment of removal awarded to the appellant, by compulsory retirement from service.

2. We have heard learned counsel for the parties and perused the papers on record.

3. Briefly stated, the facts are that the appellant was a cashier with Life Insurance Corporation of India (hereinafter referred to as “LIC”) and posted at Bilaspur, District Rampur in U.P. A policy holder, Bhograj Singh, deposited with the appellant an amount of Rs.533/-towards half yearly insurance premium on 13.8.1990 but the same was not deposited with LIC nor credited in the account of the policy holder till 27.11.1990, though a receipt was issued on 13.8.1990 by the appellant. It appears that when the LIC agent did not get his commission out of the premium deposited, and made enquiries in this regard, aforesaid amount of Rs.533/-was shown deposited by the appellant with late fee of Rs.15.90/-, and entry was made in the cash register on 28.11.1990. Also, a forged entry was made in ledger sheet on back date. In connection with the above misconduct on the part of the appellant, a charge-sheet was served on him on 29.4.1991 on two counts, namely, temporary embezzlement of Rs.533/-for the period 13.8.1990 to 27.11.1990, and forging entry of Rs.533/-in the carbon copy of the ledger sheet dated 13.8.1990 between entry Nos. 12 and 13. On conclusion of the departmental enquiry, the appellant was found guilty, and served with copy of enquiry report, whereafter he was removed from service vide order dated 21.1.1992. The departmental appeal appears to have been dismissed by the authority concerned on 22.2.1992.

4. Challenging the order of removal from service and that of the appellate authority, the appellant filed Civil Miscellaneous Writ Petition No. 10308 of 1999 before the High Court which was allowed by the learned Single Judge on 6.9.1999. Aggrieved by said order of the learned Single Judge, Special Appeal was filed before Division Bench of the High Court, by the employer (i.e. – L.I.C.). The Division Bench, after hearing the parties, came to the conclusion that the appellant appears to have committed the forgery to cover his mistake, and partly allowed the appeal by substituting punishment of compulsory retirement in place of removal from service. The appellant-employee has challenged the order of the Division Bench of the High Court by way of Special Leave Petition mainly on the ground that the punishment of compulsory retirement is disproportionate, unreasonable and harsh. Leave was granted by this Court on 19.4.2010.

5. Mr. Gaurav Agrawal, learned counsel for the appellant, drew our attention to Rule 23 of Life Insurance Corporation of India (Employees) Pension Rules, 1995, which reads as under:-

“23. Forfeiture of service. – Resignation or dismissal or removal or termination or compulsory retirement of an employee from the service of the Corporation shall entail forfeiture of his entire past service and consequently shall not qualify for pensionary benefits.”

It is argued by learned counsel for the appellant that it is a case of temporary embezzlement of a small amount, as such awarding minor punishment of stoppage of increment etc. would have met the ends of justice. It is also submitted before us that the amount could not be credited by the appellant on 13.8.1990 as the cash actually paid by the policy holder on that day was short, as such the act on the part of the appellant was bonafide.

6. We have given thoughtful consideration to the above argument advanced on behalf of the appellant. The explanation put forth does not appear to be convincing, as the cashier would not have issued a receipt without counting the cash at the counter. Secondly, had the act on the part of the appellant been bonafide, he