IMPORTANT POINT
On issuance of second charge sheet containing all charges of first charge sheet and new charges, proceedings on basis of former would stand abandoned. Enquiry report on first charge sheet loses all relevance.
For imposing major penalty, that too of dismissal, conformity with statutory provisions specifically providing for compliance with natural justice is mandatory
After appointment of enquiry officer conducting enquiry is mandatory.

JUDGMENT :

Ashok Bhushan, J.

1. This appeal has been filed against the order dated 01.12.2010 of the Division Bench of the High Court of Uttrakhand by which judgment, the writ petition filed by the respondent – Raghunath Singh Rana has been disposed of after quashing the dismissal order dated 01.02.2002. Aggrieved by the judgment, the Chamoli District Co-operative Ltd., is in appeal before this Court.

The short facts necessary for deciding this appeal are: the Chamoli District Co-operative Bank Ltd. (hereinafter referred to as ‘the appellant/Bank’) is a District Co-operative Bank registered under the U.P. Co-operative Societies Act, 1965 (hereinafter referred to as ‘the Act’). The Raghunath Singh Rana, respondent No.1 (hereinafter referred to as ‘the employee/Respondent No.1’) at the relevant time, was working as a Branch Manager at Ghat Branch of the Chamoli District. A charge sheet dated 03.07.1992 was issued to the employee leveling 19 charges against him. The employee/respondent No.1 was asked to reply upto 3rd August, 1992. There was allegation against the employee/respondent No.1 that he made payments to the bearers of cheques without its prior collection and made payment to the bearer of the cheque, causing loss to the appellant/Bank. Further charges were that he had not taken any action against the persons concerned and had thus committed serious irregularities. Another set of charges were imputation that the respondent–employee has issued overdrafts/loans against the provision of the Act.

2. The employee/respondent No.1 submitted a reply on 31.07.1992 denying the allegations. On 05.8.1992, an Inquiry Officer was appointed to conduct the inquiry. The Inquiry Officer also submitted a report on 21.09.1992. The employee/respondent No.1 was placed under suspension by order dated 21.10.1992. No further steps were taken on the inquiry report dated 21.09.1992. However, a fresh charge sheet containing the charges which were levelled in the charge sheet dated 03.07.1992 as well as six additional charges was issued on 16.01.1993. The employee/respondent No.1 submitted a reply dated 04.02.1993 to the charge sheet denying the allegations. After submission of the reply by the employee/respondent No.1, a show-cause notice was issued to the petitioner by the District Co-operative Bank Ltd. dated 04.05.1993 asking the employee/respondent No.1 to submit a reply, failing which action under Regulation 84 of the U.P. Co-operative Societies Employees Service Regulations Act, 1975 was to be taken. The Disciplinary Authority passed a Resolution dated 11.07.2000 that charges against the employee/respondent No.1 have been proved and further action to be taken. The Disciplinary Authority passed an order on 01.02.2002, dismissing the employee/respondent No.1 with immediate effect. Aggrieved by dismissal order, writ petition was filed by the employee-respondent No.1 praying for quashing the order dated 01.02.2002 with further prayer that employee/respondent No.1 be reinstated in service with full back wages and salary.

3. The employee/respondent No.1's case in the writ petition was that after receipt of the charge sheet dated 18.01.1993, reply was submitted by the employee but without holding an inquiry, the Disciplinary Authority took a decision to dismiss the petition. No Inquiry have been held as provided by statutory regulations, hence, the entire proceedings are liable to be set aside.

4. The appellant-Bank filed a counter affidavit in the writ petition. In the counter affidavit no inquiry report subsequent to charge sheet dated 18.01.1993 was referred to.

5. The Division Bench of the High Court heard the matter and vide judgment dated 01.12.2010 quashed the dismissal order. The Division Bench took the view that dismissal orders have been passed without holding an inquiry which deserves to be set aside.

6. Learned senior counsel appearing for the appellant-Bank contends that Inquiry Officer had issued a letter dated 11.09.1992 to the employee/respon