JUDGMENT :

A.K. Sikri, J.

Leave granted.

2. A departmental inquiry was conducted against respondent No.1 herein, an employee of appellant, viz. Krishna District Cooperative Central Bank Ltd., into certain charges of misconduct. In the said inquiry, charges were proved and as a result the disciplinary authority inflicted the punishment of dismissal from service upon respondent No.1. The High Court vide impugned judgment has altered the said penalty of dismissal to that of stoppage of two increments for a period of three years.

Whether it was permissible for the High Court to do so in the facts of the present case, is the question that needs to be determined in the instant appeal.

3. The events leading to the filing of this appeal are recapitulated in brief as under:-

Respondent No. 1 was a Supervisor of five Primary Agricultural Cooperative Societies (PACS). He failed in discharging his duties properly in supervising the same, which led to cheating by the members of the Nidamanuru Primary Agricultural Cooperative Society (PACS) resulting in misappropriation of the society funds, for which disciplinary action was initiated against him. The precise charges against him, vide charge memo date