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2024 Supreme(SC) 623

SUPREME COURT OF INDIA
SANDEEP MEHTA, R. MAHADEVAN, JJ.
Delhi Transport Corporation – Appellant
Versus
Ashok Kumar Sharma – Respondent
Civil Appeal No(s). 290 Of 2014
Decided On : 18-07-2024

Advocates appeared:
For the Appellant(s) : Dr. Monika Gusain, AOR Mr. Avinash Ahlawat, Adv. Ms. Gyanvi, Adv. Mr. Avi Dhankhar, Adv.
For the Respondent(s):Respondent-in-person

The disciplinary authority must demonstrate independent application of mind and provide an opportunity for hearing before imposing major penalties, as mandated by principles of natural justice.

Headnote:

[ADMINISTRATIVE LAW] - [DISMISSAL FROM SERVICE] - [ACT SECTION LIST] - [Sections of the Central Administrative Tribunal Act, 1985; Principles of Natural Justice; A.L. Kalra v. Project & Equipment Corporation of India Ltd., (1984) 3 SCC 316; Roop Singh Negi v. Punjab National Bank and Others, (2009) 2 SCC 570] - [The court discussed the principles of administrative law, emphasizing the necessity for the disciplinary authority to demonstrate independent application of mind and provide an opportunity for hearing before imposing major penalties. The court found that the dismissal of the charged officer lacked these essential legal provisions, leading to the conclusion that the Tribunal's decision to set aside the dismissal was justified.]

Fact of the Case:

The Delhi Transport Corporation dismissed the charged officer from service based on an inquiry report that found him guilty of several charges. The dismissal was challenged before the Central Administrative Tribunal, which ruled in favor of the charged officer, leading to an appeal by the Corporation to the Delhi High Court, which was dismissed. The Corporation then appealed to the Supreme Court.

Finding of the Court:

The Supreme Court found that the dismissal was flawed due to a lack of independent application of mind by the disciplinary authority and failure to provide a proper hearing to the charged officer. The inquiry report was deemed inadequate as it lacked witness testimonies, rendering the proceedings invalid.

Issues: Whether the dismissal of the charged officer was valid given the procedural lapses in the disciplinary proceedings and the lack of evidence presented during the inquiry.

Ratio Decidendi: The court reiterated that disciplinary authorities must independently assess inquiry findings and provide an opportunity for the charged officer to be heard before imposing penalties. The absence of these elements constituted a violation of principles of natural justice.

Final Decision: The Supreme Court dismissed the appeal by the Delhi Transport Corporation, affirming the Tribunal's decision to set aside the dismissal of the charged officer.

ORDER :

1. This appeal by special leave has been preferred by the appellant-Delhi Transport Corporation(hereinafter being referred to as ‘Corporation’) for assailing the judgment dated 12th March, 2013 rendered by the learned Division Bench of the Delhi High Court dismissing the W.P.(C) No. 7661 of 2010 preferred by the appellant-Corporation questioning the legality and validity of the judgment and final order dated 1st July, 2010 passed by the Central Administrative Tribunal, Principal Bench, New Delhi(hereinafter being referred to as ‘Tribunal’). The Tribunal accepted the Original Application(for short ‘OA’) No. 1592 of 2009 filed by the respondent(hereinafter being referred to as ‘charged officer’) and set aside the order dated 24th April, 2009 passed by the Chairman-cum-Managing Director(hereinafter being referred to as the ‘CMD’) thereby, dismissing the respondent from service.

2. We have heard and considered the submissions advanced at bar and have gone through the impugned judgment and the material available on record.

3. Ex facie, we find that the action of the appellant-Corporation in dismissing the respondent from service suffered from fatal lacuna of having been arrived at with sheer non-application of mind in addition to being non-speaking.

4. Undisputed facts as available on record indicate that a memorandum of charge dated 19th December, 2006 was issued to the charged officer and a disciplinary enquiry was held by the Commissioner for Departmental Inquiries, Central Vigilance Commission who was appointed as the enquiry authority by the CMD, appellant-Corporation vide order dated 9th July, 2007. The Enquiry Officer conducted enquiry and held seven out of the eight charges proved against the charged officer. A show cause notice dated 15th April, 2009 was issued to the charged officer by the CMD.

5. The charged officer approached the Tribunal by filing OA No. 1054 of 2009 for assailing the show cause notice dated 15th April, 2009 on the ground that the CMD was neither the appointing authority nor the disciplinary authority of the charged officer.

6. The Tribunal, while disposing of OA No. 1054 of 2009, directed the Enquiry Authority to first decide the question of competence of the Enquiry Authority and thereafter, deal with the merits of the case. The charged officer was permitted to make a representation against the show cause notice. Accordingly, the charged officer submitted a detailed representation dated 27th April, 2009 to the appellant-Corporation. The charged officer was to retire from the services of the appellant-Corporation on 30th April, 2009.

7. It is averred on behalf of the appellant-Corporation that in view of the impending retirement of the charged officer, an agenda was circulated to the Board of Directors of the Corporation under Regulation 11 of the DTC Meeting Regulations, 1981 incorporating a list of issues drafted by the CMD in the following terms: -

“(viii) The CMD submitted the following issues for consideration of the Board of Directors:

"(i) To accord the approval for Show Cause Notice (Annexure-IV) proposing to impose the penalty of 'Dismissal from the services of the Corporation' as it was issued by the Chairman- cum-Managing Director in anticipation of the approval of the DTC Board due to paucity of time as the Charged Officer is to retire on 30-4-2009 on attaining the age of superannuation.

(ii) To take a decision in the matter by considering the facts of the case and the reply submitted by the Charged Officer in response to Show Cause Notice dated 15-4-2009(Annexure-IV) with regard to the imposition of the penalty of 'Dismissal from the services of the Corporation'. List of Penalties is at Annexure-VI.

(iii) To the Chairman-cum-M.D. to issue necessary Orders imposing the penalty as may be approved by the Board, upon Shri A.K. Sharma, Dy. CGM."

8. As a sequel to the above, a Resolution No. 14 of 2009 was drawn under the signatures of the CMD on 29th April, 2009, as per which the Board

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