An employee exonerated from disciplinary proceedings is entitled to retrospective promotion and benefits if procedural defects in the enquiry are established.

JUDGMENT :

(K.V. Viswanathan, J.)

1. Leave granted. 

2. The present appeal calls in question the correctness of the final judgment and order dated 24.08.2023 passed by the High Court for the State of Telangana at Hyderabad in Contempt Case No. 311 of 2023. By the said judgment, the High Court dismissed the Contempt Petition holding that the orders the violation of which, was complained of, have been duly complied with by the alleged contemnor-respondents. The High Court further held that promotion up to Scale-V cannot be granted as there was no adjudication in the order of the Writ Court and further that the cancellation of the promotion order had not been challenged. The High Court noted that such reliefs cannot be granted in the contempt case.

Brief facts :-

3. In 1983, the appellant was appointed as a Probationary Officer in the Bank of Baroda and in the year 1992, he was promoted to the Manager cadre (MMG-II).

4. When the appellant was serving as Branch Manager, Utran Branch, District Surat, Gujarat, a Show Cause Notice dated 22.03.1999 for alleged lapses and irregularities committed by him during his service was issued. The appellant submitted his reply on 12.04.1999. A further Show Cause Notice dated 08.02.2000 setting out ten more irregularities was issued to the appellant and he filed his reply on 19.02.2000.

5. At this stage, the appellant appeared in the promotion exercise from Scale-II to Scale-III on 22.12.2000. A charge-sheet in the disciplinary proceedings was issued to him on 26.12.2000.

6. The results of the promotion were declared on 28.07.2001 and the appellant’s result was kept in abeyance in view of the pendency of the disciplinary proceedings. On 23.08.2001, after a detailed enquiry and after observing serious lapses on the part of the appellant in opening of the savings bank accounts of one Mr. Tejuddin Hussain and one Mr. Tajeshwali Basha and in sanctioning, documentation and disbursement of loans to the aforesaid customers, a minor penalty was imposed on the appellant. The penalty was “reduction in pay by 1 stage in a time scale for a period of 3 years without cumulative effect and not adversely affecting his pension.” The Appeal filed by the appellant before the Appellate Authority was rejected on 25.01.2002 and the order of the Disciplinary Authority was upheld. A review before the Reviewing Authority was also rejected on 01.01.2003.

7. Admittedly, on 30.08.2002, the appellant was informed by a letter of Senior Branch Manager that his promotion from MMG/S- II to MMG/S-III, that was kept in abeyance, stood cancelled. On 16.03.2008, the appellant challenged the orders passed in the disciplinary proceedings and called in question the correctness of the orders of the Disciplinary Authority, Appellate Authority and the Reviewing Authority. There was no prayer challenging the cancellation of the promotion.

8. Pending the Writ Petition, in the year 2012, the appellant appeared in the promotion exercise and was promoted from Scale- II to Scale-III as a Senior Branch Manager. It should be recorded herein that he further appeared in the subsequent promotion exercises of 2016, 2017 and 2018 from Scale-III to Scale-IV but was declared unsuccessful.

9. The learned Single Judge, by a judgment dated 20.07.2017, allowed his Writ Petition on the ground that the Enquiry Officer, who undertook the process of the enquiry, was junior to the appellant in Scale-II and the said officer had also appeared for interview for promotion to the category of Scale-III along with the appellant. The learned Single Judge concluded that there was real likelihood of bias. So holding, the learned Single Judge allowed the Writ Petition in the following terms.

“14. In view of the above reasons, this Court is of the definite opinion that there existed

real likelihood of bias in the entire process of enquiry. Therefore, this Court has absolutely no scintilla of hesitation nor any traces of doubt to hold that the entire impugned proceedings are vitiated.

For