( 1 ) THE petitioner is an officer in Middle Management Grade Scale-II in the establishment of Bank of Baroda. The validity of the disciplinary proceedings initiated against the petitioner. ultimately culminating in imposition of the penalty of reduction by three stages in time scale in Middle Management Grade scale-II with effect from 25-2-1989 at the hands of the Chairman and the managing Director of the Bank, who is the reviewing authority under regulation 18 of the Bank of Baroda Officer Employees (Discipline and Appeal) regulations, 1976, for short Dand A Regulations is assailed in the writ petition. The petitioner has also sought for declaration that the action of the respondents in recovering the Professional Qualification Allowance (PQA) for the period from 1-7-1989 as illegal and arbitrary and for a consequential direction to the respondents to continue the payment of PQA duly refunding the amounts already recovered.

( 2 ) THE petitioner joined the service of the Bank as clerk on 16-4-1964 and he was confirmed in that cadre with effect from 16-10-1964. The petitioner was subsequently promoted to Junior Management Grade Scale-I with effect from 1-5-1971. Further, the petitioner was promoted to Middle Management grade Scale-II with effect from 1-7-1979. The petitioner was serving as Branch manager at Vellore between 11-7-1983 and 31-10-1984, and subsequently he was transferred to Visakhapatnam as Accountant and later to Nellore Branch. When the petitioner was serving in Nellore Branch of the Bank, he was served with the Memorandum of charge on 27-10-1987. Articles of Charge issued to the petitioner on 27-10-1987 read:"articles OF CHARGE mr. C. Pattabirama Sastry was functioning as the Branch Manager of our vellore Branch from July 1983 to October 1984. During the said period, he is reported to have committed acts and omissions which, if proved, would amount to misconduct under Regulation 3 read with Regulation 24 of Bank of Baroda Officer Employees (Conduct) Regulations, 1976. He is, therefore, charged as under: (1) He did not take all possible steps to ensure and protect the interests of the Bank but in fact took such steps and did such omissions as were derogatory, detrimental, prejudicial and injurious to the interests of the Bank. (2) He did not disharge duties with utmost integrity and honesty but in fact did such actions which displayed a lack of probity on his part. (3) He did not perform his duties with devotion and diligence. (4) He did not maintain- discipline in all transactions. (5) In the discharge of his duties and in exercise of powers conferred upon him, he acted otherwise than in his best judgment. (6) He misused and abused his position as Manager of the Bank s Branch. (7) He did acts unbecoming of a Bank Officer. (8) He violated and flouted the rules, procedures and Regulations of the bank. (9) He has suppressed certain information to higher authorities and has given a misleading data. Sd. S. V. Ramachandran assistant General Manager (SZ) and disciplinary Authority"the petitioner replied to the Memorandum of Charge on 12-11-1987. The assistant General Manager who is the Disciplinary Authority under D and A regulations not being satisfied with the reply of the petitioner decided to conduct a regular departmental enquiry. Accordingly the Disciplinary authority appointed one Sri S. Padmanabhan, Senior Manager (Legal), Bank of Baroda, Zonal Office, Madras as the Inquiring Authority in terms of sub- regulation (2) of Regulation 6 of the D and A Regulations. The enquiry was conducted on 8-4-1988 and from 30-5-1988 to 4-6-1988. Only one witness, namely, Mr. V. Manohar was examined on behalf of the Management as P. W. 1. The Inquiring Authority gave his findings on 23-10-1988 holding the petitioner guilty of all Articles of Charge except Article No. 2.

( 3 ) THE third respondent after consideration of the findings recorded in theenquiry report accepted the findings recorded by the Inquiring Au