Reduction to a lower post of a person directly recruited to a higher post is unreasonable and unjust.

( 1 ) THE petitioner was appointed as Manager (Marketing) in the scale of rs. 1500-2000 on 14-12-1983 by the Cement Corporation of India Ltd. , the first respondent herein. The post was advertised in the newspapers inviting applications and after considering the applications received and assessing the comparative merits of the applicants, the petitioner was appointed. The first appointment was in Adilabad, State of Andhra Pradesh. Thereafter he was transferred to two or three other places in the State of A. P. In February, 1985 he was transferred to Cochin, but the Hyderabad Zonal office retained control and supervision. By an order dated 15-9-1985 the petitioner was suspended from service on certain allegations of irregularities committed by him while in Cochin, A charge-sheet dated 23-9-1985 under rule 30 of the Conduct, Discipline and Appeal Rules of the Cement Corporation of India Limited was served on the petitioner. In all eight charges were framed against him. An Enquiry Officer was appointed on 21-11-1985. In order to assist the Management at the time of enquiry, one Niranjan sharma, a Senior Vigilance Officer was appointed as a Presenting Officer. The petitioner made an application on 6-12-1985 before the Enquiry Officer requesting for permission to engage a lawyer and also for holding the enquiry at Cochin. The request for permission to engage a lawyer was rejected on 10-12-1985 and the request for holding the enquiry at Cochin was refused by another order dated 13-12-1985. It appears, a common enquiry was held against the petitioner and another officer by name Jayaraman, both at Hyderabad and Delhi. Out of the eight charges, the Enquiry officer found the petitioner guilty of charge Nos. 3, 4 and 5 only. The disciplinary authority disagreeing with the findings of the Enquiry Officer in respect of charges 2, 6 and 7 and agreeing with the findings in respect of charges 3, 4 and 5 held that the petitioner was guilty of charges 2 to 7. By an order dated 4-8-1986 issued by the 1st respondent-the Chairman and managing Director, the punishment of reduction to a lower rank as Deputy manager in the scale of Rs. 1300-1700 was imposed. It was also mentioned in the said order that "the petitioner will not be considered for promotion as Manager for two years". In consequence of that order, the petitioner was posted as Deputy Manager (Marketing) at Tandur in the State of andhra Pradesh fixing his pay at Rs. 1400/- in the scale of Rs. 1300-1700. At that time the petitioner was drawing a basic pay of Rs. 1620/- as Manager (Marketing ). An appeal preferred by him to the second respondent- board of Directors was rejected on 12-6-1987. Impugning the legality of the order of punishment, the present writ petition was filed. An interim order was passed by this Court on 29-4-1988 directing the respondents to continue to pay the basic pay of salary at Rs. 1620/- to the petitioner.

( 2 ) SRI Bikshapathy, learned counsel for the petitioner has raised three contentions : (t) The Enquiry Officer has not followed the procedure laid down in the Conduct, Discipline and Appeal Rules. When the petitioner requested for summoning of certain documents, that request was rejected. (2) When the disciplinary authority disagreed with the findings of the enquiry Officer in respect of charges 2, 6 and 7, it was incumbent on the latter to state the reasons and the petitioner was entitled to be apprised of the said reasons. Since that was not done, the order of punishment roust be set aside. (3) The petitioner was directly recruited as Manager (Marketing) and therefore, he could not be reverted to the post of Deputy Manager, a post which he did not hold at all and in which he did not work.

( 3 ) OPPOSING the above contentious, Sri A. Krishna Murthy, learned counsel for the Cement Corporation of India Ltd. , maintains that this court has no jurisdiction to entertain the writ petition ; no part of the cause of action has arisen in this State. When the petitioner

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