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2022 Supreme(AP) 636

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
V. SUJATHA, J
Rayala Satyanarayana – Appellant
Versus
SBI Funds Management Pvt. Ltd, - Respondent
Writ Petition No.8042 of 2019
Decided on : 19-10-2022

Advocates:
Advocate Appeared:
For the Appellant : KIRTHI TEJA KONDAVEETI

Headnote:

Constitution of India, 1950 – Article 12, 226 – Sexual Harassment of Women at Workplace Act, 2012 – Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal ) Act, 2013 – GAIL Employees (Conduct, Disciplined and Appeal) Rules, 1986 – Rule 30 – Writ jurisdiction – Sexual Harassment – Writ petition is filed under Article 226 of Constitution of India seeking relief – Held, Court is of considered view that though an enquiry was conducted by Internal Committee and submitted its report, conclusions arrived at by Committee cannot be basis for imposing a major penalty of removal from service, mainly on ground that conclusions arrived at by Committee shall not be treated as a mere preliminary investigation or inquiry leading to a disciplinary action, but shall be treated as a finding/report in an enquiry into misconduct of delinquent – In case on hand, fact remains that no regular departmental enquiry was initiated pursuant to findings given by Internal Committee and straight away, petitioner was removed from service without initiating any disciplinary proceedings – In that view of matter, proceedings issued by Authorised Signatory terminating services of petitioner from 1st respondent company, which was further confirmed by 3rd respondent-Appellate Authority vide orders are liable to be set aside – Writ petition allowed.

ORDER:

1. The writ petition is filed under Article 226 of the Constitution of India seeking the following relief:

“to issue a Writ or Order more in the nature of Mandamus declaring the proceedings dated 14.11.2018 issued by the Authorised Signatory in terminating the petitioner from service from the 1st respondent company and the order of the Appellate Authority of the 1st respondent dated 07.02.2019 confirming the termination order as wholly illegal, arbitrary and violative of principles of natural justice and without jurisdiction.”

2. The case of the petitioner, in brief, is that he was initially appointed as ISC Head (Chief Manager) in the Salary Grade VI in the first respondent company after due process of selection on 12.03.2010 and was posted at Vijayawada Branch and he served for almost nine years. While so, basing on a complaint given by some third parties, who have enmity against the petitioner, under the provisions of Sexual Harassment of Women at Workplace Act, 2012, the 1st respondent constituted an Internal Committee to look into the allegations levelled against the petitioner and some other persons. The Internal Committee conducted enquiry and submitted a report on 03.09.2018. Thereafter, the petitioner submitted his objections on 15.09.2018 to the findings given by the Internal Committee denying the allegations and the procedure adopted by the Internal Committee in concluding the enquiry in a biased manner. Without considering the objections and basing on the findings given by the Internal Committee, the 1st respondent issued proceedings dated 14.11.2018 terminating the services of the petitioner with immediate effect, which is purely basing on the enquiry conducted by the Internal Committee, under the provisions of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, without even issuing any charge memo or without even conducting disciplinary enquiry against him. The termination of services is, in fact, a major punishment, which cannot be imposed without conducting a separate departmental enquiry or without affording an opportunity of hearing or issuing a separate charge memo. In fact, the Internal Committee conducted the enquiry in the absence of complainant. However, the petitioner preferred an appeal to the 3rd respondent- Appellate Authority, who dismissed the same on 07.02.2019 confirming the order of termination dated 14.11.2018. Aggrieved by the same, the present writ petition is filed.

3. The respondents 1 to 3 filed their counter opposing the writ petition mainly on the ground of its maintainability. The respondents stated that the 1st respondent is neither a public authority nor performing any public duty, whereas it is Private Limited Company having been incorporated under the provisions of the Companies Act, 1956. As per the Certificate of Incorporation, the 1st respondent is a joint venture between State Bank of India and AMUNDI Asset Management, a leading European Asset Management Company and that the 1st respondent company does not fall within the definition of “State” as stipulated under Article 12 of the Constitution of India. The respondents opposed the maintainability of the writ petition as it is in violation of the ratio laid down by the Hon’ble Supreme Court in a catena of judgments, more particularly, in Ajay Hasia v. Khalid Mujib (AIR 1981 SC 487 (LB)) and in a recent judgment in Ramakrishna Mission and another v. Kago Kunya and others (Civil Appeal No.2394 of 2019 (SLP (C) 3092 of 2018) and requested to dismiss the writ petition on the sole ground of its maintainability by taking it as primary objection.

4. The respondents further stated that while the petitioner was working as Assistant Vice President and SBG Head at Vijayawada, one of the woman employees namely Sridivya Sangadi made a complaint against Sai Krishna and V. Chittibabu, co-employees of the petitioner, alleging sexual harassment, but, the petitioner being the head of the branch, had kept q

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