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1996 Supreme(Kar) 375

Karnataka High Court
A.P.SOMASHEKAR - Appellant
Versus
KARNATAKA STATE WAREHOUSING CORPORATION - Respondent
Decided On : 07-12-96

Important Points

The main legal point established in the judgment is that the delegation or entrustment of power should be in accordance with the relevant provisions of the Act and regulations, and not by a mere resolution, to ensure the validity and enforceability of orders.

Subject

Administrative Law - Jurisdiction and Delegated Powers

Act Referred

KARNATAKA STATE WAREHOUSING CORPORATION STAFF REGULATIONS : Reg..20
WAREHOUSING CORPORATIONS ACT : S.42(2)(a)

Headnote

Jurisdiction - Suspension of Class II employee - Karnataka State Warehousing Corporation (Staff) Regulations, 1959 - Section 20 of Warehousing Corporations Act, 1962 - The court discussed the validity and enforceability of the impugned order of suspension made by the Managing Director in exercise of his delegated power under sub-section (3) of Section 20 of the Act, in spite of being violative of Regulation 20 of the regulations.

Fact of the Case:

The petitioner, a Class II officer, challenged the order of suspension by the second respondent, contending that the second respondent lacked jurisdiction to make such an order against a Class II officer in view of Regulation 20 of the Karnataka State Warehousing Corporation (Staff) Regulations, 1959.

Finding of the Court:

The court found that the impugned order of suspension made by the Managing Director in violation of Regulation 20 of the regulations was unsustainable in law and quashed the order.

Issues: The main issue was whether the impugned order of the Managing Director, made in exercise of his delegated power under sub-section (3) of Section 20 of the Act, was valid and enforceable despite being violative of Regulation 20 of the regulations.

Ratio Decidendi: The court held that the delegation or entrustment of power should be in accordance with section 42 of the Act and not by a mere resolution, if the corporation had already framed regulation touching the same subject. The court emphasized the need for a harmonious construction of provisions and the importance of not rendering any provision otiose.

Final Decision: The petition was allowed, and the impugned order of suspension was quashed. The court ruled that the power of suspending Class II officers should be delegated in accordance with section 42 of the Act and not by a mere resolution.

A. J. SADASHIVA, J.

( 1 ) THOUGH this petition is listed for preliminary hearing, the same is taken up for final disposal, on issuing rule, with the consent of the learned Counsel appearing on both the sides, since the question in controversy relates only in respect of the jurisdiction or lack of jurisdiction, of the second respondent to pass an order of suspension against Class II employee of the corporation.

( 2 ) THE petitioner is a Class II officer working in the first respondent-Corporation as a Warehouse Manager-Grade II. By the order dated 1-6-1996, the second respondent kept him under suspension in contemplation of an enquiry in respect of certain acts of misconduct alleged to have been committed by him. The petitioner has filed this petition for quashing the said order on the ground that, the second respondent lacks jurisdiction to make an order of suspension against Class II officer in view of regulation 20 of the Karnataka State Warehousing Corporation (Staff) Regulations, 1959 (hereinafter called the 'regulations' ).

( 3 ) SRI N. B. Bhat, the learned Counsel appearing for the respondents has contended that, in view of sub-section (3) of section 20 of the Warehousing Corporations Act, 1962 (for short 'the Act'), the Board of Directors of the first respondent-Corporation have delegated the power to place any officer under suspension excepting Commercial Manager pending detailed enquiry, to the Managing Director by Board resolution No. 4/bd Mtg. dated November 19, 1983; in view of such delegation of powers by the Board of Directors, Regulation 20 of the regulations becomes irrelevant; where there are more than one source of power, it is open to the authority to choose either of the two and, the Managing Director in exercise of his delegated powers by virtue of the resolution dated November 19, 1983, has passed the order impugned in this petition, and therefore it is valid and enforceable. Per contra, Sri K. R. Bhavani Shankar, the learned Counsel for the petitioner has contended that, the regulations have been made under the rule making powers, with the prior approval of the Government; when such regulations are in force, they cannot be rendered ineffective by a mere resolution of the Board; the resolution, in view of the regulations, has no relevance.

( 4 ) IN view of the aforesaid rival contentions, the only question that arise for my consideration in this petition is, whether the impugned order of the Managing Director made in exercise of his delegated power under sub-section (3) of Section 20 of the Act, is valid and enforceable, in spite of being violative of Regulation 20 of the regulations.

( 5 ) IT is admitted that the regulations are made -by the Corporation in exercise of power under Section 54 of the agricultural Produce (Development and Warehousing) corporations Act, 1956 (hereinafter called 'the 1956 Act'), and they continue to be in operation, by virtue of Section 43 (2) (d) of the Act. Regulation 20 of the regulations, reads as follows:"20. An employee may be placed under suspension, pending an inquiry against him for breach of discipline or where a case against him, in respect of any criminal offence, is under investigation or trial. The power to place an employee of Class III under suspension she i be exercised by the Managing Director and by the Executive Committee in respect of employees in Class I or II". Section 54 of the 1956 Act reads as follows:"54. (1) A Warehousing Corporation may, with the previous sanction of the appropriate Government by notification in the Official Gazette, make regulations not inconsistent with this Act and the rules made thereunder to provide for all matters for which provision is necessary or expedient for the purposes of giving effect to the provisions of this act. (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for, (a) the conditions of service, of and the remuneration payable to, the officers and other












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