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2025 Supreme(Kar) 943

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
Anant Ramanath Hegde, J.
Sri M R Subba Rao - Petitioner
Versus
The Board Of Directors And The Appellate Authority And Ors. Respondents
Writ Petition No.38299 of 2009 (L-KSRTC)
Decided On : 16-09-2025

Advocates Appeared:
For the Petitioner:Sri V S Naik, Advocate
For the Respondent:Smt H R Renuka, Advocate

The disciplinary authority can dismiss an employee for negligence and financial discrepancies, provided adequate reasons for disagreement with an enquiry officer's findings are documented as per regulations.

Headnote:(A) Karnataka State Road Transport Corporation Services (Conduct and Discipline) Regulations, 1971 - Regulation 23(25) - Dismissal from service - The petitioner challenged the dismissal by claiming violation of principles of natural justice and improper disagreement with the enquiry officer’s report. The disciplinary authority justified its action by citing negligence in duty leading to financial loss and failure to reconcile accounts - The court upheld the dismissal, noting adequate reasons were provided and procedural compliance was met. (Paras 2, 3, 9, 21, 42, 47)

(B) Disciplinary Proceedings - Proper procedure - The record must reflect reasons for disagreement with the enquiry officer's findings and whether the failure to comply was established - The court emphasized that the disciplinary authority is not bound to follow the enquiry officer's findings conclusively if there is substantial evidence of misconduct. (Paras 31, 41, 46)

Facts of the case:
The petitioner was dismissed for negligence in his role as Accounts Supervisor, leading to the misappropriation of significant funds. The enquiry officer initially found him not guilty; however, the disciplinary authority disagreed, proposing dismissal based on record discrepancies and established negligence.

Findings of Court:
The court found no merit in the petitioner's argument, upholding the disciplinary authority's findings and the dismissal order due to established negligence and failure to verify accounts leading to financial loss.

Issues: Whether the disciplinary authority complied with procedural requirements and if they justified the dismissal based on the evidence of negligence.

Ratio Decidendi: The court concluded that the disciplinary authority substantially documented the reasons for its disagreement with the enquiry officer's findings and the established negligence warranted the dismissal.

Result: Writ petition dismissed.

Table of Content
1. dismissal from service and financial recovery. (Para 1 , 2 , 3 , 4 , 5)
2. arguments regarding procedural violations and evidentiary issues. (Para 6 , 7)
3. court's evaluation of evidence against disciplinary findings. (Para 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32 , 33 , 34 , 35 , 36 , 37 , 38 , 39 , 40 , 41 , 42 , 43 , 44 , 45 , 46)
4. writ petition dismissed. (Para 47 , 48)

ORDER :

Anant Ramanath Hegde, J.

The petitioner is before this court aggrieved by the order dated 09.03.2009 passed by the appellate authority confirming the order dated 01.10.2008, passed by the disciplinary authority dismissing the petitioner for service.

2. In terms of the order dated 01.10.2008, the disciplinary authority dismissed the petitioner from service and also directed to forfeit the gratuity and to recover sum of Rs.10,41,719/-.

3. Brief facts noticed from the pleadings are as under:

The petitioner was appointed on 07.02.1975 as Accounts Supervisor in Karnataka State Road Transport Corporation. On 28.04.2003, a charge-sheet is issued against the petitioner and 13 others alleging negligence in discharge of duties resulting in misappropriation of funds.

On 02.06.2003 the petitioner issued reply denying the charges. A Retired District Judge was appointed as Enquiry Officer on 03.10.2003, and on 08.10.2007 the enquiry officer, post enquiry, submitted a report holding that the petitioner is not guilty of charges.

4. The disciplinary authority disagreed with the report of the enquiry officer and issued show cause notice on 14.03.2008 and the petitioner replied to the said notice.

5. The disciplinary authority in terms of order dated 01.10.2008 dismissed the petitioner holding him guilty and ordered to recover Rs.10,41,719/-. As already noticed the appeal before the appellate authority was unsuccessful. Hence, the petitioner is before this Court.

6. The learned counsel appearing for the petitioner would contend that:

(i) The enquiry officer has held that charges against the petitioner are not proved and there is no allegation of misappropriation of funds against the petitioner and the charges levelled against the petitioner if read carefully would only indicate that he was charged for negligence and not for misappropriation of funds. Under the Karnataka State Road Transport Corporation Services (Conduct and Discipline) Regulations, 1971. (for short, ‘the Regulations, 1971’) the disciplinary authority disagreeing with the finding of other enquiry officer is required to issue a show cause notice assigning the reasons for disagreement and thereafter he must consider the reply in the light of the evidence placed in the disciplinary enquiry and then should pass an order. The order passed by the disciplinary authority is in violation of the Regulations, 1971 and principles of natural justice, and on this account that the impugned order has to be set aside.

(ii) The disciplinary and conduct Rules applicable to the respondent – Corporation does not enable the fresh enquiry as the petitioner has attained the age superannuation as such the petitioner is entitled to all consequential benefits including full backwages.

7. The learned counsel for the respondent –Corporation would contend:

(i) The enquiry officer was not justified in recording a finding of ‘not guilty’ against the petitioner and he has overlooked the material evidence on record and the disciplinary authority is not bound by the order passed by the enquiry officer.

(ii) After appreciating the evidence placed before the disciplinary enquiry, and after going through the procedure in the Accounts Department, the disciplinary authority has issued the second show cause notice with reasons for rejecting the finding of the enquiry officer. The petitioner was asked to show cause for the proposed penalty penalty and there is no violation of any of the Regulations 1971, applicable, as such, the disciplinary authority is justif

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