IN THE HIGH COURT OF CHHATTISGARH, BILASPUR
Sanjay K. Agrawal, Arvind Singh Chandel, JJ.
Gurdip Singh Virdi, S/o Late S. Arjun Singh Virdi - Appellant
Vs.
The Oriental Insurance Company Limited, through its Chairman-cum- Managing Director, New Delhi - Respondent
Writ Appeal No.410 of 2021
Decided On : 24-04-2024
Departmental Enquiry - Chhattisgarh High Court (Appeal to Division Bench) Act, 2006 - Section 2(1) - Rule 25 of the General Insurance (Conduct, Discipline and Appeal) Rules, 1975
Fact of the Case:
The appellant, a Development Officer at an insurance company, issued a motor vehicle cover note in 1994. The vehicle met with an accident on the same day, leading to a compensation award against the company. Eleven years later, a departmental enquiry was initiated against the appellant for issuing the cover note without pre-inspection of the vehicle and without ascertaining previous insurance details.
Finding of the Court:
The court found that the delay in initiating the departmental enquiry after 11 years caused serious prejudice to the appellant. It held that the company's failure to challenge the compensation award and the delay in initiating the enquiry amounted to overreaching the decision of the Motor Accident Claims Tribunal. The court set aside the order of guilt and allowed the appeal, entitling the appellant to consequential benefits.
Issues: The issues included the delay in initiating the departmental enquiry, the company's failure to challenge the compensation award, and the lack of evidence for the charges against the appellant.
Ratio Decidendi: The court emphasized that unexplained delay in initiating departmental enquiry causes prejudice to the employee and criticized the company for not challenging the compensation award and for initiating the enquiry after an 11-year delay. It also highlighted the lack of evidence for the charges against the appellant.
Final Decision: The court set aside the order of guilt and allowed the appeal, entitling the appellant to all consequential benefits.
ORDER ON BOARD :
Sanjay K. Agrawal, J.
1. Invoking writ jurisdiction of this Court under Section 2(1) of the Chhattisgarh High Court (Appeal to Division Bench) Act, 2006, the appellant herein/writ petitioner has preferred this appeal calling in question legality, validity and correctness of the order dated 28-11-2019 passed by the learned Single Judge in W.P.(S)No.3262/2009 by which his writ petition filed questioning the order of the second appellate authority partly modifying the order of the disciplinary authority and sustaining the award of penalty to the extent from reduction of four stages on basic pay in the time scale of pay to reduction in basic pay by one stage in the time scale of pay, has been dismissed finding no merit and declined to interfere with the order of the disciplinary authority as modified by the appellate authority.
Relevant facts in brief: -
2. The writ petitioner/appellant herein at relevant point of time on 7-7-1994 was working as Development Officer in the respondent Company i.e. the Oriental Insurance Company Limited (OICL) and posted at Manendragarh Branch Office (now District Korea) and he issued a motor vehicle cover note bearing No.665581 putting time as 11.30 a.m. on 7-7-1994 granting “Act Only Insurance cover” to a Tractor bearing registration No.CPL-7065 & Trolley No.CPL-6115 belonging to one Shri Kadeem Akhtar Khan for the period commencing from 7-7-1994 to 6-7-1995. Unfortunately, the said vehicle met with a vehicular accident on the same day i.e. 7-7-1994 at 4 p.m. making the Insurance Company liable for payment of compensation which was subject-matter of Motor Accident Claim Case No.13/1994 vide award dated 12-5-2000 passed by the Additional Motor Accident Claims Tribunal, Manendragarh fastening liability on the Insurance Company to pay an amount of Rs. 1,28,640/- along with interest which the Insurance Company OICL ultimately decided to satisfy and satisfied the said award without any protest or demur or without even questioning the award before this Court in a duly constituted appeal under Section 173 of the Motor Vehicles Act, 1988. Thereafter, the respondent OICL after lapse of 11 years from the date of issuance of cover note, on 12-7-2005, vide Annexure P-6 of the writ petition, instituted a departmental enquiry against the petitioner and issued Articles of Charge & Statement of Imputation accompanied with List of Documents & List of Witnesses proposing to hold departmental enquiry against him under Rule 25 of the General Insurance (Conduct, Discipline and Appeal) Rules, 1975 and directed him to submit written submission of defence within 15 days to which the petitioner submitted detailed reply on 6-7-2006 denying the charges framed against him and also stated that the cover note was issued in accordance with the provisions of the Motor Vehicles Act, 1988 and no inspection was necessary to cover third party liability or Act Only Risk. However, on 12-12-2005, vide Annexure P-10 of the writ petition, the petitioner had requested the presenting officer to provide all the documents including copy of cover note allegedly issued by him which the Branch Manager of the respondent Insurance Company, on 11-10-2005 informed the petitioner vide Annexure P-11 of the writ petition, that the cover note is not available in the city office, therefore, same will not be provided and as such, the copy of relevant document i.e. cover note could not be provided to the petitioner and disciplinary proceeding proceeded without providing alleged cover note to the writ petitioner.
3. The Enquiry Officer after hearing the writ petitioner and the OICL concluded that the allegation of antedating and antetiming of the cover note could not be proved by the OICL and also it could not be proved by the investigation report of A.L. Chourasia – Investigating Officer, however, it was held that part of charges relating to issuance of cover note without pre-inspection of vehicle and without ascertaining previous insurance, wa
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AI
Unexplained delay in initiating departmental enquiry causes prejudice to the employee and can lead to the setting aside of the order of guilt.
Disciplinary proceedings must be supported by substantial evidence; bias against the employee due to prior whistleblowing resulted in procedural unfairness.
The disciplinary authority's findings must be based on cogent evidence, and procedural irregularities must be substantial to affect the outcome.
Point of law: The protracted disciplinary enquiry against a Government employee issued, therefore, be avoided not only in the interests of Government employee, but in the public interest and also in ....
Delay in initiating disciplinary proceedings must be examined on a case-by-case basis, and prejudice caused by the delay can lead to the quashing of the charge sheet. Inordinate delay in issuing the ....
Disciplinary proceedings initiated by an authority subordinate to the appointing authority do not violate Article 311; the standard for punishment must align with proven misconduct.
Judicial review in disciplinary proceedings limited to procedural fairness and natural justice; non-statutory vigilance manual violations do not vitiate inquiry without proven prejudice; no re-apprec....
In disciplinary proceedings, the court does not act as an appellate authority and will not interfere with findings unless there is a violation of natural justice or the findings are based on no evide....
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