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IN THE HIGH COURT OF DELHI
V. Kameswar Rao, J.
Kulamani Biswal - Appellant
Versus
Union of India - Respondent
W.P.(C) 5563 of 2020, CM Appl. 20083 of 2020
Decided On : 04-07-2022




A de novo inquiry is permissible under Rule 26(1) of the CDA Rules when substantial evidence or procedural defects existed in the prior inquiry, ensuring compliance with principles of natural justice.

Headnote:(A) Prevention of Corruption Act, 1988 - Sections 11 and 12 - Indian Penal Code, 1860 - Section 120-B - Disciplinary proceedings - Challenge to initiation of de novo inquiry against the petitioner after prior inquiry report exonerating him - Petitioner contended that rules were not followed and rights were violated; respondent justified inquiry citing new evidence - Court held that de novo inquiry permissible under Rule 26(1) as previous inquiry lacked substantial material, hence upholding the impugned order for fresh proceedings. (Paras 28, 34, 36, 49)

(B) Natural justice - Principles - Requirement that an employee be notified of the inquiry report and given an opportunity to respond before an adverse action is taken against them was emphasized. (Paras 21, 39)

(C) Employer-Employee Relationship - Continuation of disciplinary proceedings post-retirement as per Rule 31.2 was confirmed, noting that prior charges remained active despite retirement. (Paras 26, 42)

(D) Double jeopardy - Court clarified conditions under which a subsequent disciplinary inquiry could be initiated without contradicting principles of double jeopardy or res judicata, in context to procedural flaws in the earlier inquiry. (Paras 12, 40)

Table of Content
1. petition submitted for specific orders. (Para 1)
2. factual background of charges against petitioner. (Para 2 , 3 , 4 , 5)
3. counter affidavit filed by respondent. (Para 6)
4. petitioner's arguments against de novo inquiry. (Para 7 , 8 , 9)
5. petitioner's claims about procedural defects. (Para 10 , 11 , 12)
6. inquiry procedures and evidence standards. (Para 13 , 14)
7. respondent's justification for de novo inquiry. (Para 15 , 16 , 17)
8. role of evidence in inquiry proceedings. (Para 18 , 19 , 20)
9. disagreement with prior inquiry's findings. (Para 21 , 22)
10. continuation of proceedings post-retirement. (Para 23 , 24)
11. importance of fresh inquiry due to new evidence. (Para 25 , 26 , 27)
12. court's observation on inquiry procedures. (Para 28 , 29 , 30)
13. discussion on procedural aspects for de novo inquiry. (Para 31 , 32 , 33)
14. validation of de novo inquiry decision. (Para 34 , 35 , 36)
15. unpacking judgments relevant to inquiry procedures. (Para 37 , 38 , 39)
16. distinction of previous judgments outlined. (Para 40 , 41 , 42)
17. justification of de novo proceedings discussed. (Para 43 , 44)
18. application of legal principles on examination. (Para 45 , 46 , 47 , 48)

JUDGMENT

V. Kameswar Rao, J.

1. The present petition has been filed by the petitioner with the following prayers:

    "In view of the facts and circumstances mentioned herein above and the submissions made, the Petitioner prays that the Hon'ble High Court may be graciously pleased to:

    (i) Allow the present petition and set aside/quash the impugned Order bearing reference No.C-14011/01/2019- V&S dated 30.06.2020 (Annexure P -8) passed by the Respondent by a writ of certiorari or any other appropriate writ or direction;

    (ii) set aside/quash any consequential orders passed in pursuance thereof by the Respondents;

    (iii) allow exemplary costs of the present Writ Petition to the Petitioner against the Respondents; and

    (v) pass such other and further order/(s) as may be deemed just and appropriate in the facts, circumstances and premises of the present case."

2. In substance the petitioner is challenging the impugned order dated June 30, 2020, whereby the President being the Appointing Authority of the petitioner has decided that an Inquiry Officer may be appointed to inquire into the charges framed against the petitioner and has accordingly appointed former CVO of PFC Limited Mr. Birendra Kumar as the Inquiry Officer and with a further prayer that the consequent orders passed thereof be also set aside.

3. The facts as noted from the record are that on December 08, 2013, the petitioner was appointed as Director (Finance) in NTPC Ltd. Government of India Enterprise by the respondent for a period of five years. On December 07, 2017, an FIR was registered by CBI against the petitioner along with Rohit Reddy Bathina (Director of M/s BGR Mines & Infra Pvt. Ltd.) and Prabhat Kumar (Associate of Rohit Reddy Bathina), under Sections 11 & 12 of the Prevention of Corruption Act, 1988 read with Section 120-B of Indian Penal Code, 1860. On December 07, 2017 and December 08, 2017, a preliminary investigation was initiated by CBI. The search and seizure was conducted at the petitioner's residence in Delhi as well as at Bhubaneswar and also at his office in Delhi.

4. On December 16, 2017, the petitioner was put under suspension with immediate effect on the basis of the FIR registered against him. On December 07, 2018, the memorandum of charge sheet was issued to the petitioner. The tenure of the petitioner ended on December 08, 2018. It is the case of the petitioner that despite several representations, the respondent has not released the retirement benefits on completion of his tenure.

5. On December 13, 2018, the petitioner replied to the memorandum of charge sheet issued by the respondent. During 2018-2019, inquiry proceedings were held. It is the case of the petitioner that on August 04, 2020, the petitioner received the impugned order dated June 30, 2020, w

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