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IN THE HIGH COURT OF DELHI
Chandra Dhari Singh, J.
Vijay Malhan - Appellant
Versus
Union of India - Respondent
W.P.(C) 2903 of 2003
Decided On : 13-10-2022




In disciplinary proceedings, the Disciplinary Authority is not bound by exoneration by the Inquiry Authority, and adherence to principles of natural justice is crucial; delay alone does not invalidate proceedings unless it causes prejudice.

Headnote:(A) Constitution of India - Article 226 - Removal from service - Disciplinary proceedings against the petitioner for alleged misconduct - Inquiry Authority exonerated the petitioner but Disciplinary Authority disagreed and removed him from service - The Court emphasized the need for adherence to principles of natural justice during inquiry and highlighted the importance of timely proceedings - It ruled that the Disciplinary Authority is not bound by the advice of the Chief Vigilance Officer, as per prior rulings and that thus the disciplinary action can sustain unless it's proven to be malicious or unsubstantiated. (Paras 1-92)

(B) Disciplinary Proceedings - Nature of inquiry - The conduct of inquiries must meet standards of fairness and adhere to procedural rules - The Disciplinary Authority must provide a reasoned decision if it disagrees with an Inquiry Authority's report - Timing in completing inquiries is critical but does not automatically invalidate findings unless proven prejudicial to the employee's defense. (Paras 36-88)

Facts of the case:
The petitioner was removed from service following a disciplinary inquiry on allegations originally investigated without conclusive follow-up action leading to his removal despite being exonerated in initial investigations, citing prolonged proceedings as unfair. (Paras 1-7)

Findings of Court:
The court dismissed the petition asserting that the inquiry was properly conducted, and no violation of natural justice occurred that warranted intervention. (Paras 89-90)

Issues: Main issues included the validity of the disciplinary process, adherence to prescribed time limits, whether the petitioner received fair treatment, and whether the findings were justified based on the evidence. (Paras 16-33)

Ratio Decidendi: The court confirmed that the removal was justified based on material evidence presented — the inquiry and disciplinary process adhered to legal standards, confirming the processes did not violate the principles of natural justice nor were they vitiated by delay. (Paras 32-89)

Result: Petition dismissed.

Table of Content
1. petitioner challenges bank removal order. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7)
2. petitioner argues procedural unfairness and malafide actions. (Para 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20)
3. respondents defend disciplinary proceedings and challenge petitioner’s claims. (Para 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32 , 33 , 34 , 35)
4. court affirms importance of principles of natural justice. (Para 36 , 37 , 38 , 39 , 40 , 41 , 42)
5. court stipulates standards for procedural fairness and evidence in disciplinary matters. (Para 43 , 44 , 45 , 46 , 47 , 48 , 49 , 50 , 51 , 52 , 53 , 54 , 55 , 56 , 57 , 58 , 59 , 60 , 61 , 62 , 63 , 64 , 65)
6. court dismisses petition; finds no grounds for interference. (Para 89 , 90 , 91 , 92)

JUDGMENT

Chandra Dhari Singh, J. The instant civil writ petition under Article 226 of the Constitution of India has been filed by the Petitioner who was earlier posted as the Assistant General Manager, Regional Inspectorate at Chandigarh, challenging the order dated 23rd January 2003 directing the removal of Petitioner from services of Oriental Bank of Commerce (hereinafter referred to as "Respondent Bank") passed by the Disciplinary Authority and upheld by the Appellate Authority vide order dated 28th February 2003.

FACTUAL MATRIX

2. The brief facts for the disposal of the instant writ petition are that the Petitioner was appointed as a Branch Manager in the Respondent Bank in the year 1975. On the pretext of an anonymous complaint, the Petitioner was initially issued a show cause letter dated 15th March 1996 by the Respondent Bank on four charges and was asked for his explanation. The Petitioner sent his comments on the charges levelled against him, pointing out the baselessness thereof vide communication dated 25th March 1996 and 8th April 1996.

3. Upon receipt of explanation from the Petitioner, the Chief Vigilance Officer of the Respondent Bank addressed a letter dated 22nd June 1996, to the DGM, Reserve Bank of India, Mumbai saying that:

    "We have examined the reply given by Sh. Malhan and are of the view that on the basis of the evidence furnished, we have no reason to disbelieve the statement of Sh. Malhan"

4. The Disciplinary Authority issued another memo dated 14th July 1998, to the Petitioner containing seven charges altogether, including the aforesaid four charges. The Petitioner submitted his reply to the said memo and on 23rd October 1999 a charge sheet was issued to the Petitioner on the said seven charges. A regular inquiry was set up to enquire into the aforesaid seven charges against the Petitioner and Commissioner of Departmental Inquiries was deputed as the Inquiry Authority.

5. The Inquiry Authority vide report dated 27th June 2002 exonerated the Petitioner of all the charges as nothing could be brought against the Petitioner by the bank during the inquiry. The Disciplinary Authority sent a disagreement note dated 13th August 2002 and thus invited representation from the Petitioner. In response to the aforesaid disagreement as communicated by the Disciplinary Authority, the Petitioner sent his representation dated 28th September 2002 to the Disciplinary Authority. Receiving no response to the communication from the Disciplinary Authority, Petitioner filed a writ petition in the High Court of Delhi bearing number C.W.P. 1033 of 2003 on 5th February 2003 praying for directions to the Respondent Bank to communicate the decision on the representation of the Petitioner dated 28th September 2002. At the time of the hearing of that writ petition, on 7th February 2003 the counsel for the Respondent Bank informed a Coordinate Bench of this Court that the Disciplinary Authority has already disposed of the representation of the Petitioner and has removed him from the service vide its order dated 23rd January 2003. The relevant portion of the judgment of the Coordinate Bench of this Court has been reproduced herein below:

    "Counsel appearing

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