The court emphasized the principle that findings in a departmental inquiry must be based on legal evidence and not be perverse, and that judicial review is limited to cases where the findings are based on no evidence, inadmissible evidence, or are wholly arbitrary and capricious.

J.B. Pardiwala, J.

1. By this writ application under Article 226 of the Constitution of India, the writ applicant, a former employee of the Gujarat Rajya Khadi Gramodyog, has prayed for the following reliefs;

"(A) a writ of mandamus or a writ in the nature of mandamus or any other appropriate writ, order or direction may kindly be granted quashing and setting aside the impugned order of punishment dated 2.1.2001, which is at Annexure-A to the petition, imposing punishment of compulsory retirement and consequently direct the respondents to reinstate the petitioner as Executive Officer with respondent Board with full backwages and all consequential benefits;

(B) pending admission hearing and final disposal of this petition this Hon'ble Court may be pleased to stay the implementation, execution and operation of the impugned order of punishment dated 2.1.2001 at Annexure-A and direct the respondents to allow the petitioner to perform his duties as Executive Officer with the respondent Board;

(C) grant such other and further reliefs as the Hon'ble Court may deem fit in the facts and circumstances of the case."

2. The case of the writ applicant may be summarized as under;

2.1 The writ applicant joined the services of the Gujarat Rajya Khadi Gramodyog Board (for short "the Board") on 17th January, 1991. His appointment was under section 7(1) of the Bombay Khadi Village Industries Act, 1960. His appointment was as an Executive Officer of the Board.

2.2 The Board created the Gujarat Khadi Gramodhyog Marketing Trust. According to the constitution of the said trust, the Chairman of the Board would be the Chairman of the trust. The powers to appoint any person in the said trust were delegated to the Chairman pursuant to the resolution passed by the Board dated 3rd October, 1980. The Chairman was considered as the appointing authority in view of Rule 2 of the Gujarat Rajya Khadi & Gramodhyog Board Officers and Servants (Promotion & Recruitment) Rules, 1973.

2.3 The writ applicant, while in service of the Board as an Administrative Officer and also as the Managing Director of the trust, was served with two departmental charge-sheets dated 10th August, 1999 and 21st September, 1999 respectively. The charge-sheet dated 10th August, 1999 was issued, containing the following charges;

(i) In addition to the discharge of duties and functions as an Administrative Officer, the writ applicant was also performing the duties as the Managing Director of the Gujarat Khadi Gramodhyog Marketing Trust. At that time, from the Vadhvan Puni Plant, in all, 41,410/- kg of the processed "Puni" came to be sold directly through the forged bills. The writ applicant was negligent in taking the necessary care and precautions in that regard.

(ii) Although an amount of Rs. 1,000/- was received by the writ applicant towards the honorarium as the Managing Director of the trust, yet he exhibited negligence and carelessness in his work.

(iii) Being the Managing Director of the Gujarat Khadi Gramodhyog Marketing Trust, he visited the "Puni Plant" every month, but omitted to verify the stock of the cotton bales.

(iv) While discharging his duties as the Managing Director of the Trust, he left the country without the necessary permission of the Chairman of the Board.

2.4 To the aforesaid charges, the writ applicant submitted his reply dated 6th December, 1999.

2.5 According to the instructions dated 30th July, 1999 issued by the Government of Gujarat, Industries and Mines Department, Gandhinagar, one Shri J.P. Mehta, retired Deputy Secretary, was appointed as an Inquiry Officer for conducting the departmental inquiry.

2.6 On 21st September, 1999, one another charge-sheet came to be issued, containing the following charges;

(i) The State Government, vide its resolution No. GMU/1078/4599-B dated 12th August, 1997 resolved to provide subsidy on the sale of "Gujarat Khadi & Poly Vastra". The writ applicant, under his signature, issued a circular dated 14th August, 1997 by deleting the w