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2025 Supreme(Guj) 1637

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
M.K. Thakker, J.
Jyotindrasinh Hemuba Vaghela – Petitioner
Versus
Divisional Controller – Respondent
R/Special Civil Application No. 7012 of 2025
Decided On : 27-06-2025

Advocates:
Advocate Appeared:
For the Petitioner: Anuradha G Rathod, Mr G K Rathod
For the Respondent: Mr H S Munshaw

The lack of independent evidence in a departmental inquiry based on a criminal charge, leading to the employee's acquittal, necessitates quashing the disciplinary action taken against them.

Headnote:(A) Constitution of India - Articles 226 and 227 - Industrial Tribunal - Challenge to award affirming punishment of stoppage of increments - Departmental inquiry based solely on criminal complaint resulting in acquittal under the Prohibition Act - Lack of evidence during inquiry led to unjust punishment. (Paras 3, 6, 8, 11)

(B) Disciplinary Proceedings - Standard of proof in departmental inquiries differs from criminal proceedings; mere acquittal does not suffice for favorable order in disciplinary matters, but substantial evidence must be presented. (Paras 7, 8.2)

(C) Impact of Acquittal - Acquittal based on lack of evidence and technical grounds must be considered in department inquiries where evidence is similar. (Paras 10, 11)

Facts of the case:
The petitioner challenged the order resulting in a stoppage of two increments following a departmental inquiry initiated on the basis of a criminal charge under the Prohibition Act, from which the petitioner was ultimately acquitted. The inquiry relied solely on the chargesheet without corroborative evidence.

Findings of Court:
The court found that the departmental proceedings lacked adequate evidence, thus impacting the validity of the punishment imposed.

Issues: The court addressed whether the acquittal in the criminal case should influence the departmental inquiry’s outcome and the propriety of the punishment.

Ratio Decidendi: The court emphasized that disciplinary proceedings initiated based solely on a criminal charge may be quashed if the evidence substantiating the departmental charges is insufficient, especially when the acquittal is on substantial grounds.

Result: Petition allowed, the impugned award quashed.

Table of Content
1. the court begins proceedings with urgency. (Para 1 , 2)
2. petition challenges industrial tribunal's award. (Para 3)
3. petitioner's alleged misconduct based on criminal complaint. (Para 4)
4. petitioner argues no evidence in inquiry. (Para 6)
5. corporation asserts valid basis for inquiry. (Para 7)
6. court reviews evidence and inquiry procedures. (Para 8)
7. impact of criminal acquittal discussed. (Para 9)
8. court's ruling on identity of departmental and criminal charges. (Para 10 , 11)
9. court quashes previous orders based on its findings. (Para 12 , 13)

JUDGMENT :

M.K. Thakker, J.

1. Rule, returnable forthwith. Learned advocate Mr.Munshaw waives service of notice of Rule on behalf of the respondent No.1.

2. With the consent of the parties this matter is heard finally.

3. This petition is filed under Articles 226 and 227 of the Constitution of India, challenging the award dated 29.11.2023 passed by the learned Industrial Tribunal in Reference (IT) No.28 of 2022, whereby the Reference filed by the present petitioner challenging the order of punishment of stoppage of two yearly increments with future effect came to be affirmed.

4. It is the case of the present petitioner that he was serving with the respondent Corporation on the post of Conductor. He was served with a chargesheet in respect of a criminal case registered under the Prohibition Act on 31.03.2012. The Corporation initiated a departmental inquiry on the basis of the said criminal complaint, and during the inquiry, except for the criminal complaint, no other material was placed for consideration. The inquiry culminated in a dismissal order dated 15.10.2019. Challenging the said order, the petitioner preferred a first departmental appeal, wherein the order of dismissal was set aside and substituted with the punishment of stoppage of two yearly increments with future effect, vide order dated 22.07.2020. The petitioner thereafter moved a second departmental appeal, which came to be rejected on 21.08.2021. Challenging the order passed by the appellate authority, the petitioner raised an industrial dispute before the learned Assistant Commissioner of Labour, which culminated in Reference (IT) No.28 of 2022. The learned Tribunal has dismissed the Reference, which is the subject matter of challenge before this Court.

5. Heard the learned advocate Ms.Anuradha Rathod for the petitioner and learned advocate Mr.Munshaw for the respondent.

6. Learned advocate Ms. Rathod submits that the S.T.Corporation initiated the departmental inquiry solely on the basis of a criminal complaint, which ultimately resulted in an acquittal. During the departmental inquiry, no material evidence was produced, nor were any witnesses examined. The inquiry was concluded only on the basis of the statement of the reporter, who did not have any personal knowledge of the incident as he was not present at the relevant time. Learned advocate Ms.Rathod further submits that, as per the evidence of the reporter, the inquiry proceeded solely on the basis of the chargesheet filed in the criminal case, despite the fact that, on the date of the alleged incident i.e., 22.02.2019, the petitioner was on leave. Learned advocate Ms.Rathod submits that the petitioner was victimized as he was an active member of the S.T. Workers’ Union, which is opposed to the S.T. Karmachari Mandal, and that due to his Union activities, the chargesheet was issued without any evidence.

6.1. Learned advocate Ms. Rathod submits that instead of conducting an independent inquiry, the departmental proceedings were concluded solely on the basis of the criminal case. Learned advocate further submits that the police complaint was lodged as a pressure tactic at the instance of the opposing union leader, and in the absence of any medical evidence or breath analyzer report, the criminal court has acquitted the petitioner.

6.2. Learned advocate Ms. Rathod submits that the acquittal constitutes a significant basis for the petitioner’s claim whil

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