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2025 Supreme(Gau) 1445

IN THE GAUHATI HIGH COURT HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
MARLI VANKUNG, J.
Om Prakash Agarwalla S/O- Late Chandmal Agarwalla  - Appellant
VERSUS
The State Of Assam And 3 ORS. (G)  - Respondent 
WP(C)/6791 of 2024
Decided on : 26-09-2025

Advocates Appeared:
For the Appellant : Mr. K.N. Choudhury, Mr. A. Atreya
For the Respondent: Mr. N. Das Ms. A. Bhuyan Mr. J.K. Goswami

Denovo inquiries in disciplinary proceedings must adhere to procedural fairness, correcting prior errors without violating natural justice principles.

Headnote:(A) Constitution of India - Article 226 - Writ petition filed against dismissal from service - The petitioner, a Financial Controller at AIDC, challenged the enquiry report and dismissal order resulting from procedural lapses during the inquiry process - Allegations involved financial misconduct related to fixed deposits - A previous inquiry was set aside for not observing natural justice principles, prompting a denovo inquiry which concluded with dismissal. (Paras 2, 5, 9, 20, 22)

(B) Enquiry Proceedings - Denovo Enquiry - The court held that denovo enquiry implies a new investigation where earlier proceedings were found flawed and must be conducted fairly - Reliance on a preliminary inquiry report which violated natural justice principles rendered the punishment unjust. (Paras 18, 21)

(C) Powers of Disciplinary Authority - The court emphasized that a second enquiry is impermissible for dissatisfaction with prior findings; however, denovo inquiries are valid to correct procedural errors. (Paras 6, 17).

Facts of the case:
The petitioner faced allegations involving improper transfer of funds leading to his arrest, followed by disciplinary proceedings that initially resulted in termination, later set aside for improper procedure.

Findings of Court:
The dismissal was confirmed after ensuring fair denovo proceedings were conducted, recognizing procedural fairness as a cornerstone of justice in disciplinary actions.

Issues: The main issues addressed were the propriety of the denovo inquiry and whether reliance on a previous flawed inquiry breached natural justice.

Ratio Decidendi: The court ruled that a fresh enquiry is permissible when previous investigations are flawed, supporting procedural fairness as essential for just disciplinary measures.

Result: WP

(C) No. 6791 of 2024 stands dismissed.

Table of Content
1. dismissal of employee based on inquiry report. (Para 2 , 3)
2. procedural fairness in disciplinary proceedings. (Para 4 , 5)
3. need for proper inquiry and no second inquiry. (Para 6 , 7 , 8)
4. alternative remedies available to aggrieved parties. (Para 10 , 11)
5. validity of appointing new inquiry officer. (Para 12 , 13)
6. court's authority to order further inquiry. (Para 14 , 15 , 16 , 20)
7. distinction between further inquiry and new inquiry. (Para 17 , 18 , 19)
8. enquiry results not subject to reversal. (Para 21 , 22)

JUDGEMENT :

MARLI VANKUNG, J.

1. Heard Mr. K.N. Choudhury, learned senior counsel for the petitioner assisted by Mr. A. Atreya, learned counsel. Also heard Ms. A. Bhuyan, learned counsel for respondent Nos. 2, 3 & 4 appearing on behalf of her senior Mr. N. Das. The state is the proforma respondent No. 1. and is represented by Mr. J.K. Goswami, learned Addl. Senior Government Advocate for

2. The instant writ petition is filed under Article 226 of the Constitution of India, for the issuance of the appropriate writ or direction to the respondents, for setting aside the impugned enquiry report dated 04.05.2024, issued by respondent No. 4 and the decision dated 03.10.2024 taken in the 317 meeting of the Board of Directors of respondent No. 2 which is to impose penalty of dismissal upon the petitioner and for quashing and setting aside the impugned office order dated 05.11.2024, imposing the penalty of dismissal issued by respondent No. 3 against the petitioner.

3. The case of the petitioner is that the petitioner was serving as Financial Controller of the Assam Industrial Development Cooperation Limited (AIDC), which is a class-I post under the AIDC (Employees Service) Rules, 1992. Thereafter, there was an allegation which revolves around a particular fixed deposit made by the AIDC at Canara Bank amounting to Rs. 15,00,00,000/- which was to mature on 17.06.2020, which was transferred to the Central Bank of India for being kept as a fixed deposit, from where Rs. 14,97,91,144/- was credited to the account of one Mr. Raj Mohammed. The respondent/Central Bank of India denied the knowledge of the said fixed deposit and transfer which resulted in their lodging an FIR registered as 298/2020 at the Bhangagarh PS registered under Sections 203 /406/420/463/468 IPC against Mr. Raj Mohammad, Proprietor of M/s Rehana Enterprise and other unknown persons, following which the petitioner was also arrested for his alleged involvement in the transfer of the money to Central bank of India wherein, the petitioner was later released on bail. A disciplinary proceeding was also initiated against the petitioner, which resulted in the termination of the petitioner from his services vide order dated 23.03.2022. Being aggrieved with the enquiry report dated 30.10.2021 as well as the termination order dated 23.03.2022, the petitioner had filed a writ petition registered as WP(C) No. 5085/2022. The said WP(C) No. 5085/2022 was disposed of by this court vide order dated 24.11.2023, wherein both the enquiry report dated 30.10.2021 as well as the termination order dated 23.03.2022 is set aside and an enquiry was ordered to be proceeded with denovo.

4. Mr. K.N. Choudhury, learned senior counsel for the petitioner submitted that the instant writ petition emanate from the order dated 24.11.2023 passed by this court in WP(C) No. 5085/2022, by which the previous departmental proceedings on the same set of facts against the petitioner was set aside and denovo proceedings were directed.

5. The learned Sr. Counsel submitted that the respondents conducted the denovo proceedings in a manner which is contrary to law and thereafter issued the impugned enquiry report dated 04.05.2024 and the office order dated 05.11.2024, by which the penalty of dismissal from service was imposed upon the petitioner. The learned counsel submitted that as per Rule 15 of the Central Civil Services (Classification, Control and Appeal) Rules, 1965, there is no provision

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