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2015 Supreme(Ker) 72

HIGH COURT OF KERALA
P.B. SURESH KUMAR, J.
R. Sivarajan Chettiar – Appellant
Versus
The Kerala Khadi & Village Industries Board, Thiruvananthapuram rep. by its Secretary & Another – Respondent
WP (C) No. 6908 of 2013 (K)
Decided On : 30-01-2015

Advocates appeared:
For the Petitioner:S. James Vincent, Advocate.
For the Respondents: R1 & R2, R.S. Hari Kumar, Tom K. Thomas, Senior Counsels.

Headnote:

Constitution of India,1950 - Article 226 - Kerala Khadi and Village Industries Board Service (Punishment and Appeal) Regulations 1965 - Employment matter - Misconduct -Enquiry - Penalty - Whether Regulations provide employee shall be given an opportunity to participate in the preliminary enquiry/investigation - Challenged - Held, Regulation 8, the Secretary of the Board is authorised to conduct a formal enquiry into the conduct of any employee of the Board. As such, it cannot be said that memo of charges is vitiated for want of authority. The Punishment and Appeal Regulations do not provide that a preliminary enquiry shall not be conducted before issuing a memo of charges and before obtaining the statement of defence of the delinquent employee. The Punishment and Appeal Regulations do not also provide that the delinquent employee shall be given an opportunity to participate in the preliminary enquiry/investigation, if any, conducted by the Board into the conduct of the employee. On the other hand, the Punishment and Appeal Regulations authorise the conduct of a preliminary enquiry in the form of an investigation before ordering a formal enquiry and Unless in the service regulations an act or omission is prescribed as misconduct, it is not open to the employer to fish out some conduct as misconduct and impose a penalty on the employee.

Judgment :-

1. The disciplinary proceedings initiated against the petitioner by the Kerala Khadi and Village Industries Board ['the Board' for short] is the subject matter of this writ petition.

2. The petitioner, a Lower Division Clerk in the service of the Board has been in charge of the cash of the Board from 15.1.2001. On 1.6.2011, as per Ext.P2 order, he was placed under suspension by the Board, alleging that on a verification of the accounts of the Board, it was found that the petitioner has committed misappropriation of cash, tampering of official records etc. Later Ext.P4 memo of charges was issued to the petitioner, alleging that during the period from 15.1.2001 to 31.5.2011, the petitioner had misappropriated an amount of Rs 18,39,498/- by making improper and inaccurate entries in the cash book, short remittances of amounts at the Treasury and Bank, short accounting of loan repayments, short accounting of provident fund withdrawals, non-remitting of pension contributions, misappropriation of permanent advances using false vouchers, withholding of unutilised balanced funds, tampering of records etc.

3. According to the petitioner, Ext.P4 memo of charges does not specify the source of power of the Board to initiate disciplinary action against him with reference to the Conduct Rules. He, therefore, preferred Ext.P6 representation before the secretary of the Board to let him know the provision on the basis of which the disciplinary proceedings have been initiated against him on the allegations raised in Ext.P4 memo of charges. The petitioner also requested for copies of the various documents relied on by the Board to arrive at the conclusion that he had misappropriated a sum of Rs.18,39,498/-. The writ petition was filed thereafter seeking orders to quash Ext P2 order of suspension and Ext.P4 memo of charges.

4. A counter affidavit has been filed by the Board. In the counter affidavit, it is stated that the petitioner was not participating in the enquiry ordered against him for one or other reasons and the Board is therefore not in a position to complete the enquiry ordered against him.

5. A reply affidavit has been filed by the petitioner to the counter affidavit filed by the Board. In the reply affidavit, it is stated that the petitioner has not been given the essential documents requested for by him.

6. On 19.3.2013, this Court passed an interim order restraining the Board from passing final orders in the disciplinary proceedings initiated against the petitioner. It was however, clarified that the enquiry can go on. It was also clarified that it will be open to the petitioner to participate in the enquiry without prejudice to his contentions in the writ petition. In the light of the interim order passed by this Court, the petitioner submitted his written statement of defence to the memo of charges. Ext P10 is the written statement of defence submitted by the petitioner to the memo of charges. In the written statement of defence, the petitioner had contended inter alia that the Kerala Khadi and Village Industries Board Employees' Conduct Regulations and the Kerala Khadi and Village Industries Board Service (Punishment and Appeal) Regulations do not authorise the Board to initiate disciplinary proceedings against the petitioner on the allegations levelled against him in Ext.P4 memo of charges.

7. Heard Sri.James Vincent, the learned counsel for the petitioner and Sri.Tom.K.Thomas, the learned counsel for the first respondent.

8. The learned counsel for the petitioner contended that Ext.P4 memo of charges has been issued in contravention of the provisions contained Regulation 8 of the Kerala Khadi and Village Industries Board Service (Punishment and Appeal) Regulations ["the Punishment and Appeal Regulations" for short] based on the report of the preliminary enquiry conducted, without affording any participation to the petitioner and therefore, the memo of charges and all further proceedings pursuant thereto are vitiated

































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