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1994 Supreme(Raj) 968

RAJASTHAN HIGH COURT AT JAIPUR BENCH
Arun Madan, J.
K.C. Sharma - Appellant
Versus
Union of India & anr. - Respondent
S.B. Civil Writ Petition No. 1950 of 1985.
Decided On : 17-11-1994

Headnote:

WRIT PETITION - Rajasthan Co-operative Societies Act, 1965 - Sugar Undertakings (Taking over of Management) Act, 1978 - Rajasthan Relief Undertaking (Special Provisions) Act, 1984 - Termination of service - Principles of natural justice - Inquiry report - Cross-examination of witnesses - Opportunity to lead evidence in defence - Non-application of mind - Reinstatement with back wages and consequential benefits.

Fact of the Case:

The petitioner, a Personnel Officer with the respondent sugar mill, was served with a purported chargesheet alleging misappropriation of funds. An inquiry was conducted, and the petitioner was terminated from service. The petitioner challenged the termination order, contending that the inquiry was not conducted in accordance with the principles of natural justice, that he was not given an opportunity to cross-examine the witnesses or lead evidence in defence, and that the termination order was passed without application of mind.

Finding of the Court:

The court held that the inquiry was not conducted in accordance with the principles of natural justice, that the petitioner was not given an opportunity to cross-examine the witnesses or lead evidence in defence, and that the termination order was passed without application of mind. The court quashed the termination order and directed the reinstatement of the petitioner with back wages and consequential benefits.

Issues: 1. Whether the inquiry was conducted in accordance with the principles of natural justice? 2. Whether the petitioner was given an opportunity to cross-examine the witnesses or lead evidence in defence? 3. Whether the termination order was passed without application of mind?

Ratio Decidendi: 1. The court held that the inquiry was not conducted in accordance with the principles of natural justice, as the petitioner was not given a copy of the inquiry report or the documents relied upon by the inquiry officer, and was not given an opportunity to cross-examine the witnesses or lead evidence in defence. 2. The court held that the petitioner was not given an opportunity to cross-examine the witnesses or lead evidence in defence, as the inquiry officer did not allow the petitioner to do so. 3. The court held that the termination order was passed without application of mind, as the disciplinary authority did not assign any reasons for the termination.

Final Decision: The court quashed the termination order and directed the reinstatement of the petitioner with back wages and consequential benefits.

JUDGMENT

1. - This writ petition under Article 226 of the Constitution of India has been filed by the above named petitioner in the matter of violation of his fundamental rights guaranteed under Articles 14 & 16 of the Constitution read with Art. 300-A of the Constitution of India and in the matter of Rajasthan Co-operative Societies Act, 1965, Sugar Undertakings (Taking over of Management) Act, 1978 and in the matter of Rajasthan Relief Undertaking (Special Provisions) Act, 1984, challenging the validity of the orders dated 11.5.1985 and 14.10.1985.

2. The facts giving rise to the filing of this petition, briefly stated, are that respondent-mill, namely, Keshoraipatan Sahakari Sugar Mills Ltd. (A Government of India Undertaking) is a mill registered under the Co-operative Societies Act since been taken over by the Govt. of India and is under the control of Custodian-respondent No. 2 having been declared as a sick unit under the Rajasthan Relief Undertaking (Special Provisions) Act, 1984. As it was declared a sick unit in the year 1984 the management of the said mill was taken over by the State Government and by virtue of the provisions of section 4 of the said Act, complete control of all matters, i.e., financial, administrative etc. was taken over by the State Government of Rajasthan. However, the jurisdiction of the Labour Courts in the matter of disputes concerning the workman and the management has been excluded under the Act. Respondent No.1 , i.e., the Custodian General for Notified Sugar Undertakings, New Delhi is having over all control over the management and affairs of the said Undertaking. The petitioner-mill have been declared as a relief undertaking since 1984, its management and control was taken over by the Central Government under the provisions of Sugar Undertakings (Taking Over of Management) Act, 1978 (hereinafter referred to as "the Act of 1978") and its complete management thereafter vested with the Central Government and consequently Custodian General, i.e., respondent No.1 was appointed by the Central Govt. to take care of the said undertaking. It was only in the year 1984 that the management of the said undertaking was handed over by the Central Government to the State Government of Rajasthan.

3. The petitioner who last served as Personnel Officer, with the respondent undertaking, was served with a purported chargesheet by the respondents on 5.12.1983 vide Anenx. 1. The dispute arose on the basis of an inquiry conducted against the petitioner regarding non-settlement of personal advance in petitioner's account on the basis of which charges were framed against him. The mutation of charges were as follows :

"1. During July, 1982 to May, 1983 petitioner's Personal Advance account has been debited by way of recoveries from salary as well as the cash paid by him :

(a) July, 1982

Rs. 300.00

(b) August (Cash paid)

Rs. 4,689.00

(c) September, 1982

Rs. 991.00

(d) October, 1982

Rs. 927.54

(e) April & May, 1983

Rs. 3,568.74

Total

Rs. 10,476.28

Though the amount was deposted by him under protest, it is very strange how that much of amount has been deposited within a period of 10 months. This clearly indicates that he has not spent the money taken as advance for repairs and renewals of the Jeeps but it was in his personal custody and misappropriated the same for personal use.

2. An amount Rs. 3833.75 was outstanding in his account as on 1.7.1979 and he has received the amount of Rs. 17,000.00 for repairs of the jeeps. After the submission of the vouchers Rs. 4975.70 was adjusted and the debit balance was rupees 15858.05 as on 30th June, 1980.

3. During the year 1982-83 he made cash payment as indicated above and adjusted vouchers for Rs. 4351.46 to bring-out the debit balance to Rs. 8929.45. He had claimed a credit balance of Rs. 500/- as on 29.10.83 after adjustment of all the vouchers. This creates a doubt as how and why su






























































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