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2024 Supreme(Raj) 659

IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR
SAMEER JAIN, J.
Sampan Gaur S/o Late Shri Pk Gaur – Appellant
Versus
The Hindustan Salts Limited/ Sambhar Salts Limited –Respondent
S.B. Civil Writ Petition No. 18652 of 2023
Decided on : 29-04-2024

Advocates:
Advocate Appeared:
For the Appellant : Mr. Mahendra Shah, Sr. Adv. Assisted by Mr. Harendra Neel
For the Respondent: Mr. Anand Sharma

Disciplinary actions must adhere to procedural safeguards; arbitrary penalties without necessary inquiries infringe upon employee rights.

Headnote:(A) Hindustan/Sambhar Salts Limited (Conduct, Discipline and Appeal) Rules, 2018 - Rule 23(d) - Rule 30

(B) and

(C) - Improper penalty and compulsory retirement of employee - Imposed penalty of 50% salary reduction and compulsory retirement without proper inquiry is arbitrary; found no justifiable cause for punitive measures. (Paras 2, 29, 31, 41)

(B) Natural Justice - Violation of principles; the petitioner not given sufficient audience prior to adverse orders - Orders fail to adhere to required statutory inquiry procedures. (Para 6 and 29)

(C) Administrative Discretion - Importance of considering entire service record before imposing retirement; promotion and positive performance assessments contradicted allegations against the petitioner. (Paras 38, 39)

Facts of the case:
The petitioner challenged penalties imposing salary reduction and compulsory retirement citing absence of inquiry and consideration of positive service record, court granting remedies based on jurisdictional grounds.

Findings of Court:
Court found that the impugned orders were arbitrary, ill-founded, and not in compliance with established statutory provisions.

Issues: The main issues addressed were whether the penalties imposed were just, whether procedures for major penalties were followed, and jurisdiction for petition adjudication.

Ratio Decidendi: Court determined that the actions were arbitrary; the petitioner’s extensive and consistent positive evaluations negated claims of inefficiency or integrity doubts.

Result: Petition is allowed, thus quashing the orders dated 16.08.2023 and 17.10.2023.

Table of Content
1. initial facts surrounding the case and challenges presented by the petitioner. (Para 1 , 2 , 4 , 5)
2. petitioner argues procedural shortcomings in the imposition of penalties. (Para 6 , 7 , 8)
3. court's observations on procedural aspects and responsibilities in retirement applications. (Para 16 , 18 , 29)
4. establishment of legal standards for evaluating compulsory retirement. (Para 31 , 32 , 34)

ORDER :

SAMEER JAIN, J.

PREFATORY REMARKS

1. By way of the present petition, a twofold challenge is raised against the orders impugned dated 16.08.2023 and 17.10.2023.

2. It is noted that vide order impugned dated 16.08.2023, the respondent-authorities, more particularly, the General Manager (P&A), Hindustan Salts Limited, imposed a penalty upon the petitioner under Rule 23(d) of the Hindustan/ Sambhar Salts Limited (Conduct, Discipline and Appeal) Rules, 2018 (hereinafter, Rules of 2018) and consequently directed the reduction of the petitioner’s salary to the extent of 50% with effect from July’2023 until the Ramnagar Unit (Uttarakhand) of the Hindustan/Sambhar Salt Limited could generate enough cash flow to meet out the pecuniary loss accrued to them on account of the petitioner’s purported negligence/actions.

3. Whereas, vide the subsequent order impugned dated 17.10.2023, the General Manager (Operations), compulsorily retired the petitioner from service with effect from 17.01.2024 in exercise of the powers conferred by Rule 30(B) and 30(C) of the Rules of 2018 and FR 56 Rules in public interest.

4. Being aggrieved of the foregoing orders, the petitioner has invoked the jurisdiction of this Court under Article 226 of the Constitution of India and filed the instant petition, with the following prayers, as reproduced herein-under:-

    “i) the impugned order dated 17.10.2023 passed by Group General Manager (Operations), Sambhar Salts Limited and Hindustan Salts Limited compulsory retiring humble petitioner from the post of Chief Manager (Marketing) may kindly be declared illegal and arbitrary and therefore, same may kindly be quashed and set aside;

    ii) the impugned order dated 16.08.2023 imposing penalty under rule 23(d) and impugned order dated 12.09.2023 rejecting the representations of humble petitioner may kindly be declared illegal and arbitrary and therefore, same may kindly be quashed and set aside;

    iii) Any other appropriate order or direction which this Hon’ble Court deems just and proper in the facts and circumstances of this case may kindly also be passed in favour of the petitioner.”

FACTUAL MATRIX

5. In order to be cognizant of the nuances of the dispute at hand, this Court deems it appropriate to briefly delineate its factual matrix, which is noted herein-under:-

5.1 That the petitioner was offered appointment on the post of Executive (Business Development) on 02.08.2011. During the course of his service tenure, the petitioner was transferred several times, whilst being conferred with numerous additional charges/promotions. The service record of the petitioner is noted herein-under:-

    a. That shortly after the petitioner’s appointment, the petitioner was conferred with the additional charge of Manager (IT) from 23.08.2011 to 23.08.2013.

    b. That subsequently, the petitioner was transferred from to Sambhar Salt Limited, Sambhar on 08.03.2016.

    c. That the petitioner was promoted on the post of Senior Manager (Marketing) on 29.03.2016 and was also given the additional charge of Service Cont. Salt Production from 18.05.2016 to 25.11.2019.

    d. That among other responsibilities, the petitioner was also made in-charge of the Circuit House from 02.01.2017 to 27.02.2020 whilst also being conferred with the additional charge of being the Senior Manager (Civil) from 23.03.2017 to 25.11.2019.

    e. That the petitioner was eventually tasked with administering the Process Salt Plan and Gudha Salt Refinery on 20.08.2019. Thereafter, the petitioner was given the additional charge of R&D Lab on 11.10.2019 till he was further transferred. The p

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