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1970 Supreme(Mad) 299

Madras High Court
PALANISWAMY
S.V.Raman - Appellant
Versus
Madras State Warehousing Corporation - Respondent
Decided On : 09/24/1970

Advocates:
S. Ramasubramaniam and S.M. Subramaniam, for Petitioner; K.S. Bhaktavatsalam, for Govt. Pleader, for Respondent.

A statutory corporation is an 'authority' within the meaning of Article 226 of the Constitution and is subject to the writ jurisdiction of the High Court.

Headnote:

WAREHOUSING CORPORATION - REMOVAL OF EMPLOYEE - PROCEDURE - VIOLATION - WRIT OF CERTIORARI - MAINTAINABILITY - EXHAUSTION OF ALTERNATIVE REMEDIES - WHETHER NECESSARY.

Fact of the Case:

The petitioner, Raman, was removed from service by the respondent, Madras State Warehousing Corporation, on the ground of misconduct. The petitioner challenged the order of removal by filing a writ petition under Article 226 of the Constitution.

Finding of the Court:

The court held that the order of removal was unsustainable as the respondent had violated the mandatory provisions of the regulations governing the disciplinary procedure. The court also held that the petitioner was not required to exhaust the alternative remedy of appeal to the Chairman of the Executive Committee before filing the writ petition, as the Chairman had already agreed with the recommendation of the Managing Director to remove the petitioner from service.

Issues: 1. Whether the writ petition was maintainable under Article 226 of the Constitution. 2. Whether the respondent had violated the mandatory provisions of the regulations governing the disciplinary procedure. 3. Whether the petitioner was required to exhaust the alternative remedy of appeal to the Chairman of the Executive Committee before filing the writ petition.

Ratio Decidendi: 1. The court held that the writ petition was maintainable under Article 226 of the Constitution as the respondent was an 'authority' within the meaning of the Article. The court relied on the Supreme Court decision in Electricity Board Rajasthan v. Mohanlal, AIR 1967 SC 1857, which held that the word 'authority' in Article 12 of the Constitution includes all bodies created by a statute and functioning within the territory of India, or under the control of the Government of India. 2. The court held that the respondent had violated the mandatory provisions of the regulations governing the disciplinary procedure by failing to provide the petitioner with an opportunity to be heard in person and to cross-examine the witnesses against him. The court also held that the respondent had failed to serve the petitioner with a final memo setting out the provisional conclusion arrived at by the Managing Director with regard to penalty and to ask him to show cause as to why the said penalty should not be imposed. 3. The court held that the petitioner was not required to exhaust the alternative remedy of appeal to the Chairman of the Executive Committee before filing the writ petition, as the Chairman had already agreed with the recommendation of the Managing Director to remove the petitioner from service.

Final Decision: The court allowed the writ petition and set aside the order of the respondent removing the petitioner from service.

Judgement

ORDER :- While the petitioner, Raman, was working as Warehouse Superintendent at Karur under the Madras State Warehousing Corporation, the respondent herein, he was served with a charge memo dated 9-5-1968 pointing out certain lapses. Before final orders could be passed on the matter, he was served with a memo of additional charges for alleged lapses of insubordination, indiscipline and dishonesty. On 16-9-1968, he was placed under suspension and was relieved of his duties with effect from 19-9-1968 and thereafter 12 consolidated charges were framed against him. He was asked to show cause before 20-11-1968 as to why he should not be removed from service for those charges. On 4-11-1968, he submitted a letter to the Managing Director stating that he had already submitted his explanation on 22-5-1968 in respect of the charge memo dated 9-5-1968, that he was not responsible for the charges framed against him and that he might be allowed to explain his grievances in an open enquiry. He followed up this by a subsequent explanation dated 22-11-1968 in which he repudiated the allegations made against him in support of the charges and prayed that the charges may be dropped. In that explanation he did not say that an oral enquiry should be held or that any witnesses on his side should be examined. Thinking that the petitioner had not asked for an oral enquiry and overlooking the request already made by him in his communication dated 4-11-1968, the Managing Director considered the explanation and held that the explanation was not acceptable and the charges were proved. On 21-2-1969, the Managing Director passed the following order :

"He is found to be guilty of all the 12 charges now framed against him and the case was submitted to Chairman with the recommendation for removal from service as indicated in the charge memo and the Chairman has agreed with the recommendation made.

As such, according to Regulation No. 12 (7) of the Madras State Warehousing Corporation staff Regulations 1965, Thiru S. V. Raman Warehouse Superintendent is removed from the services of the Madras State Warehousing Corporation with effect from 16-2-1968 A. N."

It is to quash this order that this petition under Article 226 of the Constitution has been filed.

2. The petitioner contends inter alia that the order of the respondent is in violation of the provisions of the Regulations which enjoin upon the

Corporation to follow a particular procedure in departmental action, and that the said procedure has been violated and that, as such, the entire proceeding is vitiated. It is also his submission that no opportunity was given to him to prove his innocence in spite of the fact that he had asked for an open enquiry.

3. On behalf of the respondent, a counter affidavit has been filed alleging inter alia that the procedure followed is in accordance with the regulations, that, as the petitioner did not want an oral enquiry to be conducted in his explanation dated 22-11-1968, no oral enquiry was held and that, therefore, the enquiry is not in any way vitiated. It is further contended that the respondent being only a statutory corporation, this petition, filed under Article 226 of the Constitution, is not maintainable. Further, it is contended that under the Regulations, the petitioner is entitled to prefer an appeal to the Chairman of the Executive Committee against the order of the Managing Director and that without exhausting the remedy of the appeal, the petitioner is not entitled to invoke the writ jurisdiction of this court.

4. The respondent, Madras State Warehousing Corporation, is a body corporate established by the Madras State Government by virtue of the powers conferred on them under Section 18 of Warehousing Corporation Act, 1961 (Central Act 58 of 1962). This Act was passed providing for the incorporation and regulations of corporations for the purpose of warehousing of agricultural produce and certain other commodities and for matters connected therewith. This


















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