The absence of power to conduct an enquiry for alleged misconduct after an employee has reached the age of superannuation.

Common Order:

The writ petitioner R.Balraj joined the transport Corporation in the year 1972 as Works Manager and worked in Cheran Transport Corporation and later on, he was transferred to the first respondent Corporation and he became the permanent employee of the said Corporation from the year 1976 as Assistant Manager. From the post of Assistant Manager, he was promoted as Deputy Manager in the year 1977 and Senior Deputy Manager in 1983 and Manager in 1986 and thereafter, on promotion as Senior Deputy manager, he was transferred to erstwhile Pandiyan Roadways Corporation as General Manager and finally, during the year 1987, he was made Managing Director of the second respondent Corporation. While he was Managing Director, for certain decision taken by him as part of the purchase Committee, two charge memos dated 28. 2002 were given to him just two days prior to his retirement and he was allowed to retire without prejudice to the disciplinary proceedings and his terminal benefits such as pension, gratuity, Provident Fund were withheld. He sent an explanation denying the charges. It is against the said charge memos dated 28. 2002, the present writ petitions have been filed.

2. At the time of admission of the writ petition, on 30.12.2002, this Court directed the respondents not to pass any final order on the enquiry until further orders from this Court. The said order came to be confirmed on 19. 2003.

3. I have heard the arguments of Mr.M.Palani, learned counsel appearing for the writ petitioner and Mr.V.R.Kamalanathan, learned counsel appearing for the respondents and have perused the records.

4. Mr.M.Palani, learned counsel appearing for the writ petitioner referred to certain decisions of this Court and submitted that in the absence of any service rule, there is no power vested on an employer to conduct an enquiry for the alleged misconduct even after a person has reached the age of superannuation. For this purpose, he heavily placed reliance on an unreported judgments of this Court in W.P.No.11398 of 1994 [N.Arumugam vs. Tamil Nadu Electricity Board, Madras] disposed on 212. 1994, W.A.Nos.3055 to 3058 of 2003 [The Tamil Nadu Civil Supplies Corporation Ltd., Kancheepuram and another vs. K.Mohandoss], disposed on 04. 2004 and W.P.No.36027 of 2002 and 31151 of 2003 [S.Panneerselvam vs. The Tamil Nadu Civil Supplies Corporation Ltd., Chennai], disposed on 13. 2005 as well as judgment reported in 2007 (2) M.L.J. 92 [G.Manoharan vs. Registrar of Co-operative Societies, Chennai and others]. In the last judgment, this Court referred to judgment of the Supreme Court reported in 1999 (1) L.L.J. 1236 [Bhagirathi Jena vs. Board of Directors, O.S.F.C.] wherein it was categorically held as follows:

“6. No specific provision exists in the Orissa Financial State Corporation Staff Regulations, 1975, for deducting any amount from the Provident Fund consequent to any misconduct determined in departmental enquiry, nor is there any provision for continuance of departmental enquiry after superannuation.

7. In the absence of any such provisions, it must be held that the respondent – Corporation had no legal authority to make any reduction in the appellants retiral benefits. There is also no provision for conducting a disciplinary enquiry after the appellants retirement, nor is there any provision stating that in case misconduct is established, a deduction could be made from retiral benefits. Once the appellant had retired from service on 30.6.1995, there was no authority vested in the Corporation for continuing departmental enquiry even for the purpose of imposing any reduction in retiral benefits payable to the appellant. In the absence of such an authority, it must be held that the enquiry had lapsed and the appellant was entitled to full retiral benefits.”

.5. In 1997 (8) SCC 60 [State Bank of India vs. A.N.Gupta and others], the Supreme Court, in paragraph 16 of the judgment, observed as follows:

.“... Proceeding in the gar