JUDGMENT :

B.R. Sarangi, J.

The petitioner has filed this application seeking to quash the order dated 29.07.2003 (Annexure-8), imposing penalty of reduction of pay by one stage for a period of one year without cumulative effect passed by the disciplinary authority opposite party no.2, and confirmation thereof made by the appellate authority-opposite party no.1 in Annexure-10 dated 26.02.2004 and further seeks for grant of consequential benefits as due and admissible to him in accordance with law.

2. Mr. S.N. Biswal, learned counsel for the petitioner states that pursuant to a disciplinary proceeding initiated against the petitioner, the inquiry having been conducted in a perfunctory manner, there is non-compliance of the provisions contained under Rule 30.1 and 30.2 of the Coal India Executives’ Conduct Discipline and Appeal Rules, 1978. Further, while imposing penalty by the disciplinary authority vide order dated 19.07.2003 in Annexure-8, no reason has been assigned save and except stating that perused the inquiry report and accordingly imposed penalty of “reduction of pay by one stage for a period of one year without cumulative effect”. Against the said order, the petitioner preferred appeal and the appellate authority vide order dated 26.02.2004 without application of mind confirmed the order passed by the disciplinary authority, hence this application.

3. Mr. T.K. Patnaik, learned counsel for opposite parties states that the copy of the inquiry report has been communicated to the petitioner, as has been stated in Annexure-6 dated 13.06.2003, in which it has been clearly mentioned that Deputy General Manager (Vig) as directed, forwarded the copy of the enquiry report to the petitioner for the comments and directed to file show cause within 10 days from the receipt of the letter. So far as punishment imposed against the petitioner is concerned, it is stated that though reasons have not been assigned, but fact remains the authority has taken into consideration the inquiry report and imposed penalty of “reduction of pay by one stage for a period of one year without cumulative effect”, which has been confirmed by the appellate authority, is wholly and fully justified in view of the allegation made against the petitioner

4. This Court heard Mr. S.N. Biswal, learned counsel for the petitioner and Mr. T.K. Patnaik, learned counsel for opposite parties and perused the record. Pleadings between the parties having been exchanged, the matter has been disposed of at the stage of admission with the consent of learned counsel for the parties.

5. In order to regulate the conduct, discipline and appeal of its Executives, the Coal India Limited framed Rules called, Coal India Executives’ Conduct, Discipline and Appeal Rules, 1978 (hereinafter referred to as “1978 Rules”). The said 1978 Rules were made applicable to Coal India Ltd. and its subsidiaries and became effective after approval by the Board of Directors of Coal India Ltd. at its meeting held on 24th February, 1978. In a review meeting taken by the Central Vigilance Commissioner with the Secretary, Minister of Coal and the CVOs of Coal India Ltd. and its Subsidiary Companies on 29th August 1996, it was decided that the 1978 Rules of Coal India Ltd. should be reviewed and revised to remove certain deficiencies experienced while taking action in accordance with those Rules and also to take care of certain new provisions. After review, 1978 Rules were placed before the Board of Directors of Coal India Ltd. in its 172nd meeting held on 18th February, 1998, which directed that a Committee should consider the amendments and submit its report. The Committee after taking into consideration the DEP guidelines, the Rules of the other Public Sector Undertakings and various Government Departments, recommended certain amendments and additions in 1978 Rules. Accordingly, the same was placed before the Board of Directors in their meeting held on 24th May, 1999. The Board, while approving the proposed