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2019 Supreme(Ori) 435

IN THE HIGH COURT OF ORISSA, CUTTACK
Biswanath Rath, J.
Rama Chandra Behera - Appellant
Versus
Chairman, Odisha Gramya Bank, Head Office-pokhariput, Bhubaneswar - Respondent
Writ Petition (Civil) No. 6558 of 2002
Decided On : 24-12-2019

Advocates Appeared:
Sanjit Mohanty, Advocate, N. Panda, Advocate, S.K. Acharya, Advocate, M.K. Panda, Advocate, S. Swain, Advocate, A.K. Mishra, Advocate, J. Sengupta, Advocate, D.K. Panda, Advocate, P.R.J. Dash, Advocate, G. Sinha, Advocate
Cases Referred
Bhagatram Vs. Union of India, (1969) 3 SLR 66 (Delhi)
Bharat Co-operative Bank (Mumbai) Ltd. Vs. Co-operative Bank Employees Union, (2007) AIR(SC) 2320
Bipad Bhanjan Vs. State of West Bengal, (1978) 1 SLR 656 (Calcutta)
Central Bank of India Vs. C.Bernard, (1991) 1 SCC 319
Chandra Kishore Jha Vs. Mahavir Prasad, (1999) 8 SCC 266
Delhi Cloth and General Mills Co., Ltd. Vs. Labour Court, Tis Hazari & Ors., (1970) 1 LLJ 23
Dhananjaya Reddy Vs. State of Karnataka, (2001) 4 SCC 9
Dipak Babaria and another Vs. State of Gujarat and others, (2014) 3 SCC 502
Education & Youth Services and others, (1990) 2 OLR 70
Gujarat Urja Vikas Nigam Limited vs. Essar Power Limited, (2008) 4 SCC 755
Harshad Chiman Lal Modi Vs. D.L.F., Universal Ltd. and another, (2005) AIR(SC) 4446
Harshad Chiman Lal Modi Vs. D.L.F., Universal Ltd. and another, (2005) AIR(SC)4446
Jalandhar Improvement Trust Vs. Sampuran Singh, (1999) AIR(SC) 1437
Kiran Singh Vs. Chaman Paswan, (1955) 1 SCR 117 : AIR 1954 SC 340
Nazir Ahmed Vs. King Emperor, (1936) AIR(PC) 253
Rao Shiv Bahadur Singh Vs. State of Vindhya Pradesh, (1954) AIR(SC) 322
Satpal Vs. Himachal Pradesh Financial Corporation, (1977) 2 SLR 447
State of U.P. Vs. Singhara Singh, (1964) AIR(SC) 358
Taylor Vs. Taylor, (1875) 1 Ch 426 D , 431
Veer Kunwar Singh University Ad hoc Teachers Association and others Vs. Bihar State University (C.C.) Service Commission and others, (2009) 17 SCC 184

The main legal point established in the judgment is that the appointment of an Enquiry Officer must be in accordance with the relevant regulations, and any appointment not meeting the legal requirements can be set aside.

Headnote:

Enquiry Officer - Challenge to the appointment of Enquiry Officer - Regional Rural Banks Act, 1976, Balasore Gramya Bank (Staff) Service Regulation 1980 - Section 17, Regulation 2(1), Regulation 3(2), Regulation 30(3) - The court examined the appointment of the Enquiry Officer and found that the appointment was not in accordance with the provisions of the Regional Rural Banks Act, 1976 and the Balasore Gramya Bank (Staff) Service Regulation 1980. The court set aside the appointment of the Enquiry Officer and all proceedings conducted by him including the second show-cause notice.

Fact of the Case:

The petitioner, an Officer in Balasore Gramya Bank, challenged the appointment of the Enquiry Officer, arguing that the officer was not authorized to hold the inquiry. The petitioner was suspended on charges of financial irregularity and faced an inquiry conducted by the appointed officer.

Finding of the Court:

The court found that the appointment of the Enquiry Officer was not in accordance with the relevant regulations and set aside the appointment and all proceedings conducted by the officer.

Issues: The issues involved the legality of the appointment of the Enquiry Officer and the validity of the inquiry proceedings conducted by the officer.

Ratio Decidendi: The court held that the appointment of the Enquiry Officer was not in accordance with the provisions of the Regional Rural Banks Act, 1976 and the Balasore Gramya Bank (Staff) Service Regulation 1980, and therefore set aside the appointment and all proceedings conducted by the officer.

Final Decision: The writ petition succeeded, and the court set aside the appointment of the Enquiry Officer and all proceedings conducted by him including the second show-cause notice.

JUDGMENT

Biswanath Rath, J. - This writ petition involves a challenge to the second showcause notice vide Annexure-1 on the premises that Sri P.K. Bose, Enquiry Officer appointed involving inquiry against the petitioner being not an Officer in the cadre of Balasore Gramya Bank and further not an Officer deployed to the service of Balasore Gramya Bank to hold any of the post of the cadre of Officer of Balasore Gramya Bank has no authority to hold such inquiry and the enquiry conducted by Sri P.K. Bose is hit by the regulation 30 (3) read with Regulation 2(1) and Regulation 3(2) of the Balasore Gramya Bank (Staff) Service Regulation 1980 (hereinafter called as "Regulation, 1980").

2. Background involving the case is that petitioner joined as Cashier in the Balasore Gramya Bank on 13.1.1982. On 12.6.1985, the petitioner was posted in Mitrapur Branch of the Balasore Gramya Bank. On 31.5.1997, he was promoted to the rank of Officer Scale-1 with effect from 28.4.1989. While continuing as such, petitioner was suspended on the ground of financial irregularity in maintaining certain records and allowing misappropriation during incumbency at Mitrapur Branch vide order dated 24.3.1998. On 24.9.1998, charges were framed and again on 25.10.1999 additional charges were also framed. In the process, on 11.9.2000 one P.K. Bose was appointed as Enquiry Officer and on 17.4.2002 the Enquiry report was submitted resulting issuance of second show-cause notice on 2.12.2002 vide Annexure-1 impugned herein.

3. Advancing his argument, Sri Sanjit Mohanty, learned senior Advocate challenging to the illegality in the appointment of Sri P.K. Bose as the Enquiry Officer, taking this Court to the provision at Section 2(e) of the Regional Rural Banks Act, 1976 (for short "R.R.B. Act, 1976") attempted to submit the definition prescribed means prescribed by rules made under this Act. Then taking to the provision at Section 17 of the R.R.B. Act, 1976, Sri Mohanty submitted that for the provision therein, it becomes lawful on the part of the Regional Rural Bank to send such number of Officers or other employees on deputation to the Regional Rural Bank as may be necessary or desirable for the efficient performance of its functions. Referring to Section 30 of the R.R.B. Act, 1976, Sri Mohanty, learned senior counsel contended that for this provision of the Act, the Board of directors of the Regional Rural Bank may after consultation with Sponsor Bank and the National Bank and with the previous sanction of the Central Government make regulations, not inconsistent with the provisions of this Act and the rules made there under to provide for all matters for which provision is necessary or expedient for the purpose of giving effect to the provisions of this Act. It is here, Sri Mohanty, learned senior counsel taking this Court to the provision at Section 17 of the Act, 1976 contended that even assuming that the Regional Rural Bank on the request of the sponsored Bank send Officers on deputation to this sponsored Bank but that is again should be with the previous sanction of the Central Government. It is in the circumstance, Sri Mohanty, learned senior counsel contended that for the appointment of Sri P.K. Bose in the sponsored Bank i.e. Balasore Gramya Bank is not with the previous sanction of Central Government and thus he was even not competent to hold any such post. Sri Mohanty, learned senior counsel further taking this Court to the provisions of the Balasore Gramya Bank, more particularly, the definition chapter Regulation 2(i) read with Regulation 3 (2) of the Regulation, 1980 contended that for the definition of an Officer and the staffing pattern of the Gramya Bank there is no position of an Officer in its staffing nomenclation. Again for the clear provision at Regulation 3(2), Sri Mohanty, learned senior counsel contended that even assuming that Sri P.K. Bose was deputed to function as an Officer in the Gramya Bank for the Officer post not inclusive in the staf

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