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2025 Supreme(MP) 299

IN THE HIGH COURT OF MADHYA PRADESH AT GWALIOR
Anand Singh Bahrawat, J.
Rakesh Kumar Kulshrestha – Petitioner
Versus
Central Madhya Pradesh Gramin Bank And Others – Respondents
Writ Petition No. 8784 of 2013
Decided On : 04-08-2025

Advocates:
Advocate Appeared:
For the Petitioner:Shri Siddharth Sharma, Advocate
For the Respondent:Shri D.S. Chouhan, Advocate

The necessity of reasoned and speaking orders in administrative decisions affecting individuals' civil rights is essential for fairness and adherence to the principles of natural justice.

Headnote:(A) Constitution of India - Article 226 - Writ petition challenging dismissal from service - Petitioner, a Branch Manager, was dismissed by the Disciplinary Authority citing irregularities in loan sanctioning after a departmental inquiry - Allegations of non-consideration of submissions made by the petitioner in response to charges - Need for reasoned and speaking orders for administrative decisions affecting civil rights underscored by Supreme Court in Kranti Associates case - Both the dismissal and appellate orders were found to be non-speaking and unreasoned, lacking due application of mind - (Paras 6, 18, 22)

(B) Principles of natural justice - A dismissal order entails severe consequences and must follow the principles of fairness and transparency, requiring adequate reasons to be recorded - Failure to do so renders the order vulnerable to judicial scrutiny. (Para 20)

(C) Judicial review of administrative actions mandates that decisions affecting an individual's rights should not only be made, but should also appear to be made justly. (Para 20)

Facts of the case:
The petitioner was dismissed from service on allegations of irregularities after serving as a Branch Manager since 1987. The dismissal order was contested on grounds of lack of proper consideration of the petitioner's defense and the failure of both the Disciplinary and Appellate Authorities to provide reasoned decisions.

Findings of Court:
The Court found both the dismissal and appellate orders to be non-speaking, not adhering to requirements of natural justice and thus incapable of sustaining judicial review.

Issues: The need for reasoned orders in administrative actions affecting civil rights was central, along with the adequacy of the hearing afforded to the petitioner.

Ratio Decidendi: The reliance on judicial precedent highlighting the necessity of reasoned judgments in administrative decisions was emphasized, indicating that procedural fairness is integral to the right to a fair hearing, especially in cases of severe consequences.

Result: Writ Petition allowed; impugned orders quashed and matter remanded for fresh consideration.

Table of Content
1. seeking reinstatement after dismissal (Para 2 , 3 , 4)
2. contentions regarding disciplinary proceedings (Para 6 , 7 , 8 , 9)
3. lack of reasoning in disciplinary orders (Para 14 , 15 , 16)
4. requirement of reasoned decisions (Para 17 , 18 , 19 , 20)
5. remand for fresh consideration of case (Para 22 , 23 , 24)

ORDER :

Anand Singh Bahrawat, J.

This petition, under Article 226 of Constitution of India, has been filed seeking the following relief(s):-

“(i) That, the order impugned dated 16.05.2013 (Annexure - P/1) issued by the respondent no. 3 may kindly be quashed with a further direction to quash the consequential order dated 03.10.2013 (Annexure - P/2) with a further direction to reinstate to the petitioner in services and pay arrears of salary for intervening period with all consequential benefits alongwith interest.

(ii) That, any other relief which is suitable in the facts and circumstances of the case in favour of the petitioners including the costs throughout may also be granted.”

2. Learned counsel for the petitioner has submitted that the petitioner was initially appointed to the post of Branch Manager, Scale-I, on 16th November, 1987. Thereafter, he was posted at the Indergarh Branch on 19th January, 2009, where he continued to serve in the said capacity until 3rd February, 2011. It is submitted that during the aforesaid period of posting, the respondent-Bank had introduced a policy/scheme pertaining to grant and sanction of loans against the security of receipts issued by government-approved warehouses.

3. It is submitted that pursuant to the said Scheme while discharging his official duties, proceeded to sanction certain loans in accordance with the prescribed norms and, upon completion of all procedural formalities, disbursed the said loans. The relevant documentation and details concerning the sanctioned loans were duly forwarded to the competent higher authorities of the Bank, who thereafter granted requisite approval and accorded formal sanction in respect of the said transactions.

4. It is further submitted that the respondent-Bank, at a later stage, levelled allegations against the petitioner, asserting that there had been irregularities in the process of loan sanctioning. Consequently, the petitioner was placed under suspension by order dated 20th July, 2011. Subsequent thereto, a charge-sheet was issued to the petitioner, initiating departmental disciplinary proceedings. Upon conclusion of the said proceedings and completion of the departmental enquiry, the respondent-Bank, by way of final order dated 16th May, 2013 (Annexure P-1), imposed the penalty of dismissal from service upon the petitioner. The relevant extract from the impugned order dated 16.05.2013 (Annexure P-1) is reproduced hereinbelow:

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