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2025 Supreme(Online)(Chh) 19526

IN THE HIGH COURT OF CHHATTISGARH AT BILASPUR
Sanjay Kumar Jaiswal, J
Mukund Lal Sahu – Appellant
Versus
General Manager Administration Appellate Authority Chhattisgarh Rajya Gramin Bank – Respondent
WPS No. 6920 of 2016



Advocates:
For the Appellants/Petitioners: Vijay Chawla, Naushina Ali
For the Respondents: N. Naha Roy

When a disciplinary authority disagrees with the findings of an inquiry officer, it must record its tentative reasons for such disagreement in the show cause notice and provide the delinquent employee an opportunity to be heard, as failure to do so violates the principles of natural justice.

Headnote:(A) Constitution of India - Art. 226 - Disciplinary Inquiry - Principles of Natural Justice - Show cause notice - Duty of Disciplinary Authority to record reasons for disagreement with Enquiry Officer - Failure to provide reasons in show cause notice for disagreeing with favourable findings of Enquiry Officer amounts to violation of principles of natural justice - Prejudice caused to delinquent employee - Order of penalty set aside. (Paras 6, 12, 13, 15)

Facts of the case:
The petitioner, a former bank employee, was issued a charge sheet alleging misconduct. An enquiry report exonerated the petitioner regarding the charge of lack of honesty and integrity. The Disciplinary Authority subsequently disagreed with the Enquiry Officer’s findings and imposed a fine. The petitioner’s appeal was rejected, leading to the present writ petition.

Findings of Court:
The court found that the Disciplinary Authority failed to state tentative reasons for disagreeing with the Enquiry Officer in the show cause notice issued to the petitioner. This violation of the principles of natural justice rendered the process invalid. Given the long period elapsed since the petitioner's superannuation (over 10.5 years), the court deemed it improper to remand the matter for further proceedings.

Issues: Whether the Disciplinary Authority is required to provide reasons in the show cause notice when intending to disagree with the findings of the Enquiry Officer, and whether failure to do so vitiates the punishment order.

Ratio Decidendi: When a Disciplinary Authority disagrees with the findings of an Enquiry Officer, it must record its tentative reasons for such disagreement and provide the delinquent officer a fair opportunity to represent before it records final findings; failure to provide such reasons in the show cause notice results in prejudice and violates constitutional principles of natural justice.

Result: Petition allowed; penalty set aside; recovery ordered.

Table of Content
1. background of the disciplinary inquiry and appeal process. (Para 1 , 2 , 3 , 4 , 5)
2. contentions regarding the validity of the show cause notice. (Para 6 , 7)
3. legal necessity of stating reasons for disagreement with inquiry reports under natural justice. (Para 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15)
4. refusal to remand due to time elapsed; order of relief granted. (Para 16 , 17)

1. The present writ petition under Article 226 of the Constitution of India has been preferred assailing the order dated 01.09.2016 Annexure P-1 whereby the appeal preferred by the petitioner against the imposition of fine of Rs.45,000 under the provisions of Rule 39(2)(b)(1) of the Chhattisgarh Rajya Gramin Bank Officers and Employees Service Regulations, 2013 (in short ‘the Regulation of 2013) has been rejected by the respondent No.1.

2. The relevant facts in the present case, in brief, are that the petitioner, Mukund Lal Sahu, was posted as a Clerk-cum-Cashier at Surgi Branch of Chhattisgarh Rajya Gramin Bank from 10.12.2004 to 13.06.2007. On 30.03.2013, a charge sheet alleging irregularities and misconduct during that period was issued to the petitioner. It was alleged that the petitioner did not perform his duties as a bank employee with honesty and integrity and he failed to take necessary measures to safeguard the bank's interests, thereby putting the bank at financial risk. On 05.05.2013, the petitioner submitted his reply to the charge sheet stating that he was not responsible for any misappropriation of the ledger or putting the bank at financial risk.

3. The enquiry went on and ultimately an enquiry report was submitted by the Enquiry Officer on 03.02.2015. According to the enquiry report,

“the charges were found to be true, but the entries in the ledger were made by Keshav Ram Sahu, the messenger-cum-sweeper, on the instructions of the Branch Manager and this fact has also been admitted by Keshav Ram Sahu in his testimony. This does not clearly indicate that the accused employee, Mukund Lal Sahu, did not perform his duties with honesty and integrity.”

4. Meanwhile, the petitioner superannuated on 31.03.2015. On 22.01.2016, a show cause notice was issued to the petitioner mentioning that

“the copy of the enquiry report was sent to the petitioner on 24.07.2015 to which the petitioner submitted his defence/reply on 24.08.2015. After examining his defense statement, the departmental inquiry proceedings, the inquiry report and the documents/evidence presented during the departmental inquiry, the Disciplinary Authority has decided to impose fine of Rs.45,000 on petitioner under clause 39(2)(b)(1) of the Chhattisgarh State Gramin Bank Officer and Employee Service Regulations, 2013. The petitioner was directed to reply within 15 days as to why he should not be punished with the proposed penalty”.

5. The petitioner submitted his reply to the show cause notice on 18.02.2016. However, on 14.03.2016, the Disciplinary Authority i.e. the Respondent No.2 disagreeing with the view taken by the Enquiry Officer, held that the petitioner did not perform his duties with honesty and integrity and imposed a fine of Rs.45,000/- on him under the provisions of the Regulations of 2013. Against such imposition of fine, the petitioner filed a writ petition i.e. WPS No.1267/2016 before this High Court which was disposed of vide order dated 28.04.2016 with a direction to the petitioner to file an appeal before the respondent No.1. The petitioner’s appeal was subsequently rejected by the respondent No.1 vide impugned order dated 01.09.2016 which is under challenge in the present writ petition.

6. The sole contention of learned counsel for the petitioner is that no reason/explanation has been given by the Disciplinary Authority in the show cause notice for not accepting the view given by the Enquiry Officer in his report. In the absence of any reason or ground in the show cause notice, it amounts to an empty forma

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