The court affirmed the authority of the Managing Director to initiate disciplinary actions under the rules and upheld that misconduct including negligence in financial disclosures may result in dismissal for senior employees.

ORDER

The petitioner has challenged an order bearing No.KSDL/MD/HRD/2008-09/017 dated 18.04.2008 passed by the respondent No.1 - disciplinary authority dismissing him from service as General Manager (Finance) and Company Secretary. He has also challenged an order bearing No.KSDL/MD/HRD/2010-11/6799 dated 15.03.2011 passed by the respondent No.2 - appellate authority confirming the order of the respondent No.1 - disciplinary authority.

2. (i) The petitioner joined the services of the respondent No.1 as an Accounts Officer on 08.04.1982 and after a slew of promotions, he was promoted to the post of General Manager (Finance) in the year 2000. He claimed that in the year 2002, a visiting Medical Officer of the Company, sought for deduction of provident fund out of the retainer fee. He claimed that he refused to accept the request of the Medical Officer, who was thereafter, terminated by the Company. He alleged that in the year 2004, the brother-in-law of the said Medical Officer, Mr. Jayaprakash Hegde, an elected member of the legislative assembly, was appointed as a Chairman of the Committee on Public Undertakings. After he took over, the first decision that he took was by directing the respondent No.1 in terms of a letter dated 19.10.2004 to place the petitioner under suspension pending enquiry alleging misappropriation and financial embezzlement.

Consequently, the respondent No.1 issued an articles of charge dated 30.10.2004 accusing the petitioner of the following charges:

CHARGE NO.1:

You Sri G.S.Bhat, being an employee of the Company in a scale of pay covered by Rule 4 of the 1984 Rules, is required and it is your duty to file property returns in Annexure A to 1984 Rules on or before 1^st January (after 7.5.1998 on or before 30^th April) of every year containing such particulars as are indicated in rule 4 and Annexure A of the properties held by you and members of your family, during the previous year. In spite of the said rule 4 of the 1984 rules, Circulars dated 2.1.2004, 24.1.2004 and other Circulars on the subject issued from time to time and a Show Cause Notice dated 5.3.2004, you failed to file the property returns for the years 1987-2003, except for years 1994, 1995 and ending 31.3.2003, and thereby exhibited wilful negligence in the discharge of duties and failed to maintain absolute integrity and devotion to duty expected of an employee and thus you are guilty of misconduct under rule 3(a) and 4 read with rule 16(i) and 16(ii) of 1984 Rules.

CHARGE No.2:

You Sri G.S.Bhat, being an employee of the Company in a scale of pay covered by Rule 4 of the 1984 Rules, is required and it is your duty to file on or before 1^st January (after 7.5.1998 on or before 30^th April) of every year a return in Annexure A to 1984 Rules, containing true and correct information of the properties, assets and liabilities held by you and members of your family, during the previous year and you have to solemnly declare that the information stated therein are true and correct and that you do not own or hold any assets other than those stated therein. In the return filed by you for the year ending on 31.3.2003 you have failed to disclose property No.1, I cross, Widia Layout, Vijayanagar, Bangalore - 560 040, held by you during the year ending on 31.3.2003 and where you reside. You have solemnly declared in that return that the statements made therein are true and correct and that you do not own or hold any other assets in your name or in the name of any member of your family. The declaration made by you is not true and correct and thereby you have made false statements knowing it to be false, exhibited wilful negligence in the discharge of your duties and failed to maintain absolute integrity and devotion to duty expected of an employee holding the post of General Manager (Finance) and Company Secretary i/c. a