The State has filed the present writ petition challenging

the

order

dated

23/08/2018,

passed

in

O.A.No.170/00502/2017,

on

the

file

of

the

Central

Administrative Tribunal (<the CAT= for short), allowing the

original application directing the present petitioners to release

the entire DCRG, commuted value of pension and all other

pensionary benefits to the applicant within one month from the

date of receipt of a copy of the order.

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It is the case of the State Government/ petitioners

that respondent No.1/M.S.Ravishankar, IAS, a retired officer,

while working as a Managing Director in M/s. My Sugar

Company Limited (an organization under the Government of

Karnataka) (hereinafter referred to as <the Company= for the

sake of convenience) from 16/07/2001 to 19/09/2002 allegedly

caused a loss of Rs.62,42,000/- to the company in a deal of

supply of sugar to the Food Corporation of Nepal in collusion

with M/s.Indo Foreign Agencies Pvt. Ltd., Bombay, contrary to

the resolution of the Board of Directors of the Company.

3.

It is the further case of the petitioners/State

Government that respondent No.1 had authorized a sub-agent

namely M/s. Om Impex Limited at Nepal to receive, sign the

tender document, submit the tender and sign the contract on

behalf of the company9s agent M/s. Indo-Foreign Agencies Pvt.

Ltd., Bombay and allowed to do all acts regarding export of

sugar without entering into any proper legal/commercial

agreement with the said sub-agent while not being empowered

to do so. He failed to take reasonable precautions to safeguard

the interest of the Company and as a consequence of

cancellation of contract, the Company suffered a loss of

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Rs.62,42,000/- which is directly attributable to the failure of

respondent

No.1

to

guide

the

business

transaction

appropriately which amounted to gross negligence and

dereliction of duty. Thereby, the departmental proceedings

were initiated against respondent No.1 and a show-cause notice

dated 24/07/2008 was issued under Rule 8 of All India Services

(Discipline and Appeal) Rules, 1969 on the charge of alleged

misconduct while working as Managing Director of the

Company.

4.

Respondent No.1 failed the reply to the show-cause

notice and was again given extension of time for providing

reply several times and ultimately, the State Government, by

letter dated 23/03/2009, informed respondent No.1 that on

failure to comply with the notice issued, the Government will

have to presume that he has no explanation and the

Government has to proceed to pass ex parte order in

accordance with law. Since there was no reply from

respondent No.1, the State Government, exercising powers

conferred under Rule 8(2) of All India Services (D & A) Rules

appointed an enquiry officer and a presenting officer vide

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Government Order bearing No.DPAR 203 SAS 2008 dated

07/07/2009.

5.

Being aggrieved by the action of the State

Government,

respondent

No.1

filed

an

application

in

O.A.No.363/2009 before the CAT, Bengaluru. After hearing

the parties, the CAT vide order dated 11/02/2013 allowed the

application and quashed the impugned order therein directing

the respondents that the inquiry may now commence de novo

from the point on which day it issued the show-cause notice

and all the documents sought by the applicant to be served on

him within two weeks from the date of the order and issued

five directions.

6.

The order passed by the CAT has reached finality.

It is further stated that on 20.03.2013 second show-cause

notice was issued and reminders were issued on 15.04.2013,

22.01.2014 and 04.03.2014. Finally, respondent No.1 filed his

reply on 20.03.2014 and sought to drop the proceedings.

Thereafter, the petitioner came to be retired from service on

31.03.2015 after attaining the age of superannuation and the

provisional

pension

was

sanctioned,

but

not

paid

the

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pensionary

benefits.

Therefore,

respondent

No.1/M.S.Ravishankar

was

constrained

to

file

O.A.No.170/502/2017 before the CAT contending tha