Disciplinary proceedings must adhere to natural justice principles, including a proper evidentiary process, or else any resultant punishment is invalid.

JUDGMENT

The Kerala State Cashew Workers Apex Industrial Co-operative Society Limited ('CAPEX' for short), on the directions of the 2^nd respondent, notified the vacancy in the post of Managing Director as per Ext.P2. The Selection Committee constituted with the Principal Secretary, Labour as Chairman and the Director, DPE and the Managing Director, Travancore Cochin Chemicals as members, completed the selection process and published a rank list containing 29 candidates in which the petitioner was shown against Sl.No.7. An interview was conducted. Sri R.Jayachandran was selected and appointed as the Managing Director of CAPEX as per Ext.P3 order dated 06.11.2007. Sri.Jayachandran, who was working in KSEB at that point in time, was not willing to join CAPEX on a permanent basis and by Ext.P4, he requested the Secretary, Labour, to permit him to join as MD of CAPEX on a deputation basis. The request was declined by the Government. Thereafter, the petitioner was appointed as MD of CAPEX in the pay scale of `13610-20700, as can be seen from Ext.P5. The petitioner took charge on 04.01.2008.

2. On 27.08.2010, the benefit of pay revision was granted to the petitioner, as can be seen from Ext.P6. By Ext.P7, the Government accorded sanction to fix the remaining terms and conditions of appointment since no terms and conditions were fixed at the time of appointment. It can be seen from Ext.P7 that the MD is entitled to Contributory Provident Fund, Medical facilities, Surrender of Earned Leave and terminal benefits as per the norms of the CAPEX apart from HRA at State Government rate and TA/DA admissible to the State Government employees. The counsel for the petitioner submits that the post of Managing Director is a permanent one.

3. By Exts.P8 and P9, the petitioner was appointed as Managing Director of Autokast Ltd., Cherthala and Sri.Jayachandran was appointed in his place on deputation. Five years later, the petitioner was again appointed as the Managing Director of the CAPEX, by Ext.P10 order dated 08.07.2016. The petitioner submits that there had been no break of service while the petitioner took charge at Autokast Ltd and later at CAPEX.

4. The petitioner was placed under suspension by Ext.P11 order. The allegation was that CAPEX procured Raw Cashew Nut ('RCN' for short) from a PWD contractor, instead of procuring the same from the Plantation Corporation and farms under SC/ST Departments, etc. It is alleged that the procurement by such a deviation involved a higher price and violated the procurement directions issued by the Government, resulting in financial loss to CAPEX. The petitioner submitted representations requesting to exonerate him from the charges. The petitioner was paid subsistence allowance during the period of suspension, as can be seen from Ext.P12. The petitioner was thereafter reinstated in service on the condition that, in case the report of the Accountant General finds that loss was caused to the Government due to dereliction of duty, proceedings will be initiated in accordance with the Code of Criminal Procedure. Since the petitioner's subsistence allowance had not been paid for a long period, after being reinstated in the post of Managing Director, the petitioner withdrew the subsistence allowance in his capacity as a Self-Drawing Officer, with due concurrence and recommendations of the Finance and Account Departments of CAPEX. The petitioner continued as Managing Director i