Departmental proceedings initiated by an incompetent authority are null and void, requiring adherence to statutory delegation for valid charges and actions.

JUDGMENT AND ORDER C.A.V.

Date : 06-01-2026

The present writ application has been filed for quashing the resolution, dated 12.08.2014, issued, by the General Manager (HR & Administration), South Bihar Power Distribution Company Limited, Patna, under Memo No. 1530, whereby departmental proceedings were initiated against the petitioner and for quashing the resolution/Order No. 664, dated 13.05.2016, by which the punishment of withholding two annual increments with cumulative effect was imposed against the petitioner. The petitioner has further prayed for quashing resolution no. 267, dated 14.02.2017, whereby the earlier punishment was modified to the extent of withholding of one annual increment with non- cumulative effect, as well as for quashing the letter no. 647, dated 22.09.2022, whereby the petitioner was informed that his review application has been rejected.

2. The factual matrix of the case of the petitioner, in brief, is that he was initially appointed as Junior Electrical Engineer, vide Notification No. 1097, dated 12.11.1999, issued by the Joint Secretary, Bihar State Electricity Board (hereinafter referred as ‘BSEB’). Subsequently, he was promoted to the post of Assistant Electrical Engineer on 17.09.2007. Thereafter, the petitioner was transferred from the Electric Supply Sub-Division, Katihar (Urban) to the Electric Supply Sub-Division, Rajgir with effect from 25.10.2012. Pursuant thereto, the petitioner joined at Rajgir as Assistant Electrical Engineer.

3. With the enactment of the Electricity Act, 2003 , the Electricity (Supply) Act, 1948 stood repealed and by virtue of Section 172 thereof, the BSEB ceased to exist. In exercise of powers under Section 132 of the , the State Government issued a Notification, dated 30.10.2012, restructuring the erstwhile BSEB into the Bihar State Power Holding Company Limited (in short, ‘BSPHCL’) and its four subsidiary companies, including the South Bihar Power Distribution Company Limited (in short, ‘SBPDCL’).

4. In terms of Section 133 of the Electricity Act, 2003 , the services of all employees of the erstwhile BSEB were initially transferred to BSPHCL on the same terms and conditions and thereafter, in accordance with the said notification, employees were allocated to the respective subsidiary companies.

5. Clause 6 of the Notification deals with transfer of persons and Schedule F deals with detailed scheme including the terms and conditions for transfer of the employees in transmission, generation, distribution and common services. The petitioner, being posted at Rajgir, which is a distribution division, became an employee of the SBPDCL with effect from 01.11.2012.

6. The SBPDCL is governed by its Board of Directors, one of whom is the Managing Director (MD), who functions as the Chief Executive and Administrative Head of the Company and thereby became the employer of the petitioner in place of the BSEB. The field undertakings of the company are headed by the General Manager -cum- Chief Engineer.

7. Prior to the posting of the petitioner at Rajgir on 25.10.2012, a tender for appointment of a franchisee for collection of electricity charges/bills from consumers was issued by the erstwhile BSEB. Pursuant thereto, M/s Mithilesh Enterprises was selected as the franchisee and a Letter of Intent, under Memo No. 3281, dated 28.08.2012, was issued by the Electrical Superintending Engineer, Biharsharif.

8. In terms of Clause 4 of the Letter of