Case Note & Summary
The dispute arose from the disciplinary proceedings against an employee of the U.P. Co-operative Union Ltd., who was transferred but did not join the new post and was subsequently suspended. A series of charges, including defalcation, were framed against him, but he failed to respond to multiple attempts to serve the charge-sheet. The inquiry officer submitted a report based solely on the absence of a response from the respondent, leading to a flawed inquiry process. The Allahabad High Court directed the respondent's reinstatement without back wages, which was contested by the appellant. The Supreme Court found that the inquiry officer did not adequately consider the evidence and did not apply his mind to the materials presented. The court noted that even in ex-parte proceedings, evidence must be led, and the inquiry officer's report lacked proper documentation and deliberation. Consequently, the Supreme Court remitted the matter for a denovo inquiry while denying the respondent any subsistence allowance for the period he avoided the proceedings. The court directed the respondent to report to the Managing Director and for a new inquiry officer to be appointed promptly, allowing the appeal to this extent.
Headnote
A) Administrative Law - Departmental Inquiry - Validity of Inquiry Proceedings - Not applicable under principles of natural justice - The inquiry officer failed to apply his mind to the materials presented, leading to a flawed inquiry process. The court directed a denovo inquiry while denying subsistence allowance for the period of avoidance by the respondent. Held that the inquiry must be conducted afresh to ensure fairness (Paras 1-3).
Issue of Consideration
Whether the inquiry proceedings against the respondent were vitiated and if reinstatement was justified.
Final Decision
The Supreme Court allowed the appeal to the extent of remitting the matter for a denovo inquiry, denying the respondent subsistence allowance for the period of avoidance, and directed him to report to the Managing Director by 29.3.2008.
Law Points
- Natural justice
- departmental inquiry
- reinstatement
- ex-parte proceedings
- subsistence allowance



