Supreme Court Upholds Dismissal of Employee in Tender Tampering Case — Reinstatement Set Aside. The Court held that in cases of serious misconduct like tampering with tender documents, the punishment of dismissal is proportionate and interference by the High Court under Article 226 is unwarranted.

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Case Note & Summary

The present appeal arises from a judgment of the Patna High Court which set aside the dismissal of the respondent, Ajit Kumar Singh, an employee of the Indian Oil Corporation. The respondent was dismissed from service for his involvement in tampering with tender documents. The facts reveal that on 30.6.2001, a tender notice was issued for repair work at the Barauni Refinery. Three bidders participated. Technical bids were opened on 24.8.2001, but price bids were kept in a drawer under lock, with keys available to K.C. Patel and the respondent. On 1.10.2001, price bids were opened, and it was discovered that the quotation of M/s. B.S. Jha had been altered, making them the lowest bidder. The original quotation was missing. An inquiry revealed that G.S. Mahto confessed to replacing the quotation at the instance of M/s. B.S. Jha. The envelope of another bidder, M/s. Laxmi Singh, was sent for forensic analysis, which confirmed tampering. Chargesheets were issued to the respondent and K.C. Patel. The inquiry officer found the respondent guilty of misconduct, and the disciplinary authority imposed the punishment of dismissal. The respondent challenged the dismissal before the High Court. A learned Single Judge dismissed the writ petition, but the Division Bench in Letters Patent Appeal allowed the appeal, setting aside the dismissal and ordering reinstatement with consequential benefits. The Supreme Court, in the present appeal, examined the scope of judicial review in disciplinary matters. The Court observed that the High Court had exceeded its jurisdiction by interfering with the punishment. The misconduct was grave, involving tampering with tender documents, which strikes at the root of the tendering process. The Court held that the punishment of dismissal was proportionate and not shockingly disproportionate. The Court also noted that the findings of the inquiry officer were based on evidence, including the forensic report and the confession of the co-delinquent. The Supreme Court allowed the appeal, set aside the judgment of the Division Bench, and restored the order of dismissal.

Headnote

A) Service Law - Disciplinary Proceedings - Proportionality of Punishment - Misconduct of tampering with tender documents - The respondent, an employee of the appellant Corporation, was found guilty of tampering with price bids to favour a particular bidder. The disciplinary authority imposed the punishment of dismissal. The High Court, in appeal, set aside the dismissal and ordered reinstatement with consequential benefits. The Supreme Court held that the High Court exceeded its jurisdiction under Article 226 by interfering with the punishment, as the misconduct was grave and the punishment was proportionate. (Paras 1-9)

B) Service Law - Judicial Review - Interference with Punishment - Article 226 of the Constitution of India - The Supreme Court reiterated that the scope of judicial review in disciplinary matters is limited. The court can interfere only if the punishment is shockingly disproportionate. In the present case, the respondent's involvement in tampering with tender documents amounted to serious misconduct, and the punishment of dismissal was not disproportionate. (Paras 7-9)

C) Evidence - Departmental Proceedings - Standard of Proof - The Court noted that in departmental proceedings, the standard of proof is preponderance of probabilities, not beyond reasonable doubt. The findings of the inquiry officer were based on evidence, including the forensic report and confession of co-delinquent, which established the respondent's guilt. (Paras 4-6)

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Issue of Consideration

Whether the High Court was justified in interfering with the punishment of dismissal imposed on the respondent for tampering with tender documents, and whether the punishment was disproportionate to the misconduct.

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Final Decision

The Supreme Court allowed the appeal, set aside the judgment of the Division Bench of the Patna High Court dated 28.2.2019, and restored the order of dismissal of the respondent from service.

Law Points

  • Proportionality of punishment
  • judicial review of disciplinary proceedings
  • interference with punishment under Article 226
  • misconduct in tender process
  • standard of proof in departmental proceedings
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Case Details

2023 LawText (SC) (5) 72

Civil Appeal No. 3663 of 2023

2023-05-17

Rajesh Bindal, J.

The Indian Oil Corporation & Ors.

Ajit Kumar Singh & Anr.

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Nature of Litigation

Appeal against High Court order setting aside dismissal of employee for misconduct in tender process.

Remedy Sought

The appellant Corporation sought restoration of the punishment of dismissal imposed on the respondent.

Filing Reason

The High Court set aside the dismissal order and directed reinstatement with consequential benefits.

Previous Decisions

The learned Single Judge dismissed the writ petition challenging the dismissal. The Division Bench in Letters Patent Appeal allowed the appeal and set aside the dismissal.

Issues

Whether the High Court was justified in interfering with the punishment of dismissal imposed on the respondent for tampering with tender documents. Whether the punishment of dismissal was disproportionate to the misconduct.

Submissions/Arguments

The appellant argued that the respondent was guilty of serious misconduct involving tampering with tender documents, and the punishment of dismissal was proportionate. The respondent argued that the punishment was disproportionate and the High Court correctly interfered.

Ratio Decidendi

In disciplinary proceedings, the High Court under Article 226 can interfere with the punishment only if it is shockingly disproportionate. The misconduct of tampering with tender documents is grave, and the punishment of dismissal is proportionate. The High Court exceeded its jurisdiction by setting aside the dismissal.

Judgment Excerpts

Aggrieved against the order passed by the High Court of Judicature at Patna in Letters Patent Appeal No. 1593/2015 dated 28.2.2019, the present appeal has been filed. The brief facts as available on record are that on 30.6.2001, tender notice was issued by the Appellant Corporation for the job of ‘Repair of Surface Drain and Tank Pad and Tank No. 235, 236 and 237 inside Refinery’ (Barauni Refinery), in which three bidders participated. G.S. Mahto confessed that at the instance of M/s. B.S. Jha along with B.K. Mishra, he replaced the form of quotation/price bid and destroyed the originals thereof so that the firm comes at L-1.

Procedural History

The respondent was dismissed from service after disciplinary proceedings. He filed a writ petition (CWJC No. 2176/2004) which was dismissed by the learned Single Judge on 25.6.2015. He then filed a Letters Patent Appeal (LPA No. 1593/2015) which was allowed by the Division Bench on 28.2.2019, setting aside the dismissal. The appellant Corporation filed the present Civil Appeal No. 3663 of 2023 before the Supreme Court.

Acts & Sections

  • Constitution of India: Article 226
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