Supreme Court Dismisses Special Leave Petition Against Removal from Service for Defalcation of Funds. Employee's Challenge to Removal Fails as No Violation of Natural Justice Found; Opportunity to Make Good Loss Was Provided and Defence of Absence Was Rejected.

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Case Note & Summary

This matter involved a service dispute arising from an employee's removal from service following allegations of defalcation of funds. The employee, as petitioner before the Supreme Court, challenged his removal after the Regional Administrative Committee dismissed his appeal and the High Court dismissed his writ petition. The dispute centered on audit findings for the years 1981-82 and 1982-83, which alleged misappropriation of significant sums under the General Distribution System and Cash and Carry Programme, along with shortages of sugar. The employee was given an opportunity to make good the loss but failed to deposit the money, leading to his removal from service without assigned reasons. The employee contended that he was denied a reasonable opportunity to defend himself, except for directions issued in 1991, and that the locker containing the funds was opened in his absence while he was on medical leave, suggesting that someone else took the money. The Supreme Court found no merit in these contentions. It observed that the employee had been given an opportunity to make good the loss and did not deposit the amount, and that the defence of absence and locker tampering was too fantastic to be believed. The Court held that there was no violation of natural justice and no illegality in the High Court's order. The special leave petition was dismissed, with delay condoned, affirming the removal from service.

Headnote

A) Service Law - Natural Justice - Opportunity to Defend - Not mentioned - Employee charged with defalcation based on audit reports for 1981-82 and 1982-83; given opportunity to make good loss but did not deposit; Court found no violation of natural justice because opportunity to make good loss was provided; contention of denial of reasonable opportunity rejected (Para 1).

B) Service Law - Judicial Review - Dismissal of Special Leave Petition - Not mentioned - High Court dismissed writ petition challenging removal; Supreme Court found no illegality warranting interference; defence that locker was opened during absence on medical grounds was unbelievable; special leave petition dismissed (Para 1).

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Issue of Consideration

Whether the petitioner was denied reasonable opportunity to defend himself, violating natural justice, in the removal proceedings; whether the High Court's order dismissing the writ petition was illegal.

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Final Decision

The special leave petition is dismissed. Delay condoned. The Supreme Court found no illegality in the High Court's order warranting interference. The contention of denial of natural justice was rejected because opportunity to make good the loss was given; the defence of absence was too fantastic to be believed.

Law Points

  • Natural justice requires reasonable opportunity to defend
  • opportunity to make good loss may satisfy natural justice
  • court will not interfere with High Court order absent illegality
  • fantastic defence rejected
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Case Details

1996 LawText (SC) (10) 78

1996-10-11

K. Ramaswamy, G.B. Pattanaik

Mangla Giri

Regional Administrative Committee Varanasi & Anr.

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Nature of Litigation

Service matter challenging removal from service for defalcation of funds.

Remedy Sought

Petitioner sought to set aside the order of removal from service and the High Court's dismissal of the writ petition.

Filing Reason

Petitioner was removed from service after failing to deposit defalcated amounts despite opportunity; alleged denial of reasonable opportunity and violation of natural justice.

Previous Decisions

Appeal before Regional Administrative Committee dismissed; Writ Petition No. 31643/90 dismissed by High Court on April 17, 1996.

Issues

Whether the petitioner was denied reasonable opportunity to defend himself, violating natural justice, in the removal proceedings. Whether the High Court's order dismissing the writ petition was illegal.

Submissions/Arguments

Petitioner contended that he was not given an opportunity to defend; except for the year 1991, no direction was given earlier; therefore, denied reasonable opportunity to defend, violating natural justice. Petitioner further contended that the locker was opened in his absence when he was on leave due to medical grounds and the amount was taken by somebody else. Respondent relied on special audit reports for 1981-82 and 1982-83 showing defalcation and contended that opportunity to make good loss was given but petitioner did not deposit the money.

Ratio Decidendi

When an employee is given an opportunity to make good the loss and does not deposit the amount, a plea of denial of reasonable opportunity to defend is not sustainable; a fantastic defence that the locker was opened in his absence cannot be believed. No violation of natural justice.

Judgment Excerpts

Delay condoned. We find no force in the contention. The theory now set up too fantastic to be believed. The special leave petition is accordingly dismissed.

Procedural History

Petitioner removed from service following audit findings of defalcation; appeal dismissed by Regional Administrative Committee; writ petition No. 31643/90 dismissed by High Court on April 17, 1996; special leave petition before Supreme Court dismissed with delay condoned.

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