Case Note & Summary
The petitioner, Udaya Shankar K. R., was employed as an Assistant Manager with United India Insurance Co. Ltd. He was subjected to disciplinary proceedings and was removed from service by an order dated 09.06.2017 passed by the disciplinary authority. His appeal against the removal was dismissed by the appellate authority on 18.06.2018, which modified the penalty to dismissal from service. The petitioner challenged both orders before the High Court of Karnataka under Articles 226 and 227 of the Constitution, seeking quashing of the orders and reinstatement with all benefits. The primary ground raised was that the inquiry report was not supplied to him before the imposition of penalty, which violated the principles of natural justice. The court heard the counsel for both sides and found that the non-supply of the inquiry report was a fatal procedural defect. The court did not delve into the merits of the charges but held that the disciplinary proceedings were vitiated due to the violation of natural justice. Consequently, the court quashed the orders of removal and dismissal and directed the respondents to reinstate the petitioner with continuity of service but without back wages. The court also clarified that the respondents were at liberty to proceed afresh from the stage of supply of the inquiry report if they so desired.
Headnote
A) Service Law - Disciplinary Proceedings - Natural Justice - Non-Supply of Inquiry Report - The petitioner, an Assistant Manager with United India Insurance Co. Ltd., was removed from service and later dismissed on appeal without being furnished a copy of the inquiry report. The court held that failure to supply the inquiry report before imposing penalty violates principles of natural justice and renders the entire disciplinary proceedings invalid. (Paras 1-3) B) Service Law - Penalty of Removal/Dismissal - Proportionality - The court did not examine the merits of the charges but quashed the orders solely on the ground of procedural irregularity, directing reinstatement with continuity of service but without back wages. (Paras 4-5)
Issue of Consideration
Whether the disciplinary proceedings and the consequential orders of removal and dismissal from service are vitiated due to non-supply of the inquiry report to the petitioner before imposition of penalty.
Final Decision
The writ petition is allowed. The orders dated 09.06.2017 and 18.06.2018 are quashed. The respondents are directed to reinstate the petitioner with continuity of service but without back wages. The respondents are at liberty to proceed afresh from the stage of supply of the inquiry report if they so desire.
Law Points
- Natural justice
- right to fair hearing
- non-supply of inquiry report vitiates disciplinary proceedings
- service law
- insurance company regulations
