Bombay High Court Dismisses Petition of Chief Manager Challenging Disciplinary Action for Accepting Forged Bank Guarantee. Reduction in Pay Scale Upheld as Misconduct Proven Under CMC Manual.

High Court: Bombay High Court Bench: NAGPUR In Favour of Prosecution
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Case Note & Summary

The petitioner, Rajendraprasad Shukla, was employed as Chief Manager (Finance) at Western Coalfields Limited (WCL), a subsidiary of Coal India Limited. He was served with a charge sheet alleging that while serving as Area Finance Manager at Wani North Area during 2012-13, he committed gross misconduct by accepting a forged bank guarantee from M/s BNS Infrastructure Private Limited against retention money, in violation of Clause 3.07, sub-clause 30.3 of the CMC Manual. An enquiry was conducted, and the enquiry officer found the charges proved. The disciplinary authority imposed a penalty of reduction to one stage lower in time scale for one year. The petitioner's appeal to the Chairman of Coal India Limited was dismissed. The petitioner challenged both orders by way of a writ petition. The court examined the record and found that the petitioner had forwarded a note without raising any objection regarding the acceptance of the bank guarantee, which was irregular. The court held that the findings of the enquiry officer were based on evidence and were not perverse. The court also noted that the punishment was not shockingly disproportionate and declined to interfere. The writ petition was dismissed.

Headnote

A) Service Law - Disciplinary Proceedings - Misconduct - Acceptance of Forged Bank Guarantee - The petitioner, a Chief Manager (Finance), was charged with gross misconduct for accepting a forged bank guarantee against retention money and not following CMC Manual guidelines. The court held that the findings of the enquiry officer were based on evidence and the punishment of reduction to one stage lower in time scale for one year was proportionate. (Paras 1-10)

B) Service Law - Judicial Review - Interference with Punishment - The court reiterated that the scope of judicial review in disciplinary matters is limited and interference is warranted only if the punishment is shockingly disproportionate. The court found no such disproportion in the present case. (Paras 8-10)

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Issue of Consideration

Whether the disciplinary action and punishment imposed on the petitioner for accepting a forged bank guarantee and violating CMC Manual guidelines are sustainable.

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Final Decision

Writ petition dismissed. The order dated 02-05-2016 of the disciplinary authority and the appellate order dated 19-01-2017 are upheld.

Law Points

  • Disciplinary proceedings
  • misconduct
  • judicial review
  • proportionality of punishment
  • CMC Manual
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Case Details

2019 LawText (BOM) (02) 103

Writ Petition No.1463 of 2017

2019-02-06

P.N. Deshmukh, Rohit B. Deo

Shri M.M. Sudame for petitioner, Shri A.M. Ghare for respondent 2

Rajendraprasad Shukla s/o Sureshwar Shukla

Chairman, Coal India Limited; Chairman & Managing Director, Western Coalfields Limited; Shri Prabir Kumar Bose

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Nature of Litigation

Writ petition challenging disciplinary action and appellate order.

Remedy Sought

Quashing of order dated 02-05-2016 reducing petitioner to one stage lower in time scale for one year and appellate order dated 19-01-2017 dismissing appeal.

Filing Reason

Petitioner alleged that no misconduct was made out and punishment was disproportionate.

Previous Decisions

Disciplinary authority imposed penalty of reduction to one stage lower in time scale for one year; appellate authority dismissed appeal.

Issues

Whether the findings of the enquiry officer are perverse or based on no evidence. Whether the punishment imposed is shockingly disproportionate.

Submissions/Arguments

Petitioner argued that no misconduct is made out on the face of the record. Respondents supported the disciplinary action and punishment.

Ratio Decidendi

The court held that the findings of the enquiry officer were based on evidence and not perverse. The punishment of reduction to one stage lower in time scale for one year was not shockingly disproportionate, and the court declined to interfere in the exercise of judicial review.

Judgment Excerpts

The petitioner contends that he served with Coal India Limited and its subsidiary company WCL from June 1986 to February 2015 with distinction. Article I alleges that the petitioner... committed gross misconduct by abusing his official position and showed undue favour to Shri Sandeep Singh Arora... by accepting forged bank guarantee against the retention money.

Procedural History

Charge sheet dated 05-03-2015 served on petitioner. Enquiry conducted, charges proved. Disciplinary authority imposed penalty on 02-05-2016. Appeal dismissed on 19-01-2017. Writ petition filed on 17-03-2017.

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High Court Bombay High Court Dismisses Petition of Chief Manager Challenging Disciplinary Action for Accepting Forged Bank Guarantee. Reduction in Pay Scale Upheld as Misconduct Proven Under CMC Manual.