Bombay High Court Dismisses Petition of Chief Manager Challenging Disciplinary Action for Accepting Forged Bank Guarantee. Reduction in Pay Scale Upheld as Not Disproportionate to Misconduct of Violating CMC Manual Guidelines.

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

The petitioner, Rajendraprasad Shukla, was working 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 functioning as Area Finance Manager at Wani North Area during 2012-13, he committed gross misconduct by abusing his official position and showing undue favour to a contractor, Shri Sandeep Singh Arora, Director of M/s BNS Infrastructure Private Limited, by accepting a forged bank guarantee against retention money and not following the guidelines of the CMC Manual. The disciplinary authority imposed a punishment of reduction to one stage lower in time scale for one year, which was upheld on appeal by the Chairman of Coal India Limited. The petitioner challenged the disciplinary action and punishment in a writ petition before the Bombay High Court, Nagpur Bench. The court examined the scope of judicial review in disciplinary matters and held that the court does not sit in appeal over the findings of the disciplinary authority and can interfere only if the findings are perverse or the punishment is shockingly disproportionate. The court found that the domestic enquiry was conducted fairly and the findings of the enquiry officer were based on evidence. The court also held that the punishment of reduction to one stage lower in time scale for one year was not shockingly disproportionate to the misconduct. Accordingly, the writ petition was dismissed.

Headnote

A) Service Law - Disciplinary Proceedings - Judicial Review - The court examined the scope of judicial review in disciplinary matters and held that the court does not sit in appeal over the findings of the disciplinary authority and can interfere only if the findings are perverse or the punishment is shockingly disproportionate. (Paras 1-10)

B) Service Law - Misconduct - Acceptance of Forged Bank Guarantee - The petitioner, while functioning as Area Finance Manager, accepted a forged bank guarantee against retention money in violation of CMC Manual Clause 3.07 (Clause 30.3). The court held that the domestic enquiry was conducted fairly and the findings of the enquiry officer were based on evidence. (Paras 3-8)

C) Service Law - Punishment - Proportionality - The punishment of reduction to one stage lower in time scale for one year was held not to be shockingly disproportionate to the misconduct of accepting a forged bank guarantee and showing undue favour to a contractor. (Paras 9-10)

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Issue of Consideration

Whether the disciplinary action and punishment imposed on the petitioner are sustainable in law and whether the punishment is disproportionate to the misconduct alleged.

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Final Decision

Writ petition dismissed. The court upheld the order of reduction to one stage lower in time scale for one year and the appellate order dismissing the appeal.

Law Points

  • Disciplinary proceedings
  • judicial review of punishment
  • proportionality
  • domestic enquiry
  • misconduct
  • bank guarantee
  • CMC Manual
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Case Details

2019 LawText (BOM) (03) 123

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 punishment imposed by employer.

Remedy Sought

Petitioner sought quashing of order of reduction to one stage lower in time scale for one year and appellate order dismissing appeal.

Filing Reason

Petitioner alleged that no misconduct is made out on the face of the record and that the punishment is disproportionate.

Previous Decisions

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

Issues

Whether the disciplinary action and punishment are sustainable in law. Whether the punishment is disproportionate to the misconduct alleged.

Submissions/Arguments

Petitioner contended 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 in disciplinary matters, the court does not sit in appeal over the findings of the disciplinary authority and can interfere only if the findings are perverse or the punishment is shockingly disproportionate. The domestic enquiry was conducted fairly and the findings were based on evidence. The punishment was not shockingly disproportionate.

Judgment Excerpts

The petitioner, who is working as Chief Manager (Finance) at the Western Coalfields Limited (WCL) at Nagpur, is assailing the order dated 02-05-2016 of the Chairman and Managing Director, WCL (Disciplinary Authority) of reduction to one stage lower in time scale for one year and the appellate order dated 19-01-2017 of the Chairman and Managing Director, Coal India Limited dismissing the appeal.

Procedural History

The petitioner was served with charge sheet dated 05-03-2015. Disciplinary authority imposed punishment on 02-05-2016. Appeal dismissed on 19-01-2017. Writ petition filed in 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 Not Disproportionate to Misconduct of Violating CMC Manual Guidelines.
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