Supreme Court Allows Rajasthan Housing Board's Appeal in Service Matter — Remands for Fresh Adjudication on Second Dismissal Order. The High Court's findings on the first dismissal order for wilful absence were held to be tentative, not final.

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Case Note & Summary

The Supreme Court of India heard appeals by the Rajasthan Housing Board against a judgment of the Rajasthan High Court that had quashed two dismissal orders against the first respondent, Roshan Lal Saini, a Junior Accountant. The first dismissal order dated 3rd January 2003 was under Rule 86(3) of the Rajasthan Service Rules for wilful absence for three months. The second dismissal order dated 25th October 2013 was passed in disciplinary proceedings for embezzlement of funds, irregular payments, and missing vouchers amounting to Rs.1,49,00,000/-. The High Court had quashed both orders and remanded the matter to the Labour Court with directions. The Supreme Court noted that the High Court's findings on the first dismissal order were tentative and prima facie, as the appellant was given liberty to adduce evidence before the Labour Court. Regarding the second dismissal order, the Division Bench did not clarify its legal effect or the parties' rights. The Supreme Court held that the High Court had not made final and conclusive findings on the merits of the charges. Consequently, the Supreme Court allowed the appeals, set aside the impugned judgment to the extent it quashed the second dismissal order, and remanded the matter to the High Court for fresh adjudication on that order. The appeals regarding the first dismissal order were dismissed as the High Court's findings were tentative and the matter was pending before the Labour Court.

Headnote

A) Service Law - Disciplinary Proceedings - Wilful Absence - Rule 86(3) of the Rajasthan Service Rules - The first respondent was removed from service for unauthorised absence for three months under Rule 86(3) of the Rajasthan Service Rules vide order dated 3rd January 2003. The High Court quashed this order and remanded the matter to the Labour Court, but the Supreme Court held that the findings recorded by the Division Bench on the charge of wilful absence were tentative and prima facie, not final or conclusive, as the appellant was given liberty to adduce evidence before the Labour Court (Paras 2, 21).

B) Service Law - Disciplinary Proceedings - Embezzlement - Second Dismissal Order - The second order of dismissal dated 25th October 2013 was passed in disciplinary proceedings for embezzlement of funds, irregular payments, missing vouchers etc. The High Court quashed this order on grounds of lack of opportunity and failure to produce original vouchers. The Supreme Court noted that the Division Bench did not clarify the legal effect of this order and the respective rights of the parties (Paras 3, 19, 22).

C) Service Law - Labour Court Jurisdiction - Workman Status - The Division Bench rejected the contention that the Labour Court lacked jurisdiction on the ground that the first respondent was not a 'workman'. The Supreme Court did not disturb this finding (Para 20).

D) Service Law - Interim Orders - Remand - The High Court's direction that the appellant was at liberty to adduce evidence before the Labour Court indicated that the findings on wilful absence were not final. The Supreme Court allowed the appeals and remanded the matter to the High Court for fresh adjudication on the second dismissal order, as the High Court had not made conclusive findings on the merits of the charges (Paras 21, 24).

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Issue of Consideration

Whether the High Court was justified in quashing the dismissal orders dated 3rd January 2003 and 25th October 2013 and remanding the matter to the Labour Court with directions, and whether the findings recorded by the High Court on the merits of the charges were final or tentative.

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Final Decision

The Supreme Court allowed the appeals in part. The impugned judgment was set aside to the extent it quashed the second order of dismissal dated 25th October 2013. The matter was remanded to the High Court for fresh adjudication on the second dismissal order. The appeals regarding the first dismissal order were dismissed as the High Court's findings were tentative and the matter was pending before the Labour Court.

Law Points

  • Service law
  • disciplinary proceedings
  • wilful absence
  • embezzlement
  • opportunity of hearing
  • Labour Court jurisdiction
  • interim orders
  • remand
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Case Details

2019 LawText (SC) (7) 108

Civil Appeal No(s). 5919-5920 of 2019 (Arising out of SLP (C) No(s). 15954-55 of 2019) with SLP (C) No. 6342 of 2017

2019-07-29

Sanjiv Khanna, J.

Rajasthan Housing Board

Roshan Lal Saini and Others

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Nature of Litigation

Civil appeals against High Court judgment quashing two dismissal orders and remanding to Labour Court.

Remedy Sought

Appellant (Rajasthan Housing Board) sought setting aside of the High Court's judgment and restoration of the dismissal orders.

Filing Reason

The High Court quashed the dismissal orders dated 3rd January 2003 and 25th October 2013, and remanded the matter to the Labour Court with directions.

Previous Decisions

The Labour Court had upheld the first dismissal order dated 3rd January 2003. The High Court quashed both dismissal orders and remanded to Labour Court.

Issues

Whether the High Court's findings on the first dismissal order for wilful absence were final or tentative. Whether the High Court was justified in quashing the second dismissal order for embezzlement without conclusive findings. Whether the matter should be remanded for fresh adjudication on the second dismissal order.

Submissions/Arguments

Appellant argued that the High Court erred in quashing the dismissal orders and that the findings were final. Respondent argued that the dismissal orders were illegal and that the High Court correctly quashed them.

Ratio Decidendi

The High Court's findings on the first dismissal order for wilful absence were tentative and prima facie, not final, as the appellant was given liberty to adduce evidence before the Labour Court. Regarding the second dismissal order, the Division Bench did not make conclusive findings on the merits, and thus the matter required fresh adjudication.

Judgment Excerpts

Findings as recorded in the impugned order would be treated as tentative and prima facie and not final or conclusive, for otherwise there was no reason and ground for the learned Division Bench to affirm the direction that the appellant was at liberty to adduce evidence before the Labour Court. The Division Bench referring to the second order of dismissal dated 25th October, 2013 observed that the same could not have been passed and at best findings could be recorded on the charges that were not subject matter of the departmental inquiry in the first proceedings, as criminal cases were pending against the first respondent.

Procedural History

The first respondent was suspended on 17th August 2002. First charge sheet served on 10th October 2002 for embezzlement; second charge sheet on 23rd November 2002 for wilful absence. Ex parte dismissal order dated 3rd January 2003 under Rule 86(3) for wilful absence. Departmental appeals dismissed. Writ petition not entertained on ground of alternative remedy before Labour Court. Labour Court rejected stay application on 29th May 2013. Meanwhile, disciplinary proceedings on first charge sheet recommenced and dismissal order dated 25th October 2013 passed. Writ Petition No. 9480 of 2013 challenged interim order; later amended to challenge second dismissal order. Single Judge quashed both dismissal orders on 23rd May 2014. Division Bench upheld on 18th May 2015. Labour Court upheld first dismissal order on 5th November 2015. First respondent filed Writ Petition No. 5205 of 2016 against Labour Court order, pending. Present appeals by Rajasthan Housing Board.

Acts & Sections

  • Rajasthan Service Rules: Rule 86(3)
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Supreme Court Supreme Court Allows Rajasthan Housing Board's Appeal in Service Matter — Remands for Fresh Adjudication on Second Dismissal Order. The High Court's findings on the first dismissal order for wilful absence were held to be tentative, not final.
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