High Court of Karnataka Quashes Suspension Order for Non-Compliance with Mandatory Periodic Review Under Rule 98 of Karnataka Civil Services Rules. Suspension of Legislative Assembly Secretary Set Aside Due to Failure of Disciplinary Authority to Review Suspension at Prescribed Intervals and Prolonged Suspension Without Completing Inquiry, Directing Reinstatement with Backwages.

High Court: Karnataka High Court Bench: BENGALURU In Favour of Accused
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Case Note & Summary

The writ petition under Article 226 of the Constitution was filed by a Secretary of the Karnataka Legislative Assembly Secretariat challenging his suspension order dated 27.12.2018. The suspension was imposed under the Karnataka Legislative Assembly Secretariat (Recruitment and Conditions of Services) Rules, 2003 read with the Karnataka Civil Services (Classification, Control and Appeal) Rules, 1957, on allegations of financial irregularities during the 2016-17 Winter Session at Belagavi. Following a discreet inquiry prompted by the then Speaker, a five-member team found alleged financial irregularities, leading to the suspension. The petitioner sought quashing of the suspension and reinstatement, along with an interim prayer that was initially rejected. A writ appeal against that rejection was dismissed with liberty to file a fresh petition if the suspension was prolonged without inquiry. Meanwhile, articles of charge were issued on 02.02.2019, but the petitioner contended that the authorities appointed an inquiring officer before receiving his explanation, in violation of Rule 11(5)(b) of the CCA Rules, and that the suspension was never reviewed as required under Rule 98 of the Karnataka Civil Services Rules and DPAR circulars. The petitioner also complained of non-payment of subsistence allowance after September 2019. The respondent authorities argued that the petitioner had not cooperated in the inquiry, remained absent on several dates, and that review of suspension was under process. They also cited administrative hurdles in paying subsistence allowance due to the seizure of the petitioner's bank account. The High Court held that the undisputed fact that the suspension was never reviewed at intervals of 3, 6, or 9 months as mandated by Rule 98 of the KCSR and DPAR circulars rendered the continued suspension illegal. The court noted that even though a charge-sheet was issued, the inquiry was not completed within a reasonable time, and the decision in Ajay Kumar Choudhary v. Union of India supported the principle that prolonged suspension without review is impermissible. The court also observed the procedural irregularity in appointing the inquiring officer before the petitioner's reply to the charge-sheet. Consequently, the writ petition was allowed in part, the suspension order was set aside, and the respondents were directed to reinstate the petitioner within two weeks with all consequential benefits including backwages and subsistence allowance from October 2019, subject to the petitioner furnishing alternative bank account details. The court clarified that the respondents were at liberty to continue the disciplinary proceedings in accordance with law.

Headnote

A) Service Law - Suspension - Periodic Review of Suspension - Karnataka Civil Services Rules, 1957 - Rule 98; Karnataka Civil Services (Classification, Control and Appeal) Rules, 1957 - Rule 10(6); DPAR Circulars - The disciplinary authority is obliged to review the suspension order at intervals of 3, 6 and 9 months to examine the feasibility of its continuation and payment of subsistence allowance. Non-compliance with this mandatory requirement renders the suspension order liable to be set aside. Held, the respondents failed to carry out such review and thus the suspension order was quashed. (Paras 8-9)

B) Service Law - Suspension - Prolonged Suspension Without Inquiry - Legal Principle in Ajay Kumar Choudhary v. Union of India, CDJ 2015 SC 129 - A suspension should not be extended for an unreasonable period without serving a charge-sheet or completing the inquiry. Even where a charge-sheet has been issued, the inquiry must be concluded expeditiously. In the present case, despite initiating disciplinary proceedings, the inquiry was not completed and suspension was not reviewed, violating the principle. Held, the continued suspension is unjustified. (Paras 3, 8-9)

C) Service Law - Disciplinary Proceedings - Procedural Requirement Before Initiating Inquiry - Karnataka Civil Services (Classification, Control and Appeal) Rules, 1957 - Rule 11(5)(b) - Before appointing an inquiring authority, the disciplinary authority must call for the delinquent's explanation to the articles of charge and, if no reply is received, record reasons before proceeding. In the present case, the respondents appointed the inquiring officer before the expiry of the time granted to the petitioner to submit his explanation and without recording reasons, which is irregular. Held, the inquiry proceedings were vitiated by this procedural lapse. (Paras 2, 9)

D) Service Law - Subsistence Allowance - Payment During Suspension - Karnataka Civil Services Rules, 1957 - Rule 98 - Subsistence allowance must be paid to a suspended employee in accordance with the rules; failure to pay may affect the validity of the suspension. In the facts, payment was made up to September 2019 and the petitioner undertook to provide alternative bank account details for arrears. Held, the petitioner is entitled to arrears of subsistence allowance from October 2019 onwards, to be paid after he furnishes alternative bank details. (Paras 4-7, 9)

E) Constitutional Law - Writ Jurisdiction - Relief Against Suspension - Constitution of India - Article 226 - The High Court under Article 226 can quash an order of suspension and direct reinstatement with consequential benefits when the suspension has been prolonged without mandatory review and procedural compliance, without requiring the disciplinary proceedings to conclude. Held, the suspension order dated 27.12.2018 is set aside and the petitioner is to be reinstated with all consequential benefits including backwages and subsistence allowance. (Paras 10-11)

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Issue of Consideration

Whether the order of suspension dated 27.12.2018 is vitiated due to non-compliance with Rule 98 of the Karnataka Civil Services Rules and relevant DPAR circulars requiring periodic review, and whether the prolonged suspension without completion of inquiry or review justifies setting aside the suspension.

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Final Decision

The writ petition is allowed in part. The order of suspension dated 27.12.2018 (Annexure-A) is set aside. The official respondents are directed to reinstate the petitioner within two weeks from the date of receipt of a copy of this order, with all consequential benefits including backwages and subsistence allowance from October 2019 till the date of reinstatement, subject to the petitioner furnishing alternative bank account details. The respondents are at liberty to continue and conclude the disciplinary proceedings in accordance with law.

Law Points

  • suspension must be reviewed periodically as per Rule 98 of KCSR and DPAR circulars
  • prolonged suspension without review is impermissible
  • subsistence allowance must be paid during suspension
  • disciplinary authority must wait for explanation to articles of charge before appointing inquiring officer unless reasons recorded under Rule 11(5)(b) of CCA Rules
  • non-compliance with mandatory review provisions renders suspension order liable to be quashed
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Case Details

2020 LawText (KAR) (07) 23

Writ Petition No. 537/2019 (S-RES)

2020-07-02

Justice P.B. Bajanthri

For petitioner: Sri Pramod N. Kathavi and Smt. Ankitha G. Shelke; For respondents: Sri Prabhuling K Navadgi, Advocate General for Sri Ramesh Jois, AGA

Sri S. Murthy

1. The Special Board, Karnataka Legislative Assembly Secretariat; 2. The Hon'ble Speaker, Karnataka Legislative Assembly Secretariat; 3. The Karnataka Legislative Assembly Secretariat, represented by its In-charge Secretary

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Nature of Litigation

Writ petition under Article 226 of the Constitution challenging the order of suspension dated 27.12.2018 on grounds of non-compliance with mandatory review provisions and prolonged suspension without completing disciplinary inquiry.

Remedy Sought

Petitioner sought quashing of the suspension order dated 27.12.2018 and reinstatement with all consequential benefits including backwages and subsistence allowance.

Filing Reason

The petitioner was suspended on allegations of financial irregularities and the suspension was continued without any review as required under Rule 98 of Karnataka Civil Services Rules and DPAR circulars, and the disciplinary proceedings were not concluded in a reasonable time.

Previous Decisions

Interim relief was rejected on 26.03.2019. Writ Appeal No.1040/2019 against that rejection was dismissed on 19.12.2019 with liberty to file a fresh petition if the suspension was prolonged without inquiry. In the meantime, the petitioner filed W.P. No.11518/2019 challenging the charge-sheet, and on 04.09.2019 the court restrained the inquiring officer from passing any order.

Issues

Whether the suspension order is vitiated due to non-compliance with Rule 98 of Karnataka Civil Services Rules and DPAR circulars requiring periodic review at intervals of 3, 6 and 9 months? Whether the prolonged suspension without completion of the disciplinary inquiry is justified in law? Whether the non-payment of subsistence allowance after September 2019 affects the validity of the suspension?

Submissions/Arguments

Petitioner argued that the suspension was never reviewed as mandated by Rule 98 of KCSR and DPAR circulars, the authorities appointed the inquiring officer before waiting for his explanation in violation of Rule 11(5)(b) of CCA Rules, and that the prolonged suspension without completing the inquiry was arbitrary and unjustified. Petitioner further submitted that subsistence allowance was not paid regularly after September 2019 and that his absence on certain dates of inquiry was due to illness or non-receipt of documents. Respondents contended that the petitioner did not cooperate in the inquiry by remaining absent on multiple dates, that the review of suspension was under process, and that subsistence allowance was paid up to September 2019; thereafter, administrative hurdles arose due to the seizure of the petitioner's bank account. Respondents also argued that reinstatement was not warranted as the petitioner was likely to tamper with the investigation and that the disciplinary proceedings were initiated in accordance with law.

Ratio Decidendi

An order of suspension must be reviewed periodically as mandated by Rule 98 of the Karnataka Civil Services Rules and relevant DPAR circulars; failure to do so renders the continued suspension illegal and liable to be quashed. Prolonged suspension without completing the disciplinary inquiry or conducting mandatory review violates principles of natural justice and the ruling in Ajay Kumar Choudhary v. Union of India. The disciplinary authority must comply with the procedural requirement under Rule 11(5)(b) of the CCA Rules before appointing an inquiring authority. Regular payment of subsistence allowance is an essential incident of suspension.

Judgment Excerpts

the respondents have not adhered to Rule 98 of KCSR that Special Board/Disciplinary Authority is required to examine the feasibility of continuation of the petitioner under suspension beyond 6 months for both payment of subsistence allowance and continuation of suspension. the petitioner has made out a case. Accordingly, the writ petition is allowed in part. The order of suspension dated 27.12.2018 is set aside. Official respondents are hereby directed to reinstate the petitioner within two weeks from the date of receipt of this order.

Procedural History

The petitioner was placed under suspension on 27.12.2018. He filed the present writ petition seeking to quash the suspension order. On 26.03.2019, the interim prayer was rejected. The petitioner preferred Writ Appeal No.1040/2019 which was dismissed on 19.12.2019 with liberty to file a fresh petition if the suspension was prolonged. Meanwhile, articles of charge were issued on 02.02.2019 and an inquiring officer was appointed on 26.02.2019 before the petitioner submitted his explanation. The petitioner filed W.P. No.11518/2019 challenging the charge-sheet, and on 04.09.2019 the court restrained the inquiring officer from passing any order. The petitioner filed I.A.1/2020 in the present writ petition complaining of non-payment of subsistence allowance after September 2019. After hearing, the court reserved the matter on 25.06.2020 and pronounced the order on 02.07.2020, allowing the petition in part and quashing the suspension order.

Acts & Sections

  • Karnataka Legislative Assembly Secretariat (Recruitment and Conditions of Services) Rules, 2003: Rules 8 and 9(o) read with Schedule – II
  • Karnataka Civil Services (Classification, Control and Appeal) Rules, 1957: Rule 10, Rule 11(5)(b), Sub-rule 6 of Rule 10
  • Karnataka Civil Services Rules, 1957: Rule 98
  • Constitution of India: Article 226
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