Bombay High Court Allows Writ Petition Challenging Termination of Government Servant in Small Savings Department — Procedural Violation of Natural Justice and Non-Application of Mind by Appellate Authority. Termination Order Set Aside as Disciplinary Authority Failed to Consider Petitioner's Reply and Appellate Authority Did Not Pass a Speaking Order.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Accused
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Case Note & Summary

The petitioner, Ashok Ramakant Choudhari, was initially appointed in the year 1992 in the Small Savings Department of the Government of Maharashtra. One Smt. Kalabai Kalu Choudhari lodged a complaint against the petitioner, alleging that she had paid certain amounts to the petitioner for investment in small savings schemes, but the petitioner did not deposit the amounts and misappropriated the same. Based on this complaint, a departmental inquiry was initiated against the petitioner. The Inquiry Officer submitted a report holding the charges proved. The disciplinary authority, Respondent No. 3, issued a show cause notice to the petitioner along with the inquiry report, calling upon him to show cause why he should not be dismissed from service. The petitioner submitted his reply to the show cause notice. However, the disciplinary authority, without considering the reply, passed an order dated 23.03.2009 dismissing the petitioner from service. The petitioner filed an appeal before Respondent No. 2, the Commissioner, Small Savings and State Lottery. The appellate authority dismissed the appeal by a cryptic order dated 11.11.2008, which did not discuss the grounds raised by the petitioner or show any application of mind. The petitioner then approached the Maharashtra Administrative Tribunal by filing A.O. No. 864/2009, which was dismissed on 21.04.2010. Hence, the petitioner filed the present writ petition before the High Court. The main legal issues were whether the termination order was sustainable when the disciplinary authority did not consider the petitioner's reply, and whether the appellate order was valid when it was a non-speaking order. The petitioner argued that the disciplinary authority had not considered his reply, violating principles of natural justice, and that the appellate authority had not passed a reasoned order. The respondents argued that the inquiry was conducted properly and the orders were justified. The court analyzed the records and found that the disciplinary authority had indeed not considered the petitioner's reply, as the order did not mention the reply or give any reasons for rejecting it. The court also found that the appellate order was cryptic and did not discuss the grounds of appeal or show application of mind. The court held that both orders were unsustainable. The court allowed the writ petition, set aside the orders of the disciplinary authority, appellate authority, and the Tribunal, and directed the respondents to reinstate the petitioner with continuity of service but without back wages for the period of absence, as the petitioner had not worked during that period.

Headnote

A) Service Law - Disciplinary Proceedings - Natural Justice - Termination Order - Petitioner was a government servant in Small Savings Department - Disciplinary authority passed termination order without considering petitioner's reply to show cause notice - Held that failure to consider reply violates principles of natural justice (Paras 3-4).

B) Service Law - Appellate Authority - Speaking Order - Appellate authority dismissed appeal by a cryptic order without discussing grounds or evidence - Held that appellate authority must pass a reasoned order showing application of mind (Paras 5-6).

C) Service Law - Reinstatement - Consequential Benefits - Termination set aside due to procedural defects - Petitioner directed to be reinstated with continuity of service but without back wages for the period of absence - Held that back wages not justified as petitioner did not work during that period (Para 7).

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Issue of Consideration

Whether the termination order and the appellate order passed against the petitioner are sustainable in law when the disciplinary authority did not consider the petitioner's reply and the appellate authority passed a non-speaking order without application of mind.

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Final Decision

The writ petition is allowed. The orders dated 23.03.2009 passed by Respondent No. 3, dated 11.11.2008 passed by Respondent No. 2, and the order dated 21.04.2010 passed by the Maharashtra Administrative Tribunal in A.O. No. 864/2009 are quashed and set aside. The respondents are directed to reinstate the petitioner in service with continuity of service but without back wages for the period of absence. The petitioner is entitled to all consequential benefits except back wages.

Law Points

  • Natural Justice
  • Speaking Order
  • Disciplinary Proceedings
  • Appellate Authority
  • Non-Application of Mind
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Case Details

2018 LawText (BOM) (04) 8

Writ Petition No. 313 of 2011

2018-04-12

T. V. Nalawade, K. L. Wadane

Mr. R. S. Deshmukh for Petitioner, Mrs. D. S. Jape, AGP for State

Ashok Ramakant Choudhari

State of Maharashtra through Principal Secretary, Department of Finance; Commissioner, Small Savings and State Lottery; Secretary, Small Savings and State Lottery Finance Department

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India challenging orders of termination and appellate dismissal passed by disciplinary and appellate authorities, and the order of the Maharashtra Administrative Tribunal.

Remedy Sought

Petitioner sought quashing of the termination order dated 23.03.2009, the appellate order dated 11.11.2008, and the Tribunal order dated 21.04.2010, and sought reinstatement with consequential benefits.

Filing Reason

Petitioner was dismissed from service without consideration of his reply to show cause notice and the appellate authority passed a non-speaking order.

Previous Decisions

The disciplinary authority (Respondent No. 3) passed termination order on 23.03.2009; the appellate authority (Respondent No. 2) dismissed appeal on 11.11.2008; the Maharashtra Administrative Tribunal dismissed the appeal (A.O. No. 864/2009) on 21.04.2010.

Issues

Whether the termination order passed by the disciplinary authority is sustainable when the petitioner's reply to the show cause notice was not considered? Whether the appellate order passed by Respondent No. 2 is sustainable when it is a non-speaking order without application of mind?

Submissions/Arguments

Petitioner argued that the disciplinary authority did not consider his reply to the show cause notice, violating principles of natural justice. Petitioner argued that the appellate authority passed a cryptic order without discussing grounds or evidence, showing non-application of mind. Respondents argued that the inquiry was conducted properly and the orders were justified.

Ratio Decidendi

A disciplinary authority must consider the employee's reply to a show cause notice before passing a final order; failure to do so violates principles of natural justice. An appellate authority must pass a reasoned order showing application of mind to the grounds of appeal; a cryptic order without discussion is unsustainable.

Judgment Excerpts

The disciplinary authority has not considered the reply of the petitioner and has passed the order of dismissal. This is a clear violation of principles of natural justice. The appellate authority has not discussed the grounds raised by the petitioner and has not given any reasons for dismissing the appeal. The order is cryptic and shows non-application of mind.

Procedural History

The petitioner was appointed in 1992 in Small Savings Department. A complaint was lodged by Smt. Kalabai Kalu Choudhari. Departmental inquiry was initiated, and the Inquiry Officer submitted a report holding charges proved. Disciplinary authority issued show cause notice; petitioner submitted reply. Disciplinary authority passed termination order on 23.03.2009 without considering reply. Petitioner appealed to Respondent No. 2, who dismissed appeal on 11.11.2008 by a cryptic order. Petitioner then filed appeal before Maharashtra Administrative Tribunal (A.O. No. 864/2009), which was dismissed on 21.04.2010. Petitioner filed writ petition before High Court on 12.04.2018.

Acts & Sections

  • Constitution of India: Article 226
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