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Gujarat High Court

R J Solanki vs State Of Gujarat & on 3 February, 2016

Author: Abhilasha Kumari

Bench: Abhilasha Kumari

                 C/SCA/11298/2000                                            JUDGMENT




                   IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                      SPECIAL CIVIL APPLICATION NO. 11298 of 2000


         FOR APPROVAL AND SIGNATURE:


         HONOURABLE SMT. JUSTICE ABHILASHA KUMARI
         ================================================================
         1    Whether Reporters of Local Papers may be allowed to
              see the judgment ?
         2    To be referred to the Reporter or not ?
         3    Whether their Lordships wish to see the fair copy of
              the judgment ?
         4    Whether this case involves a substantial question of
              law as to the interpretation of the Constitution of India
              or any order made thereunder ?
         ================================================================
                                 R J SOLANKI....Petitioner(s)
                                         Versus
                           STATE OF GUJARAT & 1....Respondent(s)
         ================================================================
         Appearance:
         MR AS SUPEHIA FOR MR IS SUPEHIA, ADVOCATE for Petitioner(s) No. 1
         MR JANAK RAVAL,ASST.GOVERNMENT PLEADER for Respondent No.1- 2
         ================================================================
                  CORAM: HONOURABLE SMT. JUSTICE ABHILASHA
                         KUMARI

                                     Date : 03/02/2016
                                     ORAL JUDGMENT

1. This   petition   under   Article­226   of   the  Constitution of India has been preferred,  inter­alia,  with a prayer to quash and set aside the order dated  26.09.2000, imposing a penalty of cut in the pension  of the petitioner of Rs.1,000/­ per month for a period  Page 1 of 12 HC-NIC Page 1 of 12 Created On Tue Feb 09 00:49:18 IST 2016 C/SCA/11298/2000 JUDGMENT of ten years, and to refund the amount deducted, with  12% interest.

2. Briefly stated, the relevant facts are that the  petitioner  was   working   as   Assistant   Commissioner   of  Sales   Tax   at   Junagadh.   He   retired   for   service   on  31.03.2000, upon attaining the age of superannuation.  A   charge­sheet   dated   09.02.1996   was   issued   to   the  petitioner  by  respondent  No.1,   for   the   purpose   of  holding a departmental inquiry against him in respect  of four articles of charge, as under:

"(A) M/s.Shrinathji Industries, Shahpur, District  Junagadh,   was   having   registration   numbers  under the State and Central Sales Tax Acts. 

By the letter dated 04.03.1995 the Assistant   Commissioner   of   Sales   Tax   had   informed   the   petitioner  to   cancel   the   registration  immediately.   However,   instead   of   cancelling  the   registration   immediately   the   same   was  cancelled on 15.07.1995.

(B) Similar   letter   dated   04.03.1995   was   issued  in respect of M/s.Umiya Industries, Vathali,   District   Junagadh,   but   the   same   was  cancelled   in   September   1995   instead   of  cancelling the same immediately. In respect  of   both   these   Industries,   a   loss   of  Rs.5,87,30,882/­ was caused to Government.

              (C)     Certain   forms   and   books   were   found   missing  



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                 C/SCA/11298/2000                                           JUDGMENT



between   the   period   from   17.05.1994   to  21.05.1994 due to ineffective inspection of  the records by the  petitioner  in the office  of sales tax officer Unit No.1, Junagadh. (D) Certain forms and Books and loose papers were   either   misplaced   or   found   missing   in   the   general   office   of   Sales   Tax,   the   inspection   whereof   was   done   between   27.07.1994   to   30.07.1994   by   the  petitioner,   which   happened  due to his ineffective inspection." 2.1 The petitioner filed a detailed written statement  of   defence   to   the   chargesheet.   By   a   memo   dated  11.09.1997,   the   chargesheet   was   amended   and   the  petitioner  was   called   upon   to   file   a   fresh   written  statement   of   defence,   which   he   did   on   01.12.1997.  Thereafter, an Inquiry Officer was appointed to hold  the   inquiry.   The   inquiry   was   held   against   the  petitioner and one Shri K.J.Pandya, who is not before  this   Court.   Insofar   as   the  petitioner  is   concerned,  charges   Nos.1   and   2   were   held   to   be   proved   against  him,   to   the   extent   that,   instead   of   cancelling   the  registration   immediately,   the  petitioner  had   taken  time   of   four   months.   As   regard   the   financial   loss  caused to the Government, it was stated that it is not  possible to state what loss was caused. In respect of  Page 3 of 12 HC-NIC Page 3 of 12 Created On Tue Feb 09 00:49:18 IST 2016 C/SCA/11298/2000 JUDGMENT charges Nos.3 and 4, it was found that necessary care  was   not   taken   by   the  petitioner  at   the   time   of  inspection.   In   the   conclusive   part   of   the   Inquiry  Report, a finding was recorded that the petitioner had  not   done   anything   intentionally,   either   for   his   own  personal   gain,   or   to   confer   gain   upon   any   other  person, and that there was no lack of devotion to duty  or integrity on the part of the petitioner. 2.2 The  respondent­State   Government   agreed   with   the  Inquiry Report and issued a letter dated 25.05.1999,  calling upon the petitioner to make his representation  against   the   same.   The  petitioner  submitted   his  representation   on   22.06.1999.   After   taking   into  consideration the representation of the petitioner and  after   consultation   with   the   Gujarat   Public   Service  Commission ("GPSC", for short), the State Government  passed the impugned order dated 26.09.2000, imposing  the   above­mentioned   penalty   upon   the  petitioner.  Aggrieved thereby, the petitioner has approached this  Court.

3. At   this   stage,   Mr.A.S.Supehia,  learned   advocate  for   Mr.I.S.Supehia,  learned   counsel  for   the  Page 4 of 12 HC-NIC Page 4 of 12 Created On Tue Feb 09 00:49:18 IST 2016 C/SCA/11298/2000 JUDGMENT petitioner,  has   laid   emphasis   only   on   one   aspect,  namely,   that   before   the   implementation   of   the  recommendation of the GPSC and passing the final order  of penalty against the petitioner, he was not granted  an opportunity of hearing, as the advise of the GPSC  was never communicated to him. It is only after the  final   order   had   been   passed   that   the   advise   of   the  GPSC was communicated to him, along with the order of  penalty.

3.1 Learned  counsel   for   the  petitioner  has   placed  reliance  upon   the  judgments   of   the   Supreme   Court   in  Union of India and others Vs. S.K.Kapoor,   reported in  (2011)   4   SCC   589,  S.N.Narula   Vs.   Union   of   India   and  others,  reported   in  (2011)   4   SCC   591  and  Union   of  India   and   others   Vs.  R.P.Singh, reported  in  (2014)   7  SCC   340,   in   support   of   his   submission   that   it   was   incumbent   upon   the  respondent­State   Government   to  forward a copy of the advise/recommendation of the GPSC   to   the   petitioner  and   afford   him   an   opportunity   of  hearing   in   respect   of   the   same,   before   passing   the  final order of penalty.

4. Mr.Janak   Raval,  learned   Assistant   Government  Page 5 of 12 HC-NIC Page 5 of 12 Created On Tue Feb 09 00:49:18 IST 2016 C/SCA/11298/2000 JUDGMENT Pleader has submitted, after taking instructions, that  the advise of the GPSC was forwarded to the petitioner  along with the impugned order dated 26.09.2000, after  the passing of the said order, on 27.09.2000.  

5. This   Court   has   heard   learned   counsel   for   the  respective parties, perused the averments made in the  petition and other documents on record. This Court has  also considered the judgments cited at the Bar.

6. In  S.N.Narula   Vs.   Union   of   India   and   others  (Supra),  the   Supreme   Court   has   taken   the   view   that  failure to communicate the report of the UPSC before  passing the final order would amount to a violation of  the principles of natural justice, as the delinquent  would   not   be   afforded   an   opportunity   to   make   an  effective representation on the quantum of punishment,  prior to the imposition thereof. The relevant extract  of the above judgment is reproduced hereinbelow :

"3. It   is   to   be   noticed   that   the   advisory   opinion   of   the   Union   Public   Service  Commission   was   not   communicated   to   the  appellant   before   he   was   heard   by   the  disciplinary   authority.   The   same   was  communicated   to   the   appellant   along   with  Page 6 of 12 HC-NIC Page 6 of 12 Created On Tue Feb 09 00:49:18 IST 2016 C/SCA/11298/2000 JUDGMENT final   order   passed   in   the   matter   by   the  disciplinary authority.
4. The   appellant   filed   OA   No.1154   of   2002  before   the   Central   Administrative   Tribunal,  New Delhi and the Tribunal held  that there  was   violation   of   the   principles   of   natural   justice   and   the   following   direction   was  issued :
"We are of the considered opinion that  this order is a non­speaking one and as  such we are of the view that the same  cannot   be     sustained   and   is   liable   to  be   quashed.   Accordingly,   we   quash   the  impugned order and remand the case back   to the disciplinary authority to pass a  detailed   reasoned   and   speaking   order  within   a   period   of   3   months   from   the   date of receipt of a copy of this order   in accordance with instructions and law  on the subject."

5. This   order   was   challenged   by   the   Union   of  India   by   way   of   writ   petition   before   the  High   Court   of   Delhi   and   by   the   impugned  judgment the High Court interfered with that   order. The writ petition was partly  allowed   and it was directed that the matter be again   considered   by   the   Tribunal.   Against   that  order the appellant has come up in appeal by   way of special leave petition.

6. We   heard   the   learned   counsel   for   the  appellant   and   the   learned   counsel   for   the  Page 7 of 12 HC-NIC Page 7 of 12 Created On Tue Feb 09 00:49:18 IST 2016 C/SCA/11298/2000 JUDGMENT respondent.   It   is   submitted   by   the   counsel   for   the   appellant   that   the   report   of   the  Union   Public   Service   Commission   was   not  communicated   to   the   appellant   before   the  final   order   was   passed.   Therefore,   the  appellant   was   unable   to   make   an   effective  representation   before   the   disciplinary  authority as regards the punishment imposed.

7. We find that the stand taken by the Central  Administrative Tribunal was correct and the  High Court was not justified in interfering  with the order. Therefore, we set aside the  judgment of the Division Bench of the High  Court   and   direct   that   the   disciplinary  proceedings against the appellant be finally  disposed of in accordance with the direction   given   by   the   Tribunal   in   para   6   of   the   order.   The   appellant   may   submit   a  representation   within   two   weeks   to   the  disciplinary authority and we make it clear  that the matter shall be finally disposed of   by   the   disciplinary   authority   within   a  period of 3 months thereafter."

7. In  Union   of   India   and   others   Vs.   S.K.Kapoor  (Supra),  the  same   principle   is   reiterated,   in   the  following terms :

"5. It is a settled principle of natural justice   that if any material is to be relied upon in  departmental proceedings, a copy of the same   Page 8 of 12 HC-NIC Page 8 of 12 Created On Tue Feb 09 00:49:18 IST 2016 C/SCA/11298/2000 JUDGMENT must be  supplied in  advance to the charge­ sheeted   employee   so   that   he   may   have   a   chance to rebut the same.
6. Mr.Qadri, learned counsel for the appellant  submitted that the copy of the report of the   Union Public Service Commission was supplied   to   the  respondent  employee   along   with   the  dismissal   order.   He   submitted   that   this   is   valid in view of the decision of this Court  in   Union   of   India   v.   T.V.Patel.   We   do   not  agree.
7. In   the   aforesaid   decision,   it   has   been  observed in para 25 that "the provisions of   Article   320(3)(c)   of   the   Constitution   of  India   are   not   mandatory".   We   are   of   the  opinion   that   although   Article   320(3)(c)   is  not mandatory, if the authorities do consult   the Union Public Service Commission and rely   on the report of  the Commission  for taking  disciplinary action, then the principles of  natural justice require that  a copy of the  report   must   be   supplied   in   advance   to   the  employee   concerned   so   that   he   may   have   an  opportunity of rebuttal. Thus, in our view,  the aforesaid decision in T.V. Patel case is  clearly distinguishable.
8. There may be a case where the report of the  Union Public Service Commission is not relied  upon   by   the   disciplinary   authority   and   in  that   case   it   is   certainly   not   necessary   to  supply   a   copy   of   the   same   to   the   employee  Page 9 of 12 HC-NIC Page 9 of 12 Created On Tue Feb 09 00:49:18 IST 2016 C/SCA/11298/2000 JUDGMENT concerned.   However,   if   it   is   relied   upon,  then a copy of the same must be supplied in  advance to the employee concerned, otherwise,  there will be violation of the principles of  natural justice. This is also the view taken  by   this   Court   in   S.N.Narula   v.   Union   of  India."

8. In   the   later   judgment   in   the   case   of  Union   of  India   and   others   Vs.  R.P.Singh   (Supra),   the   Supreme  S.N.Narula  Court, after referring to the judgments in   Vs. Union  of India  and others  and  Union  of India  and  others Vs. S.K.Kapoor, has stated thus :      

 

"12. We will be failing in our duty if we do not  take note of the submission of Mr.W.A.Qadri that   the   decision   in   S.N.Narula   case   is   not   an  authority because the Tribunal had set aside the   order of the disciplinary authority on the ground   that it was a non­speaking order. Be that as it  may, when the issue was raised before this Court  and there has been an advertence to the same, we  are unable to accept the submission of Mr.Qadri.   The   said   decision   in   S.N.Narula   case   is   an  authority for the proposition that the advice of   UPSC,   if   sought   and   accepted,   the   same,   regard  being had to the principles of natural justice,  is   to   be   communicated   before   imposition   of   punishment."
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9. Considering   the   principles   of   law   enunciated   by  the Supreme Court in the above judgments, it is very  clear that it is now an established proposition of law  that if the advise of the Public Service Commission of  the Union, or State, is sought and accepted, it has to  be communicated to the concerned employee  before  the  imposition of the recommended punishment in order to  enable   the   delinquent   employee   to   effectively  represent against the penalty proposed. Failure to do  so would amount to a violation of the principles of  natural justice.

10. The above three judgments are squarely applicable  to the facts of the present case, as it is an accepted  position   that   the   advise/recommendation   of   the   GPSC  was   not   communicated   to   the  petitioner   before   the  order dated 26.09.2000, imposing penalty, was passed.  It   was   communicated   only   thereafter,   on   27.09.2000.  Under the circumstances, the impugned order of penalty  cannot stand the scrutiny of law. Hence, it deserves  to be quashed and set aside.

11. Accordingly, the impugned order dated 26.09.2000,  Page 11 of 12 HC-NIC Page 11 of 12 Created On Tue Feb 09 00:49:18 IST 2016 C/SCA/11298/2000 JUDGMENT passed by respondent No.1, imposing the penalty of a  monthly   cut   of   Rs.1,000/­   from   the   pension   of   the  petitioner   for   a   period   of   ten   years,   is   hereby  quashed and set aside.

12. The   matter   is   remanded   to   respondent   No.1   to  formally communicate the recommendation of the GPSC to  the   petitioner  and   thereafter,   grant   him   a  full  and  adequate   opportunity   of   hearing   before   passing   any  final order.

13. It is made clear that this Court has dealt with  this   aspect   of   the   matter   only   and   all   other   legal  contentions available to the petitioner are left open.

14. The petition is allowed, to the aforesaid extent.  Rule is made absolute, accordingly. 

(SMT. ABHILASHA KUMARI, J.) Gaurav+ Page 12 of 12 HC-NIC Page 12 of 12 Created On Tue Feb 09 00:49:18 IST 2016