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B.Sunkanna, S/O B.Obalesappa, vs The Chairman Managing Director,
2024 Latest Caselaw 8980 AP

Citation : 2024 Latest Caselaw 8980 AP
Judgement Date : 27 September, 2024

Andhra Pradesh High Court - Amravati

B.Sunkanna, S/O B.Obalesappa, vs The Chairman Managing Director, on 27 September, 2024

APHC010621022004

                   IN THE HIGH COURT OF ANDHRA PRADESH
                                 AT AMARAVATI             [3457]
                          (Special Original Jurisdiction)

      FRIDAY ,THE TWENTY SEVENTH DAY OF SEPTEMBER
              TWO THOUSAND AND TWENTY FOUR
                               PRESENT
            THE HONOURABLE SRI JUSTICE HARINATH.N
                      WRIT PETITION NO: 2065/2004
Between:
B.Sunkanna, S/o B.obalesappa,                        ...PETITIONER
                                 AND
The Chairman Managing Director                      ...RESPONDENT
Counsel for the Petitioner:
   1. Sri. V.Mallik
Counsel for the Respondent:
   1. Sri. V.B.Subrahmanyam
The Court made the following :
                                       //2//

                                                                WP.No.2065 of 2004




             THE HON'BLE SRI JUSTICE HARINATH. N

                   WRIT PETITION No.2065 of 2004
ORDER:

The petitioner is challenging the order of dismissal dated

29.12.2003 and seeks a consequential direction to reinstate the

petitioner into service together with all consequential benefits.

2. The petitioner started his carrier at the respondent in the year

1992 and was working as a Junior Officer. He also worked as PS

to the Chairman and Managing Director of the

respondent/company during the years 1993 to 2001. Enquiry was

initiated on the acts of omission and commission while discharging

his role as PS to Chairman and Managing Director. The specific

allegations related to the conduct of petitioner affairs at the

Guesthouse for the period 1998-2001.

3. An enquiry was conducted against four officers including the

petitioner who was working as Junior Officer-Guesthouse. The

petitioner was charged with the allegation of embezzlement of

company amount. As such he was placed under suspension since

14.07.2001. A charge memo was issued on 11.04.2002. All the

four employees were charged off falsification of accounts and

failure to account properly for the events that took place in the //3//

Guesthouse etc., After, a detailed enquiry, the enquiry officer

submitted his report and two of the charged officers were

exonerated and two officers including the petitioner were found to

be guilty.

4. It is stated that, the petitioner as incharge of the Guesthouse was

coordinating for arranging special lunches, special dinners,

breakfast to official guest etc., It is stated that all the said

arrangements were done on oral instructions of the Chairman and

Managing Director of the respondent. As such, the petitioner

cannot be held accountable for acting on oral instructions and

incurring expenditure in arranging the required lunch, dinner etc.,

for the guests. It is also submitted that an officer in cadre of the

Chairman and Managing Director cannot be expected to issue

written instructions for arranging the lunch, dinner etc., for the

guests.

5. It is submitted that the Vigilance Officer investigated the issue and

he played the role of a prosecutor in entire issue. It is submitted

that no irregularity was committed as the petitioner simply followed

the practice which was in vogue for the last 35 years. The

petitioner also filed a writ petitions 10368 of 2003 and 10369 of

2003 challenging the order of suspension and the enquiry. The //4//

writ petitions were dismissed and this Court declined to interfere in

the disciplinary proceedings. The petitioner claims that the order

of dismissal is issued by an authority who is delegated the power

to act on the enquiry report. It is also stated that the Board of

Directors cannot authorize the third party to exercise powers of

imposing punishment.

6. The learned counsel for the petitioner places reliance on the

following judgments Steel Authority of India Vs. Presiding

Officer1, the Hon'ble Supreme Court of India has decided the

issue whether the authority who framed charges and constituted

the enquiry committee had the power to do so and decided the

issue by considering the discipline and appeal rules duly approved

by the Board of Directors. Sanni Silk Mills Pvt Ltd., Vs.

Employees State Insurance Corporation2, Director General,

ESI Corporation Vs. T.Abdul Razak3, in both the said cases the

Hon'ble Supreme Court of India held that sub delegation of power

was held to be improper. It was held that when the regulations

empowered a particular officer to exercise the said power, he

could not have delegated the said power to another officer. Coal

1980 (3) SCC 734

1994(5) SCC 346

1996 (4) SCC 708 //5//

India Ltd., Vs. Anantha Saha4, the Hon'ble Supreme Court dealt

with the issue relating to initiation of disciplinary proceedings and

imposition of major penalties ought to be strictly in accordance

with the rules governing the Code of Conduct of the Employees.

7. The learned counsel for the petitioner also places reliance on

Hindustan Shipyard Officers Conduct, Discipline and Appeal

Rules. Reliance is placed on Rule 3 (c) (d) (e) and (f). Rule 3(c)

defines the board as the Board of Directors of the Company and

includes, in relation to the exercise of powers, any committee of

the board/management or any officer of the undertaking to whom

the board delegates any of its powers. Rule 3(d) defines Chairman

and Managing Director. Rule 3(e) defines disciplinary authority

and Rule 3(f) defines a competent authority. The learned counsel

for the petitioner relies on Rule 25 which defines the disciplinary

authority as specified in the schedule or any authority higher than

it may impose any of the penalties specified in Rule 25 on any

officer. Rule 27 (2), the procedure for imposing major penalties is

laid down. Major penalties are imposed under regulation 25 (e),(f)

and (g).

2011 (5) SCC 142 //6//

8. The learned counsel submits that impugned order passed by the

disciplinary authority dated 29.12.2003 is not passed by the

competent authority as per the schedule to the conduct, discipline

and appeal rules, it is the Chairman and Managing Director who is

the disciplinary authority and when there is no delegation of power

prescribed. Any such punishment imposed in contravention of said

regulation ought to be set aside by holding it as illogical and

contrary to the Conduct and Disciplinary Rules.

9. The learned counsel for the respondent submits that there is no

infirmity in the order passed by the disciplinary authority and the

disciplinary authority was authorized at its 307th meeting, dated

27.03.2002 to function as disciplinary authority. The Director

(Technical) was delegated with such powers to enquire into the

allegations and to impose the punishment by the Board of

Directors. The intention of the Board of Directors is to disassociate

the office of the Chairman and Managing Director from the issue,

as the petitioner was facing charges while he was discharging his

duty as PA to the Chairman and Managing Director.

10. It is submitted that the power vested in the Board of Directors

cannot be challenged. The Board has all the authority to delegate

powers on any officer deemed appropriate to function as //7//

disciplinary authority. A proper enquiry was conducted. A fair

opportunity was granted to the petitioner, all the relevant

documents such as charge sheets, statements, documents, list of

documents were furnished to the petitioner. The petitioner had

ample opportunity to submit his defence. The attempt of the

petitioner to point lapses in the procedure of enquiry are not

substantiated. It is submitted that the petitioner repaid an amount

of Rs.31,841/- in September, 2001 towards misuse of the official

telephone for his personal purposes. The learned counsel for the

respondents submits that there was no irregularity in either

issuance of the charge sheet, investigation, enquiry and

punishment imposed by the disciplinary authority.

11. Considering the submissions of the learned counsel for the

parties, it is trite to refer to the law laid down by the Hon'ble

Supreme Court in Central Council for Research in Ayurvedic

Sciences and another Vs. Bikartan and others5, wherein it was

held that two cardinal principles of law governing exercise of

extraordinary jurisdiction under Article 226 of the Constitution

more particularly when it comes to issue of writ of certiorari.

50. The first cardinal principle of law that governs the exercise of extraordinary jurisdiction under Article 226 of the Constitution, more particularly when it comes to the 5 [2023] 11 S.C.R 731 //8//

issue of a writ of certiorari is that in granting such a writ, the High Court does not exercise the powers of Appellate Tribunal. It does not review or reweigh the evidence upon which the determination of the inferior tribunal purports to be based. It demolishes the order which it considers to be without jurisdiction or palpably erroneous but does not substitute its own views for those of the inferior tribunal. The writ of certiorari can be issued if an error of law is apparent on the face of the record. A writ of certiorari, being a high prerogative writ, should not be issued on mere asking.

51. The second cardinal principle of exercise of extraordinary jurisdiction under Article 226 of the Constitution is that in a given case, even if some action or order challenged in the writ petition is found to be illegal and invalid, the High Court while exercising its extraordinary jurisdiction thereunder can refuse to upset it with a view to doing substantial justice between the parties. Article 226 of the Constitution grants an extraordinary remedy, which is essentially discretionary, although founded on legal injury. It is perfectly open for the writ court, exercising this flexible power to pass such orders as public interest dictates & equity projects. The legal formulations cannot be enforced divorced from the realities of the fact situation of the case. While administering law, it is to be tempered with equity and if the equitable situation demands after setting right the legal formulations, not to take it to the logical end, the High Court would be failing in its duty if it does not notice equitable consideration and mould the final order in exercise of its extraordinary jurisdiction. Any other approach would render the High Court a normal court of appeal which it is not.

64. Thus, from the various decisions referred to above, we have no hesitation in reaching to the conclusion that a writ of certiorari is a high prerogative writ and should not be issued on mere asking. For the issue of a writ of certiorari, the party concerned has to make out a definite case for the same and is not a matter of course. To put it pithily, certiorari shall issue to correct errors of jurisdiction, that is to say, absence, excess or failure to exercise and also when in the exercise of undoubted jurisdiction, there has been illegality. It shall also issue to //9//

correct an error in the decision or determination itself, if it is an error manifest on the face of the proceedings. By its exercise, only a patent error can be corrected but not also a wrong decision. It should be well remembered at the cost of repetition that certiorari is not appellate but only supervisory.

12. It is no doubt well established law that this Court can exercise its

jurisdiction of judicial review if the petitioner is able to place the

case of the petitioner within the exceptions carved out by the

established law and the various decisions of the Hon'ble Supreme

Court of India.

13. On the facts on hand in the present case, the petitioner could not

place his case for judicial review by this Court on the punishment

imposed by the disciplinary authority.

14. In so far as the technicality regarding the competent authority for

imposing the major punishment as prescribed under Rule 25 (g) is

concerned, as per the schedule to the Hindustan Shipyard

Officers Conduct, Discipline and Appeal Rules, the Chairman and

Managing Director is the disciplinary authority. The Chairman and

Managing Director is also the appellate authority, the Board of

Directors is the reviewing authority. The punishment imposed by

the disciplinary authority is of the cadre of director. The board has

taken a decision to detach the Chairman and Managing Director

from the issue, as the enquiry was relating to the misappropriation //10//

of funds by the Personal Assistant to the Chairman and Managing

Director. The board has delegated the power of a disciplinary

authority on the Director (Technical) to perform the role of

disciplinary authority and Rule 3(f), which defines the competent

authority as the authority empowered by Board of Directors by any

general or special rule or order to discharge the function or use

the powers specified in the rule or order.

15. The Director (Technical) was conferred with the power of the

disciplinary authority. In the considered opinion of this Court the

decision of the Board of Directors cannot be questioned more so

when the issue dealt with the office of the Chairman and

Managing Director. The delegation of power by the Board on a

Director to discharge the role and responsibility of a disciplinary

authority cannot be questioned as it was done in the wake of

requirement of the nature of enquiry and keeping in consideration

the involvement of the office of Chairman and Managing Director.

16. The Board of Directors is the reviewing authority as per the

schedule to the Hindustan Shipyard Officers Conduct, Discipline

and Appeal Rules. As such he is the next higherarcy to that of the

Chairman and Managing Director. As such this Court finds no

infirmity in the proceedings issued by the Board appointing the //11//

director (Technical) as disciplinary authority for conducting the

enquiry and passing the required orders.

17. In the result, the writ petition is dismissed, without costs.

18. Pending miscellaneous petitions, if any, shall stands closed.

____________________ JUSTICE HARINATH.N

Dated 27.09.2024 KGM //12//

THE HON'BLE SRI JUSTICE HARINATH. N

Dated 27.09.2024

KGM

 
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