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N Rajaseharaiah vs Food Corporation Of India
2024 Latest Caselaw 19695 Kant

Citation : 2024 Latest Caselaw 19695 Kant
Judgement Date : 6 August, 2024

Karnataka High Court

N Rajaseharaiah vs Food Corporation Of India on 6 August, 2024

                                         -1-
                                                       NC: 2024:KHC:31368
                                                     WP No. 44738 of 2012




                 IN THE HIGH COURT OF KARNATAKA AT BENGALURU

                    DATED THIS THE 6TH DAY OF AUGUST, 2024

                                      BEFORE
                       THE HON'BLE MR JUSTICE R. NATARAJ
                    WRIT PETITION NO. 44738 OF 2012 (S-RES)
            BETWEEN:

            N. RAJASEKHARAIAH
            S/O NANJAPPA,
            AGED ABOUT 62 YEARS,
            C/O MANJUNATHASWAMY NILAYA,
            HOSAHALLI, GOLLARAPALYA,
            MAGADI MAIN ROAD,
            VISHWANEEDAM POST,
            BANGALORE-560091
                                                              ...PETITIONER
            (BY SMT. CHANDRAKALA G., ADVOCATE)

            AND:

            1.    FOOD CORPORATION OF INDIA
                  DISTRICT OFFICE, KRPG COMPLEX,
                  VIJINAPURA, BANGALORE-560016.
                  REPRESENTED BY ITS AREA MANAGER.

Digitally
            2.    FOOD CORPORATION OF INDIA,
signed by         REGIONAL OFFICE, NO.10,
SUMA
Location:
                  EAST END MAIN ROAD, 4TH T BLOCK,
HIGH              JAYANAGAR, BANGALORE-560041
COURT OF
KARNATAKA         REPRESENTED BY ITS GENERAL MANAGER (KAR)

            3.    FOOD CORPORATION OF INDIA,
                  ZONAL OFFICE, NO.3,
                  HADDOWS ROAD,
                  CHENNAI-600006.
                  REPRESENTED BY ITS
                  EXECUTIVE DIRECTOR (SOUTH)
                                                           ...RESPONDENTS
            (BY SRI. S. SRINIVASA MURTHY, ADVOCATE)
                                -2-
                                             NC: 2024:KHC:31368
                                         WP No. 44738 of 2012




     THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227
OF THE CONSTITUTION OF INDIA PRAYING TO SET ASIDE THE
ORDERS        PASSED    BY     THE     1ST   RESPONDENT      IN
NO.VIG.32[2]/MEDICAL/1/2010-11 DATED 31.12.2010 [ANNEXURE -
E] AND ETC.

     THIS PETITION, COMING ON FOR HEARING, THIS DAY, ORDER
WAS MADE THEREIN AS UNDER:

CORAM:    HON'BLE MR JUSTICE R. NATARAJ


                         ORAL ORDER

The petitioner has challenged an order dated 31.12.2010

passed by respondent No.1 imposing a penalty of censure for

recovery of Rs.1,24,396/- from the terminal benefits of the

petitioner. The petitioner is also aggrieved by the order dated

06.08.2011 passed by respondent No.2 by which, the appeal

filed by him was rejected. He is also aggrieved by the order

dated 26.07.2012 passed by respondent No.3 by which the

petition to review the orders passed by respondent Nos.1 and 2

was rejected.

2. The petitioner joined the services of respondent

No.1 - Corporation during the year 1976 and retired from

service with effect from 30.10.2010. The petitioner contends

that when he received his retirement benefits, he was surprised

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to note that a sum of Rs.1,24,396/- was recovered from it on

the ground that the petitioner had wrongly claimed

reimbursement of medical bills for himself and his spouse by

producing documents that were not valid. The petitioner

contends that he and his wife were diagnosed with diabetes

and hypertension since 01.12.2006 and he and his wife were

claiming reimbursement of medical expenses incurred by them.

The petitioner contended that on production of necessary

documents, respondent No.1 used to reimburse the medical

bills claimed by him. When things stood thus, the respondent

No.1 issued a Memorandum dated 16.07.2010 calling upon the

petitioner to show cause why action should not be initiated

against him on the ground that the "Prolonged Disease

Certificates" enclosed with the medical bills for the period from

08.09.2009 to 07.10.2009 for himself and from 08.09.2009 to

07.10.2009 for his wife, were not signed by the competent

HOD at Bowring and Lady Curzon Hospital, Bengaluru. The

petitioner replied to the said notice on 26.07.2010. However,

respondent No.1 not satisfied with the reply, issued a

Memorandum dated 30.10.2010 proposing to initiate

disciplinary proceeding against the petitioner under Regulation

NC: 2024:KHC:31368

60 of FCI Staff Regulation for contravening Articles 31, 32, 73

(2A). An Article of Charges was enclosed with it, which is

extracted below:

"ARTICLE I Shri. N.Rajasekaraiah, AG I [D], presently working at FSD, KRPG of FCI, District Office, Bangalore has failed to maintain absolute integrity and devotion to duty and has acted in a manner unbecoming of an employee of the Corporation in as much as he has submitted forty four Medical Bills for treatment undertaken as outpatient for himself and his dependents without any valid documents for personal gains.



     ARTICLE II
           The        aforesaid      four       bills    presented      by

Shri.N.Rajasekaraiah, AG I [D], found on further verification to be supported by prolonged illness certificate signed by a Medical Officer who is not the authorized HOD of Bowring and Lady Curzon Hospital, Bangalore as was subsequently ascertained on inquiry with the said Hospital and thus Shri.N.Rajasekaraiah, AG I [D], has deliberately misled the Corporation by producing the aforesaid invalid/dubious documents for his personal gains of Rs 1,24,396 [Rupees one lakh twenty four thousand three hundred and ninety six only] being the amount

NC: 2024:KHC:31368

paid to him towards his medical claims for the aforesaid four medical bills as per the details in the annexure."

3. The petitioner submitted his reply to the Article of

Charges on 12.11.2010. The respondent No.1, not satisfied by

the reply to the Article of Charges, passed an order dated

31.12.2010 "censuring" the petitioner and directed recovery of

Rs.1,24,396/-. The petitioner contends that the penalty

imposed upon him was without granting an opportunity to

establish his innocence and respondent No.1 had passed an

order, without following the due process and without complying

the principles of natural justice, in as much as documents that

were not furnished to the petitioner were relied on to hold that

the charges framed were proved. He contended that

respondent No.1 never insisted upon such OPD slips in the

previous years when the medical claims were reimbursed and

therefore, the petitioner was under the bonafide impression

that the documents furnished were sufficient. He contended

that the respondent No.1 after reimbursing the bills, had for the

first time, insisted upon OPD slips issued by the concerned

hospital for getting reimbursement of the medical claim. He

NC: 2024:KHC:31368

claimed that after the medical expenses were reimbursed, he

destroyed all the OPD slips and was in position to produce

them. Being aggrieved by the said order, the petitioner filed an

appeal before respondent No.2, who also rejected the appeal

on the ground that the contention raised by the petitioner was

not justified. Being aggrieved by the same, the petitioner filed

review petition before the reviewing authority, which too was

dismissed.

4. Being aggrieved by the same, the petitioner is

before this Court.

5. The learned counsel for the petitioner contended

that the petitioner and his wife were diagnosed with diabetes

and hypertension and were on treatment since 01.12.2006.

She contends that from the year 2006 till the year 2009, the

medical bills submitted by the petitioner for himself and his

wife were reimbursed from time to time. She submits that at no

point of time, respondent No.1 insisted upon the production of

certificate issued by HOD of the Bowring and Lady Curzon

Hospital. She submitted that after the bills submitted by the

petitioner were reimbursed, OPD slips were destroyed as they

NC: 2024:KHC:31368

were of no use. She submits that even on the previous

occasion, respondent No.1 never insisted for production of OPD

slips to claim reimbursement. She contends that respondent

No.1 without even conducting a semblance of enquiry

proceeded to pass order directing recovery of Rs.1,24,396/-

from the retirement benefit of the petitioner. She submits that

if an enquiry was conducted, the petitioner would have

established the standard practice followed for reimbursement of

medical bills, not only in his case but in the case of several

others who claimed medical reimbursement. She therefore,

submits that the impugned order of censure and recovery, is

improper and prays that the same be interfered with.

6. The respondents have filed the statement of

objections contending that the petitioner and his wife were

suffering from diabetes and hypertension and the petitioner

was claiming medical reimbursement for the expenses incurred

for himself and his dependant/wife from 01.12.2006 and from

18.10.2008 respectively. The petitioner had claimed

reimbursement of Rs.1,24,396/- by submitting 44 medical bills

and claimed that he and his wife were treated as outpatients at

Bowring and Lady Curzon Hospital from 08.09.2009 to

NC: 2024:KHC:31368

07.10.2009. However, the bills submitted by the petitioner

were found invalid and therefore, the respondent No.1 imposed

penalty of censure and recovery of the reimbursed amount.

The respondents contended that as per the Circular issued by

the Zonal Office of the respondents dated 31.05.2004, the

employees claiming medical reimbursements were required to

produce medical bills and a "prolonged disease certificate"

signed by the HOD of the hospital concerned on an official

letterhead along with OPD slips for sanctioning the

reimbursement. In the present case, it is contended that, the

respondent No.1 had sanctioned reimbursement of the medical

expenses incurred by the petitioner towards treatment of

diabetes and hypertension for himself and his wife. On

examination of the documents, the respondent No.1 found that

the claim was not supported by either OPD slips or a

"prolonged disease certificate" signed by the HOD of the

concerned hospital but had produced a "prolonged disease

certificate" issued by the doctor who treated them. In fact,

Bowring and Lady Curzon Hospital vide its letter dated

03.05.2010 had stated that Dr. S.T. Sridhar, who had certified

that the petitioner and his wife were suffering from the disease

NC: 2024:KHC:31368

and had prescribed medicines for the petitioner and his wife,

had refused to certify the signature found on the certificate

issued to the petitioner. It also stated that Dr. S.T. Sridhar was

not the HOD, who was competent to issue medical certificate

for prolonged diseases. The letter also indicated that the

prescription given on the letterhead of the hospital was not by

HOD in his official capacity. It was also confirmed that the

hospital had issued OPD slips for every consultation/treatment

undertaken. It is contended that after a show-cause notice was

issued, the petitioner submitted a reply, following which, Article

of Charges was issued on 30.10.2010. The petitioner

submitted his reply to the Article of Charges. During

investigation, the disciplinary authority of the respondents

found the claim of the petitioner to be dubious and therefore,

disciplinary action was taken and an order dated 31.12.2010

was passed to recover a sum of Rs.1,24,396/-. It is therefore,

contended that there is no error committed by the respondent

No.1 in imposing penalty and directing recovery from the

retired benefits of the petitioner.

7. The learned counsel for the respondents has filed

the detailed written arguments wherein it is contended that

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NC: 2024:KHC:31368

Food Corporation of India (Staff) Regulations, 1971 (henceforth

referred to as 'Regulations, 1971') prescribed procedure for

imposing minor penalties. He contended that there is

difference between procedure for imposing major penalty and

minor penalty. It is claimed that under Regulation 58,

procedure is prescribed for imposing major penalties, while

under Regulation 60, procedure is prescribed for imposing

minor penalties. It is contended that in the present case, the

punishment imposed upon the petitioner was a minor penalty of

censure and recovery and therefore, the disciplinary authority

proceeded under Regulation 60(1)(b). It is contended that the

respondents were not required to conduct regular enquiry as

contemplated under Regulation 58 in view of the discretion

vested in the disciplinary authority under Regulation 60(1)(b).

In support of his contention, he relied upon the judgment of the

Hon'ble Apex Court in the case of Food Corporation of India,

Hyderabad and others vs. A. Prahalada Rao and another

[(2001) 1 SCC 165], where it was held as follows:-

"In our view, on the basis of the allegation that Food Corporation of India is misusing its power of imposing minor penalties, the Regulation cannot be interpreted contrary to its language. Regulation

- 11 -

NC: 2024:KHC:31368

60(1)(b) mandates the disciplinary authority to form its opinion whether it is necessary to hold enquiry in a particular case or not. But that would not mean that in all cases where employee disputes his liability, a full-fledged enquiry should be held. Otherwise, the entire purpose of incorporating summary procedure for imposing minor penalties would be frustrated. If the discretion given under Regulation 60(1)(b) is misused or is exercised in arbitrary manner, it is open to the employee to challenge the same before the appropriate forum. It is for the disciplinary authority to decide whether regular departmental enquiry as contemplated under Regulation 58 for imposing major penalty should be followed or not. This discretion cannot be curtailed by interpretation which is contrary to the language used. Further, Regulation 60(2) itself provides that in a case if it is proposed to withhold increments of pay and such withholding of increments is likely to affect adversely the amount of retirement benefits payable to employee and in such other cases as mentioned therein, the disciplinary authority shall hold enquiry in the manner laid down in Regulation 58 before making any order imposing any such penalty. Hence, it is apparent that High Court erroneously interpreted the regulation by holding that once the employee denies the charge, it is incumbent upon the

- 12 -

NC: 2024:KHC:31368

authority to conduct enquiry contemplated for imposing major penalty. It also erred in holding that where employee denies that loss is caused to the Corporation either by his negligence or breach of order, such enquiry should be held. It is settled law that Court's power of judicial review in such cases is limited and Court can interfere where the authority held the enquiry proceedings in a manner inconsistent with the rules of natural justice or in violation of statutory rules prescribing the mode of enquiry and imposing punishment or where the conclusion or finding reached by the disciplinary authority is based on no evidence or is such that no reasonable person would have ever reached. As per the Regulation, holding of regular departmental enquiry is a discretionary power of the disciplinary authority which is to be exercised by considering the facts of each case and if it is misused or used arbitrarily, it would be subject to judicial review."

8. It is also contended that in similar case, decided in

W.P.No.10668/2014 [2017 KHC 27884], this Court had held

that,

"8. .. Undoubtedly, the petitioner had submitted a medical certificate signed by Dr. M.V. Prasanna Kumar Senior Specialist. Thus, the petitioner did not submit a medical certificate

- 13 -

NC: 2024:KHC:31368

issued by the Head of the Department. ...A bare perusal of the records clearly reveals that the petitioner did not produce copies of the OPD slips before the Disciplinary Authority. ....Therefore, none of the OPD slips were submitted for the prolonged period of illness claimed by the petitioner. Since the requirement of law has not been met, the respondents were justified in holding that the petitioner has wrongly been reimbursed an amount of Rs.68,642/-.

Therefore, the petitioner has committed a misconduct."

9. It is also contended that this Court should refrain

from exercising jurisdiction under Article 226 of the

Constitution of India, if the procedure prescribed under the

Regulations are complied with. It is contended that since the

petitioner is visited with a minor punishment of censure and

recovery, punishment imposed is neither disproportionate to

the alleged misconduct and therefore, does not warrant

interference by this Court. With these and other ancillary

contentions, the respondents tried to contend that the

punishment of censure and recovery is just and fair and does

not call for any interference at the hands of this Court.

- 14 -

NC: 2024:KHC:31368

10. The learned counsel for the respondents submitted

that if this Court were come to the conclusion that the

disciplinary authority did not follow the procedure in not giving

an opinion then, it is incumbent upon this Court to remit the

case back to the disciplinary authority to conduct proceedings

afresh. In support of his contention, he relied upon the

judgment of the Calcutta High Court in the case of Dipak

Kumar Das vs. Food Corporation of India and others

[2015 SCC Online Cal. 1474] where it was held,

"As a consequence of the order of punishment being required to be set aside, the departmental proceedings are set back to the time immediately after the petitioner's reply to the charge-sheet. The disciplinary authority should now apply its mind and record a written opinion as to whether the protracted procedure under Regulation 58 should be followed in this case or the charges against the petitioner should be decided in a summary manner. The objective reasons in support of the opinion should be reflected, though the opinion need not be communicated to the petitioner. Upon such opinion being formed, the petitioner will be informed and the departmental proceedings will continue thereafter in accordance with law and culminate in a

- 15 -

NC: 2024:KHC:31368

prompt decision to be rendered by the disciplinary authority."

11. It is not in dispute that the petitioner and his wife

were suffering from diabetes and hypertension. It is also not in

dispute that medical bills submitted by the petitioner from time

to time were reimbursed by the respondents. The bills

submitted by the petitioner for the period from 08.09.2009 to

07.10.2009 were reimbursed after 07.10.2009. Later,

respondent No.1 seems to have realized that the bills submitted

by the petitioner were dubious and therefore, issued a

Memorandum dated 16.07.2010 to "furnish reasons for

misleading the Corporation through such questionable Medical

Bill claim with ulterior motive to get undue monetary gain."

The petitioner replied to this Memorandum on 26.07.2010

which was again followed by a Memorandum dated 30.10.2010

issued by respondent No.1 proposing to initiate disciplinary

proceedings against the petitioner for the misconduct namely,

"misleading the Corporation by producing dubious and invalid

documents for the aforesaid medical claims for personal gains

which is an act of serious misconduct." Along with this

Memorandum, the Article of Charges was also enclosed.

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NC: 2024:KHC:31368

12. The petitioner submitted his reply to the Article of

Charges on 12.11.2010. The respondent No.1, thereafter

passed an order dated 31.12.2010 holding that,

"Whereas on examining all the medical documents submitted by the Charged official while claiming reimbursement of their medical expenses, and on conducting discreet inquiry with Bowring Hospital the following observations were made by the Disciplinary Authority.

1. For every treatment/consultation undertaken at Bowring and Lady Curzon Hospital, Bangalore OPD Slips are issued by the Hospital Authorities which should be produced along with the medical claim for getting reimbursement.

2. The Medical Superintendent of Bowring & Lady Curzon Hospitals, Bangalore vide his letter No.B & LCH/PS/52/10-11 dated 05.05.2010 in support letter No.RMO/01/10- 11 dated 03.05.2010 of Resident Medical Officer, has confirmed that Dr. Sridhar who had certified the disease of the Charged Officer was not an HOD and the prescription given on letterhead of the Hospital is not in his official capacity and the Hospital has issued OPD slips for every

- 17 -

NC: 2024:KHC:31368

consultation/treatment undertaken in their hospital.

3. It has also been confirmed during investigation that Dr. S.T. Sridhar who had certified the disease and prescribed the medicines was of the habit of issuing any certificate on payment to the tune of eligibility of the employees.

4. Moreover the signature appeared on the prescription and other documents enclosed in support of the claims in the name of Dr. S.T. Sridhar are found differ from the original signature which the investigating squad obtained from him in person.

5. As per Zonal Office Finance division letter No.C8[13]/04-05/ZO dated 31.05.2004 and in reference to HQrs circular No.340 of 1989- WRC/17/8/89 dated 12.12.1989, the Cat-III & IV employees are to be reimbursed the medical expenditure in respect of prolonged diseases on production of requisite medical certificate issued by the Head of the Dept og Govt. Hospital on the OPD slip of the respective Govt. Hospital only in the official capacity not in his personal capacity in their private clinic/hospital.

- 18 -

NC: 2024:KHC:31368

6. The claims preferred by the CO have not been supported with OPD slips supplied by the Hospital Authorities on every occasion of their consultations/visit at the Hospital.

7. The claims preferred by the Charged official were found incomplete in respect of Doctor's name and his registration Number except the signature of the Doctor said to be Dr. S.T. Sridhar.

8. All the medicines were reportedly purchased from "Lakshmi Pharma, Vijinapura, Bangalore" under the medical prescription of Dr. Shivanna in a stereotype manner.

9. The Charged Official has claimed and reimbursement as sum of Rs.1,24,396/- from the Corporation in producing such invalid/dubious certificates and prescription in 44 occasions."

13. Based upon this finding, the respondent No.1 in

exercise of the powers conferred vide Regulation 56 read with

Regulation 54 of the Regulations, 1971 imposed penalty of

censure and ordered recovery of Rs.1,24,396/- from out of the

terminal benefits payable to the petitioner. It is therefore,

clear that the respondent No.1 did not conduct an enquiry

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NC: 2024:KHC:31368

before condemning the petitioner of being guilty of the

misconduct alleged.

14. In order to understand the purport of the

Regulations relied upon by the respondents, Regulation 60

deals with the procedure for imposing minor penalties and the

same is extracted below:-

"60. Procedure for imposing minor penalties:

(1) Subject to the provisions of Sub-

regulation (3) of Regulation 59, no order imposing on an employee any of the penalties specified in clauses (i) to (iv) of Regulation 54 shall be made except after:

(a) informing the employee in writing of the proposal to take action against him and of the imputations of misconduct or misbehaviour on which it is proposed to be taken, and giving him a reasonable opportunity of making such representation as he may wish to make against the proposal;

(b) holding an inquiry in the manner laid down in Sub-regulation (3) to (23) of Regulation 58, in every case in which the

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NC: 2024:KHC:31368

disciplinary authority is of the opinion that such inquiry is necessary;

(c) taking the representation, if any, submitted by the employee under clause

(a) and the record of inquiry, if any, held under clause (b) into consideration;

(d) recording a finding on each imputation of misconduct or misbehaviour.

(2) Notwithstanding anything contained in clause (b) of Sub-regulation (1), if in a case it is proposed, after considering the representation, if any, made by the employee under clause (a) of the sub-regulation, to withhold increment of pay and such withholding of increments is likely to affect adversely the amount of retirement benefits payable to the employee or to withhold increments of a pay for a period exceeding 3 years or to withhold increments of pay with cumulative effect for any period, an inquiry shall be held in the manner laid down in Sub-regulation (3) to (23) of Regulation 58 before making any order imposing on the employee any such penalty.

(3) The record of the proceedings in such cases shall include:

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                                                   NC: 2024:KHC:31368





            (i)    a   copy   of    the     intimation   to   the

employee of the proposal to take action against him,

(ii) a copy of the statement of imputations of misconduct or misbehavior delivered to him;

(iii) his representation, if any;

(iv) the evidence produced during the inquiry;

(v) the findings on each imputation of misconduct or misbehavior; and

(vi) the orders on the case together with the reasons therefore."

15. A perusal of Regulation 60(1)(b) mandates that

whenever disciplinary authority is of the opinion that an enquiry

is necessary then enquiry shall be done in the manner laid

down in sub-regulation (3) to (23) of Regulation 58.

16. It is the case of the respondents that respondent

No.1 did not consider it necessary for conducting an enquiry

and therefore, proceeded to pass an order of penalty. The

disciplinary authority was oblivious of the fact that the medical

reimbursement claimed by the petitioner was already made and

- 22 -

NC: 2024:KHC:31368

therefore, it was not expected of the petitioner to retain OPD

slips. The disciplinary authority was also oblivious of the fact

that the petitioner and his wife were suffering from diabetes

and hypertension and that they were on medication. Therefore,

to consider that the entire medical bills submitted by the

petitioner for the period 08.09.2009 to 07.10.2009 for himself

and for his wife as dubious, is highly unjustified. It was

incumbent upon the disciplinary authority to cross-verify the

bills submitted by the petitioner for the earlier years when

reimbursement was allowed and thereafter, come to the

conclusion that the bills submitted by the petitioner were

genuine or dubious. For this purpose, the disciplinary authority

must have applied his mind rather than rubbishing the bills

submitted by the petitioner on the ground that it was not

accompanied by the "Prolonged Disease Certificate" signed by

HOD and that OPD slips were not furnished by the petitioner.

The petitioner had submitted the "Prolonged Disease

Certificate" signed by the doctor who treated him and his wife.

There is no evidence to disbelieve this certificate. The reliance

placed on a letters dated 05.05.2010 and 03.05.2010 that Dr.

S.T. Sridhar, the doctor who treated the petitioner was not the

- 23 -

NC: 2024:KHC:31368

HOD does not make the certificate or the prescription and bills

dubious. The respondent No.1 must have verified the standard

practice adopted while reimbursing the medical bills and must

have furnished copies of the letters received from the Medical

Superintendent of Bowring and Lady Curzon Hospital, to the

petitioner to furnish his comments.

17. No doubt, under the Regulations, 1971, the

discretion to either conduct an enquiry or not to, is upon the

disciplinary authority while imposing minor penalties. However,

such discretion ought to be exercised judiciously and the order

of penalty must demonstrate the application of mind. Even if

the opinion that may be formed by the disciplinary authority is

not communicated to an employee but when it is subject to

judicial review, the respondents are bound to satisfy that

opinion was formed on certain parameters indicating that there

was no necessity to hold an enquiry. In the case on hand, the

respondents have merely issued an Article of Charges, which

was replied by the petitioner and based on the subjective

satisfaction have proceeded to pass a penalty of censure and

recovery of medical bills reimbursed by the respondents.

- 24 -

NC: 2024:KHC:31368

18. The Hon'ble Apex Court in the case of Food

Corporation of India and others vs. Sarat Chandra

Goswami [(2014) 13 SCC 211] held after considering its

earlier decision in the case of A. Prahalada Rao, supra, relied

upon by the respondent as follows:-

"9. On a perusal of the order passed by the learned Single Judge, we find that he has taken note of the fact that there was no expression or formation of opinion. He has further recorded that the learned counsel for the Corporation had conceded that there was nothing to show that the Chairman-cum- Managing Director who had made the final order had recorded any opinion in writing before making the final order to the effect that there was no need to hold a regular inquiry. From the principle stated by this Court in A. Prahalada Rao's case it is quite limpid that though in all cases where the employees disputes his liability, a full-fledged enquiry is not expected to be held as that would frustrate the purpose of interpreting the summary procedure for imposing minor penalties, yet the discretion conferred under Regulation 60(1)(b), if exercised in a arbitrary manner, it is open to the employee to challenge the same before the appropriate forum. The Court had further opined that the Regulation 60(1)(b) mandates the disciplinary authority to form its opinion whether

- 25 -

NC: 2024:KHC:31368

it is necessary to hold an inquiry in a particular case or not."

19. Therefore, it can safely be held that the respondent

No.1 before passing an order of censure and directing the

recovery of the medical bills reimbursed failed to form an

opinion as to whether there was any need to conduct an

enquiry. It is also not known whether the procedure that is

insisted upon by the respondent No.1 in the present

circumstances was ever insisted by the respondents while

reimbursing the bills submitted by the petitioner for the earlier

years. Therefore, the impugned order of censure and directing

the recovery of medical bills reimbursed from the retirement

benefit of the petitioner is not justified and consequently,

warrants interference.

20. The contention of the respondents that the case

requires to be remanded, does not appeal to this Court for two

reasons:

(i) the petitioner is admittedly not in possession of the OPD slips since he has destroyed them after the medical bills were reimbursed.

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NC: 2024:KHC:31368

(ii) the petitioner has retired from service in the year 2010 and 14 years have passed by and therefore, no useful purpose would be served in remitting the case back to the respondents for reconsideration.

21. In view of the above, this writ petition is allowed.

The order dated 31.12.2010 passed by respondent No.1 and

the order dated 06.08.2011 passed by respondent No.2 as well

as the order dated 26.07.2012 passed by respondent No.3 are

set aside. The respondent No.1 is directed to refund

Rs.1,24,396/- to the petitioner within three months from the

date of receipt of a certified copy of this Order, failing which,

interest at the rate of 9% per annum from the date of

deduction till payment shall be paid thereon and recovered

from the person responsible for the delay.

Sd/-

(R. NATARAJ) JUDGE

PMR

 
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