RAMAKANTH HEBBALLI Vs. STATE

JUDGEMENT

(1.) The petitioner, a General Manager in the Mysore Sales International Ltd. ('Company' for short), an undertaking of the Government of Karnataka, has filed this petition to quash a charge sheet, as at Annexure-A, issued by the Managing Director of the Company.

(2.) Committee on Public Undertakings of the Karnataka Legislature (for short, the 'Committee') conducted an enquiry and having found several acts of omissions and commissions attributable to the 'then Managing Director' and 'other Officers' resulting in the Company suffering huge loss, submitted its report to the Presiding Officers of both the Houses of the Karnataka Legislature on 28.09.2010. The report was laid on the table of both the Houses of the Legislature on 11.01.2011. The Committee made recommendations for stringent and immediate action being taken against the then Managing Director, the petitioner and a few other officials. Government of Karnataka by an order dated 09.08.2010, accorded sanction to Lokayukta, under Section 7(2A) of the Karnataka Lokayukta Act, 1984, to investigate into the reported irregularities committed by the Management of the Company in the matter of Iron Ore Export to China vide Contract No.MF 0952 dated 12.11.2009 and fix responsibility for the lapses. Board of Directors of the Company passed a resolution dated 30.06.2011, requesting Lokayukta to investigate into the matter. Principal Secretary, Department of Commerce & Industries, Government of Karnataka, by a letter dated 16.10.2010, made a reference in the matter of Iron Ore transactions of MSIL, to Sri Kukkaje Ramakrishna Bhat, District & Sessions Judge (Retd.), to hold preliminary enquiry into the matter. A preliminary enquiry report dated 23.03.2011 was submitted by Sri K. Ramakrishna Bhat.

(3.) One Mr. Shivaraam, an IAS Officer, was the Managing Director of the Company at the relevant point of time. Mr. Shivaraam having been transferred, has ceased to be Managing Director of MSIL. Mr.Rajeev Chawla, IAS, subsequently posted as the Managing Director, having examined the matters relating to Contract No. MF 0952 dated 12.11.2009 of the Company with M/s.Fremery Holdings Ltd., for supply of 50,000 MTs of exporting Iron Ore Fines to China and release of advance to M/s Mallappa Mineral Industries and M/s.Saram Exports, Goa and the demurrage claim of Rs. 2.66 Crores by a foreign buyer, having prima facie noticed lack of integrity and devotion to duty on the part of the petitioner, pending institution of disciplinary proceedings, in exercise of power conferred under Rule 8 of the Conduct and Discipline Code applicable to Officers and Executives of the Company (for short 'the Code'), by an order bearing No.MD/28/2011-12, placed the petitioner under suspension on 01.07.2011. The said order was questioned in W.P.No.25589/2011.