DIRECTOR GENERAL Vs. MOHAMMED ASMATHULLAH

JUDGEMENT

(1.) THE order passed by the Central Administrative Tribunal, Madras Bench in O.A.984 of 1997 is under challenge in this writ petition.

(2.) THE first respondent herein joined as Lower Division Clerk in Employees State Insurance Corporation in the year 1959 and ultimately retired on 28.2.1994 as Manager Grade II. Before his retirement, that was on 4.10.1993, he was issued with a charge memo, which reads as under, "That Sri.Md.Azmatulla, while functioning as Insurance Inspector, Kodambakkam Inspection Division, Madras, went to conduct Regular Inspection of the records of Sri Swastic Enterprises, 29/1, Easwaran Koil Street, West Mambalam, Madras -600 033 with code No: 51-36334-57 on 25-10-89. That Sri Md.Azmatulla then failed to report the existence and continuity in coverage of M/s Sri Swastic Enterprises and its change of name as S.V.M.Enterprises, after proper enquiry but merely reported that whereabouts of the partners could not be ascertained and no inspection could be done. That Sri Md.Azmatulla, failed to report on the applicability of the Employees' State Insurance Act, 1948 to M/s S.V.M.Enterprises, Code No: 51-36334-57 consequent on its change from M/s Sri Swastick Enterprises, the contribution due etc, but merely reported its non-coverage even after seeing the Attendance Register, Wage Register Petty Cash Book cum Ledger. That Sri Md.Azmatulla acted in a manner stated above, with the ulterior motive of giving pecuniary benefits to the employer thereby causing loss of revenue to the Corpn. By his above act, Sri Md.Azmatulla, the then Insurance Inspector had failed to maintain absolute integrity, and devotion to duty and exhibited conduct unbecoming of a Corpn., employee, thereby violating Rule 3 of the C.C.S.(Conduct) Rules, 1964 read with Regulation 23 of ESI Corporation (Staff and Conditions of Service) Regulations, 1959.".

(3.) SECTION 17 of the Employees State Insurance Act, 1948 (hereinafter referred to as 'Act') empowers the Corporation to employ staffs and servants as may be necessary for the efficient transaction of its business and the method of recruitment, salary and allowances, discipline and other conditions of service of the members of the staff of the Corporation shall be such as may be specified in the regulations made by the Corporation in accordance with the rules and orders applicable to the officers and employees of the Central Government drawing corresponding scales of pay, provided that where the Corporation is of the opinion that it is necessary to make a departure from the said rules or orders in respect of any of the matters aforesaid, it shall obtain the prior approval of the Central Government. SECTION 97 deals with the power of the Corporation to make regulations and as per sub-clause 2(xxi), the method of recruitment, pay and allowances, discipline, superannuation benefits and other conditions of service of the officers and servants of the Corporation other than the Director General and Financial Commissioner.