I.D.GUPTA Vs. STATE OF HIMACHAL PRADESH

JUDGEMENT

(1.) On August 8, 1977, a disciplinary proceeding was commenced against the petitioner, who was, at the material time hi District Manager of the respondent -Bank (The Himachal Pradesh State Co -operative Bank Ltd.) at Chamba, on the basis of a list of charges Annexure -A. The charges, briefly stated, were : (1) that the petitioner had delivered pledged stock of cigarettes against the cash credit account of a client without receiving consideration or without information knowledge and/or approval of the competent authority ; (2) that he had subsequently managed to obtain a mortgage over the immovable property of one of the partners of the said client in order to secure the advance contrary to the bye -laws and without information, knowledge and/or permission of the competent authority ; (3) that he had accepted unapproved securities to secure the advance without prior approval and knowledge of the competent authority ; and (4) that he had failed to inform the competent authority regarding" the factual position of.............the pledged godowns in a proper systematic way" when he took over as Manager - One Mr B.S.Chauhan a Director of the respondent -Bank, was appointed a the Inquiry Officer by a letter dated November 21, 1977 issued b? the General Manager of the respondent -Bank. The Inquiry Officer held the disciplinary inquiry in the months of July and October, 1978 and November, 1979 and submitted his report on November 20, 1979, Annexure -B. The Inquiry Officer found that the petitioner was negligent in the discharge of his duties in that he failed to acquaint the competent authority with the prevailing position of the account of the said client at the time of his taking over charge and in further allowing the operation of the account without consideration. He, however, further found that "the plus point" in favour of the petitioner was that, firstly, he obtained a mortgage of the immovable property as well as additional securities to secure the advanced amount and, secondly, he did not allow the debit balance in the account to increase from the level at which it stood at the time of his taking over. The report of the Inquiry Officer was placed before the Board of Directors of the respondent -Bank at its meeting held on December 21, 1979. The Board, as a result of its deliberations, found the petitioner guilty of "grave misconduct" and, in exercise of the powers vested in it under Service Rule No. 21, resolved to dismiss the petitioner from service with immediate effect, vide Annexure -D. Pursuant to the decision of the Board, a formal order dismissing the petitioner from service was passed on the same day, that is, December 21, 1979, vide Annexure -E. The petitioner was consequently relieved on the next day, that is, December 22, 1979.

(2.) The petitioner filed a review application which was considered by the Board of Directors in its meeting held on February 18, 1980. The Board decided that in case the petitioner was prepared to vacate the post voluntarily by tendering his resignation, the orders of dismissal be modified accordingly, that is, the petitioner be treated as having vacated his post voluntarily by tendering resignation. The decision was conveyed to the petitioner but he did not accept the offer. The order of dismissal, therefore, held the field.

(3.) The petitioner challanged the order of dismissal by way of an appeal preferred before the Registrar, Co -operative Societies, Himachal Pradesh, under Service Rule No. 28 on or about February 18, 1980. The appeal remained pending with the said authority till the present petition was initially instituted on April 30, 1985. The appeal was ultimately disposed of by the Additional Registrar, Co -operative Societies, Himachal Pradesh, on July 1, 1985 pursuant to the interim directions issued by this Court. The appeal was dismissed. The petition was thereafter amended and the order of dismissal as well as that of the Appellate Authority are now under chalenge herein.