L.R.BHANDARI Vs. THE STATE OF PUNJAB

JUDGEMENT

(1.) Appellant L. R. Bhandari joined the service of the Punjab Government on August 24, 1935. In 1956 he was posted as Textile Officer at Amritsar for the entire State of Punjab. He was entrusted with the duty of organizing the sale of handloom cloth when the Punjab Government observed the Third All India Handloom Week between February 19 and February 25, 1956, at various places in the State. To popularise Khadi, the Government had directed the grant of rebate in the case of sale by wholesale of handloom weavers to the Co -operative Societies of handloom dealers, consumers and the Government depots dealing in handloom cloth. The appellant was to ensure that concession of rebate was allowed only in genuine cases and to make proper arrangements in this behalf so that no leakage of rebate took place. The version of the appellant is that he organised the sales at various places including Amritsar.

(2.) After sometime the Government received a complaint from one Shri Ram Lubhaya of Amritsar that the sales at Amritsar during the Hand -loom Week were of bogus character and the concession of rebate was allowed in respect of sales which were only paper transactions. This had resulted in pecuniary loss to the Government.

(3.) After a preliminary probe by an official of the Punjab Vigilance Department, a charge -sheet was served upon appellant Bhandari and also upon one P. N. Kapahi, who was working as Supervisor under the appellant. The charges that were framed against the appellant were these: - "That while employed as Textile Officer Department of Industries, Punjab, Amritsar, and deputed to organise sales of handloora cloth during the observance of the 3rd All India Handloom Week at Amritsar from 19 -2 -1956 to 25 -2 -1956 by abuse of his position Shri L. R. Bhandari permitted firms of factory owners to partake in the rebate scheme in contravention of instructions contained in Government of India, Ministry of Commerce and Industry letter No. 48 (II) C. T. (a)/53, dated 30 -8 -1954 limiting the benefit of rebate to sales of handloom cloth by Weavers Cooperative Societies to Consumers Co -operative Societies, State owned depots, Fair Price Shops and/or to other wholesalers and Punjab Government Industries Department Programme circulated vide letter No. 1825 -1 and C -56/9757, dated 10 -2 -1956. He also displayed grave dereliction of duty in not exercising proper check and control over the wholesale transactions of handloom cloth conducted by Shri Krishan Lal Chawla Salesman. In addition with a view to prevent leakage of rebate he failed to adopt an adequate procedure for ensuring that the goods were produced at the exhibition and defaced with stamps and for determining the identity of the parties selling and purchasing cloth and the genuiness of their transactions. He thereby enabled the under mentioned firms to obtain undue pecuniary advantage of rebate noted against each on the basis of bogus sale transactions shown in Annexure A with consequential wrongful loss to Government. Vide Punjab Government Industries Department Circular letter No. 1825 -56/9757, dated 10 -2 -1956 Shri L. R. Bhandari, Textile Officer, Punjab, was detailed to organise sales of handloom cloth at an exhibition at Amritsar during the observance of the 3rd All India Handloom Week from 19 -2 -1956 to 25 -2 -1956. The Government of India, vide letter No. HB/10 -55 (Rebate)/329, dated 13 -1 -1956 had allowed a rebate of 1 -1/2 annas per rupee on wholesale transactions of handloom cloth sold by Weavers Co -operative Societies to Consumers Co -operative Societies, State owned Depots, Fair Price Shops and/or other wholesalers under certain conditions. Shri L. R. Bhandari in contravention of instructions contained in the above letters permitted factory owners to partake in the rebate scheme. He did not exercise proper check and control over wholesale transactions of handloom cloth conducted by Shri Krishan Lal Chawla salesman and supervised by Shri P. N. Kapahi Weaving Master. He further failed to adopt an adequate procedure for ensuring that the cloth was produced at the exhibition and defaced with stamps, and that the identity and bona fides of the firms selling and purchasing cloth were verified. As a result of this dereliction of duty, by Shri L. R. Bhandari, the following firms of factory owners obtained undue pecuniary advantage of receiving rebate shown against each on the basis of bogus sales transactions detailed in Annexure "A" with consequential loss to Government,"