TARA CHAND CHOUDHARY Vs. ORIENTAL INSURANCE CO LTD

JUDGEMENT

(1.) The present petition has been filed under Art. 226 of the Constitution of India for quashing of the order of suspension dt. 8.3.1991 and termination order dt. 31.3.1998 on the ground that impugned orders have been passed by an Authority junior to his Appointing Authority and thus, the impugned orders have not been passed by the authority competent to do so. The petitioner was initially appointed as inspector in the year 1971. This appointment was initially made in the Jupitar General Insurance Company Ltd. and after the merger of the Jupitar General Insurance Company with Oriental Insurance Company under the Oriental Fire and General Insurance Company Limited (Merger) Scheme, 1973, the petitioner came under the control of Oriental Fire and General Insurance Company (now called as Oriental Insurance Co. Ltd.). On account of the merger, categorization Committee was formed and the Committee found that the petitioner should be categorized as Inspector, Grade-II. Subsequently, the petitioner was promoted to the post of Inspector, Grade-I (now designated as Development Officer). This promotion was made w.e.f. 1.1.1977 vide order dt. 17.8.1977. The said order has been placed on record by the petitioner. For the purpose of discipline and conduct in relation to employees working in the Insurance Company, General Insurance (Conduct, Discipline and Appeal) Rules, 1975 have been framed. As per Schedule appended to the Rules, for the employees working in development cadre, Assistant Manager/Deputy Manager is the competent authority for initiating disciplinary proceedings and the appellate authority is the Area Manager/Manager in Regional Office. In the case of the petitioner, the order of promotion to the post of Inspector. Grade-I (designated as Development Officer) was passed on 17.8.1977. The same was issued by promoting authority i.e. Assistant General Manager. As per the administrative set up in the respondent Company, the Regional Manager is one step below the Assistant General Manager.

(2.) On 24.2.1992, the Regional Manager initiated enquiry against the petitioner on the basis of the charges framed against him and after enquiry, the Enquiry Officer submitted his report to the Regional Manager and on that basis, the Regional Manager passed the order of removal of the petitioner from service under Rule 23 of the Rules of 1975. Admittedly, both the suspension as well as removal orders have been passed by the Regional Manager.

(3.) Reply has been filed by the respondents. As per the preliminary objections raised in the reply and as contended by learned counsel for the respondents, both the orders of suspension as well termination are appealable under Rule 31 and 40 of the General Insurance (Conduct, Discipline and Appeal) Rules, 1975. The appeal in terms of Rule 31 is to be examined by an independent Appellate Authority above the Disciplinary Authority and likewise the Memorial would be examined by the Chairman-cum-Managing Director above the Appellate Authority. It was, therefore, contended that the present petition should be dismissed on the ground of alternative remedy. it is further argued that the petitioner was initially appointed by the General Manager of Jupitar General Insurance Company Ltd. and merger of the Jupitar General Insurance company with Oriental Insurance Company under the nationalized Scheme of 1973 came under the control of the Oriental Insurance Company Limited. It is further stated that the General Insurance Rules, 1975 were amended in February 1995 and as per the amended Schedule of the Competent Authorities, the Manager is the Appointing Authority for the cadre of Development Staff and as such, an officer of the rank of Manager can impose the penalty of removal from service. It is further stated that the petitioner's appointment and subsequent promotion are subject to General Insurance Rules, 1975 and as such, the amendments are applicable to him. It was further stated that the petitioner was appointed by Manager and he has rightly been removed by the Manager of the respondent Company. The order of promotion as Inspector, Grade-I w.e.f. 1.1.1977 was passed on 17.8.1977.