Holding

Criminal and disciplinary proceedings are separate and an acquittal in criminal court does not preclude disciplinary dismissal; the disciplinary authority's order of dismissal is upheld.

Summary

The Tamil Nadu Civil Supplies Corporation dismissed K. Meerabai, a junior assistant, after a departmental enquiry found her guilty of misappropriating stock and money, while a parallel criminal case against her under Sections 409 and 477-A IPC ended in acquittal. The High Court ordered her reinstatement, holding that the acquittal should have been considered by the disciplinary authority. The Supreme Court held that criminal and disciplinary proceedings are distinct, with different standards of proof, and that an acquittal does not bar disciplinary action. It found the disciplinary and appellate authorities’ orders to be detailed, fact‑based and legally sound, and rejected the High Court’s interference. Consequently, the Supreme Court restored the dismissal order and allowed the appeal.

Issues considered

Whether the High Court erred in holding that the criminal acquittal must be taken into account by the disciplinary authority while dismissing the employee.
Whether the High Court erred in interfering with the appropriateness of dismissal as the proper punishment in the facts of the case.
Whether the High Court exceeded its jurisdiction by substituting its own view of the penalty despite established limits on judicial review of disciplinary actions.
Whether the High Court was wrong to set aside the dismissal despite the corporation’s loss of confidence arising from the employee’s misappropriation.

Legislation cited

Indian Penal Code, 1860s. 409, s. 477-A

Subjects

service lawdisciplinary proceedingscriminal proceedingsjudicial reviewdismissalmisappropriationloss of confidencedepartmental enquiryemployee misconduct

Judgment

A CHAIRMAN-CUM-M.D., T.N.C.S. CORPN. LTD. AND ORS.
V.

K. MEERABAI

JANUARY 23, 2006

B [H.K. SEMA AND DR. AR. LAKSHMANAN, JJ.)

Service law:

Dismissal-Judicial review--Scope and ambil of--Disciplinary and
C criminal prvceedings-lnterconneclion be/ween· -Employee alleged to have
misappropriated Corpora/ion's stock and money through fraudulent practices-
Employee suspended pending initiation of disciplinary proceedings against
her-A criminal complaint was also filed against the employee---After a fu/1-
fledged enquiry in which the employee fully participated, Disciplinary Authority
D dismissed her from service- ./n the meanwhile employee acquitted of charges
in criminal proceedings-High Court quashed order of dismissal and directed
employee's reinstatement on the ground that the acquittal of the employee
ought to have been taken into consideralion by 1he Disciplinary Authority
while dismissing her from service--Correctness of-Held: The scope of criminal
and disciplinary proceedings in a departmenlal enquiry are quite dislinct,
E exclusive and independent of each other-Moreover. lhe employee was
proceeded against in 1he criminal and disciplinary proceedings on to/ally
different sels of facls-ln lhe ins/ant case, employee was found guilty of
misapproprialing lhe Corpora/ion funds-There is nothing wrong in 1he
Corpora/ion losing confidence or faith in such an employee and awarding
F punishment of dismissal-The scope of judicial review in such cases is very•
limited--Hence, High Courl 's 1udgmen1 sel aside and lhe order of the
Disciplinary Aulhority reslored.

The respondent was appointed as a Bill Clerk in the service of the
appellant-Corporation and was promoted as a Junior Assistant and was
G posted in the Godown. The respondent was suspended pending initiation
of disciplinary proceedings against her in respect of misappropriation of
the Corporation's stock and money, committed by her in collusion with ' "
other members of the staff through fraudulent practices.

A criminal complaint was filed against the respondent and other staff
H 5~
L

CHAIRMAN-CUM-MD. TNCS CORPN. LTD. v. K.MEERABAI 54 J

members for offences under Sections 409 and 477-A of the Penal Code, A
1860. After a full-fledged enquiry in which the respondent fully
participated, the Disciplinary Authority dismissed the respondent from
service. In the meanwhile, the respondent was acquitted of the charges
under Sections 409 and 477-A IPC. However, the High Court directed
reinstatement of the respondent. Hence the appeal.
B
The following questions arose before the Court:-

(I) Whether the High Court has gravely erred in law in holding that
the acquittal of the respondent ought to have been taken into consideration
by the disciplinary authority while dismissing the respondent from service? C
(2) Whether the High Court has gravely erred in law in interfering
with the punishment awarded by the disciplinary authority?

Allowing the appeal, the Court

HELD: I. The orders of the disciplinary authority and the appellate D
authority are exhaustive in details, impeccable on facts and armed with
irrefutable reasons in support of the conclusions. 1550-H; 551-A-BI

2.(a) The scope of the criminal proceedings and the scope of
disciplinary proceedings in a departmental enquiry are quite distinct, E
exclusive and independent of each other. 1551-8-C]

(b) The criminal proceedi~s and the disciplinary proceedings were
on totally different sets of facts and charges.

(c) The order of dismissal passed by the Disciplinary Authority and F
the order of the Appellate Authority, dismissing the respondent's
Departmental Appeal, are exhaustive orders incorporating the statement
of the correct and relevant facts of the case and impeccable conclusions
based on dispassionate appreciation of the evidence on record and
supported by legally irrefutable reasons. 1551-D-Ef
G
3. The High Court failed to consider and appreciate dispassionately
and judicially the Corporation's most emphatically pronounced plea that
it would be virtually impossible for them to reinstate the respondent who
was found in the departmental enquiry guilty of misappropriation and
other malpractices causing thereby enormous loss in stock and cash to the
Corporation and her dismissal from service has been upheld by the H
j

542 SUPREME COURT REPORTS [20061 I S.C.R.
...
A appellate authority vide its very detailed, well-considered and well-
reasoned verdict and in whose integrity, honesty and trustworthiness the
Corporation has lost their faith completely and absolutely. (551-E-Gf

la/it Popli v. Canara Bank, (200313 SCC 583, B.C.Chaturvedi v. Union
of India, [199516 SCC 749 and Ajit Kumar Nag v. General Manager (PJ),
B Indian Oil Corpn. ltd, (20051 7 sec 764, relied on.

4. The scope of judicial review is very limited. Sympathy or
generosity as a factor is impermissible. Loss of confidence is the primary
factor and not the amount of money misappropriated. In the instant case,
the respondent-employee is found guilty of misappropriating the
C Corporation funds. There is nothing wrong in the Corporation losing
confidence or faith in such an employee and awarding punishment of
dismissal. In such cases, there is no place for generosity or misplaced
sympathy on the part of the judicial forums and interfering therefor with
the quantum of punishment awarded by the disciplinary and appellate
D authority. (555-8-DI

Mahabir Prasad Santosh Kumar v. State of UP., f 19701 I SCC 764,
Anil Kumar v. Presiding Officer, (1985) 3 SCC 378, Punjab National Bank
v. Kunj Behari Misra, [ 199817 SCC 84 and State of Karnataka v. Amajappa,
(20031 9 sec 468, referred to.
E
5. The order of dismissal passed by the disciplinary authority was
based on dispassionate and independent examination and appreciation of
the entirety of facts and evidence on record relating to the malpractices
and misappropriation indulged in by the respondent in collusion with the
other members of the staff causing thereby huge loss to the Corporation.
F (555-Ff

6. The scope of disciplinary proceedings and the scope of criminal
proceedings in a Court of Criminal law are quite distinct, exclusive and
independent of each other. The prosecution proceedings launched against
G the respondent were in respect of offences punishable under Sections 409
and 477-A Penal Code, 1860, whereas the Departmental Proceedings as
initiated against her were in respect of the charges of misappropriation 1 ..

and other fraudulent practices such as deliberate omission to bring into
accounts the stock received showing bogus issues in the records,
falsification of accounts, submission of defective accounts, tampering of
H records, manipulation of accounts and records etc. Thus, the respondent
CHAIRMAN-CUM-M D, T N.C.S. CORPN. LTD. v. K.MEERABAI [LAKSHMANAN, J] 543
> \
was proceeded against for quite different charges and on different sets of A
facts before the Criminal Court, on the one hand, and before the
Departmental Enquiry on the other. (555-G-H; 556-A-BI

7. The orders passed by the disciplinary authority as well as the
appellate authority are not only impeccable on facts, tenable on law but
also unambiguously supported by unassailable reasons in support of their B
conclusions. Thus, the unchargeable acquisition .bY the High Court that
the orders of the disciplinary authority and of the appellate authority
suffer from total non-application of mind is patently devoid of any
substance of truth and law. (556-8-CJ

8. In the instant case, the charged employee holds a position of trust c
where honesty and integrity are inbuilt requirements of func!iioning and,
therefore, the matter should be dealt with firmly with firm hands and not
leniently. In the instant case, the respondent deals with public money and
engaged in financial transactions or acts in a fiduciary capacity and,
. therefore, highest degree of integrity and trustworthiness is must and D
),
unexceptionable. Judged .in that background, the conclusion of the High
Court does not appear to be proper. The judgment of the High Court is
set aside and the order passed by the disciplinary authorities upho0lding
the order of dismissal is restored. (556-E-Gl

CIVIL APPELLATE JURISDICTION : Civil Appeal No. 623 of 2005. E
From the Judgment and Order dated 19.4.2004 of the Madras High
Court in W.A. No. 2592 of 2001 and W.A.M.P. No. 19646 of 2001.
~.
Ambrish Kumar for the Appellants.

V.J. Francis, A. Radhakrishnan, Anjpam Mishra and Jenis for the F
Respondents.

The Judgment of the Court was delivered by

DR. AR. LAKSHMANAN, J. The present appeal was preferred against
the final judgment and order dated 19.04.2004 passed by the High Court of G
'" .. r Judicature at Madras passed in Writ Appeal No. 2592 of 200 I dismissing the
same.

Factual Background:

The factual background. filtering out unnecessary details, is as follows:- H
544 SliPRE\1E COURT REPORTS (2006] I S.C.R.
....
A The Tamil Nadu Civil Supplies Corporation Limited (in short the
"Corporation") is constituted to fulfil its chief objective of distributing essential
commodities among the weaker sections of the population of the State of
Tamil Nadu and has opened a number of godowns throughout the State to
achieve the said objective.

B The respondent-herein - K. Meerabai was appointed as a Bill Clerk on
30.11.1974 in the service of the Corporation and was promoted to the post
of Junior Assistant on 31.12.1980. The respondent was posted as Junior
Assistant in the Godown situated at Mint Street. Chennai on 05.01.1981
which post she held till 28.01.1983 when she was suspended vide order dated
C 28.01.1983 pending initiation of disciplinary proceedings against her and the
other members of the Mint Godown staff in respect of mis-appropriation of
the Corporation's stock and money in the sum of Rs.9.86,980.56 committed
by her in collusion with th" other members of the staff through fraudulent
practices such as deliberate omission to bring into account the stocks received
by them, showing bogus issues in the records. falsification of accounts,
D submission of defective accounts. tampering of records, manipulation of
accounts and records etc.

In 1983, a criminal complaint was filed by the Senior Regional Manager
of the Corporation in the Court of Additional Chief Metropolitan Magistrate,
Egmore, Chennai against the respondent herein and other members of the
E staff of the Mint Godown for offences under Sections 409 and 477 A 1.P.C.
The said case was registered as crime case No. 14 of 1983 in calendar case
No. 5964 to 5967 of 1983.

Vide charge memo dated 16.02.1984, the Disciplinary authority levelled
F against the respondent herein as well as against four other members of the
Staff of the Mint Godown, the following charges:-~

CHARGES:

(I) That as staff of the Mint (Godown) has failed to maintain the
prescribed records for the issue of stocks from the Godown and
•
G neglected his primary duty.
(ii) That he/she neglected his/her primary duty as the staff of the I "
Mint Godown and issued the stocks from the Godown in a highly
irresponsible and objectionable manner to the ADS, Mint without
insisting for the proper acknowledgement from persons
(...

CHAIRMAN-CUM-MD. T.N.C.S. CORPN. LTD."· K.MEERABAI [LAKSllMANAN. l] 545
;
' responsible and thus indulged in the fraudulent practices and A
swindled the corporation money in connivance with the ADS
staff.
(iii) That he/she failed to safeguard the Corporation stock and property
and acted in an irresponsible manner by having direct collusion
with the ADS Mint staff and swallowed the Corporation accounts B
and money for their personal benefits.
(iv) That he/she proved himself to be an irresponsible, unreliable and
untrustworthy employee of the Corporation.

Meanwhile, on 17.02.1984, the respondent had moved the High Court
by filing writ petition No. 1337 of 1984 to quash the order of suspension c
dated 28.01.1983. She also moved W.M.P. No. 2084 of 1984 praying for stay .
of the operation of the order of suspension. By order dated 17 .02. 1984, the
learned single Judge of the High Court restored the service of the respondent
herein with payment of full salary subject to deduction of the subsistence
allowance already paid to her. D
Meanwhile, Departmental Enquiry was instituted against the respondent
herein in respect" of the aforementioned four charges. After a full-fledged
enquiry in which the respondent fully participated, the Enquiry Officer, vide
his Enquiry Report dated 11.06.1991, recorded his conclusions based on the
evidence on record holding ( 1) that charge No. I is not proved; (2) that E
charge No.2 is partly proved; (3) that charge No.3 is n,ot proved and (4) that
charge -No.4 is partly proved. On 14.06.1991, the Disciplinary .\uthority
issued a show-cause notice to the respondent as well as to other 11 charged
officers. They were called upon to submit their explanations as to the findings
contained in the Enquiry Report which was also enclosed with the show-
F
cause notice. The Disciplinary Authority, vide his order dated 28.11.1991,
dismissed the respondent herein from service with immediate effect without
prejudice to the recovery proceedings to be initiated against her, while further
directing that the period of suspension with effect from 01.02.1983 till the
date of the order.of dismissal would be treated as a period of suspension. On
11.12.1991, the High Court disposed of the writ petition No. 1337 of 1984 G
..
,-
and quashed the order of suspension. Being aggrieved by the order of dismissal
dated 28.11.1991, the respondent preferred a Departmental Appeal to the
Joint Managing Director, the Appellate Authority. Vide common show-cause
notice dated 27.01.1992, the Disciplinary Authority intimated the official
proposal to recover the loss suffered by the Corporation on account of the
H
CHAIRMAN-CUM-M.D., T.N.C.S. CORPN. LTD. v. K.MEERABAI [LAKSHMANAN,J.] 54 7

' 14652 of 1994 quashing the Appellate Authority's Order dismissing the A
respondent's Departmental Appeal. Being aggrieved by the aforesaid judgment
of the learned single Judge, the appellant preferred writ appeal No. 2592 of
2001 on 07.06.2001 challenging the same insofar as it related to writ petition
No. 18502 of 1993. Vide order dated 25.01.2002, the Division Bench granted
interim stay of the operation of the order of reinstatement dated 27.04.2001 B
of the learned single Judge. By order dated 19.04.2004, lhe Division Bench
dismissed the writ appeal No. 2592 of 2001 upholding the judgment and
order dated 27.04.2001 of the learned single Judge. Being aggrieved, the
appellant preferred the above civil appeal arising out of special leave petition
No. 16214 of 2004. This Court granted leave on 17.01.2005 and ordered
payment of monthly salary at the rate of last pay drawn by the respondent at C
the time of her suspension and that the payment shall be made from 01.02.2005.

We heard Mr. Ambrish Kumar, learned counsel for the appellants and
Mr. VJ, Francis, learned counsel for the respondent. Lenghty arguments
were advanced by learned counsel for the appellants and elaborate submissions
were made by way of reply by Mr. V.J. Francis, learned counsel for the D
\ respondent.

Mr. Ambrish Kumar, learned counsel for the appellants, made elaborate
submissions questioning the correctness of the judgment of the High Court
and took us through the enquiry report submitted by the enquiry officer,
order of the Disciplinary Authority, order of the Appellate Authority and of E
the High Court and submitted that the orders passed by the High Court is ex
facie illegal and that both the learned single Judge and Judges of the Division
-' Bench were of the erroneous impression that both the criminal proceedings
and the departmental enquiry were based upon identical set of facts and that
both the Disciplinary Authority while passing the order of dismissal and the p
Appellate Authority while dismissing the respondent's departmental appeal
assigned no reasons whatsoever in support of their conclusion. He relied on
la/it l'opli v. Canara Bank and Ors., [2003] 3 sec 583, Ajit Kumar Nag V.
General Manager (PJ), Indian Oil Corpn. ltd.. Haldia and Ors. [2005] 7
SCC 764 and B.C. Chaturvedi v. Union of India, [1995] 6 SCC 749.
G
According to Mr. VJ. Francis, learned counsel for the respondent, the
enquiry officer found charge Nos. 2 and 4 have been partly proved against
the respondent without giving proper reasons and supported by evidence and,
therefore, the enquiry report cannot be relied upon. He cited Anil Kumar v.
!'residing Officer and Ors., [ 1985] 3 SCC 3 78. It was further contended that
H
J

548 SUPREME COURT REPOR rs (2006] I S.C.R.

A the disciplinary authority has passed the dismissal order without giving a
hearing to the delinquent employee/respondent and without specifically
disagreeing with the enquiry report. Before the dismissal order, the disciplinary
authority has not properly considered the explanation given by the employee/
respondent or without hearing the employee-respondent. He relied on Punjab
B National Bank und Ors. v. Kun} Behari Misra etc., [ 1998] 7 SCC 84.

It was further submitted that the appellate authority has also not given
any hearing to the employee/respondent and confirmed the order of dismissal
without application of mind, but by reproducing the order of the disciplinary
authority. Messrs. Mahabir Prasad Santosh Kumar v. State of U.I'. und Ors.,
C (1970) I SCC 764 was relied on for this point.

It was further submitted that the case of the respondent/employee was
that she issued the maida !Tom the stock in the godown after getting permi5sion
from the Assistant Manager concerned and there was contemporaneous
accounting of the same in the sales register and in the stock register of the
D Amudham departmental store and, therefore, she cannot be held responsible
for the loss whatsoever.

It was further contended that actually 12 employees were involved in
this case and admittedly some of the employees who were also placed under
suspension along with the respondent were reinstated. No specific reasons
E have been given by the appellant-Corporation why she was discriminated.

The loss alleged to have caused, initially was Rs.9.86,980.56 bJt later
on the actual value of the loss assessed was Rs.6,88,737.12 and it was proposed
to recover from the respondent Rs.34,436.85 being 5% of the total loss.

F The respondent employee has been in service from 30.11.1974 to
28.01.1983 and during this time this is the only known allegation against the
respondent employee and there was no such allegation earlier. Therefore, he
requested this Court to mould the prayer and grant appropriate relief.

It was submitted that the case being case of procedural irregularity
G which cannot be termed as negligence and 11 other employees were also
involved and some of them having been reinstated, the punishment given to
the respondent is excessive. Moreover. criminal proceedings were also initiated
against the respondent and that ended in acquittal, on merits, and that became
final. Concluding his arguments, Mr. Francis submitted both the learned single
H Judge as well as the Division B~nch of the High Court were. therefore, right
L

CHAIRMAN-CUM-M.D, TN.C.S. CORPN. LTD. r. K.MEERABAI [LAKSHMANAN, JJ 549

on the totality of the circumstances, in taking the view that the order passed A
by the disciplinary authority as well as the appellate authority suffers from
serious infirmity and, therefore, the impugned judgment does not call for any
interference by this Court and that, therefore, the respondent is fit to be
reinstated with consequential benefits.

Both the learned counsel invited our attention to the relevant pleadings, B
annexures filed along with the appeal and also of the rulings of this Court.
The following questions of law arise for consideration and adjudication by
this Court:-

(I) Whether the High Court has gravely erred in law in holding that
the acquittal of the respondent herein by the Court of C.J.M., c
Chennai ought to have been taken into consideration by the
disciplinary authority while dismissing the respondent from
service vide order dated 28.11.1991;
(2) Whether the High Court has not gravely erred in law by ignoring
.\ to appreciate that the punishment of dismissal of the respondent D
I
from service was the most appropriate punishment in the peculiar
_facts and circumstances of the case, based on independent
appreciation of evidence on record as well as the categorical
findings recorded by the enquiry officer in perfect accordance
with the requirements of the rules applicable to the disciplinary
E
proceedings in the appellant-Corporation;
(3) Whether the High Court has not gravely erred in law vitiating
-\ thereby the ends of justice by erroneously interfering with the
punishment as awarded by the disciplinary authority and later
confirmed by the appellate authority in the teeth of a plethora of
F
judicial pronouncements of this Court defining and delimiting
the scope of interference by the High Court with the punishment
awarded to a guilty employee by disciplinary authority;
(4) Whether the High Court has gravely erred in interfering with the
punishment awarded to the respondent who was found in the
departmental enquiry guilty of misappropriation and other heinous
G
malpractices causing thereby enormous loss in stock and cash to
the Corporation, an institution primarily concerned with
distribution of the essential commodities among the weaker
sections of the population of the State of Tamil Nadu.
H
..J

550 SUPREME COURT REPOR rs [2006[ I S.C.R.

A We have perused the common judgment of the learned single Judge
and also of the Division Bench. What seems to have weighed predominantly
with the learned single Judge was I) acquittal of the respondent by the Court
of C .J.M. Chennai; 2) an erroneous impression that both the criminal
proceedings and the departmental enquiry were based upon identical set of
B facts; 3) an erroneous impression that both the disciplinary authority, while
passing the order of dismissal and the appellate authority, while dismissing
the respondent's departmental appeal assigned no reasons whatsoever in
support of their conclusions.

We are unable to countenance the view and impression taken by the
C learned single Judge. In our view, the single Judge has mis-directed herself
in reaching the erroneous conclusion that both the criminal case in the Court
of C.J.M. and the departmental enquiry were based on identical facts and
charges.

She has lost sight of the fact that the criminal case instituted agains! the
D respondent in the Court of C.J.M. was in respect of the offences under Section
409 IPC (Criminal breach of trust) and falsification of accounts punishable
under Section 477A IPC whereas the respondent herein was charged in the
departmental enquiry for her failure to maintain prescribed records for issue
of a stock and for swindling the Corporation in collusion with the other
E members of the staff through mis-appropriation of stock and cash of the
Corporation thereby causing huge loss to the Corporation to the tune of more
than Rs. 9 .00 lacs.

Similarly, the learned single Judge was patently misconceived in reaching
the conclusion that the acquittal of the respondent by the Court of C.J.M.
clinched issue before the departmental enquiry, while losing sight of the well
F
settled law that the scope of criminal proceedings in the Coult of criminal
law and the scope of disciplinary proceedings in a departmental enquiry are
quite distinct and exclusive and independent.

The learned single Judge has also failed to appreciate that the standard
G of proof required in the criminal proceedings and the departmental disciplinary
actions are not the same.

We have perused the order of dismissal dated 28.11.1991 passed by the
disciplinary authority and the order of the appellate authority dated 16.06.1994
upholding the order of dismissal with dispassionate judicial mind. In our
H
l

CHAIRMAN-CUM-M.D.. TN.CS. CORPN. LTD.,._ K.MEERABAI [LAKSHMANAN, l] 55 J

" opinion, both the orders aforementioned are exhaustive in details, impeccable A
on facts and armed with irrefutable reasons in support of the conclusions.

The learned Judges of the Division Bench who dismissed the writ appeal
filed by the Corporation upheld the patently erroneous judgment of the learned
single Judge virtually on all those grounds and reasons which had appealed
to the learned single Judge. While passing the impugned judgment, the learned B
Judges have lost sight of the following:-

(i) The scope of the Criminal Proceedings in a Criminal Code and
the scope of disciplinary proceedings in a departmental enquiry
are quite distinct, el(clusive and independent of each other;
(ii) The Criminal Proceedings in the Court of the Chief Judicial
c
Magistrate and Disciplinary Proceedings were on totally different
sets of facts and charges;
(iii) The order of dismissal dated 28.11.1991 (Annexure P-5) passed
by the Disciplinary Authority and the order dated 16.6.1994 of D
the Appellate Authority, dismissing the respondent's Departmental
Appeal are exhaustive 9rders, incorporating the statement of the
correct and relevant facts of the case and impeccable conclusions
based on dispassionate appreciation of the evidence on record
and supported by legally irrefutable reasons.
E
In our opinion, both the learned single Judge and the learned appellate
Judges of the High Court failed to consider and appreciate dispassionately
and judicially the Corporation's most emphatically pronounced plea that it
would be virtually impossible for them to reinstate the respondent who was
found in the departmental enquirr guilty of mis-appropriation and other
malpractices causing thereby enormous loss in stock and cash to the F
Corporation, an institution primarily concerned with the distribution of essential
commodities among the weaker sections of the population of the State of
Tamil Nadu whose dismissal from service has been upheld by the appellate
authority vide its very detailed, well-considered and well-reasoned verdict
and in whose integrity, honesty and trustworthiness the Corporation have lost G
their faith completely and absolutely.

We shall now advert to the rulings cited by Mr. Ambrish Kumar, learned
counsel for the appellants, in support of his submission:-

(I) La/it Pop/iv. Canara Bank and Ors .. [2003) 3 SCC 583 H
.J

552 SUPREME COURT REPORTS (2006[ I S.C.R.

A While considering the nature of proof required in a departmental enquiry
on the scope of judicial review of the High Court under Article 226, this
Court held as follows:-

"It is fairly well settled that the approach and objective in criminal
proceedings and the disciplinary proceedings are altogether distinct
B and different. In the disciplina·ry proceedings ti 'e preliminary question
is whether the employee is guilty of such conduct as would merit
action against him, whereas in criminal proceedings the question is
whether the offences registered against him are established and if
established what sentence should be imposed upon him. The standard
of proof, the mode of enquiry and the rules governing the enquiry
c and trial are conceptually different. (State of Rajasthan v. B. K. Meena
and Ors., [ 1996] 6 SCC 417). In case of disciplinary enquiry the
technical rules of evidence have no application. The doctrine of "proof
beyond doubt" has no application. Preponderance of probabilities and
some material on record are necessary to arrive at the conclusion
D whether or not the delinquent has committed misconduct.

While exercising jurisdiction under Article 226 of the Constitution
the High Court does not act as an appellate authority. Its jurisdiction
is circumscribed by limits of judicial review to correct errors of law
or procedural errors leading to manifest injustice or violation of
E principles of natural justice. Judicial review is not akin to adjudication
of the case on merits as an Appellate Authority.

In B. C. Chaturvedi v. Union of India and Ors., [ 1995] 6 SCC 749
the scope of judicial review was indicated by stating that review by
the Court is of decision making process and where the findings of the
F disciplinary authority are based on some evidence. the Court or the
Tribunal cannot re-appreciate the evidence and substitute its own
finding.

As observed in R. S. Saini v. State of Punjafi and Ors .. [ 1999] 8 SCC
90 in paragraphs 16 and 17 the scope of interference is rather limited
G and has to be exercised within the circumscribed limits:·

(2) In B.C. Chaturvedi v. Union of India, [1995] 6 SCC 749, it was
observed at page 762 para 18 as under:

"A review of the above legal position would establish that the
H
CHAIRMAN-CUM-MD., TN.CS. CORPN. LTD."· K.MEERABAI [LAKSHMANAN,J.] 553
disciplinary authority, and on appeal the Appellate Authority, being A
fact-finding authorities have exclusive power to consider the evidence
with a view to maintain discipline. They are invested with the
discretion to impose appropriate p_unishment keeping in view the
magnitude or gravity of the misconduct. The High Court/Tribunal,
while exercising the power of judicial review, cannot normally B
substitute its own conclusion on penalty and impose some other
penalty, If the punishment imposed by the disciplinary authority or
the Appellate Authority shocks the conscience of the High Court/
Tribunal, it would appropriately mould the relief, either directing the
disciplinary/ Appellate Authority to reconsider the penalty imposed,
or to shorten the litigation, it may itself, in exceptional and rare cases, C
impose appropriate punishment with cogent reasons in support·
thereof."

(3) In Ajit Kumar Nag v. General Manager (PJ), Indian Oil Corpn.
ltd., Haldia and Ors., [2005] 7 SCC 764 (Three Judges Bench). Thakker, J.
speaking for the Bench held as under: D
"I I. As far as acquittal of the appellant by a criminal court is
concerned, in our opinion, the said order does not preclude the
Corporation from taking an action if it is otherwise permissible. In
our judgment, the law is fairly well settled. Acquittal by a criminal
court would not debar an employer from exercising power in E
accordance with the Rules and Regulations in force. The two
proceedings, criminal and departmental, are entirely different. They
operate in different fields and have different objectives. Whereas the
object of criminal trill! is to inflict appropriate punishment on the
offender, the purpose of enquiry proceedings is to deal with the F
delinquent departmentally and to impose penalty in accordance with
the service rules. In a criminal trial, incriminating statement made by
the accused in certain circumstance's or before certain officers is totally
inadmissible in evidence. Such strict rules of evidence and procedure
would not apply to departmental proceedings. The degree of proof
which is necessary to order a conviction is different from the degree G
of proof necessary to record the commission of delinquency. The rule
;" relating to appreciation of evidence in the two proceedings is also not
similar. In criminal law, burden of proof is on the prosecution and
unless the prosecution is able to prove the guilt of the accused "beyond
.'. reasonable doubt'". he cannot be convicted by a Court of law. In a H
554 SUPREME COURT REPORTS [2006] I S.C.R.

A departmental enquiry, on the other hand, penalty can be imposed on
the delinquent officer on a finding recorded on the basis of
"preponderance of probability". Acquittal of the appellant by a Judicial
Magistrate, therefore, does not ipso facto absolve him from the liability
under the disciplinary jurisdiction of the Corporation. We are,
therefore, unable to uphold the contention of the appellant that since
B he was acquitted by a criminal Court, the impugned order dismissing
him from service deserves to be quashed and set aside."

We shall now advert to the rulings cited by Mr. V.J. Francis, learned
counsel for the respondent, in support of his submission:-
c ( 1) Messrs. Mahabir Prasad Santosh Kumar v. State of UP. and Ors ..
[ 1970) I SCC 764 was cited that the executive authority while exercising
quasi judicial functions should give reasons for their conclusion.

(2) Anil Kumar v. Presiding Officer and Ors .. (1985] 3 SCC 378 and
O (3) Punjab National Bank and Ors. v. Kun) Behari Misra etc .. [ 1998) 7 SCC
84. The first judgment was cited by Mr. Francis for the proposition that in
a quasi judicial enquiry, a reasoned report of the enquiry is essential. The
second judgment was cited for the proposition that disciplinary enquiry against
respondents declared to be vitiated on account of non-observance of the
principles of natural justice.
E
This contention has no merits. A perusal of the enquiry officer's report
in which the respondent has fully participated and the order of the disciplinary
authority and of the appellate authority would go to show that the order
passed by them are very detailed, well-considered and well-reasoned verdict.
The conclusion arrived at by the disciplinary authority and the appellate
F authority are exhaustive in nature incorporating the correct and relevant facts
of the case and conclusion based on the appreciation of the evidence on
record and supported by legally irrefutable reasons.

(4) State of Karnataka V. Amajappa and Ors .. (2003] 9 sec 468

G The other contentions made by Mr. Francis are in respect of procedural
irregularity which, according to him, cannot be termed to be negligence on
,.
the part of the respondent. We have already held both the disciplinary authority
and the appellate authority has given ample reasons for arriving at their
conclusions. This Court has held in a catena of decisions that interference is
H not permissible unless the orders passed by the quasi judicial authorities is
CllAIRMAN-CUM-M D.. TN.CS. CORPN. LTD. v. K.MEERABAI [LAKSHMANAN, J ] 555
clearly unreasonable or perverse or manifestly illegal or grossly unjust A
Mr. Francis also submitted that a sum ofRs.34,436.85 being 5% of the
total loss of Rs.6,88,735/- is sought to be recovered from the respondent and
that the present departmental proceedings is the only known allegation against
the respondent and there was no such allegation earlier and, therefore, a
lenient view should be taken by this Court and relief prayed for by both the B
parties can be suitably moulded by this Court. We are unable to agree with
the above submission which, in our opinion, has no force. The scope of
judicial review is very limited. Sympathy or generosity as a factor is
impennissible. In our view, loss of confidence as the primary factor and not
the amount of money mis-appropriated. In the instant case, respondent C
employee is found guilty of mis-appropriating the Corporation funds. There
is nothing wrong in the Corporation losing confidence or faith in such an
employee ancl awarding punishment of dismissal. In such cases, there is no
place for generosity or mis-placed sympathy on the part of the judicial forums
and interfering therefor with the quantum of punishment awarded by the
disciplinary and appellate authority. D
The other contention taken by Mr. Francis that criminal proceedings
which were initiated against the respondent ended in acquittal, on merits, and
that became final. A lenient view must be taken since the charges in both the
cases are identically the same. We have already elaborately discussed about
this point factually and also with reference to the judgments referred to supra E
and for the reasons recorded earlier, we reject this contention.

The order of dismissal passed by the disciplinary authority was based
on dispassionate and independent examination and appreciation of the entirety
of facts and evidence on record relating to the malpractices and mis-
F
appropriation indulged in by the respondent in collusion with the other
members of the staff causing thereby huge loss to the Corporation.

The scope of disciplinary proceedings and the scope of criminal
proceedings in a Court of Criminal law are quite distinct,. exclusive and
independent of each other. The prosecution proceedings launched against the G
respondent herein were in respect of offences punishable under Sections 409
and 477-A l.P.C .. whereas the Departmental Proceedings as initiated against
her were in respect of the charges of misappropriation and other fraudulent
practices such as deliberate omission to bring into accounts the stock received
showing bogus issues in the records, falsification of accounts, submission of
defective accounts. tampering of records. manipulation of accounts and records H
J

556 SUPREME COURT RF.PORTS [20061 I S.C.R.

A etc. Thus, the respondent herein was proceeded against for quite different
charges and on different sets of facts before the Court of Chief Judicial
Magistrate, on the one hand, and before the Departmental Enquiry on the
other.

The orders passed by the disciplinary authority as well as the appellate
B authority are not only impeccable on facts, tenable on law but also
unambiguously supported by unassailable reasons in support of their
conclusions. Thus the unchargeable acquisition by the learned single Judge
and of the learned Judges of the appellate bench that the order of the
disciplinary authority and of the appellate authority suffer from total non-
C application of mind is patently devoid of any substance of truth and law.

It was submitted that though departmental actions initiated against 11
employees and some of them were reinstated who were also involved in the
same offence and, therefore, a direction should be issued to the appellant-
Corporation to take the same view insofar as the respondent is concerned.
D We directed the learned counsel for the appellant to ascertain the correct
position insofar as all the other 11 employees are concerned. Mr. Ambrish
Kumar, learned counsel appearing for the appellants, on instructions from the
Corporation, submitted a memorandum stating that out of 11 employees, 9
were dismissed from service including the respondent herein and 2 employees
were not charge-sheeted.
E
In the instant case, the charged employee holds a pos1t1on of trust
where honesty and integrity are inbuilt requirements of functioning and,
therefore, in our opinion, the matter should be dealt with firmly with firm
hands and not leniently. In the instant case, the respondent deals with public
F money and engaged in financial transactions or acts in a fiduciary capacity
and, therefore, highest degree of integrity and trustworthiness is must and
unexceptionable. Judged in that background, the conclusion of the learned
single Judge as affirmed by the Division Bench of the High Court do not
appear to be proper. We have no hesitation to set aside the same and restore
the order passed by the disciplinary authorities upholding the order of
G dismissal.
The Civil Appeal stands allowed. The orders passed by the disciplinary
•
authority and the appellate authority ordering dismissal is confirmed and the
judgment passed by the learned single Judge in writ petition No. 14652 of
1994 as confirmed by the appellate Judges in writ appeal No. 19646 of 200 I
H dated 25.01.2002 are set aside. However. there v.ill be no order as to costs.
CHAIRMAN-CUM-M.D., TN.CS. CORPN. LTD."· K.MEERABAI [LAKSHMANAN, J.] 557
During the pendency of this appeal, this court passed an order on A
17.01.2005 directing the appellant-Corporation to pay to the respondent the
monthly salary at the rate of last pay drawn by the respondent at the time of
her suspension and that the payment shall be made from .01.02.2005. Since
the payment has been ordered by· this Court during the pendency of the
appeal, we are not inclined to disturb the said order and, therefore, the monthly
salary paid pursuant to the above order need not be recovered from the
B
respondent.

v.s. Appeal allowed.

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