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Supreme Court of India

K. PRABHAKAR HEGDEversusBANK OF BARODA

Citation
2025 INSC 997
Decided
19 August 2025
Disposal
Disposed off

Holding

The Court held that while the non‑furnishing of the preliminary inquiry report did not invalidate the inquiry, the Inquiry Officer’s failure to comply with the mandatory component of Regulation 6(17) and the non‑disclosure of the CVC recommendation rendered the disciplinary proceedings vitiated, leading to the quashing of the dismissal order.

Summary

K. Prabhakar Hegde, a former officer of Vijaya Bank (later merged with Bank of Baroda), was dismissed after disciplinary proceedings for alleged irregularities in approving temporary overdrafts. He challenged the denial of the preliminary inquiry report, the failure of the Inquiry Officer to generally question him as required by Regulation 6(17), and the continuation of proceedings beyond his superannuation. The Supreme Court held that the non‑furnishing of the preliminary report did not prejudice him because it was not relied upon, but the Inquiry Officer’s omission to question the appellant on adverse evidence violated a mandatory duty under Regulation 6(17). The Court also found that the Central Vigilance Commission’s recommendation, which was not disclosed to the appellant, vitiated the inquiry. Consequently, the dismissal order was quashed, the appellant was awarded a lump‑sum gratuity, and the appeal was disposed of.

Issues considered

  • Whether denial of the preliminary inquiry report, prepared by the sole management witness, vitiated the regular disciplinary inquiry.
  • Whether the Inquiry Officer’s failure to generally question the appellant on adverse evidence, as mandated by Regulation 6(17) of the 1981 Regulations, vitiated the inquiry.
  • Whether continuation of disciplinary proceedings beyond the appellant’s superannuation was permissible under the 1981 Regulations.

Legislation cited

Headnote

Issue for Consideration (i) Whether denial of the report of preliminary inquiry prepared by the officer entrusted by Vijaya Bank (which merged with the respondent in the year 2019) to conduct such inquiry, who happened to be the sole management witness, was sufficient to vitiate the regular (ii) whether the failure/omission of the Inquiry Officer to generally question the appellant on the circumstances appearing against him in the evidence, as per Regulation 6(17) of the Vijaya Bank Officer Employees’ (Discipline and Appeal) Regulations, 1981, vitiated the inquiry;

Subjects

Disciplinary proceedingsDismissal from servicePreliminary inquiry reportSole management witnessRegulation 6(17)SuperannuationNatural justiceCentral Vigilance Commission recommendationPrivilege claimSection 123 Evidence Act

Judgment

                 [2025] 8 S.C.R. 1997 : 2025 INSC 997

                            K. Prabhakar Hegde
                                    v.
                              Bank of Baroda
                       (Civil Appeal No. 6599 of 2025)
                                 19 August 2025
           [Dipankar Datta* and Prashant Kumar Mishra, JJ.]


                            Issue for Consideration
       (i) Whether denial of the report of preliminary inquiry prepared
       by the officer entrusted by Vijaya Bank (which merged with the
       respondent in the year 2019) to conduct such inquiry, who happened
       to be the sole management witness, was sufficient to vitiate the
       regular inquiry that followed against the appellant; (ii) whether
       the failure/omission of the Inquiry Officer to generally question
       the appellant on the circumstances appearing against him in
       the evidence, as per Regulation 6(17) of the Vijaya Bank Officer
       Employees’ (Discipline and Appeal) Regulations, 1981, vitiated
       the inquiry; (iii) whether continuation of disciplinary proceedings
       against the appellant beyond superannuation was a permissible
       course of action under the 1981 Regulations.

                                   Headnotes†
       Vijaya Bank Officer Employees’ (Discipline and Appeal)
       Regulations, 1981 – Appellant dismissed from service –
       Whether denial of the report of preliminary inquiry prepared by
       the officer entrusted by Vijaya Bank to conduct such inquiry,
       who happened to be the sole management witness, was
       sufficient to vitiate the regular inquiry that followed against
       the appellant:
       Held: In the instant case, a perusal of the inquiry report reveals that
       no reliance upon the preliminary inquiry report has been placed by
       the inquiry officer – Therefore, non-furnishing of the inquiry report
       to the appellant is inconsequential – However, an argument that
       has been made is that the non-furnishing of the preliminary inquiry
       report has caused prejudice to the appellant because such non-
       furnishing of the report disabled him to effectively cross-examine
       the witness – Argument cannot be accepted – Since the appellant


* Author
1998                                                         [2025] 8 S.C.R.

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    was duly provided with the deposition of the witness as per the
    rules, was allowed to cross-examine the witness on the basis of
    the statements made by him and the inquiry officer placed no
    reliance upon the preliminary inquiry report, but only upon the
    statements of such witness recorded during chief examination
    and cross-examination – Therefore, there is no violation of the
    principles of natural justice – Also, no prejudice has been caused
    to the charged officer for non-furnishing of the preliminary inquiry
    report. [Paras 27-29]

    Vijaya Bank Officer Employees’ (Discipline and Appeal)
    Regulations, 1981 Regn. 6(17) – Appellant dismissed from
    service – Whether the failure/omission of the Inquiry Officer
    to generally question the appellant on the circumstances
    appearing against him in the evidence, as per Regulation
    6(17) of the 1981 Regulations, vitiated the inquiry; whether
    continuation of disciplinary proceedings against the appellant
    beyond superannuation was a permissible course of action
    under the 1981 Regulations:
    Held: The Inquiry Officer by not generally questioning the
    appellant on the circumstances available in the evidence, which
    were unfavourable or adverse to such officer, failed to perform
    a mandatory duty – In the present case, the appellant did not
    raise any objection in this behalf before the disciplinary authority
    but raised the point, generally, of non-adherence to Regulation 6
    before the appellate authority – Be that as it may, the appellant
    is justified in voicing a grievance that he had not been extended
    fair, reasonable and adequate opportunity to defend himself in
    terms of Regulation 6 which, in turn, infringed his right protected
    by Article 14 of the Constitution – In normal circumstances, the
    obvious direction that could follow the foregoing discussions is a
    remand to the disciplinary authority to re-start the inquiry from the
    stage the same stood vitiated, i.e., requiring the Inquiry Officer to
    scrupulously follow Regulation 6(17) of the 1981 Regulations –
    However, there are circumstances that impede an order for
    remand – The foremost being the lack of accessibility to the records
    because of the merger of Vijaya Bank with the respondent and
    the distance of time since the disciplinary proceedings came to
    a close – It is also to be noted that the disciplinary proceedings
    were continued beyond the date on which the appellant attained
    the age of superannuation – Because of the ultimate order this
[2025] 8 S.C.R.                                                               1999

                    K. Prabhakar Hegde v. Bank of Baroda


     Court propose to make, this Court has not dealt with the third
     question in the three broad issues framed and such question is
     kept open – No useful purpose, therefore, would be served in
     ordering a remand. [Paras 55, 58, 72]

     Vijaya Bank Officer Employees’ (Discipline and Appeal)
     Regulations, 1981 Regn. 6(17) – Appellant dismissed from
     service – Whether the proposed punishment of compulsory
     retirement could have been altered to dismissal from service
     based on the Central Vigilance Commission recommendation:
     Held: The proposed punishment of compulsory retirement could
     not have been altered to dismissal from service based on the CVC
     recommendation without furnishing the same to the appellant – To
     this extent, the appellate order is legally flawed and cannot be
     sustained. [Para 71]

     Vijaya Bank Officer Employees’ (Discipline and Appeal)
     Regulations, 1981 Regn. 6(17) – Appellant dismissed from
     service – Directions issued by the Supreme Court:
     Held: Considering the age of the appellant (he is now an
     octogenarian) as well as the fact that there were other disciplinary
     proceedings pending against him which were not taken to its logical
     conclusion because he stood dismissed from service, in considered
     view of this Court, interest of justice would be sufficiently served if
     this Court makes the following directions: (i) the appellant shall not
     be entitled to any terminal benefits except to the extent indicated
     hereafter; (ii) he shall only be entitled to a lump-sum amount equal
     to the quantum of gratuity which would have been payable to him
     had he not been fastened with the order of dismissal; (iii) such
     lump-sum amount may be released in favour of the appellant within
     a period of eight weeks from date; (iv) no amount on account of
     interest shall be payable to the appellant on the said amount; (v)
     however, interest @ 9% p.a. shall be payable on such amount if
     not released within the period stipulated above; and (vi) the order
     of dismissal, in the circumstances, shall stand quashed. [Para 73]

     Vijaya Bank Officer Employees’ (Discipline and Appeal)
     Regulations, 1981 – Regn.6(17) – All India Services (Discipline
     and Appeal) Rules, 1969 – R. 8(19) – The use of ‘may’ and ‘shall’:
     Held: Regn.6(17) as well as r.8(19) refers to both ‘may’ and
     ‘shall’ – While the first part of reg.6(17) refers to ‘may’, the second
2000                                                          [2025] 8 S.C.R.

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    part refers to ‘shall’ – To enable the charged officer to explain
    circumstances in the evidence appearing against him, the provision
    confers a discretion on the Inquiry Officer as well as imposes a
    mandatory duty on him – It is discretionary for the Inquiry Officer,
    to put questions to the charged officer if he is himself a witness
    for the defence, whereas, if the charged officer has not examined
    himself as a witness for the defence, the mandate of the law is
    that the Inquiry Officer shall generally question the charged officer
    on the circumstances appearing in the evidence against him –
    The use of ‘may’ and ‘shall’ in the same provision does imply that
    Regn. 6(17) means what it says – The words ‘may’ and ‘shall’
    have been used to mean ‘may’ and ‘shall’, respectively, and we
    cannot possibly conceive of any rule of construction which would
    lead us to assume that the framers intended that ‘shall’ in the
    second part of Regn. 6(17) should also be read and understood
    as ‘may’ – Use of the word ‘shall’, is deliberate to denote that it
    is not interchangeable with ‘may’; if it were so, the framers would
    have straightaway used ‘may’ instead of ‘shall’ having known that
    ‘may’ has been used in the first part – Couching of the provision
    in such language with ‘may’ and ‘shall’ having distinct connotations
    and consequences and bringing about different outcomes in the
    course of one and the same inquiry unhesitatingly signals that while
    the first part of regn.6(17) is directory, the second part thereof is
    mandatory. [Paras 53, 54]

    Service Law – Departmental inquiry – Preliminary inquiry
    report – When it is to be provided to the delinquent employee:
    Held: i) A preliminary inquiry is conducted for the purposes of
    determining whether regular disciplinary proceedings are called
    for or not; ii) A preliminary inquiry report is an internal document;
    iii) A preliminary inquiry report or the findings therein cannot be
    used to come to conclusions recorded in the report of inquiry if
    such preliminary inquiry report/findings are based on oral and/
    or documentary evidence which are obtained behind the back of
    the charged employee and such oral/documentary evidence are
    not presented in the inquiry in the presence of such employee;
    iv) If a preliminary inquiry report or the findings therein are sought
    to be relied on, the witnesses whose evidence was relied on in
    preparing the same ought to be brought before the inquiry officer
    and the charged officer afforded an opportunity to cross-examine
[2025] 8 S.C.R.                                                               2001

                    K. Prabhakar Hegde v. Bank of Baroda


     them; v) If a preliminary inquiry report is sought to be relied upon
     in the inquiry report, then such preliminary inquiry report must be
     provided to the delinquent employee; vi) Once a charge-sheet is
     drawn up and has been provided to the charged officer detailing
     the charges, the preliminary inquiry report is of no consequence
     and need not be provided to him. [Para 25]

     Service Law – Dismissal from service – Principle of Natural
     Justice – When CVC recommendation is considered by the
     disciplinary authority for the purpose of deciding punishment:
     Held: The CVC recommendation weighed heavily enough upon
     the disciplinary authority so as to convince him to alter the
     proposed punishment of compulsory retirement to dismissal of the
     appellant – Receipt of the CVC recommendation behind the back
     of the appellant and no opportunity having been provided to him
     to plead for a lesser punishment, the inquiry stood vitiated – The
     CVC recommendation constituted material which was considered
     by the disciplinary authority at least for the purpose of deciding
     on the punishment that needed to be imposed on the appellant –
     Once such recommendation fell for consideration of the disciplinary
     authority, a copy of the same could not have been denied to the
     appellant – Compliance with the principles of natural justice – A
     charged officer cannot be denied any material that the disciplinary
     authority looks into for imposing punishment. [Para 64]

     Service Law – Disciplinary proceedings – Non-disclosure of
     the CVC recommendation – Claim of privilege:
     Held: In the instant case, the claim of privilege made by the appellate
     authority in defending non-disclosure of the CVC recommendation
     to the appellant – The claim of privilege was utterly misconceived –
     The claim of privilege cannot be invoked as a matter of reflexive
     recourse but must be limited to instances wherein an actual concern
     to public interest is envisaged – Each instance must be evaluated
     on a case-by-case basis and the State must be wholly convinced
     that the disclosure of the documents would cause grave harm and
     injury to public interest – The recommendation of the CVC did not
     have anything to do with the “affairs of the State” or, if one were
     not to be guided by Section 123 of the Evidence Act, anything to
     do with national security. [Paras 66, 70]
2002                                                      [2025] 8 S.C.R.

                        Supreme Court Reports


                            Case Law Cited
    Olga Tellis v. Bombay Municipal Corporation [1985] Supp. 2 SCR
    51 : (1985) 3 SCC 545; Union of India v. Tulsiram Patel [1985]
    Supp. 2 SCR 131 : (1985) 3 SCC 398; A.R. Antulay v. R.S. Nayak
    [1988] Supp. 1 SCR 1 : (1988) 2 SCC 602; Champaklal Chimanlal
    Shah v. Union of India [1964] 6 SCR 190 : 1963 SCC OnLine
    SC 42; ECIL v. B. Karunakar [1993] Supp. 2 SCR 576 : (1993)
    4 SCC 727 – followed.
    SBI v. D.C. Aggarwal [1992] Supp. 1 SCR 956 : (1993) 1 SCC
    13; Mohd. Quaramuddin v. State of A.P. (1994) 5 SCC 118; State
    of Punjab v. Sodhi Sukhdev Singh [1961] 2 SCR 371 : 1960 SCC
    OnLine SC 38; People’s Union for Civil Liberties v. Union of India
    [2004] 1 SCR 232 : (2004) 2 SCC 476 – relied on.
    S.L. Kapoor v. Jagmohan [1981] 1 SCR 746 : (1980) 4 SCC
    379; State of Uttar Pradesh v. Ram Prakash Singh [2025] 5 SCR
    275 : 2025 SCC OnLine SC 891; Sunil Kumar Banerjee v. State
    of West Bengal & Ors. [1980] 3 SCR 179 : (1980) 3 SCC 304;
    Union of India v. Alok Kumar [2010] 5 SCR 35 : (2010) 5 SCC
    349; Vijay Kumar Nigam v. State of MP [1996] Supp. 8 SCR
    544 : (1996) 11 SCC 599; Syndicate Bank & Ors. v. Venkatesh
    Gururao Kurati [2006] 1 SCR 920 : (2006) 3 SCC 150; UCO
    Bank v. Rajinder Lal Capoor [2007] 7 SCR 543 : (2007) 6 SCC
    694; K.C. Mathew v. State of Travancore-Cochin [1955] 2 SCR
    1057 : AIR 1956 SC 241; Bibhuti Bhusan Das Gupta v. State of
    W.B. [1969] 2 SCR 104 : AIR 1969 SC 381; Tara Singh v. State
    [1951] 1 SCR 729 : (1951) SCC 903; Krishna Chandra Tandon v.
    Union of India (1974) 4 SCC 374; Chandrama Tewari v. Union
    of India [1988] 1 SCR 1102 : (1987) Supp. SCC 518; Narayan
    Dattatraya Ramteerthakhar v. State of Maharashtra [1996] Supp. 8
    SCR 939 : (1997) 1 SCC 299; Nirmala J. Jhala v. State of Gujarat
    [2013] 5 SCR 200 : (2013) 4 SCC 301; Manoj Kumar v. State of
    U.P. (2018) 13 SCC 161; Rama Shankar Singh v. State of West
    Bengal [1962] Supp. 1 SCR 49 : AIR 1962 SC 1239; Sharad
    Birdhichand Sarda v. State of Maharashtra [1985] 1 SCR 88 :
    (1984) 4 SCC 116; Maheshwar Tigga v. State of Jharkhand [2020]
    9 SCR 482 : (2020) 10 SCC 108; Haryana Financial Corporation v.
    Kailash Chandra Ahuja [2008] 10 SCR 222 : (2008) 9 SCC 31;
    Brij Nandan Kansal v. State of U.P. [1988] 3 SCR 79 : (1988)
[2025] 8 S.C.R.                                                             2003

                    K. Prabhakar Hegde v. Bank of Baroda


     Supp. SCC 761; Amar Chand Butail v. Union of India, AIR 1964
     SC 1658; State of U.P. v. Raj Narain [1975] 3 SCR 333 : (1975)
     4 SCC 428 – referred to.

                                List of Acts
     Vijaya Bank Officer Employees’ (Discipline and Appeal) Regulations,
     1981; All India Services (Discipline & Appeal) Rules, 1955; All India
     Services (Discipline and Appeal) Rules, 1969; Code of Criminal
     Procedure, 1898; Code of Criminal Procedure, 1973; Constitution
     of India; Code of Civil Procedure, 1908; Evidence Act, 1872.

                             List of Keywords
     Disciplinary proceedings; Dismissal from service; Irregularities and
     lapses committed in approving temporary overdrafts; Punishment
     of compulsory retirement; Non-furnishing of the preliminary inquiry
     report; Report of preliminary inquiry; Sole management witness;
     Regular inquiry; Failure/omission of the Inquiry Officer to generally
     question the appellant on the circumstances appearing against
     him in the evidence; Superannuation; Principles of natural justice;
     Failed to perform a mandatory duty; Non-adherence to regn.6(7)
     Vijaya Bank Officer Employees’ (Discipline and Appeal) Regulations,
     1981; Not been extended fair, reasonable and adequate opportunity
     to defend; Recommendation of the CVC; Recommendation was
     denied by claiming privilege; s.123 of the Evidence Act, 1872;
     Discretion of the Inquiry Officer.

                             Case Arising From
     CIVIL APPELLATE JURISDICTION: Civil Appeal No. 6599 of 2025
     From the Judgment and Order dated 14.12.2021 of the High Court
     of Karnataka at Bengaluru in WA No. 975 of 2009

                          Appearances for Parties
     Advs. for the Appellant:
     Anand Sanjay M. Nuli, Sr. Adv., M/S. Nuli & Nuli.
     Advs. for the Respondent:
     Basava Prabhu Patil, Sr. Adv., Ms. Praveena Gautam, Pawan
     Shukla, Ms. Tissy Annie Thomas, Rohan Bansla, Arijeet Shukla.
2004                                                         [2025] 8 S.C.R.

                           Supreme Court Reports


                    Judgment / Order of the Supreme Court

                                  Judgment

      Dipankar Datta, J.

      Preface
1.    S.L. Kapoor v. Jagmohan1 is a landmark decision of this Court,
      delivered more than half a century back, delineating the contours
      of the principles of natural justice, more particularly the right to be
      heard before one is condemned. The supersession of the New
      Delhi Municipal Committee was challenged on the ground that it
      was in violation of the principles of natural justice, since no show
      cause notice was issued before the order of supersession was
      passed. Linked with that question was the question whether the
      failure to observe the principles of natural justice matters at all,
      if such observance would have made no difference, the admitted
      or indisputable facts speaking for themselves. The golden words
      of Hon’ble O. Chinappa Reddy, J., speaking for the three-Judge
      Bench, rings in our ears:
             “24. … In our view the principles of natural justice know of
             no exclusionary rule dependent on whether it would have
             made any difference if natural justice had been observed.
             The non-observance of natural justice is itself prejudice to
             any man and proof of prejudice independently of proof of
             denial of natural justice is unnecessary. It ill comes from
             a person who has denied justice that the person who has
             been denied justice is not prejudiced. …”
                                                       (emphasis ours)

2.    The above passage from S.L. Kapoor (supra) came to be noticed
      in the Constitution Bench decision of this Court in Olga Tellis v.
      Bombay Municipal Corporation2 and met with an unconditional
      approval. Hon’ble Y.V. Chandrachud, CJI. speaking for the Bench
      (which incidentally included Hon’ble O. Chinappa Reddy, J.) ruled



1    (1980) 4 SCC 379
2    (1985) 3 SCC 545
[2025] 8 S.C.R.                                                                2005

                        K. Prabhakar Hegde v. Bank of Baroda


      that the said observations sum up the true legal position regarding
      the purport and implications of the right of hearing.
3.    Close on the heels of Olga Tellis (supra), another Constitution
      Bench upon a survey of precedents on the point of fair and impartial
      hearing observed in Union of India v. Tulsiram Patel3 as follows:
             “95. The principles of natural justice have thus come to be
             recognized as being a part of the guarantee contained in
             Article 14 because of the new and dynamic interpretation
             given by this Court to the concept of equality which is the
             subject-matter of that article. Shortly put, the syllogism
             runs thus: violation of a rule of natural justice results in
             arbitrariness which is the same as discrimination; where
             discrimination is the result of State action, it is a violation
             of Article 14: therefore, a violation of a principle of natural
             justice by a State action is a violation of Article 14. Article
             14, however, is not the sole repository of the principles of
             natural justice. What it does is to guarantee that any law
             or State action violating them will be struck down. The
             principles of natural justice, however, apply not only to
             legislation and State action but also where any tribunal,
             authority or body of men, not coming within the definition
             of State in Article 12, is charged with the duty of deciding
             a matter. In such a case, the principles of natural justice
             require that it must decide such matter fairly and impartially.”
                                                          (emphasis ours)

4.    In another seminal decision, i.e., A.R. Antulay v. R. S. Nayak4, a
      seven-Judge Constitution Bench while acknowledging that it had
      committed an error earlier which needed rectification, went on to
      assert that:
             “55. … No prejudice need be proved for enforcing the
             fundamental rights. Violation of a fundamental right itself
             renders the impugned action void. So also the violation of
             the principles of natural justice renders the act a nullity. …”



3    (1985) 3 SCC 398
4    (1988) 2 SCC 602
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                              Supreme Court Reports


5.    It has recently been held by us in State of Uttar Pradesh v. Ram
      Prakash Singh5 that just as Articles 14, 19 and 21 constitute a
      triumvirate of rights of citizens conceived as charters on equality,
      freedom and liberty, the trio of the Constitution Bench decisions in
      Olga Tellis (supra), Tulsiram Patel (supra) and A.R. Antulay (supra)
      form the bedrock of natural justice principles being regarded as part
      of Article 14 and, thereby, obviating the need to demonstrate prejudice
      if a challenge were thrown on the ground of violation of Article 14.
6.    Reference to these decisions has been made at the inception because
      of the particular view we propose to take on consideration of decisions
      of a three-Judge Bench in Sunil Kumar Banerjee v. State of West
      Bengal & Ors.6 and a coordinate Bench in Union of India v. Alok
      Kumar7. Notably, these decisions were relied on by the Division
      Bench of the High Court of Karnataka at Bengaluru8 while insisting
      on the requirement to demonstrate prejudice in a claim of breach of
      principles of natural justice notwithstanding that the employer before
      it had violated a statutory regulation by which it was bound.

      The Appeal
7.    The challenge in this civil appeal, by the appellant K. Prabhakar
      Hegde, is to the judgment and order dated 14th December, 20219 in
      Writ Appeal No. 975 of 2009 (S-DE). Vide the impugned order, the
      High Court allowed the writ appeal carried by the respondent here,
      Bank of Baroda. Consequently, the judgment and order of the Single
      Judge dated 24th February, 2009 in WP No. 27936/2003, which was
      under challenge, stood set aside with the result that the writ petition
      of the appellant was dismissed.

      Brief Facts
8.    The facts relevant for the purpose of deciding this appeal are these:
      i.     In 1959, the appellant joined Vijaya Bank (which merged with
             the respondent in the year 2019) as a clerk.


5    2025 SCC OnLine SC 891
6    (1980) 3 SCC 304
7    (2010) 5 SCC 349
8    High Court
9    impugned order
[2025] 8 S.C.R.                                                          2007

                        K. Prabhakar Hegde v. Bank of Baroda


      ii.    Between 1959 and 1998, the appellant was promoted several
             times. At the relevant time, the appellant was the ‘Zonal Head’
             of the Delhi Zonal Office of Vijaya Bank.
      iii.   On 4th of January, 1999, the appellant was served with a notice
             issued by his disciplinary authority. It was alleged that the
             appellant was responsible for certain irregularities and lapses
             committed in approving temporary overdrafts (TOD) on the
             accounts of various parties involving substantial amounts. The
             notice also alleged that the appellant had instructed the Assistant
             General Manager at the Barakhamba Branch of Vijaya Bank to
             grant a TOD of Rs. 15,00,000/- to one M/s Kunal Travels Pvt.
             Ltd. via telephone. Another notice was sent on 22nd January,
             1999 in respect of a separate incident containing more or less
             similar allegations.
      iv.    Appellant replied to the said notices through letters dated 1st
             February, 1999 and 24th February, 1999.
      v.     On 30th January, 2001, disciplinary proceedings under Regulation
             6 of the Vijaya Bank Officer Employees’ (Discipline and Appeal)
             Regulations, 198110 were drawn up by issuing a charge sheet.
             Appellant replied to the said charge sheet vide letter dated 17th
             February, 2001 denying the charges.
      vi.    The disciplinary authority of the appellant appointed an officer
             holding the post of General Manager of Vijaya Bank as the
             Inquiry Officer.
      vii.   The report of the inquiry officer dated 28th November, 2001 was
             submitted to the Disciplinary Authority holding that the charges
             against the appellant stand proved.
      viii. Vide an order dated 17th May, 2002, the Disciplinary Authority
            held that though the appellant was due to retire upon
            superannuation on 30th June, 2002, disciplinary proceedings
            initiated against him vide chargesheet dated 30th January, 2001
            would continue. It was further ordered that the appellant shall
            not be entitled to any retirement benefits till final orders are
            passed in the disciplinary proceedings.



10   1981 Regulations
2008                                                         [2025] 8 S.C.R.

                           Supreme Court Reports


      ix.    Appellant superannuated from service on 30th January, 2006.
      x.     Vide an order dated 4th July, 2002, the Disciplinary Authority
             imposed on the appellant the punishment of ‘dismissal from
             service’.
      xi.    Aggrieved by the punishment imposed on him, the appellant
             approached the Appellate Authority by presenting an appeal. It
             was dismissed vide an appellate order dated 27th March, 2003.
      xii.   Appellant then challenged this order of the Appellate Authority
             before the High Court in its writ jurisdiction. A Single Judge of
             the High Court allowed the writ petition vide judgment and order
             dated 24th February, 2009. The order of dismissal stood quashed
             and the appellant held entitled to “consequential benefits on his
             having attained the age of superannuation, to which he would
             have been entitled in the usual course and in law”.
      xiii. Vijaya Bank, aggrieved by the judgment and order of the Single
            Judge, carried the same in a writ appeal before the Division
            Bench which, as noted above, succeeded. While the appellant’s
            writ petition stood dismissed, the order of dismissal passed
            by the Disciplinary Authority against the appellant was, thus,
            confirmed.

      Impugned Order
9.    The Division Bench of the High Court framed two issues for its
      determination: (i) whether the denial of the preliminary investigation
      report prejudiced the charged officer (appellant before us) and
      vitiated the proceedings and (ii) whether the stipulation of generally
      questioning the charged officer regarding the circumstances appearing
      against him in the evidence was a mandatory requirement under
      Regulation 6(17) of the 1981 Regulations.
10. While deciding issue (i), reliance was placed by the High Court on the
    decisions of this Court in Vijay Kumar Nigam v. State of MP11 and
    Syndicate Bank & Ors. v. Venkatesh Gururao Kurati12 to hold that
    the preliminary report is only to decide and assess whether it would



11   (1996) 11 SCC 599.
12   (2006) 3 SCC 150.
[2025] 8 S.C.R.                                                          2009

                         K. Prabhakar Hegde v. Bank of Baroda


      be necessary to take any disciplinary action against the delinquent
      officer and it does not form any foundation for passing the order.
      The High Court further held that since all the documents relied upon
      by the Inquiry Officer had been made available to the appellant
      and the appellant’s representative having cross-examined the sole
      witness for the management in extenso, furnishing of the preliminary
      investigation report was not necessary; hence, no prejudice to the
      appellant was caused thereby.
11. Regarding issue (ii), the Division Bench held: first, Regulation 6(17)
    of the 1981 Regulations is pari materia Rule 8(19) of the All India
    Services (Discipline & Appeal) Rules, 1955; hence, the decision of
    this Court in Sunil Kumar Banerjee (supra), which has since been
    followed by this Court in the decision in Alok Kumar (supra) is
    squarely applicable and compliance with such a regulation is merely
    directory and not mandatory. Secondly, the High Court held, on
    facts, that the Inquiry Officer had asked the appellant if he wished
    to make any submission and in pursuance thereof, he did utilise
    the opportunity by making detailed submissions; hence, though the
    appellant was not generally questioned as required by Regulation
    6(17), such provision had been substantially complied with.
12. As a sequitur, the High Court allowed the writ appeal and set aside
    the order of the Single Judge.

      Contentions of the parties
13. The appellant has laid siege to the impugned order on, inter alia,
    the following grounds:
      a.     The High Court did not consider the decision rendered by this
             Court in ECIL v. B. Karunakar13 and UCO Bank v. Rajinder
             Lal Capoor14.
      b.     The High Court erroneously interpreted the principles of law
             laid down in Venkatesh Gururao Kurati (supra).
      c.     The High Court did not consider that non-furnishing of the report
             of preliminary inquiry has itself caused prejudice to the appellant



13   (1993) 4 SCC 727.
14   (2007) 6 SCC 694.
2010                                                          [2025] 8 S.C.R.

                           Supreme Court Reports


             as the appellant was unable to defend himself in respect of the
             charges against him.
      d.     Reliance placed by the High Court on Sunil Kumar Banerjee
             (supra) was misplaced. The said decision, rendered by a three-
             Judge Bench referred to coordinate Bench decisions in K.C.
             Mathew v. State of Travancore-Cochin15 and Bibhuti Bhusan
             Das Gupta v. State of W.B.16 without, however, noticing an
             earlier decision of a four-Judge Bench in Tara Singh v. State17
             where it was held to be important to faithfully and fairly observe
             Section 342 of the 1898 Code, the object whereof was to
             afford the accused a fair and proper opportunity of explaining
             the circumstances which appear against him. Though it was
             held that every error or omission would not vitiate a trial and
             that the question in each case would depend on the degree
             of the error and upon whether prejudice had been occasioned
             or likely to have been occasioned, in the present case, the
             degree of error was at its peak since the Inquiry Officer did
             not put a single question to the appellant in respect of the
             circumstances appearing in the evidence against him and the
             High Court failed to consider that calling upon the appellant to
             place his version does not in any manner amount to compliance
             of Regulation 6(17) of the 1981 Regulations, not to speak of
             substantial compliance.
      e.     The authorities could not have considered the appellant to be
             “deemed to be in service” post superannuation and ordering him
             to be dismissed from service in the absence of any regulation
             in the 1981 Regulations permitting such course of action is
             absolutely illegal.
      f.     The actions of the appellant of giving oral sanctions for the TOD
             was normal practice and was done in good faith.
14. Based on the aforesaid contentions, Mr. Nuli, learned senior counsel
    for the appellant ably assisted by Ms. Akhila Wali, learned counsel
    urged that the entire disciplinary proceedings including the order of



15   AIR 1956 SC 241
16   AIR 1969 SC 381
17   (1951) SCC 903
[2025] 8 S.C.R.                                                         2011

                    K. Prabhakar Hegde v. Bank of Baroda


     dismissal and the appellate order be set aside and the respondent
     be ordered to release to the appellant full benefits as if he had never
     been dismissed.
15. Per contra, Mr. Patil, learned senior counsel appearing on behalf of
    the respondent, defended the administrative actions challenged in
    the writ petition and the impugned order on, inter alia, the following
    grounds:
     a.    The High Court rightly decided that since the report of preliminary
           inquiry was only to assess and decide whether disciplinary
           proceedings should be initiated or not and had not formed the
           foundation for passing the order of dismissal from service, denial
           of the same to the appellant did not prejudice him.
     b.    The author of the preliminary inquiry report was the sole witness
           for the management in the inquiry and whatever was recorded
           by such witness in the preliminary inquiry report was spoken to
           by him in course of the inquiry; whereafter the appellant had
           cross-examined extensively. There was, thus, no question of
           the appellant to feel aggrieved by non-furnishing of the report
           of preliminary inquiry.
     c.    Qua Regulation 6(17) of the 1981 Regulations, the appellant
           has not demonstrated any prejudice; moreover, the appellant
           utilised the opportunity of making submissions when called upon
           by the Inquiry Officer and, therefore, the High Court was right
           in holding that the concerned regulation is not mandatory and
           requires only to be substantially complied with.
     d.    The appellant did not ever raise any grievance in course of the
           inquiry and even subsequently, in his representation against the
           inquiry report or the appeal petition that non-compliance with
           Regulation 6(17) of the 1981 Regulations had prejudiced him
           in his defence. For the first time, the appellant raised such a
           grievance in the writ petition which is nothing but an afterthought.
     e.    The decision in Tara Singh (supra) and Sunil Kumar Banerjee
           (supra) operate in different legal domains and, therefore, Tara
           Singh (supra) being a decision rendered in the criminal appellate
           jurisdiction is not applicable in the present proceedings; on the
           contrary, Sunil Kumar Banerjee (supra) is pat on the point and
           propriety demands that we follow the same.
2012                                                           [2025] 8 S.C.R.

                             Supreme Court Reports


      f.     Continuation of disciplinary proceedings even after the appellant
             had attained superannuation cannot be faulted because the
             appellant was continued in service till such time the final order
             of dismissal from service was passed and this is a permissible
             course of action, not warranting interdiction.

      Issues
16. Three broad issues emerge for decision:
      (i)    Whether denial of the report of preliminary inquiry prepared by
             the officer entrusted by Vijaya Bank to conduct such inquiry, who
             happened to be the sole management witness, was sufficient
             to vitiate the regular inquiry that followed against the appellant?
      (ii)   Whether the failure/omission of the Inquiry Officer to generally
             question the appellant on the circumstances appearing against
             him in the evidence, as per Regulation 6(17) of the 1981
             Regulations, vitiated the inquiry?
      (iii) Whether continuation of disciplinary proceedings against the
            appellant beyond superannuation was a permissible course of
            action under the 1981 Regulations?
17. If indeed the answer to any or all the aforesaid issues is in favour
    of the appellant, the relief that he could be entitled would then fall
    for our consideration.

      Analysis
18. We begin with issue no.1. Unlike the extensive jurisprudence available
    on the furnishing of the final enquiry report, our research reveals that
    there is significantly less jurisprudence on the issue of furnishing a
    preliminary inquiry report. However, the decisions referred to below
    provide sufficient light for us to rule on the question before us.
19. At the outset, we refer to the Constitution Bench decision in
    Champaklal Chimanlal Shah v. Union of India18. The said decision
    succinctly delineates the purpose of a preliminary inquiry, albeit in the
    context of government employees. Hon’ble K.N. Wanchoo, J. (as the
    Chief Justice then was) speaking for the Bench observed as follows:


18   1963 SCC OnLine SC 42
[2025] 8 S.C.R.                                                           2013

                    K. Prabhakar Hegde v. Bank of Baroda


           “13. Generally therefore a preliminary enquiry is usually
           held to determine whether a prima facie case for a
           formal departmental enquiry is made out, and it is very
           necessary that the two should not be confused. Even
           where government does not intend to take action by way
           of punishment against a temporary servant on a report of
           bad work or misconduct a preliminary enquiry is usually
           held to satisfy government that there is reason to dispense
           with the services of a temporary employee or to revert
           him to his substantive post, for as we have said already
           government does not usually take action of this kind without
           any reason. Therefore when a preliminary enquiry of this
           nature is held in the case of a temporary employee or
           a government servant holding a higher rank temporarily
           it must not be confused with the regular departmental
           enquiry (which usually follows such a preliminary enquiry)
           when the government decides to frame charges and
           get a departmental enquiry made in order that one of
           the three major punishments already indicated may be
           inflicted on the government servant. Therefore, so far as
           the preliminary enquiry is concerned there is no question
           of its being governed by Article 311(2) for that enquiry is
           really for the satisfaction of government to decide whether
           punitive action should be taken or action should be taken
           under the contract or the rules in the case of a temporary
           government servant or a servant holding higher rank
           temporarily to which he has no right. In short a preliminary
           enquiry is for the purpose of collection of facts in regard
           to the conduct and work of a government servant in which
           he may or may not be associated so that the authority
           concerned may decide whether or not to subject the servant
           concerned to the enquiry necessary under Article 311 for
           inflicting one of the three major punishments mentioned
           therein. Such a preliminary enquiry may even be held ex
           parte, for it is merely for the satisfaction of government,
           though usually for the sake of fairness, explanation is taken
           from the servant concerned even as such an enquiry. But
           at that stage he has no right to be heard for the enquiry
           is merely for the satisfaction of the government and it
2014                                                          [2025] 8 S.C.R.

                           Supreme Court Reports


             is only when the government decides to hold a regular
             departmental enquiry for the purpose of inflicting one of
             the three major punishments that the government servant
             gets the protection of Article 311 and all the rights that
             that protection implies as already indicated above. There
             must therefore be no confusion between the two enquiries
             and it is only when the government proceeds to hold a
             departmental enquiry for the purpose of inflicting on the
             government servant one of the three major punishments
             indicated in Article 311 that the government servant is
             entitled to the protection of that Article. That is why this
             Court emphasised in Parshotam Lal Dhingra case [(1958)
             SCR 828] and in Shyam Lal v. State of Uttar Pradesh
             [(1955) 1 SCR 26] that the ‘motive or the inducing factor
             which influences the government to take action under the
             terms of the contract of employment or the specific service
             rule is irrelevant’.”
20. A coordinate Bench in Krishna Chandra Tandon v. Union of
    India19 incontrovertibly held that there is no requirement to furnish
    a preliminary inquiry report when the enquiry officer has not relied
    upon the same to reach the conclusions recorded in the inquiry
    report after a regular inquiry. The relevant passage reads as follows:
             “16. … It is very necessary for an authority which orders an
             enquiry to be satisfied that there are prima facie grounds
             for holding a disciplinary enquiry and, therefore, before
             he makes up his mind he will either himself investigate or
             direct his subordinates to investigate in the matter and it
             is only after he receives the result of these investigations
             that he can decide as to whether disciplinary action is
             called for or not. Therefore, these documents of the
             nature of inter-departmental communications between
             officers preliminary to the holding of enquiry have really
             no importance unless the Enquiry Officer wants to rely on
             them for his conclusions. In that case it would only be right
             that copies of the same should be given to the delinquent.
             It is not the case here that either the Enquiry Officer or


19   (1974) 4 SCC 374
[2025] 8 S.C.R.                                                               2015

                     K. Prabhakar Hegde v. Bank of Baroda


             the CIT relied on the report of Shri R.N. Srivastava or any
             other officer for his finding against the appellant. Therefore,
             there is no substance in this submission.”
21. The concept of a preliminary inquiry and its ramifications have been
    neatly summed up in Chandrama Tewari v. Union of India20. There,
    a coordinate Bench of this Court held that:
             “4. We have given our anxious consideration to the
             submissions made on behalf of the appellant and we
             have further considered the aforesaid authorities referred
             to by the learned counsel for the appellant but we do not
             find any merit in the appellant’s submissions to justify
             interference with the High Court’s judgment. Article 311
             of the Constitution requires that reasonable opportunity of
             defence must be afforded to a government servant before
             he is awarded major punishment of dismissal. It further
             contemplates that disciplinary enquiry must be held in
             accordance with the rules in a just and fair manner. The
             procedure at the enquiry must be consistent with the
             principles of natural justice. Principles of natural justice
             require that the copy of the document if any relied upon
             against the party charged should be given to him and
             he should be afforded opportunity to cross-examine the
             witnesses and to produce his own witnesses in his defence.
             If findings are recorded against the government servant
             placing reliance on a document which may not have been
             disclosed to him or the copy whereof may not have been
             supplied to him during the enquiry when demanded, that
             would contravene principles of natural justice rendering the
             enquiry, and the consequential order of punishment illegal
             and void. These principles are well settled by a catena of
             decisions of this Court. We need not refer to them. However,
             it is not necessary that each and every document must be
             supplied to the delinquent government servant facing the
             charges, instead only material and relevant documents
             are necessary to be supplied to him. If a document even
             though mentioned in the memo of charges is not relevant


20   (1987) Supp. SCC 518
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                       Supreme Court Reports


        to the charges or if it is not referred to or relied upon by
        the enquiry officer or the punishing authority in holding
        the charges proved against the government servant, no
        exception can be taken to the validity of the proceedings
        or the order. If the document is not used against the party
        charged the ground of violation of principles of natural
        justice cannot successfully be raised. The violation of
        principles of natural justice arises only when a document,
        copy of which may not have been supplied to the party
        charged when demanded is used in recording finding
        of guilt against him. On a careful consideration of the
        authorities cited on behalf of the appellant we find that
        the obligation to supply copies of a document is confined
        only to material and relevant documents and the enquiry
        would be vitiated only if the non-supply of material and
        relevant documents when demanded may have caused
        prejudice to the delinquent officer.
        ***
        9. It is now well settled that if copies of relevant and material
        documents including the statement of witnesses recorded
        in the preliminary enquiry or during investigation are not
        supplied to the delinquent officer facing the enquiry and if
        such documents are relied in holding the charges framed
        against the officer, the enquiry would be vitiated for the
        violation of principles of natural justice. Similarly, if the
        statement of witnesses recorded during the investigation of
        a criminal case or in the preliminary enquiry is not supplied
        to the delinquent officer that would amount to denial of
        opportunity of effective cross-examination. It is difficult to
        comprehend exhaustively the facts and circumstances
        which may lead to violation of principles of natural justice or
        denial of reasonable opportunity of defence. This question
        must be determined on the facts and circumstances of
        each case. While considering this question it has to be
        borne in mind that a delinquent officer is entitled to have
        copies of material and relevant documents only which
        may include the copy of statement of witnesses recorded
        during the investigation or preliminary enquiry or the copy
        of any other document which may have been relied on in
[2025] 8 S.C.R.                                                             2017

                        K. Prabhakar Hegde v. Bank of Baroda


             support of the charges. If a document has no bearing on
             the charges or if it is not relied on by the enquiry officer
             to support the charges, or if such document or material
             was not necessary for the cross-examination of witnesses
             during the enquiry, the officer cannot insist upon the supply
             of copies of such documents, as the absence of copy of
             such document will not prejudice the delinquent officer. The
             decision of the question whether a document is material
             or not will depend upon the facts and circumstances of
             each case.”
22. A three-Judge Bench of this Court in Narayan Dattatraya
    Ramteerthakhar v. State of Maharashtra21 observed that:
             “3. … It is then contended that the preliminary enquiry
             was not properly conducted and, therefore, the enquiry
             is vitiated by principles of natural justice. The preliminary
             inquiry has nothing to do with the enquiry conducted after
             issue of charge-sheet. The former action would be to find
             whether disciplinary enquiry should be initiated against
             the delinquent. After full-fledged enquiry was held, the
             preliminary enquiry had lost its importance.”
23. Considering the aforesaid decisions as well as other decisions, a
    coordinate Bench in Nirmala J. Jhala v. State of Gujarat22 held that:
             “45. In view of the above, it is evident that the evidence
             recorded in preliminary inquiry cannot be used in regular
             inquiry as the delinquent is not associated with it, and
             opportunity to cross-examine the persons examined in
             such inquiry is not given. Using such evidence would be
             violative of the principles of natural justice.”
24. We may also profitably refer to the decision in Manoj Kumar v.
    State of U.P.23 wherein it was held:
             “6. …The order also states that a preliminary inquiry was
             held to determine if a full-fledged departmental enquiry
             was required after which the charge memo was served


21   (1997) 1 SCC 299
22   (2013) 4 SCC 301
23   (2018) 13 SCC 161
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                          Supreme Court Reports


            with full opportunity of defence. The non-furnishing of the
            preliminary inquiry report has therefore not prejudiced
            the appellant in any manner or vitiated the departmental
            proceedings.”
25. The upshot of the aforesaid decisions is that:
     i.     A preliminary inquiry is conducted for the purposes of determining
            whether regular disciplinary proceedings are called for or not;
     ii.    A preliminary inquiry report is an internal document;
     iii.   A preliminary inquiry report or the findings therein cannot be
            used to come to conclusions recorded in the report of inquiry if
            such preliminary inquiry report/findings are based on oral and/or
            documentary evidence which are obtained behind the back of
            the charged employee and such oral/documentary evidence are
            not presented in the inquiry in the presence of such employee;
     iv.    If a preliminary inquiry report or the findings therein are sought
            to be relied on, the witnesses whose evidence was relied on
            in preparing the same ought to be brought before the inquiry
            officer and the charged officer afforded an opportunity to cross-
            examine them;
     v.     If a preliminary inquiry report is sought to be relied upon in
            the inquiry report, then such preliminary inquiry report must be
            provided to the delinquent employee;
     vi.    Once a chargesheet is drawn up and has been provided to the
            charged officer detailing the charges, the preliminary inquiry
            report is of no consequence and need not be provided to him.
26. Having noted the purpose and reason for conducting a preliminary
    inquiry, we now proceed to answer the question as to whether
    non-furnishing of the report to the appellant led to the disciplinary
    proceedings being vitiated.
27. In the instant case, a perusal of the inquiry report reveals that no
    reliance upon the preliminary inquiry report has been placed by the
    inquiry officer. Therefore, non-furnishing of the inquiry report to the
    appellant is inconsequential.
28. However, an interesting argument that has been made is that the
    non-furnishing of the preliminary inquiry report has caused prejudice
[2025] 8 S.C.R.                                                          2019

                    K. Prabhakar Hegde v. Bank of Baroda


      to the appellant because such non-furnishing of the report disabled
      him to effectively cross-examine the witness. This argument, while
      novel, is not impressive. We come to this ineluctable conclusion since
      the appellant was duly provided with the deposition of the witness
      as per the rules, was allowed to cross-examine the witness on the
      basis of the statements made by him and the inquiry officer placed
      no reliance upon the preliminary inquiry report, but only upon the
      statements of such witness recorded during chief examination and
      cross-examination.
29. We, therefore, find no violation of the principles of natural justice;
    also, no prejudice has been caused to the charged officer for non-
    furnishing of the preliminary inquiry report.
30. This conclusion, is however, premised on the caveat that no rule,
    statutory or otherwise, mandates the furnishing of the preliminary
    inquiry report in this particular case.
31. We now proceed to answer the next question which is central to the
    dispute, i.e., what is the nature of duty that Regulation 6(17) of the
    1981 Regulations casts on an Inquiry Officer? Is the provision directory
    or mandatory, or is it both directory and mandatory depending on
    the fact situation in each case?
32. In Sunil Kumar Banerjee (supra), a three-Judge Bench of this Court
    had the occasion to consider Rule 8(19) of the All India Services
    (Discipline and Appeal) Rules, 196924, which is pari materia Rule
    6(17) of the 1981 Regulations. A point having been taken before the
    Bench by the delinquent officer that Rule 8(19) was observed in the
    breach by the Inquiry Officer, it was ruled by Hon’ble O. Chinappa
    Reddy, J. as follows:
             “3. … It may be noticed straightway that this provision is
             akin to Section 342 of the Criminal Procedure Code of
             1898 and Section 313 of the Criminal Procedure Code of
             1973. It is now well established that mere non-examination
             or defective examination under Section 342 of the 1898
             Code is not a ground for interference unless prejudice is
             established, vide, K.C. Mathew v. State of Travancore-
             Cochin (AIR 1956 SC 241); Bibhuti Bhusan Das Gupta


24   1969 Rules
2020                                                         [2025] 8 S.C.R.

                          Supreme Court Reports


            v. State of W.B. (AIR 1969 SC 381). We are similarly of
            the view that failure to comply with the requirements of
            Rule 8(19) of the 1969 Rules does not vitiate the enquiry
            unless the delinquent officer is able to establish prejudice.
            In this case the learned Single Judge of the High Court as
            well as the learned Judges of the Division Bench found
            that the appellant was in no way prejudiced by the failure
            to observe the requirement of Rule 8(19). The appellant
            cross-examined the witnesses himself, submitted his
            defence in writing in great detail and argued the case
            himself at all stages. The appellant was fully alive to the
            allegations against him and dealt with all aspects of the
            allegations in his written defence. We do not think that he
            was in the least prejudiced by the failure of the Enquiry
            Officer to question him in accordance with Rule 8(19).”
33. It follows from the above passage that the Bench in Sunil Kumar
    Banerjee (supra), while overruling the contention of the delinquent
    officer, held that (i) Rule 8(19) of the 1969 Rules was akin to Section
    342 of the Code of Criminal Procedure, 189825 and Section 313 of
    the Code of Criminal Procedure, 197326; and (ii) in terms of the law
    laid down in K.C. Mathew (supra) and Bibhuti Bhusan Das Gupta
    (supra), mere non-examination or defective examination under Section
    342 of the 1898 Code is not a ground for interference unless prejudice
    is established. On facts, the Bench was of the opinion that though
    the Inquiry Officer had not examined the delinquent officer, he was
    not prejudiced at all thereby since he was alive to the allegations
    against him, had cross-examined the witnesses himself, submitted
    his defence in writing in great detail and argued the case himself
    at all stages.
34. Sections 342 and 313 of the 1898 and 1973 Codes, respectively,
    though bear close resemblance, are not exactly the same. We may,
    for ease of understanding, quote the same below:
            342. (1) For the purpose of enabling the accused to
            explain any circumstances appearing in the evidence
            against him, the court may, at any stage of any inquiring


25   1898 Code
26   1973 Code
[2025] 8 S.C.R.                                                            2021

                    K. Prabhakar Hegde v. Bank of Baroda


           or trial without previously warning the accused, put such
           questions to him as the court considers necessary, and
           shall, for the purpose aforesaid, question him generally
           on the case after the witnesses for the prosecution have
           been examined and before he is called on for his defence.
           (2) The accused shall not render himself liable to
           punishment by refusing to answer such questions, or by
           giving false answers to them; but the court and the jury
           (if any) may draw such inference from such refusal or
           answers as it thinks just.
           (3) The answers given by the accused may be taken into
           consideration in such inquiry or trial, and put in evidence
           for or against him in any other inquiry into or trial for, any
           other offence which such answers may tend to show he
           has committed.
           (4) No oath shall be administered to the accused when
           he is examined under sub-section (1).
           313. Power to examine the accused.—
           (1) In every inquiry or trial, for the purpose of enabling the
           accused personally to explain any circumstances appearing
           in the evidence against him, the Court—
                (a) may at any stage, without previously warning
                the accused put such questions to him as the Court
                considers necessary;
                (b) shall, after the witnesses for the prosecution
                have been examined and before he is called on for
                his defence, question him generally on the case:
                Provided that in a summons-case, where the Court
                has dispensed with the personal attendance of the
                accused, it may also dispense with his examination
                under clause (b).
           (2) No oath shall be administered to the accused when
           he is examined under sub-section (1).
           (3) The accused shall not render himself liable to
           punishment by refusing to answer such questions, or by
           giving false answers to them.
2022                                                         [2025] 8 S.C.R.

                         Supreme Court Reports


          (4) The answers given by the accused may be taken into
          consideration in such inquiry or trial, and put in evidence
          for or against him in any other inquiry into, or trial for, any
          other offence which such answers may tend to show he
          has committed.
          (5) The Court may take help of Prosecutor and Defence
          Counsel in preparing relevant questions which are to be
          put to the accused and the Court may permit filing of
          written statement by the accused as sufficient compliance
          of this section.
35. In K.C. Mathew (supra), a three-Judge Bench while considering the
    impact of breach of Section 342 of the 1898 Code observed as follows:
          “7. The next argument was that the examination of each
          accused under Section 342 of the Criminal Procedure
          Code was defective and that that caused prejudice. We
          agree that the examination was not as full or as clear as
          it should have been but we are not satisfied that there
          was any prejudice.
          8. It is to be noted that the question of prejudice was not
          raised in either of the courts below nor was it raised in the
          grounds of appeal to this Court. The point was taken for
          the first time in the arguments before us and even there
          counsel was unable to say that his clients had in fact
          been prejudiced; all he could urge was that there was a
          possibility of prejudice.
          9. We agree that the omission to take the objection in
          the grounds of appeal is not necessarily fatal; everything
          must depend on the facts of the case; but the fact that
          the objection was not taken at an earlier stage, if it could
          and should have been taken, is a material circumstance
          that will necessarily weigh heavily against the accused
          particularly when he has been represented by counsel
          throughout. The Explanation to Section 537 of the Criminal
          Procedure Code expressly requires the Court to
          ‘have regard to the fact whether the objection could
          and should have been raised at an earlier stage in the
          proceedings’.
[2025] 8 S.C.R.                                                                 2023

                    K. Prabhakar Hegde v. Bank of Baroda


           10. Another strong circumstance is this : the petition for
           appeal does not set out the questions that, according to
           the appellants, they should have been asked nor does it
           indicate the answers that they would have given if they
           had been asked. Again, though that is not necessarily fatal
           ordinarily it will be very difficult to sustain a plea of prejudice
           unless the Court is told just where the shoe pinches. It
           is true that in certain exceptional cases prejudice, or a
           reasonable likelihood of prejudice, may be so patent on
           the face of the facts that nothing more is needed; but that
           class of case must be exceptional. After all, the only person
           who can really tell us whether he was in fact prejudiced is
           the accused; and if there is real prejudice he can at once
           state the facts and leave the Court to judge their worth.
           But if the attitude of the accused, whether in person or
           through the mouth of his counsel, is: ‘I don’t know what I
           would have said. I still have to think that up. But I might
           have said this, that or the other’, then there will ordinarily
           be little difficulty in concluding that there neither was,
           nor could have been, prejudice. Here, as elsewhere, the
           Court is entitled to conclude that a person who deliberately
           withholds facts within his special knowledge and refuses
           to give the Court that assistance which is its right and
           due, has nothing of value which he can disclose and that
           if he did disclose anything that would at once expose the
           hollowness of his cause.”
                                                          (emphasis ours)

36. Bibhuti Bhusan Das Gupta (supra) is also a decision of a three-
    Judge Bench. The question arising for decision is neatly summed
    up in paragraph 4, reading as follows:
           “4. … The point in issue is whether the pleader can
           represent the accused for purposes of Section 342 and
           whether the examination of the pleader in place of the
           accused is sufficient compliance with the section in a case
           where the Magistrate has dispensed with the personal
           attendance of the accused and permitted him to appear
           by a pleader. On this question there is a sharp conflict
2024                                                     [2025] 8 S.C.R.

                       Supreme Court Reports


         of judicial opinion. Most of the decisions up to 1962 are
         referred to in Prova Debi v. Mrs Fernandes (AIR 1962
         Cal 203). In that case a Full Bench of the Calcutta High
         Court by a majority decision held that the Magistrate may
         in his discretion examine the pleader on behalf of the
         accused under Section 342. This view is supported by
         numerous decisions of other High Courts, but from time
         to time many judges expressed vigorous dissents and
         came to the opposite conclusion. The two sides of the
         question are ably discussed in the majority and minority
         judgments of the Calcutta case. After a full examination
         of all the decided cases on the subject, we are inclined
         to agree with the minority opinion.”
                                                   (emphasis ours)

37. Section 342 of the 1898 Code was considered and it was explained
    in the following words:
         “5. Sub-section (1) of Section 342 consists of two parts.
         The first part gives a discretion to the court to question
         the accused at any stage of an inquiry or trial without
         previously warning him. Under the second part the court
         is required to question him generally on the case after the
         witnesses for the prosecution have been examined and
         before he is called for his defence. The second part is
         mandatory and imposes upon the court a duty to examine
         the accused at the close of the prosecution case in order
         to give him an opportunity to explain any circumstances
         appearing against him in the evidence and to say in his
         defence what he wants to say in his own words. He is
         not bound to answer the questions but if he refuses to
         answer or gives false answers, the consequences may
         be serious, for under sub-section (2) the court may draw
         such inference from the refusal or the false answer as it
         thinks fit. Under sub-section (3) the answers given by the
         accused may be taken into consideration in the inquiry or
         trial. His statement is material upon which the court may
         act, and which may prove his innocence, (see State of
         Maharashtra v. Laxman Jairam (1962 Supp 3 SCR 230).
         Under sub-section (4) no oath is administered to him. The
[2025] 8 S.C.R.                                                       2025

                    K. Prabhakar Hegde v. Bank of Baroda


           reason is that when he is examined under Section 342,
           he is not a witness. … ”
                                                     (emphasis ours)

38. Having read the extracted passages of the larger Bench decisions
    in between the lines, it appears to us imperative to highlight certain
    points. In K.C. Mathew (supra), the plea of defective examination was
    raised for the first time in course of arguments before this Court and
    not at any previous stage, though fully available to be raised since the
    accused were being represented by a counsel. The Bench, having
    expressly referred to the provision in Section 537 of the 1898 Code,
    which was akin to Section 465(1) of the 1973 Code, considered the
    inability of the accused to demonstrate the prejudice suffered by him
    in the process of conviction and sentence as one of the grounds for
    declining relief. Obviously, on the face of Section 537 of the 1898
    Code, a failure of justice had to occasion by any error or irregularity
    for being interdicted which was not the case in K.C. Mathew (supra).
    Similarly in Bibhuti Bhusan Das Gupta (supra), this Court observed
    that mere non-examination or defective examination under Section
    342 is not a ground for interference unless prejudice is established
    and, therefore, even in that case, since such plea of prejudice was
    not raised in previous rounds of litigation and the non-examination
    under Section 342 did not cause any prejudice, the conviction and
    sentence was not interfered with looking to the facts in that case.
    What is important and stands out for the present case is that the
    second limb of Section 342 of the 1898 Code was interpreted by
    the three-Judge Bench to be mandatory.
39. This interpretation of Section 342 of the 1898 Code in Bibhuti
    Bhusan Das Gupta (supra) also appears to align with the previous
    larger Bench decision of four Judges in Tara Singh (supra) wherein,
    Hon’ble Vivian Bose, J. (as His Lordship then was) speaking for the
    Bench, had the occasion to explain in detail the requirements of
    examination of an accused under Section 342. The relevant passage
    is extracted below:
           “18. It is important therefore that an accused should
           be properly examined under Section 342 and, as their
           Lordships of the Privy Council indicated in Dwarkanath
           Varma v. Emperor (AIR 1933 PC 124), if a point in the
2026                                                        [2025] 8 S.C.R.

                       Supreme Court Reports


        evidence is considered important against the accused and
        the conviction is intended to be based upon it, then it is right
        and proper that the accused should be questioned about
        the matter and be given an opportunity of explaining it if
        he so desires. This is an important and salutary provision
        and I cannot permit it to be slurred over. I regret to find that
        in many cases scant attention is paid to it, particularly in
        the Sessions Courts. But whether the matter arises in the
        Sessions Court or in that of the Committing Magistrate, it
        is important that the provisions of Section 342 should be
        fairly and faithfully observed.
        23. Section 342 requires the accused to be examined for
        the purpose of enabling him “to explain any circumstances
        appearing in the evidence against him”. Now it is evident
        that when the Sessions Court is required to make the
        examination under this section, the evidence referred to is
        the evidence in the Sessions Court and the circumstances
        which appear against the accused in that court. It is not
        therefore enough to read over the questions and answers
        put in the Committing Magistrate’s Court and ask the
        accused whether he has anything to say about them. In
        the present case, there was not even that. The appellant
        was not asked to explain the circumstances appearing
        in the evidence against him but was asked whether the
        statements made before the Committing Magistrate and
        his answers given there were correctly recorded. That does
        not comply with the requirements of the section.
        38. The whole object of Section 342 is to afford the accused
        a fair and proper opportunity of explaining circumstances
        which appear against him. The questioning must therefore
        be fair and must be couched in a form which an ignorant or
        illiterate person will be able to appreciate and understand.
        Even when an accused person is not illiterate, his mind
        is apt to be perturbed when he is facing a charge of
        murder. He is therefore in no fit position to understand
        the significance of a complex question. Fairness therefore
        requires that each material circumstance should be put
        simply and separately in a way that an illiterate mind, or one
        which is perturbed or confused, can readily appreciate and
[2025] 8 S.C.R.                                                               2027

                        K. Prabhakar Hegde v. Bank of Baroda


             understand. I do not suggest that every error or omission
             in this behalf would necessarily vitiate a trial because I am
             of opinion that errors of this type fall within the category of
             curable irregularities. Therefore, the question in each case
             depends upon the degree of the error and upon whether
             prejudice has been occasioned or is likely to have been
             occasioned.
             39. In my opinion, the disregard of the provisions of Section
             342, Criminal Procedure Code, is so gross in this case
             that I feel there is grave likelihood of prejudice. But this
             is not the only error. … ”
40. Further reference can profitably be made to the decision of another
    three-Judge Bench in Rama Shankar Singh v. State of West
    Bengal27 where the scope of Section 342 of the 1898 Code was
    examined in the light of the relevant Sessions Judge rolling up several
    distinct matters of evidence in a single question. It was held thus:
             “15. In our view, the learned Sessions Judge in rolling up
             several distinct matters of evidence in a single question
             acted irregularly. Section 342 of the Code of Criminal
             Procedure by the first sub-section provides, insofar as
             it is material: “For the purpose of enabling the accused
             to explain any circumstances appearing in the evidence
             against him, the Court … shall … question him generally
             on the case after the witnesses for the prosecution have
             been examined and before he is called on for his defence”.
             Duty is thereby imposed upon the Court to question the
             accused generally in a case after the witnesses for the
             prosecution have been examined to enable the accused
             to explain any circumstance appearing against him. This
             is a necessary corollary of the presumption of innocence
             on which our criminal jurisprudence is founded. The object
             of the section is to afford to the accused an opportunity
             of showing that the circumstance relied upon by the
             prosecution which may be prima facie against him, is not
             true or is consistent with his innocence. The opportunity
             must be real and adequate. Questions must be so framed


27   AIR 1962 SC 1239
2028                                                          [2025] 8 S.C.R.

                           Supreme Court Reports


             as to give to the accused clear notice of the circumstances
             relied upon by the prosecution, and must give him an
             opportunity to render such explanation as he can of that
             circumstance. Each question must be so framed that the
             accused may be able to understand it and to appreciate
             what use the prosecution desires to make of the evidence
             against him. Examination of the accused under Section 342
             is not intended to be an idle formality, it has to be carried
             out in the interest of justice and fairplay to the accused :
             by a slipshod examination which is the result of imperfect
             appreciation of the evidence, idleness or negligence the
             position of the accused cannot be permitted to be made
             more difficult than what it is in a trial for an offence.”
                                                        (emphasis ours)

41. At this juncture, it would be worthwhile to notice the decision of another
    three-Judge Bench of this Court in Sharad Birdhichand Sarda v.
    State of Maharashtra28, where Section 313 of the 1973 Code was
    considered and it was held by Hon’ble S. Murtaza Fazal Ali, J. (as
    His Lordship then was) that it is vital that any circumstance adverse
    to the accused must be put to him under Section 313; otherwise it
    must be completely excluded from consideration because the accused
    did not have any chance to explain them. Much the same view was
    expressed by Hon’ble A. Varadarajan, J. (as His Lordship then was)
    in his concurring opinion to the effect that the circumstances not put
    to the appellant in his examination under S. 313 of the 1973 Code
    have to be completely excluded from consideration.
42. Quite recently, another three-Judge Bench in Maheshwar Tigga v.
    State of Jharkhand29 had the occasion to rule that:
             “8. It stands well settled that circumstances not put to an
             accused under Section 313 CrPC cannot be used against
             him, and must be excluded from consideration. In a criminal
             trial, the importance of the questions put to an accused
             are basic to the principles of natural justice as it provides
             him the opportunity not only to furnish his defence, but


28   (1984) 4 SCC 116
29   (2020) 10 SCC 108
[2025] 8 S.C.R.                                                        2029

                    K. Prabhakar Hegde v. Bank of Baroda


           also to explain the incriminating circumstances against
           him. A probable defence raised by an accused is sufficient
           to rebut the accusation without the requirement of proof
           beyond reasonable doubt.”
43. Mr. Patil is correct that Sunil Kumar Banerjee (supra) is a precedent
    that provides adequate guidance for deciding the point under
    consideration, since it dealt with a pari materia provision applicable
    in course of a departmental inquiry. Obviously, he hinted that we
    are bound by such precedent and there is no way a different view
    could be taken.
44. In normal circumstances, there could be little reason not to accept
    such a contention being bound by the precedent of a larger bench.
    However, the vast and expansive development of law in the field
    of administrative law in our country since the time Sunil Kumar
    Banerjee (supra) was decided (almost four and half decades back),
    especially on the rule of fairness in administrative action which is
    now acknowledged in the Indian context as the third limb of natural
    justice, cannot be overlooked. Coupled with that is the decision in S.L.
    Kapoor (supra), authored by none other than Hon’ble O. Chinappa
    Reddy, J. himself and the subsequent trio of Constitution Bench
    decisions in Olga Tellis (supra), Tulsiram Patel (supra) and A. R.
    Antulay (supra) upholding that violation of a mandatory provision
    of law relating to fair hearing is in itself prejudice to the person
    proceeded against and no need to demonstrate prejudice would
    arise. It is of particular importance when His Lordship frowned that
    “it ill comes from a person who has denied justice that the person
    who has been denied justice is not prejudiced.” (emphasis ours). It is
    indeed paradoxical for someone who has denied justice to a person
    to claim that that person, who was denied justice, is not prejudiced.
45. With the utmost respect and reverence at our command for the
    three-Judge Bench that had the occasion to decide Sunil Kumar
    Banerjee (supra), our analysis of the legal position reveals that the
    precedential value of the said decision stands significantly diminished
    for reasons more than one and that such decision must be treated to
    be an authority for what it decided based on the reasons assigned
    therein.
46. First, there was no independent consideration of Rule 8(19) of the
    1969 Rules in the context of the procedural safeguards that delinquent
2030                                                      [2025] 8 S.C.R.

                        Supreme Court Reports


     officers under such relevant rules are entitled to claim and enforce.
     Consequently, and most significantly, the impact of the words “may”
     and “shall” appearing in the same provision do not appear to have
     been considered. We propose to interpret Regulation 6(17) of the
     1981 Regulations a little later.
47. Secondly, the approach of the larger Bench in interpreting Rule 8(19)
    of the 1969 Rules was completely based on consideration of Section
    342 of the 1898 Code and the decisions in K.C. Mathew (supra)
    and Bibhuti Bhusan Das Gupta (supra). The law on Section 313
    of the 1973 Code, which replaced Section 342 of the 1898 Code,
    and the rights of an accused have been explained in detail in several
    subsequent decisions of this Court, some of which are noticed above.
    Since examination under Section 313 of the 1973 Code has been
    recognised as a part of natural justice, failure of the court to place
    the circumstances appearing in the evidence to the accused by
    putting appropriate questions resulting in his improper examination
    in a given case could result in the trial being held to be vitiated. To
    make the examination under Section 313 of the 1973 Code more
    effective, the Parliament has even amended such provision on
    the last day of the year 2009. In view thereof and by passage of
    time, the prejudice theory in criminal trials qua Section 313, Cr. PC
    examination seems to have suffered some dilution; however, since
    we are not dealing with an appeal arising out of a criminal trial, we
    may not be understood to have laid down any law in this judgment
    that could be cited as a precedent before courts trying criminal
    offences. Nonetheless, we hold that K.C. Mathew (supra) was not
    the only decision providing guidance. There were other decisions
    of high authority which might not have been cited before the Bench
    in Sunil Kumar Banerjee (supra).
48. Thirdly, assuming that the prejudice theory does have relevance, it is
    reasonable to assume that the principle on the basis of which Rama
    Shankar Singh (supra) and K.C. Mathew (supra) were decided
    by Their Lordships must have been predicated on a consideration
    of Section 537 of the 1898 Code in terms whereof, it has to be
    demonstrated by the accused, to secure a declaration that the trial
    or inquiry stood vitiated, that a failure of justice had occasioned
    arising out of the procedure adopted by the court. Insofar as the
    1969 Rules or the 1981 Regulations are concerned, there is no such
    provision therein like Section 537 of the 1898 Code or Section 465
[2025] 8 S.C.R.                                                      2031

                    K. Prabhakar Hegde v. Bank of Baroda


     of the 1973 Code. This marks a significant distinction in trials under
     the 1898 Code/1973 Code and inquiries under the 1969 Rules/1981
     Regulations. In our considered opinion, this vital aspect cannot be
     excluded from our consideration.
49. Fourthly, Bibhuti Bhusan Das Gupta (supra) is a decision which
    appears to have been referred only in passing in Sunil Kumar
    Banerjee (supra) without noting the law declared therein. The trial
    was held to be vitiated for breach of Section 342 of the 1898 Code
    since the court had examined the counsel for the accused instead
    of the accused. Additionally, the decision in Bibhuti Bhusan Das
    Gupta (supra) spelt out in clear terms which parts of Section 342
    were directory and which parts were mandatory. Section 342, as
    explained by the Bench in such decision, would have a bearing on
    our thought process as would be evident from the discussions that
    follow.
50. Fifthly, the still larger Bench decision in Tara Singh (supra) went
    unnoticed in Sunil Kumar Banerjee (supra).
51. Fifthly, it cannot escape notice that in a criminal trial, fate of the
    accused is decided by a judicial officer who is an impartial and neutral
    arbiter whereas, more often than not, fate of a delinquent officer/
    employee hangs on the decisions of inquiry officers who are members
    of the same organisation and function under the same employer.
    Not that we are sceptical of members of the same organisation
    functioning as inquiry officers, which could be dictated by necessity,
    but the level of impartiality and neutrality can, in certain cases, be
    questionable. This is a vital circumstance which does not appear to
    have been considered.
52. Finally, and most importantly, there is a significant difference between
    the stages where Section 342, 1898 Code/Section 313, 1973 Code
    on the one hand and Rule 8(19) of the 1969 Rules/Regulation
    6(17) of the 1981 Regulations on the other, apply. In a criminal
    trial, putting questions to the accused by the court to enable him
    to explain any circumstance appearing in the evidence against him
    under the relevant provision (Sections 342/313) is contemplated at
    two stages – (a) before the prosecution concludes its evidence and
    (b) after evidence is concluded by the prosecution but before the
    accused leads evidence in defence. While in respect of (a) above it
    is discretionary for the court to question the accused, qua (b) above,
2032                                                        [2025] 8 S.C.R.

                         Supreme Court Reports


     it is mandatory for the court – as explained in Bibhuti Bhusan Das
     Gupta (supra). However, the procedure is not exactly the same in
     a domestic inquiry of the nature under consideration. In terms of
     the procedure for holding inquiry, the examination of the nature
     contemplated by Regulation 6(17) is not to be resorted to in the midst
     of evidence being led by the management. After the management
     closes its evidence, the charged officer has to be given opportunity to
     lead evidence in defence. The charged officer is under no obligation
     to lead evidence but if he opts therefor, he does so at his own risk
     and peril and has to bear the consequences, viz. he cannot then
     claim that the Inquiry Officer is bound to question him generally on the
     circumstances available in the evidence against him. If the charged
     officer elects to lead defence evidence, it could include witnesses
     other than the charged officer; or, it could include him as well along
     with the other witnesses. The charged officer may even opt not to
     examine any other witness but only himself. After the evidence of the
     defence witnesses is recorded and evidence of the defence stands
     closed, the stage for Regulation 6(17) of the 1981 Regulations, or for
     that matter Rule 8(19) of the 1969 Rules, is reached. The difference
     is significant, as we presently propose to explain in the light of the
     aforesaid options available to the charged officer.
53. Interestingly, Regulation 6(17) as well as Rule 8(19) refers to both
    ‘may’ and ‘shall’. While the first part of Regulation 6(17) refers to
    ‘may’, the second part refers to ‘shall’. To enable the charged officer
    to explain circumstances in the evidence appearing against him,
    the provision confers a discretion on the Inquiry Officer as well as
    imposes a mandatory duty on him. It is discretionary for the Inquiry
    Officer, to put questions to the charged officer if he is himself a
    witness for the defence, whereas, if the charged officer has not
    examined himself as a witness for the defence, the mandate of the
    law is that the Inquiry Officer shall generally question the charged
    officer on the circumstances appearing in the evidence against him.
54. The use of ‘may’ and ‘shall’ in the same provision does imply that
    Regulation 6(17) means what it says. The words ‘may’ and ‘shall’ have
    been used to mean ‘may’ and ‘shall’, respectively, and we cannot
    possibly conceive of any rule of construction which would lead us
    to assume that the framers intended that ‘shall’ in the second part
    of Regulation 6(17) should also be read and understood as ‘may’.
    Use of the word ‘shall’, in our opinion, is deliberate to denote that
[2025] 8 S.C.R.                                                        2033

                       K. Prabhakar Hegde v. Bank of Baroda


      it is not interchangeable with ‘may’; if it were so, the framers would
      have straightaway used ‘may’ instead of ‘shall’ having known that
      ‘may’ has been used in the first part. Couching of the provision in
      such language with ‘may’ and ‘shall’ having distinct connotations and
      consequences and bringing about different outcomes in the course
      of one and the same inquiry unhesitatingly signals that while the
      first part of Regulation 6(17) is directory, the second part thereof is
      mandatory.
55. We, therefore, unhesitatingly hold that the Inquiry Officer by not
    generally questioning the appellant on the circumstances available
    in the evidence, which were unfavourable or adverse to such
    officer, failed to perform a mandatory duty. Any such circumstance,
    which was unfavourable or adverse to the appellant, should have
    been excluded from the Inquiry Officer’s consideration. It would
    not commend acceptance that though the Inquiry Officer acted in
    derogation of the 1981 Regulations, nevertheless, his action must
    to be upheld on the specious ground that the appellant has failed to
    demonstrate prejudice. Neither Sunil Kumar Banerjee (supra) nor
    Alok Kumar (supra) examined the issue from our standpoint and in
    view of the trio – the Constitution Bench decisions in Tulsiram Patel
    (supra), Olga Tellis (supra) and A.R. Antulay (supra) - which were
    rendered after Sunil Kumar Banerjee (supra) and were not noticed
    in Alok Kumar (supra), the ratio of the latter decisions may not bind
    us. Alok Kumar (supra) relied on Haryana Financial Corporation
    v. Kailash Chandra Ahuja30. In Ram Prakash Singh (supra), we
    have considered the entire issue of the prejudice theory threadbare
    and articulated, as per our understanding, how incomplete reading
    of the Constitution Bench decision in B. Karunakar (supra) has
    resulted in dilution of its ratio. True it is, the High Court was bound by
    Sunil Kumar Banerjee (supra) and Alok Kumar (supra) but, in our
    opinion, the said decisions cannot come to the aid of the respondent.
56. We have considered the reasoning of the High Court that the
    appellant was extended an opportunity by the Inquiry Officer to make
    his submissions before the evidence was closed. However, such
    an opportunity does not really match the nature of duty cast on the
    Inquiry Officer under Regulation 6(17). Such regulation requires the


30   (2008) 9 SCC 31
2034                                                         [2025] 8 S.C.R.

                         Supreme Court Reports


     Inquiry Officer to question the charged officer, if he has not examined
     himself in defence, on the circumstances appearing in the evidence
     that are unfavourable or adverse to him. The purpose thereof is to
     extend an opportunity to the charged officer to explain away such
     unfavourable or adverse circumstances. This is one of the several
     procedural safeguards that the 1981 Regulations envisages. The
     duty cast and the opportunity extended are not equivalent. The
     inquiry under Regulation 6 being quasi-judicial in nature, Regulation
     6(17) places an onerous duty on the Inquiry Officer (who is generally
     untrained in law) to seriously apply his mind to the evidence on
     record and to indicate to the charged officer, as part of the process
     of his decision making, that circumstances exist which could weigh
     in his mind while arriving at the final findings in the report of inquiry.
     Once indicated, the charged officer may or may not explain away the
     circumstances but to offer an opportunity to have his say recorded
     without indication of the circumstances existing does not and would
     not amount to substantial compliance of Regulation 6(17).
57. Having said that, we cannot be oblivious of the fact that the appellant
    did not raise any effective objection as to the failure of the Inquiry
    Officer to strictly adhere to Regulation 6(17) at any stage prior to
    invoking the writ jurisdiction of the High Court. There being a failure
    of the Inquiry Officer to question the charged officer, the appellant
    ought to have raised the same before the disciplinary authority at
    the first instance; and, even if he did not so raise, he ought to have
    raised such objection before the appellate authority while he presented
    his appeal. If such an objection is not raised at any of the two tiers
    and the omission to do so is not explained in the writ petition, the
    court may infer that the charged officer was not seriously affected
    by non-adherence to Regulation 6(17) and it would be open to it to
    pass an appropriate order based on the inference drawn.
58. In the present case, the appellant did not raise any objection in this
    behalf before the disciplinary authority but raised the point, generally,
    of non-adherence to Regulation 6 before the appellate authority.
    Unfortunately, the issue was missed and not addressed because, as we
    propose to elaborately refer in the following paragraphs, the appellate
    authority devoted its attention more to deal with another significant
    objection raised by the appellant and negatived it by assigning lengthy
    reasons which, however, do not appeal to us to be convincing. Be
    that as it may, the appellant is justified in voicing a grievance before
[2025] 8 S.C.R.                                                           2035

                       K. Prabhakar Hegde v. Bank of Baroda


      us that he had not been extended fair, reasonable and adequate
      opportunity to defend himself in terms of Regulation 6 which, in turn,
      infringed his right protected by Article 14 of the Constitution.
59. The other important aspect, which merits our consideration and
    touched upon by us in the earlier paragraph in very brief, admittedly,
    was not argued before us by Mr. Nuli. We have noted that such point
    was raised before the Single Judge, but, without success. However,
    we had the appeal listed once again after reserving judgment to
    ascertain Mr. Patil’s view on such point bearing in mind the power of
    an appellate court under Order XLI Rule 33, Code of Civil Procedure,
    1908. The appellant had vehemently contended before the appellate
    authority that initially, the disciplinary authority had proposed to impose
    upon the appellant the penalty of compulsory retirement from service.
    The Chief Vigilance Officer31 concurred with such proposal of the
    disciplinary authority. The file was then placed before the Central
    Vigilance Commission32. However, the CVC rejected the proposal of
    both the disciplinary authority and the CVO and instead recommended
    that the charged officer be not shown any leniency since he has been
    found guilty of financial irregularities and, therefore, be ‘dismissed’
    from service. According to the appellant, the disciplinary authority
    acting on the dictates of the CVC proceeded to dismiss him from
    service. Appellant’s gravamen was that the recommendation of
    the CVC was never made available to him, affecting his right to a
    fair opportunity of defence. When challenged before the appellate
    authority, such challenge was rejected on the ground that the CVC
    recommendation is a privileged document and that the appellant has
    violated the expected code of conduct by referring to such internal
    documents which he could not have accessed in normal due course.
60. In SBI v. D.C. Aggarwal33, the question arising for decision was
    noted in paragraph 1. The same reads:
             “Can disciplinary authority while imposing punishment,
             major or minor, act on material which is neither supplied
             nor shown to the delinquent is the only issue of substance,
             which arises for consideration in this appeal, filed by …?


31   CVO
32   CVC
33   (1993) 1 SCC 13
2036                                                        [2025] 8 S.C.R.

                         Supreme Court Reports


61. In a case almost identical to the present one, this Court while
    answering the aforesaid question held that when the disciplinary
    authority accepts the recommendation of the CVC which is at variance
    with the original proposal of the disciplinary authority, it is incumbent
    upon the authority to furnish a copy of the CVC recommendation
    to the charged employee before acting on such recommendation.
    It was held thus:
          “5. Reliance was placed on sub-rule (5) of Rule 50 which
          reads as under:
                ‘(5) Orders made by the Disciplinary Authority or
                the Appointing Authority as the case may be under
                sub-rules (3) and (4) shall be communicated to the
                employee concerned, who shall also be supplied with
                a copy of the report of inquiry, if any.’
          It was urged that copy of the inquiry report having been
          supplied to the respondent the rule was complied with
          and the High Court committed an error in coming to
          conclusion that principle of natural justice was violated.
          Learned Additional Solicitor General urged that the
          principle of natural justice having been incorporated
          and the same having been observed the Court was not
          justified in misinterpreting the rule. The learned counsel
          urged that the Bank was very fair to the respondent and
          the disciplinary authority after application of mind and
          careful analysis of the material on record on its own
          evaluation, uninfluenced by the CVC recommendation
          passed the order. It was emphasised that if the exercise
          would have been mechanical the disciplinary authority
          would not have disagreed with CVC recommendations on
          punishment. Learned counsel submitted that, in any case,
          the disciplinary authority having passed detailed order
          discussing every material on record and the respondent
          having filed appeal there was no prejudice caused to him.
          None of these submissions are of any help. The order is
          vitiated not because of mechanical exercise of powers
          or for non-supply of the inquiry report but for relying and
          acting on material which was not only irrelevant but could
          not have been looked into. Purpose of supplying document
[2025] 8 S.C.R.                                                            2037

                    K. Prabhakar Hegde v. Bank of Baroda


           is to contest its veracity or give explanation. Effect of non-
           supply of the report of Inquiry Officer before imposition of
           punishment need not be gone into nor it is necessary to
           consider validity of sub-rule (5). But non-supply of CVC
           recommendation which was prepared behind the back of
           respondent without his participation, and one does not know
           on what material which was not only sent to the disciplinary
           authority but was examined and relied on, was certainly
           violative of procedural safeguard and contrary to fair and
           just inquiry. From the letter produced by the respondent,
           the authenticity of which has been verified by the learned
           Additional Solicitor General, it appears the Bank turned
           down the request of the respondent for a copy of CVC
           recommendation as ‘The correspondence with the Central
           Vigilance Commission is a privileged communication and
           cannot be forwarded as the order passed by the appointing
           authority deals with the recommendation of the CVC which
           is considered sufficient’. Taking action against an employee
           on confidential document which is the foundation of order
           exhibits complete misapprehension about the procedure
           that is required to be followed by the disciplinary authority.
           May be that the disciplinary authority has recorded its own
           findings and it may be coincidental that reasoning and
           basis of returning the finding of guilt are same as in the
           CVC report but it being a material obtained behind back
           of the respondent without his knowledge or supplying of
           any copy to him the High Court in our opinion did not
           commit any error in quashing the order. Non-supply of the
           Vigilance report was one of the grounds taken in appeal.
           But that was so because the respondent prior to service
           of the order passed by the disciplinary authority did not
           have any occasion to know that CVC had submitted
           some report against him. The submission of the learned
           Additional Solicitor General that CVC recommendations
           are confidential, copy of which, could not be supplied
           cannot be accepted. Recommendations of Vigilance
           prior to initiation of proceedings are different than CVC
           recommendation which was the basis of the order passed
           by the disciplinary authority.”
                                                       (emphasis ours)
2038                                                          [2025] 8 S.C.R.

                            Supreme Court Reports


62. A similar principle was reiterated in Mohd. Quaramuddin v. State
    of A.P.34 as follows:
             “3. On merits the tribunal came to the conclusion that
             the principle of natural justice had been violated in that
             the delinquent was not supplied a copy of the Vigilance
             Commission Report although it formed part of the record of
             the enquiry and material which the disciplinary authority had
             taken into consideration. The tribunal observed that where
             such a material which the disciplinary authority relies on is
             not disclosed to the delinquent it must be held that he was
             denied the opportunity of being heard, meaning thereby
             that the audi alteram partem rule had been violated. In the
             present case the tribunal found that the directions to this
             effect found in the Government Memorandum No. 821/
             Services-C/69-8 dated 30-3-1971 had not been adhered
             to. Had the tribunal not come to the conclusion that the
             suit was barred by limitation, it would have allowed the
             appeal preferred by the delinquent.”
63. In an even earlier decision, i.e., Brij Nandan Kansal v. State of
    U.P.35, this Court was seized of a similar question. The brief facts
    therein were that the appellant, Brij Nandan Kansal, was in the service
    of the State of Uttar Pradesh as a member of the U.P. Civil Service
    (Executive Branch). He was posted as Regional Transport Magistrate
    at Bareilly between June 1962 to October 1964. A number of charges
    were framed against the appellant and the State Government referred
    the matter to the U.P. Administrative Tribunal constituted under the
    U.P. Disciplinary Proceedings (Administrative Tribunal) Rules, 1947
    for enquiry into those charges. Out of six charges framed against
    the appellant therein, the Tribunal recorded the finding that the first
    charge was not proved but it recorded findings against the appellant
    therein in respect of the remaining five charges. The Governor issued
    a show-cause notice to the appellant therein calling upon him to show
    cause as to why he should not be dismissed from service. A detailed
    reply was submitted by the appellant commenting on the findings
    recorded by the Tribunal on each and every charge. The Tribunal


34   (1994) 5 SCC 118
35   (1988) Supp. SCC 761
[2025] 8 S.C.R.                                                         2039

                    K. Prabhakar Hegde v. Bank of Baroda


     considered the reply to the show-cause notice and the comments
     on the findings recorded by it earlier on the charges and thereupon
     it submitted detailed findings to the Governor. In that report, on a
     detailed analysis of the evidence recorded, the Tribunal the finding
     that there was no convincing evidence to uphold the charges framed
     against the appellant. On receipt of the report of the Tribunal, the
     State Government appears to have referred the matter to the Legal
     Remembrancer for his opinion. The Legal Remembrancer disagreed
     with the findings recorded by the Tribunal in its report, and opined
     that there was in fact sufficient evidence on record to hold Charges
     2 to 5 against the appellant to have been established. In view of
     the opinion submitted by the Legal Remembrancer, the Governor
     disregarded the findings recorded by the Tribunal and issued the
     impugned order dismissing the appellant from service. This Court,
     allowing the appeal, held that:
           “7. …The Tribunal was entrusted with the primary duty of
           making inquiry and record its findings on the charges. In
           that process it could enter into adequacy, insufficiency or
           credibility of evidence on record. The Legal Remembrancer
           was of the opinion that the Tribunal could not enter into
           the realm of adequacy or sufficiency of evidence and for
           that purpose he relied upon the well established principles
           of judicial review of administrative actions. The Tribunal
           was not discharging the functions of a court but on the
           other hand it was acting as the inquiring authority and it
           had full power to reappraise the evidence and record its
           findings and in that process it was open to it to hold that
           the evidence on record was not sufficient to sustain the
           charges against the appellant. The whole approach of the
           Legal Remembrancer was misconceived as a result of
           which he opined that the findings recorded by the Tribunal
           in appellant›s favour could be ignored. We are of opinion
           that the State Government could not ignore the findings
           of the Tribunal applying the principles of judicial review
           of administrative actions by a court of law. The State
           Government committed serious error of law in ignoring
           the findings of the Tribunal without giving an opportunity
           to the appellant to showcause against the proposed view
           of the government and passing the impugned order on
2040                                                        [2025] 8 S.C.R.

                           Supreme Court Reports


             the basis of the report of the Legal Remembrancer. The
             Tribunal’s findings dated 7-7-1970 clearly indicated that
             there was no evidence to sustain the charges against the
             appellant and in that view the impugned order of dismissal
             could not legally be passed against the appellant.
                                                      (emphasis ours)

64. We are certain that the CVC recommendation weighed heavily
    enough upon the disciplinary authority so as to convince him to alter
    the proposed punishment of compulsory retirement to dismissal of
    the appellant. Receipt of the CVC recommendation behind the back
    of the appellant and no opportunity having been provided to him to
    plead for a lesser punishment, the inquiry stood vitiated. The CVC
    recommendation constituted material which was considered by the
    disciplinary authority at least for the purpose of deciding on the
    punishment that needed to be imposed on the appellant. Once such
    recommendation fell for consideration of the disciplinary authority, a
    copy of the same could not have been denied to the appellant. That
    being said, we do not propose to inculcate a standing requirement
    upon all disciplinary authorities that a hearing, before punishment is
    imposed, should be provided if such requirement is not present in
    the relevant rules. What we are insisting upon is compliance with the
    principles of natural justice which, in view of the Constitution Bench
    decision in B. Karunakar (supra), acknowledges and asserts that a
    charged officer cannot be denied any material that the disciplinary
    authority looks into for imposing punishment. Such officer is entitled
    to access any document that was either used to determine his
    blameworthy conduct amounting to misconduct or considered while
    imposing punishment.
65. We now turn to deal with another important aspect, i.e., the claim of
    privilege made by the appellate authority in defending non-disclosure
    of the CVC recommendation to the appellant. While the Indian
    Evidence Act, 187236 is not applicable to disciplinary proceedings,
    the principles enshrined therein can provide sufficient guidance
    on the validity of the claim. In State of Punjab v. Sodhi Sukhdev




36   Evidence Act
[2025] 8 S.C.R.                                                                    2041

                     K. Prabhakar Hegde v. Bank of Baroda


      Singh37, this Court had the opportunity to trace the colonial law on
      the point and its development in Indian law. The relevant passages
      read as follows:
             “13. The principle on which this departure can be and is
             justified is the principle of the overriding and paramount
             character of public interest. A valid claim for privilege made
             under Section 123 proceeds on the basis of the theory that
             the production of the document in question would cause
             injury to public interest, and that, where a conflict arises
             between public interest and private interest, the latter
             must yield to the former. No doubt the litigant whose claim
             may not succeed as a result of the non-production of the
             relevant and material document may feel aggrieved by the
             result, and the court, in reaching the said decision, may
             feel dissatisfied; but that will not affect the validity of the
             basic principle that public good and interest must override
             considerations of private good and private interest. Care
             has, however, to be taken to see that interests other than
             that of the public do not masquerade in the garb of public
             interest and take undue advantage of the provisions of
             Section 123. Subject to this reservation the maxim silus
             populi est supreme les which means that regard for public
             welfare is the highest law is the basis of the provisions
             contained in Section 123. Though Section 123 does not
             expressly refer to injury to public interest that principle is
             obviously implicit in it and indeed is its sole foundation.
             14. Whilst we are discussing the basic principle underlying
             the provisions of Section 123, it may be pertinent to enquire
             whether fair and fearless administration of justice itself is
             not a matter of high public importance. Fair administration of
             justice between a citizen and a citizen or between a citizen
             and the State is itself a matter of great public importance;
             much more so would the administration of justice as a whole
             be a matter of very high public importance; even so, on
             principle, if there is a real, not imaginary or fictitious, conflict
             between public interest and the interest of an individual in


37   1960 SCC OnLine SC 38
2042                                                       [2025] 8 S.C.R.

                       Supreme Court Reports


        a pending case, it may reluctantly have to be conceded
        that the interest of the individual cannot prevail over the
        public interest. If social security and progress which are
        necessarily included in the concept of public good are
        the ideal then injury to the said ideal must on principle be
        avoided even at the cost of the interest of an individual
        involved in a particular case. That is why courts are and
        ought to be vigilant in dealing with a claim of privilege
        made under Section 123.
        15. If under Section 123 a dispute arises as to whether
        the evidence in question is derived from unpublished
        official records that can be easily resolved; but what
        presents considerable difficulty is a dispute as to whether
        the evidence in question relates to any affairs of State.
        What are the affairs of State under Section 123? In the
        latter half of the nineteenth century affairs of State may
        have had a comparatively narrow content. Having regard
        to the notion about governmental functions and duties
        which then obtained, affairs of State would have meant
        matters of political or administrative character relating, for
        instance, to national defence, public peace and security
        and good neighbourly relations. Thus, if the contents of
        the documents were such that their disclosure would affect
        either the national defence or public security or good
        neighbourly relations they could claim the character of a
        document relating to affairs of State. There may be another
        class of documents which could claim the said privilege
        not by reason of their contents as such but by reason
        of the fact that, if the said documents were disclosed,
        they would materially affect the freedom and candour of
        expression of opinion in the determination and execution
        of public policies. In this class may legitimately be included
        notes and minutes made by the respective officers on
        the relevant files, opinions expressed, or reports made,
        and gist of official decisions reached in the course of the
        determination of the said questions of policy. In the efficient
        administration of public affairs Government may reasonably
        treat such a class of documents as confidential and urge
        that its disclosure should be prevented on the ground of
[2025] 8 S.C.R.                                                               2043

                    K. Prabhakar Hegde v. Bank of Baroda


           possible injury to public interest. In other words, if the proper
           functioning of the public service would be impaired by the
           disclosure of any document or class of documents such
           document or such class of documents may also claim the
           status of documents relating to public affairs.
           16. It may be that when the Act was passed the concept
           of governmental functions and their extent was limited,
           and so was the concept of the words ‘affairs of State’
           correspondingly limited; but, as is often said, words are
           not static vehicles of ideas or concepts. As the content
           of the ideas or concepts conveyed by respective words
           expands, so does the content of the words keep pace with
           the said expanding content of the ideas or concepts, and
           that naturally tends to widen the field of public interest which
           the section wants to protect. The inevitable consequence of
           the change in the concept of the functions of the State is
           that the State in pursuit of its welfare activities undertakes
           to an increasing extent activities which were formerly
           treated as purely commercial, and documents in relation
           to such commercial activities undertaken by the State in
           the pursuit of public policies of social welfare are also apt
           to claim the privilege of documents relating to the affairs
           of State. It is in respect of such documents that we reach
           the marginal line in the application of Section 123; and it
           is precisely in determining the claim for privilege for such
           border-line cases that difficulty arises.
           17. It is, however, necessary to remember that where
           the legislature has advisedly refrained from defining the
           expression ‘affairs of State’ it would be inexpedient for
           judicial decisions to attempt to put the said expression
           into a straight jacket of a definition judicially evolved. The
           question as to whether any particular document or a class
           of documents answers the description must be determined
           in each case on the relevant facts and circumstances
           adduced before the court. ‘Affairs of State’, according to
           Mr Seervai, are synonymous with public business and he
           contends that Section 123 provides for a general prohibition
           against the production of any document relating to public
           business unless permission for its production is given
2044                                                    [2025] 8 S.C.R.

                      Supreme Court Reports


        by the head of the department concerned. Mr Seervai
        has argued that documents in regard to affairs of State
        constitute a genus under which there are two species of
        documents, one the disclosure of which will cause no
        injury to public interest, and the other the disclosure of
        which may cause injury to public interest. In the light of
        the consequence which may flow from their disclosure the
        two species of documents can be described as innocuous
        and noxious respectively. According to Mr Seervai the
        effect of Section 123 is that there is a general prohibition
        against the production of all documents relating to public
        business subject to the exception that the head of the
        department can give permission for the production of
        such documents as are innocuous and not noxious. He
        contends that it is not possible to imagine that the section
        contemplates that the head of the department would give
        permission to produce a noxious document. It is on this
        interpretation of Section 123 that Mr Seervai seeks to build
        up similarity between Section 123 and the English law as
        it was understood in 1872. In other words, according to
        Mr Seervai the jurisdiction of the court in dealing with a
        claim of privilege under Section 123 is very limited and
        in most of the cases, if not all, the court would have to
        accept the claim without effective scrutiny.
        18. On the other hand it has been urged by Mr Sastri that
        the expression ‘documents relating to any affairs of State’
        should receive a narrow construction; and it should be
        confined only to the class of noxious documents. Even
        in regard to this class the argument is that the court
        should decide the character of the document and should
        not hesitate to enquire, incidentally if necessary, whether
        its disclosure would lead to injury to public interest. This
        contention seeks to make the jurisdiction of the court wider
        and the field of discretion entrusted to the department
        correspondingly narrower.
        19. It would thus be seen that on the point in controversy
        between the parties three views are possible. The first
        view is that it is the head of the department who decides
        to which class the document belongs; if he comes to the
[2025] 8 S.C.R.                                                              2045

                        K. Prabhakar Hegde v. Bank of Baroda


             conclusion that the document is innocuous he will give
             permission to its production; if, however, he comes to the
             conclusion that the document is noxious he will withhold
             such permission; in any case the court does not materially
             come into the picture. The other view is that it is for the
             court to determine the character of the document, and if
             necessary enquire into the possible consequences of its
             disclosure; on this view the jurisdiction of the court is very
             much wider. A third view which does not accept either of
             the two extreme positions would be that the court can
             determine the character of the document, and if it comes
             to the conclusion that the document belongs to the noxious
             class it may leave it to the head of the department to decide
             whether its production should be permitted or not; for it
             is not the policy of Section 123 that in the case of every
             noxious document the head of the department must always
             withhold permission. In deciding the question as to which
             of these three views correctly represents the true legal
             position under the Act it would be necessary to examine
             Section 162. Let us therefore, turn to that section.
66. A summary of the decision leads us to one irresistible conclusion –
    that the overriding interest must be of a public nature and only in
    such cases can the claim of privilege be sustained. The claim of
    privilege cannot be invoked as a matter of reflexive recourse but must
    be limited to instances wherein an actual concern to public interest
    is envisaged. Each instance must be evaluated on a case-by-case
    basis and the State must be wholly convinced that the disclosure of
    the documents would cause grave harm and injury to public interest.
67. We further refer to Amar Chand Butail v. Union of India38 where
    Hon’ble P.B. Gajendragadkar, CJI. speaking for this Court held that
    a claim for privilege cannot be made merely because it would go
    against the defence of the State. A claim for privilege can therefore
    only be made if it strictly meets the requirements present in the
    Evidence Act, failing which, if the Court after a preliminary enquiry is
    convinced that the claim of privilege cannot be sustained, the State
    may be directed to disclose the said document.


38   AIR 1964 SC 1658
2046                                                           [2025] 8 S.C.R.

                             Supreme Court Reports


68. In State of U.P. v. Raj Narain39, this Court held that public interest
    which demands that evidence be withheld is to be weighed against
    the public interest in the administration of justice that courts should
    have the fullest possible access to all relevant materials. When
    public interest outweighs the latter, the evidence cannot be admitted.
    The Court also held that it must proprio motu exclude evidence the
    production of which is contrary to public interest.
69. Moving closer to this century, this Court in People’s Union for Civil
    Liberties v. Union of India40 while dealing with the disclosure of
    certain sensitive information under the Atomic Energy Act, 1962
    laid down the indicative criteria required to be fulfilled for the claim
    of privilege. The instructive passage on the issue reads as under:
             “70. For determining a question when a claim of privilege is
             made, the Court is required to pose the following questions:
                    (1) whether the document in respect of which privilege
                    is claimed, is really a document (unpublished) relating
                    to any affairs of State; and
                    (2) whether disclosure of the contents of the document
                    would be against public interest?
             71. When any claim of privilege is made by the State
             in respect of any document, the question whether the
             document belongs to the privileged class has first to be
             decided by the court. The court cannot hold an enquiry into
             the possible injury to public interest which may result from
             the disclosure of the document in question. The claim of
             immunity and privilege has to be based on public interest.
             72. The section does not say who is to decide the
             preliminary question viz. whether the document is one that
             relates to any affairs of State, or how it is to be decided,
             but the clue in respect thereof can be found in Section
             162. Under Section 162 a person summoned to produce
             a document is bound to



39   (1975) 4 SCC 428
40   (2004) 2 SCC 476
[2025] 8 S.C.R.                                                            2047

                    K. Prabhakar Hegde v. Bank of Baroda


                ‘bring it to the court, notwithstanding any objection
                which there may be to its production or to its
                admissibility. The validity of any such objection shall
                be decided on by the court’.
           It further says that:
                ‘The court, if it seems fit, may inspect the document,
                unless it refers to matters of State, or take other
                evidence to enable it to determine on its admissibility.’
           73. In order to claim immunity from disclosure of unpublished
           State documents, the documents must relate to affairs of
           the State and disclosure thereof must be against interest
           of the State or public interest.”
70. In the present case, the appellate authority did not deny that there was
    indeed a recommendation of the CVC. However, the recommendation
    was denied by claiming privilege. We are inclined to the view that the
    claim of privilege was utterly misconceived. The recommendation of
    the CVC did not have anything to do with the “affairs of the State”
    or, if one were not to be guided by Section 123 of the Evidence
    Act, anything to do with national security; at least, no such attempt
    was made by Mr. Patil. We appreciate his predicament that at this
    distance of time (the appellate order having been made on 27th
    March, 2003) and Vijaya Bank having merged in the respondent in
    2019, it is well-nigh difficult for him and the respondents to lay their
    hands on such recommendation. Yet, it cannot be ignored that the
    appellate order apart from claiming that the recommendation is a
    privileged document does not go further to assign any reason, far
    less cogent reason, as to how the same could at all be withheld
    from the appellant. Reasons that have been assigned are neither
    here nor there. Whether or not such a recommendation did exist
    was the question, not whether the appellant could have premised
    his challenge on such recommendation being an internal document.
71. We are ad idem with the view expressed in D.C. Aggarwal (supra)
    that the proposed punishment of compulsory retirement could not
    have been altered to dismissal from service based on the CVC
    recommendation without furnishing the same to the appellant. To this
    extent, the appellate order is legally flawed and cannot be sustained.
2048                                                          [2025] 8 S.C.R.

                          Supreme Court Reports


     Conclusion
72. In normal circumstances, the obvious direction that could follow
    the foregoing discussions is a remand to the disciplinary authority
    to re-start the inquiry from the stage the same stood vitiated, i.e.,
    requiring the Inquiry Officer to scrupulously follow Regulation
    6(17) of the 1981 Regulations. However, there are circumstances
    that impede an order for remand. The foremost being the lack of
    accessibility to the records because of the merger of Vijaya Bank
    with the respondent and the distance of time since the disciplinary
    proceedings came to a close. It is also to be noted that the
    disciplinary proceedings were continued beyond the date on which
    the appellant attained the age of superannuation. Because of the
    ultimate order we propose to make, we have not dealt with the
    third question noted in paragraph 16 (supra) and such question
    is kept open. No useful purpose, therefore, would be served in
    ordering a remand.
73. Considering the age of the appellant (he is now an octogenarian)
    as well as the fact that there were other disciplinary proceedings
    pending against him which were not taken to its logical conclusion
    because he stood dismissed from service, in our considered view,
    interest of justice would be sufficiently served if we make the
    following directions:
     (i)    the appellant shall not be entitled to any terminal benefits except
            to the extent indicated hereafter;
     (ii)   he shall only be entitled to a lump-sum amount equal to the
            quantum of gratuity which would have been payable to him had
            he not been fastened with the order of dismissal;
     (iii) such lump-sum amount may be released in favour of the
           appellant within a period of eight weeks from date;
     (iv) no amount on account of interest shall be payable to the
          appellant on the said amount;
     (v)    however, interest @ 9% p.a. shall be payable on such amount
            if not released within the period stipulated above; and
     (vi) the order of dismissal, in the circumstances, shall stand
          quashed.
[2025] 8 S.C.R.                                                 2049

                    K. Prabhakar Hegde v. Bank of Baroda


74. It is ordered accordingly.
75. In the above result, the impugned order of the High Court is also
    set aside.
76. The appeal is disposed of on the above terms, without any order
    as to costs.
77. Criminal proceedings, if any, pending against the appellant may be
    taken to its logical conclusion in accordance with law.

     Result of the case: Appeal disposed of.




     †
         Headnotes prepared by: Ankit Gyan


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K. PRABHAKAR HEGDE versus BANK OF BARODA — 2025 INSC 997 - Legal Desk AI