Holding

A departmental enquiry that is biased and fails to comply with the principles of natural justice renders the termination order void, and such administrative actions are subject to judicial review.

Summary

The appellant, Kumaon Mandal Vikas Nigam Ltd., terminated the respondent, General Manager G.S. Pant, after a departmental enquiry that was conducted without providing charge‑sheet documents, without a proper hearing, without a presenting officer, and without allowing cross‑examination. The respondent alleged bias and malice on the part of the Managing Director, who both withdrew his powers and appointed the inquiry officer, and argued that the natural‑justice requirements were violated. The Allahabad High Court set aside the termination order on grounds of prejudice, bias and miscarriage of justice. On appeal, the Supreme Court examined whether the enquiry was tainted by bias and whether judicial review is available in departmental proceedings. It held that the enquiry was indeed biased, violated the doctrine of natural justice, and that judicial review is permissible where findings are unsupported or perverse. Consequently, the Supreme Court dismissed the appeal, upholding the High Court’s decision.

Issues considered

Whether the departmental enquiry was conducted with bias and in violation of the doctrine of natural justice.
Whether the order of termination is void on account of bias, malice and non‑compliance with procedural fairness.
Whether judicial review can be invoked in departmental proceedings where the findings are unsupported or perverse.

Subjects

biasnatural justicedepartmental enquiryjudicial reviewadministrative lawservice terminationprocedural fairness

Judgment

A KUMAON MANDAL VIKAS NIGAM LTD.
v.
GIRJA SHANKAR PANT AND ORS.

OCTOBER 18, 2000

B [G.B. PATTANAIK AND UMESH C. BANERJE~ JJ.]

Service Law :

Departmental Enquiry-Employee served with show-cause notice
C framing charges-Documents proving charges neither given to the employee
nor was he allowed inspection-No proper hearing held-No opportunity
for cross-examination of witnesses-Presenting Officer not appointed-Enquiry
officer submitting report proving charges-Order of termination passed on
the basis of Enquiry report-Held, the order suffers from bias and malice and
D non-compliance of doctrine of natural justice-Hence bad in law-
Administrative Law.

Departmental proceedings-Judicial review-Whether allowed-Held,
judicial review of administrative action in feasible where findings are based
on no evidence or the findings are legally untenable.
E
Respondent, a General Manager in appellant-company, was served with
show-cause notice/charge sheet without any documentary support. Since all
copies of the documents proving charges were neither made available nor
allowed to be inspected even after repeated pleas, the respondent could not
give an effective reply to the show-cause notice. No date, time and place was
F fixed by Inquiry Officer for hearing the matter. The Inquiry Officer furnished
a report on the basis of the charge sheet and the relevant records without
appointing a Presenting Officer and without affordiag an opportunity of
hearing or even allowing any defence witnesses anJ not allowing the
respondent to cross-examine any of the officers inspite of the request by the
G respondent. On the basis of the Enquiry Report, the respondent was directed
by the Managing Director to produce his defence without giving permission
to summon his defence witnesses on the date of hearing. Hearing was
conducted and an order of termination from service was passed on the same
day. The respondent filed a Writ Petition before High Court, which set aside
the dismissal order on the ground of prejudice and bias resulting in
H 248
KUMAON MANDAL VIKAS NIGAM LTD. v. G.S. PANT 249

miscarriage of justice. Hence this appeal by the employer. A
The respondent contended that the Managing Director, on account of
personal vendetta, held an enquiry without following proper procedure and
termination order was passed therleon. There was non-compliance of the
doctrine of natural justice and the order of termination suffers from bias and
malice. B
Dismissing the appeal, this Court

HELD : 1.1. It is now well settled that mere general statements will not
be sufficient for the purposes of indication of ill-will. There must be cogent
evidence available on record to come to the conclusion as to whether in fact C
there existed a bias which resulted in miscarriage of justice. While it is true
that legitimate indignation does not fall within the am bit of malicious act, in
almost all legal enquiries, intention, as distinguished from motive is the all-
important factor. In common parlance, a malicious act has been equated with
intentional act without cause or excuse. 1255-F, G) D
1.2. The Managing Director admittedly was not welldisposed towards
the respondent by reason wherefor, the respondent was denuded of the financial
power as also the administrative management of the department. It is the
same Managing Director who levels charges against the respondent and is
the person who appoints the Inquiry Officer, but affords a pretended hearing E
himself and communicates the order of termination on the same day, the
chain is complete: Prejudice apparent: Bias as stated stands proved. The
concept of 'Bias' has had a steady refinement with the changing structure
of the society. Modernisation of the society, with the passage of time, has its
due impact on the concept of Bias as well. (265-B-CJ
F
S Parthasarthi v. State of Andhra Pradesh, (1974) 3 SCC 459, referred to.

Jone Bros. (Hunstanton) v. Steven, 11955) 1 Q.B. 275; Franklin v.
Minister of Town and Country Planning, (1948) AC 87; Reg. v. Bow Street
... Metropolitan Stipendiary Magistrate, Ex parte Pinochet Ugarte (No. 2),
(2000) 1 AC 119; Reg. v. Gough, (1993) AC 646; Dimes case, 3 House of G
Lords Cases 759; Re. J.R.L., Ex parte C.J.L., (1986) 161 CLR 342; Re.
Ebner, (1999) 161 A.L.R. 557 and President of the Republic of South Africa
v. South African Rugby Football Union, (1999) 4 S.A. 147, referred to.

Stroud's Judicial Dictionary - 5th Edition - Volume 3, referred to.
H
250 SUPREME COURT REPORTS [2000] SUPP. 4 S.C.R.

A 2.1. It is a fundamental requirement of law that doctrine of natural
justice be complied with and the same has turned out to be an integral part
of administrative jurisprudence of this country. The judicial process itself
embraces il fair and reasonable opportunity to defend but the same is dependant
upon facts and circumstances of each in\Jividual case. The facts in the matter
B is singularly singular. The entire chain of events smacks of some personal
clash and adaptation of a method unlmown to law in hottest of haste.
1·262-D, E)

2.2. One golden rule that stands firmly established is that the doctrine
of natural justice is not only to secure justice but to prevent miscarriage of
C justice. Straight-jacket formula cannot be made applicable but compliance of
the doctrine is solely dependent on the facts and circumstances of each case.
The totality of the situation ought to be taken note of and if on examination
of such totality, it comes to light that the executive action suffers from the
vice of non-compliance of the doctrine, the law courts in the event ought to
set right the wrong inflicted upon the concerned person and 'to do so would
D be a plain exercise of judicial power. The doctrine is now termed as a
synonym of fairness in the concept of justice and stands as the most accepted
methodology of a governmental action. (251-F; 252-G-H)

Keshav Mills Co. Ltd. v. Union of India & Ors., 119731 1 SCC 380,
referred to.
E
A.K. Kraipak v. Union of India, 119691 2 SCC 262 and Ridge v. Baldwin
& Ors., (1964) Appeal Cases 40, referred to.

3. The action of the Managing Director in the matter of withdrawal of
F authority and subsequent introduction of charges and the further factum of
issuance of letter of termination on the same date .and within a few hours
after the pretended hearing was given, cannot but be ascribed to be wholly
and totally biased. [268-H; 269-AI
....
4. In a departmental proceedings, the disciplinary authority is the sole
G judge of facts and the High Court may not interfere with the factual findings
but the availability of judicial review even in the case of departmental
proceeding cannot be doubted. Judicial review of administrative action i~- _
feasible and the same has its application to its fullest extent in even
departmental proceedings where it is found that the recorded findings are
H based on no evidence or the findings are totally perverse or legally untenable.
KUMAON MANDAL YIKAS NIGAM LTD. v. G.S. PANT [BANERJEE, J.] 25 J
The adequacy or inadequacy of evidence is not permitted but in the event of A
there being a finding which otherwise shocks the judicial conscience of the
court, it is well-neigh impossible to decry availability of judicial review at the
instance of an affected person. 1262-B-CJ

Apparel Export Promotion Council v. A.K. Chopra, 1199911 SCC 759
and Sayeedur Rehman v. The State of Bihar & Ors., 1197613 SCC 333, relied B
on.

Channabasappa Basappa Happali v. The State of Mysore, AIR (1972)
SC 32, referred to.

Locabail (UK.) ltd. v. Bayfield Properties Ltd., (2000) Q.B. 451 and C
Denby (William) and Sons Limited v. Minister of Health, (1936) I K.B. 337,
referred to.

CIVIL APPELLATE JURISDICTION : Civil Appeal No. 5747 of
. 1998.
D
From the Judgment and Order dated 20.7.98 of the Allahabad High Court
in C.M.W.P. No. 2056of1994.

Dinesh Kumar Garg for the Appellant.

R.B. Mehrotra, Dr. J.B. Gaur and Ms. Gargi Khanna for the Respondents. E
The Judgment of the Court was delivered by

BANERJEE, .J. Since the decision of this Court in Kraipak's case A.K.
Kraipak v. Union of India, [ 1969] 2 SCC 262 one golden rule that stands firmly
established is that the doctrine of natural justice is not only to secure justice F
but to prevent miscarriage of justice. What, however, does this doctrine
exactly mean? Lord Reid about four decades ago in Ridge v. Baldwin & Ors.,
(1964 Appeal Cases 40) very succinctly described it as not being capable of
exact definition but what a reasonable man would regard as a fair procedure
in particular circumstances -who then is a reasonable man - the man on the G
clapham omnibus? In India, however, a reasonable man cannot but be a
common man similarly placed. The effort of Lord Reid in Ridge v. Baldwin
(supra) in not attributing a definite mear.ing to the doctrine but attributing it
to be representing a fair procedure still holds good even in the millennium
year. As a matter of fact this Court in the case of Keshav Mills Co. ltd. v.
Union of India & Ors., [1973] l sec 380 upon reliance on the attributes of H
252 SUPREME COURT REPORTS [2000) SUPP. 4 S.C.R.

A the doctrine as above stated as below:
"8. The second question, however, as to what are the principles of
natural justice that should regulate an administrative act or order is
a much more difficult one to answer. We do not think it either feasible
or even desirable to lay down any fixed or rigorous yard-stick in this
B manner. The concept of natural justice cannot be put into a straight
-jacket. It is futile, therefore, to look for definitions or standards of
natural justice from various decisions and then try to apply them to
the facts of any given case. The only essential point that has to be
kept in mind in all cases is that the person concerned should have a
c reasonable opportunity of presenting his case and that the
administrative authority concerned should act fairly, impartially and
reasonably. Where administrative officers are concerned, the duty is
not so much to act judicially as to act fairly. See, for instance, the
observations of Lord Parker in re H.K. (an infant) (1967) 2 QB 617. It

D
only means that such measure of natural justice should be applied as
was described by Lord Reid in Ridge v. Baldwin case (supra) as .
"insusceptible of exact definition but what a reasonable man would
regard as a fair procedure in particular circumstances". However, even
the application of the concept of fair-play requires real flexibility.
Every thing will depend on the actual facts and circumstances of a
case. As Tucker, L.J. observed in Russell v. Duke of Norfolk, (1949)
E I All ER 109:

"The requirement of natural justice must depend on the
circumstances of the case, the nature of the enquiry, the rules
under which the tribunal is acting, the subject-matter that is
being dealt with and so forth."
F
While it is true that over the years there has been a steady refinement
as regards this particular doctrine, but no attempt has been made and if we
may ,say so, cannot be made to define the doctrine in a specific manner or
method. Straight jacket formula cannot be made applicable but compliance of
G the doctrine is solely dependant upon the facts and circumstances of each
case. The totality of the situation ought to be taken note of and if on
examination of such totality, it comes to light that the executive action suffers
from the vice of non-compliance of the doctrine, the law courts in that event
ought to set right the wrong inflicted upon the concerned person and to do
so would be a plain exercise of judicial power. As a matter of fact the doctrine
H a
is now tetmed as synonym of fairness in the concept of justice and stands
KUMAON MANDAL VIKAS NIGAM LTD. v. G.S. PANT [BANERJEE, J.] 253

as the most accepted methodology of a governmental action. A
Adverting to the factual aspect of the matter at this juncture, it appears
that the respondent was appointed as a Stenographer in the year 1972 and
~. was promoted to the post of Assistant Secretary in 1976 and subsequently
to the post of Divisional Manager (Tourism) in the scale of Rs.1350-2100 with
effect from 1st April, 1987 and thereafter designated as the General Manager B
(Tourism) - undoubtedly a career worth noticing and it is this careerist General
Manager (Tourism) who alleges a definite malice of the Managing Director to
the effect that events subsequent would unmistakably depict a state of mind
which cannot but be attributed to be of malicious intent. The events so relied
upon are as below:
c
(a) by an order dated 28th September, 1993 the powers of the
petitioner as the General Manager were withdrawn:
(b) a show-cause notice was served on I st October, 1993 requiring
his explanation by 19th October, 1993 with a direction to appear
on 20th October, 1993: D
(c) the appointment of the Inquiry Officer in terms of the order
dated 12th October, 1993:
(d) the issuance of the order of termination:

It is on this factual backdrop that the respondent employee made a E
definite assertion of non-compliance of the doctrine of natural justice and
bias.

As noticed above the respondent was served with a show- cause notice
containing about 13 allegations without, however, any documentary support
in regard thereto - copies of the documents were asked for but the same were F
not made available. Persistent reminder on that score though yielded the
benefit of having an inspection of some of the documents in the office, but
a number of other documents were not made available to the delinquent
employee even for inspection on the plea that the same were already placed
before the Inquiry Officer. Non-submission of the copy of the documents or G
even an inspection thereof has in fact said to hi>ve made it impossible for the
Respondent herein, to send an effective reply to the show-cause notice. The
situation therefore shortly put thus remains that even though a show-cause
notice was served but by reason of the factum of non-availability of the
documents to the respondent herein, the show-cause notice could not be
answered in any effective manner at all excepting however in a rough and H
254 SUPREME COURT REPORTS [2000] SUPP. 4 S.C.R.

A ready manner so as to avoid the comment and criticism of acceptance of the
charge.

The factual score depicts that the Inquiry Officer, however, on supposed
examination of the records and admittedly without giving any notice and
without fixation of any date or time or any venue for the inquiry or for
B examination or cross-examination of the witnesses and upon purported
consideration of the so-called reply of the respondent herein as noticed
above, proceeded to complete the inquiry. Even no Presenting Officer was
appointed and as a matter of fact the report itself says that the Inquiry Officer
dealt with the matter himself without any assistance whatsoever. It is significant
C to note at this juncture that a large number of letters were sent to the
concerned authority by the respondent with a fervent prayer for inspection
so as to enable the respondent to send an effective reply to the show-cause
notice, but the same was denied to the respondent. Shortly the situation thus
runs out in the manner following:

D (i) (a) A show-cause notice was sent;

(b) Since no documentary evidence was available a rough reply was
sent as against the show-cause notice and the entire inquiry proceeding
was based thereon;

(ii) No charge sheet was given;
E
(iii) No explanation was sought for by the Inquiry Officer

(iv) No oral evidence was taken thus question of any cross-examination
would not arise •

F (v) No date, time and place was fixed by the Inquiry Officer for hearing
of the matter

(vi) No Presentation Officer was appointed.

-and it is on the basis of situations as above the enquiry stood
complete.
G
Subsequent factual situation is also 'interestingly' illustrative and runs
as below:

(i) Copy of the enquiry report was sent to the respondent on 9th
November, 1993 with a request to give a reply thereto positively
H on I 0th November, 1993 at I 0.30 a.m.
KUMAON MANDAL VIKAS NIGAM LTD. v. G.S. PANT [BANERJEE, J.] 255
(ii) The respondent was directed to produce his defence at 11.00 A
a.m. on the same day without however, permission to summon
his defence witnesses.
(iii) Subsequently personal hearing was offered on 22nd November,
1993 but by reason of the non-availability of the Managing
Director, the date for personal hearing was rescheduled from B
22nd to 25th November, 1993, but no hearing could take place
on 25th November, 1993 either.
(iv) On 26th November, 1993 the Managing Director informed the
respondent to be present before him on 26th November itself at
4.00 p.m. and on 26th November itself an eighteen page order C
was passed dismissing the respondent from services at about
7.30p.m.
It is on this factual backdrop that the matter was taken before the High
Court under Article 226 of the Constitution wherein upon due consideration ·
of the factual matrix, the order of dismissal was set aside on the ground of ·D
being prejudicial, thus resulting in total miscarriage of justice and hence the
appeal before this Court by the grant of special leave.

Before adverting to the rival contentions, be it noted that the matter in
question involves two principal issues: (a) the issue of 'bias' and 'malice' and
(b) the issue of 'natural justice'. Admittedly, the points in issue would over- E
lap each other while detailing the same, but the facts, as hereinafter noticed,
are such that the same is otherwise unavoidable.

The word 'Bias' in popular English parlance stands included within the
attributes and broader purview of the word 'malice', which in common
acceptation mean and imply 'spite' or 'ill-will' (Stroud's Judicial Dictionary F
(5th Ed.) Volume 3) and it is now well settled that mere general statements will
not be sufficient for the purposes of indication of ill-will. There must be
cogent evidence available on record to come to the conclusion as to whether
in fact there was existing a bias which resulted in the miscarriage of justice.

While it is true that legitimate indignation does not fall within the ambit G
of malicious act, in almost all legal enquiries, intention, as distinguished from
motive is the all-important factor. In common parlance, a malicious act has
been equated with intentional act without just cause or excuse (see in this
context Jones Bros. (Hunstanton) v. Steven, (1955) l Q.B. 275).

The respondent on this score referred to the show-cause notice and H
256 SUPREME COURT REPORTS [2000] SUPP. 4 S.C.R.

A contended that there was in fact a total mind-set from the beginning for
punishing the respondent by way of an order of dismissal from service and
as such no further material evidence need be produced in the matter on the
wake of available cogent evidence of bias and prejudice. It is on this score
that relevant abstracts of show-cause notice may be of some assistance and
B as such the same is set out rather extensively herein below for proper
appreciation:-

"While going through the profit and loss account of the tourism
section of the last seven years, it was observed that the section was
in profit only in the year 1990-91 on account of LTC tours. But the
section was in loss during the rest of the years, while you have been
c informing me that the section is in profit except for the depreciation.
Reality is just opposite to it.

Timely payment was not made to the LTC agent during the year
1990-91 resulting the closure of the L TC tours thereafter. Clearly, the
LTC tours were not organised properly. Had the LTC tours continued,
D there was no chance of tourism section running in loss.

Kailash Mansarover Yatra could not fetch so much profit as it
should on account of non- control over the expenditure. During the
E year 1992 the profit in this yatra was approximately Rs.13 thousand,
while during the previous years it used to be between 1.50 to 2.0
lakhs. While you informed me that the profit during 1992 will be
approximately the same as of last years.

F
A sum of Rs. 2.70 lakhs was advanced to Messers Elgin Mills
during the year 1990-91, 91- 92 for the purchase items, out of which
the firm supplied items costing Rs.1.91 lakh only. Thus, there is balance
of Rs.0.79 lakh with the firm for the last 2-3 years. No specific action
was taken to get back the money or items from the firm. Thus, on one
G hand the Nigam suffered loss on interest and in the same time it
resulted reduction in the working capital.

Being the head of the department of the tourism section, it was
H your responsibility to submit before the purchase committee and the
KUMAON MANDAL VIKAS NIGAM LTD. v. G.S. PANT [BANERJEE, J.] 257
Managing Director the cost and the quantity of the furnishing items A
and accordingly action should have been taken to place the supply
orders with the firms for the purchase of furnishing items. But it was
not done so. In many cases, items have been purchased at much
higher rates than sanctioned by the government for these.

No specific action was taken for the purchase of the items, inspite B
of being informed repeatedly to purchase these before the tourist
season. lnspite of written repeated request by the Chairman of the
purchase committee, no full details were made available of the items
proposed to be purchased. The purchased committee had been to
Delhi to purchase the items and only at that time the file was made C
available. The purchase committee, after market survey submitted its
report. The concerned file was not traceable thereafter and after few
days it was found in the almirah of section after thorough search. As
such due to non-availability and delay in furnishing work it resulted
thereon non-receipt of desired income during the tourist season.

On account of non-purchase of furnishing items well in time, Nigam D
started preparing the furniture itself. This resulted good quality of
furniture and it is expected 30% cheaper in cost than the items
purchased earlier. Clearly no attention was paid towards this.

E
Approval to purchase soap at Rs. l .40 each was obtained for the
supply of the same from a Bombay firm. Inspite of the knowledge of
high prices, you recommended for the purchase of the soap required
during the tourist season and have recommended that the soap bearing
Nigam's name shall have good impact on the tourists. On your F
recommendation instructions were issued to cancel the supply order
in case of failing to supply the same within 15 days. Still the supply
was not received within the fixed time. When it was pointed out that
the rates are high, you placed supply order with the firm, under your
own signatures, @ Rs. l .25 each. Thus, no attention was paid by you
towards this, while seeking approval. Clearly, interest of the Nigam G
was not kept in mind.

It was not proper in the light of commercial and administrative
reasons to post the managers of the tourist rest houses at one place
for the many years. No action was taken by you in this regard. Inspite
of this, no action was taken to transfer the concerned managers H
258 SUPREME COURT REPORTS (2000) SUPP. 4 S.C.R.

A committing financial irregularities. This can't be said to be in the
interest of the Nigam.

Lastly, it is concluded that you never kept in mind the interest of
the Nigam due to your personal vested interests. Due to your corrupt
conduct, you had no control over your subordinates. You never
B submitted suggestion in the interest of the Nigam and never shown
interest in the implementation of the schemes due to which the Nigam
was unable to get the success as much as it should have, keeping in
view the natural beauty of this place. The tourism section was suffering
loss due to your activities. You always misused the Nigam's tourism
section for your personal vested interest and gains. Your conduct and
c integrity is highly doubtful.

Apart from the above, Nigam suffered heavy loss due to
irregularities in many purchases/matters and are being considered
separately. You failed to take specific action for getting the tourism
section in profit. You did not run the tourism section smoothly.
D Therefore, you are not capable to remain in your post."

It is this show-cause notice, which later came to be termed to be the
charge-sheet as well and which the High Court ascribed to be totally prejudicial
and biased resulting in total miscarriage of justice. The respondent, writ
E petitioner on this score contended that, as a matter of fact, the charge-sheet
(if the same can be termed to be so) is the aftermath of personal vendetta of
the former Managing Director of the Corporation. The incident spoken of by
the respondent though trivial but we do feel it proper to note the same since
it has a definite bearing in the matter under discussion. In September, 1993,
the former Managing Director of the Corporation left on an official business
F to Tibet. The private Respondent also was subsequently deputed to Tibet
alongwith Director General of Tourism U.P. for which the U.P. Government
provided a helicopter upto Indian Border and it is this journey by helicopter
which the Managing Director had to undergo on foot upto Indian border. It
has been stated that this trek had its due effect and the writ petitioner was
G served with the show-cause notice cum charge-sheet culminating into an
order of dismissal. The records depict that the Managing Director returned
to the Head Quarter at Nainital on 27th September, 1993 and on the very next
day i.e. on 28th September, 1993, the Managing Director withdrew the duties
of the General Manager (Tourism) by an Order No.4927/2.3. By another Order
bearing No.4951/2.5 and having the same date i.e. 28th September, 1993, all
H financial and administrative powers delegated earlier was withdrawn with
KUMAON MANDAL VIKAS NIGAM LTD. v. G.S. PANT [BANERJEE, J.] 259

immediate effect and the third event on this score is the issuance of the show- A
cause notice -cum- charge-sheet on 1st October, 1993 having 13 allegations,
relevant extracts of which have already been noticed herein before. Certain
factual aspects on this score ought also to be noticed viz. that prior to the
receipt of an explanation, the General Manager, Kumaon Anusuchit Janjati
Vikas Nigam was appointed as an Inquiry Officer by or at the instance of the
Managing Director. Incidentally, Anusuchit Janjati Vikas Nigam is a unit of B
Kumaon Manda! Vikas Nigam having a common tflanaging Director and as
such admittedly, the Inquiry Officer was under the direct supervision of the
Managing Director.

The factual score further depicts that on 15th October, 1993, the C
respondent herein asked for certain documents to submit his explanation and
as such prayed for an extension of time upto 30th October, 1993. Subsequently,
there was a reminder for the same by the respondent's letter dated 25th
October, 1993. On the same date the respondent, however, was granted
extension of time upto 30th October, 1993 with a note that the records may
be inspected in the office where all the files and records are available. In fact, D
however, the Departmental Clerk supposed to be incharge of the records did
not produce the same on the ground of non-availability. The factum of
petitioner's inability to inspect the documents by reason of non-availability
had been made known to Managing Director by a letter duly received at the
office of the Managing Director but surprisingly, however, to no effective E
consequence since only a copy of the Profit & Loss Account for few centres
and for only 2-3 years was made available which was not at all sufficient to
submit a comprehensive and effective reply to the show cause notice. It is
on this factual backdrop that the inquiry proceeded and on 6th November,
1993 the Inquiry Officer submitted a Report consisting of sixty-five pages to
the Managing Director. F

The factual score further depict that by letter dated 8/9. I l.1993, the
Managing Director intimated that the inquiry was conducted by Shri N.K.
Arya, General Manager, Kumaon Anusuchit Janjati Nigam on the basis of the
reply as sent on 30th October, 1993 and he has already submitted the report. G
As a matter of fact a copy thereof was also forwarded to the petitioner. The
Managing Director, however, made it known that the records can again be
seen in his chamber at 5.00 P.M. on 9.11.93. The last paragraph of the letter
seem to be of some significance, as such the same is quoted herein below:

"Keeping in view the humanitarian point of view and your application, H
260 SUPREME COURT REPORTS (2000) SUPP. 4 S.C.R.

A today, all the records are again being shown to you. There are serious
charges of irregularities against you. Therefore, in the interest of
Nigam and public interest it will not be possible to further extend the
time for hearing. After going through the records, if you wish to
submit additional representation, you can do so by 10.30 A.M. on
10.11.93 and for personal hearing present yourself on 10.11.93 at 11.00
A.M. in the office of the undersigned and can argue with the officers
of the Nigam. After this no further extension of time will be possible.
Apart from above, it is also to inform you that if you fail to appear
for personal hearing at the appropriate time and date, it will be presumed
that you have nothing to say and accordingly ex-parte action will be
c taken."

On final analysis of the admitted set of facts, thus the following situationsCo
emerge:

(i) All the powers and authority enjoyed by the General Manager
D (Tourism) stood withdrawn by the order of the Managing
Director;
(ii) A show-cause notice, which subsequently came to be recognised
as charge-sheet was issued containing 13 several charges;
(iii) Respondent's repeated request for supply of documents went
E unheeded and when ordered inspection, the same not been
given effect to, on the plea of non-availability of records;
(iv) Prior to the receipt of a proper and complete reply to the charge-
sheet, the Managing Director of a sister organisation which
happens to be a unit of Kumaon Manda! Vikas Nigam and thus
F a close associate and a subordinate to the Managing Director
came to be appointed as the Inquiry Officer.
(v) The Inquiry Officer furnishes a report on the basis of the
chargesheet and the relevant records without there being any
Presenting Officer and without affording an opportunity of hearing
G or even allowing any defence witnesses and not allowing the
respondent to cross- examine any of the officers of the Nigam
in spite of specific request to that effect;
(vi) After receipt of the Inquiry Report on 9th November, 1993 on
humanitarian consideration a further opportunity of hearing was
H given on the very next day at 10.30 A.M. with a rider attached
KUMAON MANDAL VIKAS NIGAM LTD. v. G.S. PANT [BANERJEE, J.] 261

thereto that no further time can possibly be allowed for any A
hearing in the matter.

The chain of events as noticed above, however, does not indicate a
very fair procedure but the subsequent factual score tops' it all. The facts
being:
B
(a) The hearing date was re-scheduled on 25th November, by reason
of the non-availability of the Managing Director but the
documents were supposed to be made available for inspection
in office - In fact, however, there was never any attempt even
to offer inspection and efforts in that regard on the part of the
Respondent went totally unheeded; C
(b) No hearing however, took place on 25.11.93 instead the respondent
was informed at his residence to present himself before the
Managing Director at 4.00 P.M. on 26.11.93 in spite of the factum
of the respondent being on Casual Leave on that day.
D
(c) The Managing Director passes an order consisting of eighteen
pages which was delivered at the residence of the Respondent
by about 7.30P.M. on the self-same day i.e. 26th November, 1993.

It is on this score that strenuous submission has been made that when
the personal hearing is fixed at 4.00 P.M., an eighteen page order of termination E
cannot possibly be made ready for service at 7.30 P.M. at the residence of
an officer. We do find some justification in this submission - It is rather in
a very hot haste: This haste however, embraces within itself a series of
questions and to pose and note a few: ls it administrative efficiency or
reflection of the definite bent of mind or personal vendetta. The Respondent

- argues to be vendetta whereas the Appellant ascribes it to be nothing unusual
about it. The High Court, however, stated the following:
F

"Since the respondent No.2 has initially made up his mind to dispense
with the services of the petitioner the subsequent appointment of
inquiry officer or asking for the explanation of the petitioner, carry G
little weight. The respondent in the present case has acted in a most
arbitrary manner and has thus, failed to discharge his obligations as
the disciplinary authority. The orders passed by the Managing Director
suffer from apparent prejudice and the same have been passed in
contravention of the principles of natural justice. The respondents
failed to discharge his functions in an objective independent, just and H
262 SUPREME COURT REPORTS [2000] SUPP. 4 S.C.R.

A inequitable manner. The impugned order of dismissal suffers from
serious infirmities and the dismissal order cannot be upheld. We have
no option but to quash the dismissal order in question."

While it is true that in a departmental proceeding, the disciplinary
authority is the sole judge of facts and the High Court may not interfere with
> .:.e factual findings but the availability of judicial review even in the case of
departmental proceeding cannot be doubted. Judicial review of administrative
action is feasible and the same has its application to its fullest e~tent in even
departmental proceedings where it is found that the recorded findings are
based on no evidence or the findings are totally perverse or legally untenable.
C The adequacy or inadequacy of evidence is not permitted but in the event
of there being a finding which otherwise shocks the judicial conscience of the
court, it is a well-neigh impossibility to decry availability of judicial review at
the instance of an affected person. The observations as above however do
find some support from the decision of this Court in the case of Apparel
Export Promotion Council v. A.K. Chopra, [1999] I SCC 759.
D
It is a fundamental requirement of law that the doctrine of natural justice
be complied with and the same has, as a matter of fact, turned out to be an
integral part of administrative jurisprudence of this country. The judicial
process itself embraces a fair and reasonable opportunity to defend though,
however, we may hasten to add that the same is dependant upon the facts
E and circumstances of each individual case. The facts in the matter under
consideration is singularly singular. The entire chain of events smacks of
some personal clash and adaptation of a method unknown to law in hottest
of haste: This is however, apart from the issue of bias which would be
presently dealt with hereinafter. It is on this context, the observations of this
p Court in the case of Sayeedur Rehman v. The State of Bihar & Ors., [I 973J
...
3 SCC 333 seem to be rather apposite. This Court observed:

"The omission of express requirement of fair hearing in the rules or
other source of power claimed for reconsidering the order, dated April
22, 1960, is supplied by the rule of justice which is considered as an
G integral part of our judicial process which also governs quasi-judicial
authorities when deciding controversial points affecting rights of
parties."

Incidentally, Hidyatullah, C.J. in Channabasappa Basappa Happali v.
The State of Mysore, AIR (1972) SC 32 recorded the need of compliance of
H certain requirements in a departmental enquiry - at an enquiry facts have to
KUMAON MANDAL VIKAS NIGAM LTD. v. G.S. PANT [BANERJEE, J.) 263
be proved and the person proceeded against must have an opportunity to A
cross-examine witnesses and to give his own version or explanation about the
evidence on which he is charged and to lead his defence - on this state of
law a simple question arises in the contextual facts: Has this-being complied
with? The answer, however, on the factual score is an emphatic "no".

The sixty-five page Report has been sent to the Managing Director of B
the Nigam against the Petitioner recording therein that the charges against
him stand proved - what is the basis? Was the Inquiry Officer justified in
coming to such a conclusion on the basis of the charge-sheet only? The
answer cannot possibly be in the affirmative: If the records have been
considered, the immediate necessity would be to consider as to who is the C
person who has produced the same and the next issue could be as regards
the nature of the records - unfortunately, there is not a whisper in the rather
longish report in that regard. Where is the Presenting Officer? Where is the
notice fixing the date of hearing? Where is the list of witnesses? What has
happened to the defence witnesses? All these questions arise but unfortunately
no answer is to be found in the rather longish Report. But if one does not D
have it - Can it be termed to be in consonance with the concept of justice
or the same tantamounts to a total miscarriage of justice. The High Court
answers it as miscarriage of justice and we do lend our concurrence therewith.
The whole issue has been dealt with in such a way that it cannot but be
termed to be totally devoid of any justifiable reason and in this context a E
decision of the King's Bench Division in the case of Denby (William) and
Sons Limited v. Minister of Health, (1936) I K.B. 337 may be considered.
Swift, J. while dealing with the administrative duties of the Minister has the
following to state:

"I do not think that it is right to say that the Minister of Health or F
any other officer of the State who has to administer an Act of Parliament
is a judicial officer. He is an administrative officer, carrying out the
duties of an administrative office, and administering the provisions of
particular Acts of Parliament. From time to time, in the course of
administrative duties, he has to perform acts which require him to G
interfere with the rights and property of individuals, and in doing that
the courts have said that he must act fairly and reasonably; not
capriciously, but in accordance with the ordinary dictates of justice-.
The performance of those duties entails the exercise of the Minister's
discretion, and I think what was said by Lord Halsbury in Sharp v.
Wakefield and others, (1891) A.C. 173, 179 is important to consider H
264 SUPREME COURT REPORTS [2000] SUPP. 4 S.C.R.

A with reference to the exercise of such discretion. He there said:
'"Discretion' means when it is said that something is to be done
within the discretion of the authorities that that something is to be
done according to the rules of reason and justice, not according to
private opinion : Rooke's case (1598 5 Rep. 99b, lOOa; according to
law, and not humour. It is to be, not arbitrary, vague, and fanciful, but
B legal and regular. And it must be exercised within the limit, to which
an honest man competent to the discharge of his office ought to
confrne himself."

Turning on to the issue of bias and for which the show cause notice-
C cum-charge-sheet has been set out in extenso, be it noted that the same does
reflect a state of mind. Sufferance of loss on interest in so far as Nigam is
concerned and resulting in reduction in working capital with total dereliction
of duty has been specifically attributed to the Respondent herein. The inclusion
of the last charge, however, clinches the issue, the same is set out herein
below:
D
"Lastly, it is concluded that you never kept in mind the interest of the
Nigam due to your personal vested interests. Due to your corrupt
conduct, you had no control over your subordinates. You never
submitted suggestion in the interest of the Nigam and never shown
interest in the implementation of the schemes due to which the Nigam
E was· unable to get the success as much as it should have, keeping in
view the natural beauty of this place. The tourism section was suffering
loss due to your activities. You always misused the Nigam's tourism
section for your personal vested interest and gains. Your conduct and
integrity is highly doubtful."

F The last paragraph of the last charge is also of some consequence as
regards the bent of mind and the same is set out herein below:

"Apart from the above, Nigam suffered heary loss due to irregularities
in many purchases/matters and are being considered separately. You
failed to take specific action for getting the tourism section in profit.
G You did not run the tourism section smoothly. Therefore, you are not
capable to remain in your post."

Upon consideration of the language in the show cause notice- cum-
charge-sheet, it has been very strongly contended that it is clear that the
officer concerned has a mind-set even at the stage of framing of charges and
H we also do find some justification in such a submission since the chain is
KUMAON MANDAL VIKAS NIGAM LTD. v. G.S. PANT [BANERJEE, J.] 265
otherwise complete. A
'Bias' in common English parlance mean and imply - pre- disposition or
prejudice. The Managing Director admittedly, was not well disposed of towards
the respondent herein by reason wherefor, the respondent was denuded of
the financial power as also the administrative management of the department.
It is the self - same Managing Director who levels thirteen charges against B
respondent and is the person who appoints the Inquiry Officer, but affords
a pretended hearing himself late in the afternoon on 26.11.93 and communicates
the order of termination consisting of eighteen pages by early evening, the
chain is complete: Prejudice apparent: Bias as stated stands proved.

The concept of 'Bias', however, has had a steady refinement with the C
changing structure of the society: Modernisation of the society, with the
passage of time, has its due impact on the concept of Bias as well. Three
decades ago, this Court in S. Parthasarathi v. State of Andhra Pradesh,
(1974) 3 sec 459 proceeded on the footing of real likelihood of 'Bias' and
there was in fact a total unanimity on this score between the English and the D
Indian Courts.

Mathew, J. in Parthasarthi's case observed:

"16. The tests of "real likelihood" and "reasonable suspicion" are
really inconsistent with each other. We think that the reviewing E
authority must make a determination on the basis of the whole evidence
before it, whether a reasonable man would in the circumstances infer
that there is real likelihood of bias. The Court must look at the
impression which other people have. This follows from the principle
that justice must not only be done but seen to be done. If right
minded persons would think that there is real likelihood of bias on the F
part of an inquiring officer, he must not conduct the enquiry;
nevertheless, there must be a real likelihood of bias. Surmise or
conjecture would not be enough. There must exist circumstances from
which reasonable men would think it probable or likely that the
inquiring officer will be prejudiced against the delinquent. The Court G
will not inquire whether he was really prejudiced. If a reasonable man
would think on the basis of the existing circumstances that he is likely
to be prejudiced, that is sufficient to quash the decision (see per Lord
Denning, H.R. in Metropolitan Properties Co. (F.G.C.) Ltd. v. Lannon
and Others, etc., (1968) 3 WLR 694 at 707). We should not, however,
be understood fo deny that the Court might with greater propriety H
266 SUPREME COURT REPORTS [2000] SUPP. 4 S.C.R.

A apply the "reasonable suspicion" test in criminal or in proceedings
analogous to criminal proceedings."

Lord Thankerton however in Franklin v. Minister of Town and Country
Planning, (1948) AC 87 had this to state:

B "I could wish that the use of the word 'bias' should be confined to
its proper sphere. Its proper significance, in my opinion, is to denote
a departure from the standard of even-handed justice which the law
requires for those who occupy judicial office, or those who are
commonly regarded as holding a quasi-judicial office, such as an
arbitrator. The reason for this clearly is that, having to adjudicate as
c between two or more parties, he must come to his adjudication with
an independent mind, without any inclination or bias towards one side
or other in the dispute".

Recently however, the English Courts have sounded a different note,
though may not be substantial but the automatic disqualification theory rule
D stands to some extent diluted. The affirmation of this dilution however is
dependent upon the facts and circumstances. of the matter in issue. The
House of Lords in the case of Reg. v. Bow Street Metropolitan Stipendiary
Magistrate, Ex parte Pinochet Ugarte, (No.2) 2000 I A.C. 119 observed:

" ..... In civil litigation the matters in issue will normally have an economic
E impact; therefore a judge is automatically disqualified if he stands to
make a financial gain as a consequence of his own decision of the
case. But if, as in the present case, the matter at issue does not relate
to money or economic advantage but is concerned with the promotion
of the cause, the rationale disqualifying a judge applies just as much
F if the judge's decision will lead to the promotion of a cause in which
the judge is involved together with one of the parties."

Lord Brown -Wilkinson at page 136 of the report stated:

"It is important not to overstate what is being decided. It was
suggested in argument that a decision setting aside the order of 25
G
November 1998 would lead to a position where judges would be
unable to sit on cases involving charities in whose work they are
involved. It is suggested that, because of such involvement, a judge
would be disqualified. That is not correct, The facts of this present
case are exceptional. The critical elements are (l) that A.I. was a party
H to the appeal; (2) that A.I. was joined in order· to argue for a particular
KUMAON MANDAL VIKAS NIGAM LTD. v. G.S. PANT [BANERJEE, J.] 267
result; (3) the judge was a director of a charity closely allied to A.I. A
and sharing, in this respect, A.I. 's'objects. Only in cases where a
judge is taking an active role as trustee or director of a charity which
is closely allied to and acting with a party to the litigation should a
judge normally be concerned either to recuse himself or disclose the
position to the parties. However, there may well be other exceptional B
cases in which the judge would be well advised to disclose a possible
interest."

Lord Hutton also in Pinochet's case (supra) observed:

"there could be cases where the interest of the judge in the subject
matter of the proceedings arising from his strong commitment to some c
cause or belief or his association with a person or body involved in
the proceedings could shake public confidence in the administration
of justice as much as a shareholding (which might be small) in a public
company involved in the litigation."

Incidentally in Locabail (UK.) Ltd. v. Bayfield Properties Ltd, (2000
D
Q.B. 451), the Court of Appeal upon a detail analysis of the oft cited decision
in Reg. v. Gough, (1993) A.C. 646 together with the Dimes case, (3 House of
Lords Cases 759): Pinochet case (supra), Australian High Court's d~cision in
the case of re J.R.L., Ex parte C.J.L., (1986) 161CLR342 as also the Federal
Court in re Ebner, (l 999) 161 A.L.R. 557 and on the decision of the E
Constitutional Court of Sourth Africa in Preside_nt of the Republic of South
Africa v. South African Rugby Football Union, ( 1999) 4 S.A. 147 stated that
it would be rather dangerous and futile to attempt to define or list the factors
which may or may not give rise to a real danger of bias. The Court of Appeal
continued to the effect that everything will depend upon facts which may F
include the nature of the issue to be decided. It further observed:

"By contrast, a real danger of bias might well be thought to arise if
there were personal friendship or animosity between the judge and
any member of the public involved in the case; or if the judge were
closely acquainted with any membe·r of the public involved in the G
case, particularly if the credibility of that individual could be significant
in the decision of the case; or if, in a case where the credibility of any
individual were an issue to be decided by the judge, he had in a
previous case rejected the evidence of that person in such outspoken
terms as to throw doubt on his ability to approach such person's
evidence with an open mind on any later occasion; or if on any H
268 SUPREME COURT REPORTS [2000] SUPP. 4 S.C.R.

A question at issue in the proceedings before him the judge had expressed
views, particularly in the course of the hearing, in such extreme and
unbalanced terms as to throw doubt on his ability to try the issue with
an objective judicial mind (see Vakuta v. Kelly, (l 989) 167 C.LR. 568);
or if, for any other reason, there were real ground for doubting the
ability of the judge to ignore extraneous considerations, prejudices
B and predilections and bring an objective judgment to bear on the
issues before him. The mere fact that a judge, earlier in the same case
or in a previous case, had commented adversely on a party witness,
or found the evidence of a party or witness to be unreliable, would
not without more found· a sustainable objection. In most cases, we
think, the answer, one way or the oth~r, will be obvious. But if in any
case, there is real ground for doubt, that doubt should be resolved
in favour ofrecusal. We repeat: every application must be decided on
the facts and circumstances of the individual case. The greater the
passage of time between the event relied on as showing a danger of
bias and the case in which the objection is raised, the weaker (other
D things being equal) the objection will be." ..
The Court of Appeal judgment in locabail (supra) though apparently
as noticed above sounded a different note but in fact, in more occasions than •
one in the judgment itself, it has been clarified that conceptuaily the issue of
bias ought to be decided on the facts and circumstances of the individual
E case - a slight shift undoubtedly from the original thinking pertaining to the
concept of bias to the effect that a mere apprehension of bias could otherwise
be suffiCient.

The test, therefore, is as to whether a mere apprehension of bias or
F there being a real danger of bias and it is on this score that the surrounding
circumstances must and ought to be collated and necessary conclusion drawn
therefrom - In the event however the conclusion is otherwise inescapable that
there is existing a real danger of bias, the administrative action cannot be
sustained. If on the other hand, the allegations pertaining to bias is rather
fanciful and otherwise to avoid a particular court, tribunal or authority, question
G of declaring them to be unsustainable would not arise. The requirement is
availability of positive and cogent evidence and it is in this context that we
do record our concurrence with the view expressed by the Court of Appeal
in Locabail case (supra).

Having discussed the issue as above in the contextual facts, we do feel
H it expedient to record that the action of the Managing Director in the matter
KUMAON MANDAL VIKAS NIGAM LTD. v. G.S. PANT [BANERJEE. J.] 269
of withdrawal of authority as noticed above and subsequent introduction of A
charges, in particular, the last of the charges as noted above and the further
factum of issuance of an eighteen page letter of termination on the self same
date and within a few hours after the pretended hearing was given, cannot
but be ascribed to be wholly and totally biased.

On the wake of the aforesaid, we are unable to record our concurrence B
with the submissions of the appellant. The judgment under appeal, in our
view, cannot be faulted in any way whatsoever. The Appeal, therefore, fails
and is dismissed. There shall however be no order as to costs.

B.S. Appeal dismissed.