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Supreme Court of India

UTTAR PRADESH FOREST CORPORATION LUCKNOW & ORS.versusVIJAY KUMAR YADAV & ANR.

Citation
2021 INSC 778
Decided
23 November 2021
Disposal
Case Partly allowed

Holding

The punishment order for recovery of Rs 2,46,922.56 must be maintained as the charge was proved by the enquiry officer.

Summary

The Uttar Pradesh Forest Corporation initiated disciplinary proceedings against its employee Vijay Kumar Yadav for allegedly causing a loss of Rs 2,46,922.56. The enquiry officer found the charge proved, but the disciplinary authority also proceeded on other unproven charges without giving the employee notice, violating natural justice. The High Court of Allahabad set aside the entire punishment order. On appeal, the Supreme Court held that because the loss‑causing charge was proved, the punishment order for recovery of that amount must be upheld, and only the unproven charges could be set aside. The Court modified the High Court’s order to maintain the recovery order and directed that the amount be deducted from the employee’s retirement benefits, as he had already superannuated. The appeal was partly allowed and no costs were awarded.

Issues considered

  • Whether the punishment order should be set aside when the charge of causing loss was proved by the enquiry officer
  • Whether proceeding on unproven charges without notice violates principles of natural justice
  • Whether the recovery amount can be deducted from the retirement benefits of a superannuated employee

Subjects

service lawdisciplinary actionnatural justicepunishment orderrecovery of lossretirement benefitsappellate jurisdiction

Judgment

432                       [2021]REPORTS
                SUPREME COURT    7 S.C.R. 432             [2021] 7 S.C.R.


A                UTTAR PRADESH FOREST CORPORATION
                          LUCKNOW & ORS.
                                       v.
                       VIJAY KUMAR YADAV & ANR.
B                       (Civil Appeal No. 6947 of 2021)
                            NOVEMBER 23, 2021
                [M. R. SHAH AND B. V. NAGARATHNA, JJ.]
             Service Law: Punishment – Charge of causing loss to the
C     extent of Rs.2.46 lacs was held to be proved by the enquiry officer
      – Punishment order for recovery of Rs.2.46 lacs passed – High
      Court set aside the punishment order – Held: High Court ought to
      have maintained the punishment order once the charge of causing
      loss to the extent of Rs.2.46 lacs was held to be proved by enquiry
      officer – Therefore, order modified to the extent of maintaining the
D     order of punishment for recovery of Rs.2.46 lacs for the charge
      which was held to be proved by enquiry officer – Respondent
      employee has since retired on attaining the age of superannuation
      – Therefore, whatever further amount is due and payable towards
      the retirement benefits which may be available under the law, the
E     same may be paid to the respondent after making recovery/deducting
      Rs.2.46 lacs.
              CIVIL APPELLATE JURISDICTION: Civil Appeal No.6947 of
      2021.
            From the Judgment and Order dated 20.02.2019 of the High Court
F
      of Judicature at Allahabad in Writ A No.54718 of 2005.
           M. R. Shamshad, Arijit Sarkar, Ms. Nabeela Jamil, Niaz A.
      Farooqui, Advs. for the Appellants.
            Yatish Mohan, Achintya Tiwari, Subhash Chandra Sagar, E. C.
G     Vidya Sagar, Advs. for the Respondents.




H
                                      432
        UTTAR PRADESH FOREST CORPORATION                                       433
     LUCKNOW & ORS. v. VIJAY KUMAR YADAV & ANR.

       The Judgment of the Court was delivered by                              A
       M. R. SHAH, J.
       1. Feeling aggrieved and dissatisfied with the impugned judgment
and order dated 20.02.2019 passed by the High Court of Judicature at
Allahabad in Writ Appeal No. 54718 of 2005, Uttar Pradesh Forest
Corporation Lucknow and others have preferred the present appeal.              B
       2. At the outset, it is required to be noted that vide order dated
03.07.2019, this Court issued notice limited to the extent as to whether
the High Court ought to have maintained the punishment order for recovery
of Rs.2,46,922.56, which was also held to be proved by the Enquiry
Officer.                                                                       C
       3. We have heard the learned counsel for the respective parties.
       4. At the outset, it is required to be noted that in so far as the
charge of causing loss to the extent of Rs.2,46,922.56, it was held to be
proved by the Enquiry Officer. However, there was disagreement on
the part of the Disciplinary Authority so far as other charges, which
                                                                               D
were held to be not proved by the Enquiry Officer and without issuing
any notice on the said disagreement, the Disciplinary Authority proceeded
further and passed the punishment order, which was held to be bad in
law and against the principles of natural justice. Therefore, once the
charge of causing loss to the extent of Rs.2,46,922.56 was held to be
proved by the Enquiry Officer, the High Court ought to have maintained         E
the punishment order for recovery of Rs.2,46,922.56.
       5. In view of the above, we modify the impugned judgment and
order passed by the High Court to the extent of maintaining the order of
punishment for recovery of Rs.2,46,922.56 for the charge which was
also held to be proved by the Enquiry Officer. It is reported that the         F
respondent employee has since retired on attaining the age of
superannuation. Therefore, whatever further amount is due and payable
towards the retirement benefits, which may be available under the law,
the same may be paid to the respondent after making recovery/deducting
Rs.2,46,922.56.
                                                                               G
       6. Present appeal is accordingly partly allowed to the aforesaid
extent and in the facts and circumstances of the case, there shall be no
order as to costs.

Devika Gujral                                         Appeal partly allowed.
                                                                               H


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