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Brij Bihari Singh v. Bihar State Financial Corporation & Ors.

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 1217 of 2011)Decided 20 Nov 2015
Civil Appeal No. 1217 of 2011
Justice M.Y. Eqbal · Justice C. Nagappan

Background

The appellant, an Assistant General Manager of a state financial corporation, was suspended in 1993 and charged with several acts of misconduct relating to loan releases and a land purchase. After an enquiry found most charges proved, the Managing Director recommended punishment to the Board of Directors, which dismissed him. The High Court upheld the dismissal.

Decision Breakdown

The Supreme Court held that the disciplinary proceedings were conducted in gross violation of the Corporation's regulations and the rules of natural justice. The employee was not given a real opportunity to answer the charges or to hear and challenge the evidence, and no proper personal hearing was held. The Managing Director, who was the disciplinary authority, referred the matter to the Board, which then acted as the disciplinary authority and decided the appeal, and the Managing Director even took part in that Board meeting. The Court set aside the Board's dismissal order and the High Court judgments, and sent the matter back to the disciplinary authority to restart from the enquiry stage and pass a reasoned order after a full hearing, with a right of appeal preserved.

Lesson Learnt

An employee facing dismissal is entitled to know the evidence against him, to respond to it, and to a fair appeal by someone who did not already decide the case. A dismissal can be invalid if the official who brought the charges also takes part in deciding the appeal.

Official source (sci.gov.in)View Judgment (PDF)

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