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2010 (4) TMI 963 - SC - Indian LawsWhether or not under the relevant Rules and provisions of the Act, the Railway Authorities have the jurisdiction to appoint a retired employee of the Department as Inquiry Officer within the ambit of Rule 9(2) of the Railway Servants (Discipline & Appeal) Rules, 1968 (for short referred to as the Rules )? Held that - Appeal allowed. The judgment of the Tribunal and the High Court are contrary to the settled principles of law and thus cannot be sustained. No merit even in the contention that if departmental inquiry has been conducted under the Rules of 1968 in accordance with law, principles of natural justice and no de facto prejudice is pleaded or shown by cogent documentation, the court would be reluctant to set aside the order of punishment on this ground alone. Secondly, the argument in relation to non-furnishing of CVC notes is again without any foundation as it has not even been averred in the application before the Tribunal, that these alleged notes were part of the record and that they were actually considered by the Disciplinary Authority and such consideration had influenced the mind of the competent authority while passing the impugned orders. Absence of pleading of these essential features read with the fact that no such documentation has been placed on record except demanding circulars of the CVC, we are of the considered view that even on this account no prejudice, as a matter of fact, has been caused to the delinquent officers. Thus not able to accept the contention addressed on behalf of the respondents that it is not necessary at all to show de facto prejudice in the facts of the present cases.
Issues Involved:
1. Jurisdiction to appoint a retired employee as Inquiry Officer under Rule 9(2) of the Railway Servants (Discipline & Appeal) Rules, 1968. 2. Non-furnishing of Central Vigilance Commission (CVC) advice/notes to the delinquent and its impact. Detailed Analysis: 1. Jurisdiction to Appoint a Retired Employee as Inquiry Officer Key Finding: The Supreme Court examined whether the Railway Authorities have the jurisdiction to appoint a retired employee as an Inquiry Officer under Rule 9(2) of the Railway Servants (Discipline & Appeal) Rules, 1968. - Rule 9(2) Interpretation: The Court held that the term "other authority" in Rule 9(2) is broad and does not explicitly exclude retired employees from being appointed as Inquiry Officers. The Court emphasized that the language of Rule 9(2) does not limit the appointment to only current employees. The discretion vested in the disciplinary authority under Rule 9(2) allows for the appointment of any competent person, including retired employees, to conduct inquiries. - Circulars and Practice: The Court noted that the Railway Board had issued circulars, such as the one on 16th July 1998, which allowed for the empanelment of retired officers as Inquiry Officers to expedite pending inquiries. These circulars were found to be supplementary to Rule 9(2) and not in conflict with it. The Court rejected the argument that the circulars contradicted the statutory rules, stating that they were intended to address administrative exigencies and were harmoniously aligned with Rule 9(2). - Precedent and Contextual Interpretation: The Court distinguished the present case from the precedent set in Ravi Malik v. National Film Development Corporation Ltd., noting that the terms "public servant" and "other authority" have different legal connotations. The contextual interpretation of Rule 9(2) supports a broader understanding of "other authority" to include retired employees. - Conclusion: The Supreme Court concluded that the appointment of retired railway officers as Inquiry Officers is permissible under Rule 9(2). The Tribunal and High Court's judgments, which held otherwise, were set aside. 2. Non-furnishing of Central Vigilance Commission (CVC) Advice/Notes Key Finding: The Court examined whether the non-furnishing of CVC advice/notes to the delinquent officer during the disciplinary proceedings vitiated the inquiry process. - Tribunal's Findings: The Tribunal had set aside the punishment orders on the ground that the CVC's advice/notes were not provided to the delinquent officer, which it deemed necessary for a fair inquiry. - Supreme Court's Analysis: The Court held that for non-furnishing of documents to vitiate the inquiry, it must be shown that: - The documents were relevant and had a direct bearing on the inquiry. - The documents were requested by the delinquent officer. - The documents were considered by the disciplinary authority in making its decision. - The delinquent officer suffered actual prejudice due to the non-furnishing of these documents. - Application to the Case: The Court found that the Tribunal did not establish these necessary facts. There was no evidence that the CVC notes were requested, considered by the disciplinary authority, or that their non-furnishing caused prejudice to the delinquent officer. - Prejudice Requirement: The Court reiterated that de facto prejudice must be shown for a violation of natural justice to vitiate the disciplinary proceedings. The respondents failed to demonstrate any actual prejudice resulting from the non-furnishing of the CVC notes. - Conclusion: The Supreme Court concluded that the non-furnishing of CVC advice/notes did not vitiate the disciplinary proceedings as there was no demonstrated prejudice. The Tribunal and High Court's judgments on this ground were also set aside. Final Judgment: The Supreme Court allowed the appeals, setting aside the judgments of the Tribunal and the High Court. The Court held that retired railway officers could be appointed as Inquiry Officers under Rule 9(2) and that the non-furnishing of CVC advice/notes did not vitiate the disciplinary proceedings in the absence of demonstrated prejudice. Each party was ordered to bear its own costs.
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