2013 (10) TMI 247 - SC - Indian Laws

Validity of Charge Sheet - Proceedings against the Addl. CIT - Whether the charge sheet issued against the respondents was without jurisdiction - Held that - The Central Administrative Tribunal as well as the High Court had correctly interpreted the provisions of the Office Order No. 205 of 2005 - Factually also, a perusal of the record would show that the file was put up to the Finance Minister by the Director General of Income Tax (Vigilance) seeking the approval of the Finance Minister for sanctioning prosecution against one officer and for initiation of major penalty proceeding under Rule 3(1)( i ) and (3) (1) (iii) of the Central Civil Services (Conduct) Rules against the officers mentioned in the note which included the appellant herein - Ultimately, it appeared that the charge memo was not put up for approval by the Finance Minister. The action had been taken against the respondent in Rule 14(3) of the CCS( CCA ) Rules which enjoins the disciplinary authority to draw up or cause to be drawn up the substance of imputation of misconduct or misbehaviour into definite and distinct articles of charges - The term cause to be drawn up does not mean that the definite and distinct articles of charges once drawn up do not have to be approved by the disciplinary authority - The term cause to be drawn up merely refers to a delegation by the disciplinary authority to a subordinate authority to perform the task of drawing up substance of proposed definite and distinct articles of charge sheet - These proposed articles of charge would only be finalized upon approval by the disciplinary authority - Article 311(1) does not say that even the departmental proceeding must be initiated only by the appointing authority - However, at the same time it was pointed out that However, it was open to Union of India or a State Government to make any rule prescribing that even the proceeding against any delinquent officer shall be initiated by an officer not subordinate to the appointing authority - It was further held that Any such rule shall not be inconsistent with Article 311 of the Constitution because it will amount to providing an additional safeguard or protection to the holders of a civil post. During the pendency of these proceedings the appellants have after 2009, amended the procedure which provides that the charge memo shall be issued only after the approval is granted by the Finance Minister - it appears that the appeals in these matters were filed and pursued for an authoritative resolution of the legal issues raised. Although number of collateral issues had been raised by the learned counsel for the appellants as well the respondents, we deem it appropriate not to opine on the same in view of the conclusion that the charge sheet/charge memo having not been approved by the disciplinary authority was non est in the eye of law - there was no merit in the appeals filed by the Union of India - CAT had granted liberty to the appellants to take appropriate action in accordance with law.

Summary

Issues Involved:
1. Jurisdiction of the charge sheet issuance without Finance Minister's approval.
2. Interpretation of Rule 14 of CCS (CCA) Rules.
3. Compliance with Article 311 of the Constitution of India.
4. Validity of the disciplinary proceedings initiated.

Detailed Analysis:

Jurisdiction of the Charge Sheet Issuance Without Finance Minister's Approval
The central issue in these appeals is whether the charge sheet issued against the respondents is without jurisdiction due to the lack of approval from the Finance Minister for issuing the charge memo, despite his approval for initiating major penalty proceedings. The respondents argued that the charge sheet dated 7th/8th September 2005 is without jurisdiction and liable to be quashed as it was not approved by the Finance Minister. The CAT and the Delhi High Court quashed the charge sheet on this ground, and the appellants challenged this decision.

Interpretation of Rule 14 of CCS (CCA) Rules
Rule 14(3) of the CCS (CCA) Rules mandates that the disciplinary authority shall draw up or cause to be drawn up the charge sheet. The ASG argued that approval for initiating departmental proceedings includes approval of the charge memo, while the respondents contended that the charge sheet must be approved separately by the disciplinary authority. The Court held that the charge sheet can only be issued upon approval by the appointing authority, i.e., the Finance Minister, to ensure compliance with Article 311(1) and (2) of the Constitution.

Compliance with Article 311 of the Constitution of India
Article 311(1) ensures that no civil servant is dismissed or removed by an authority subordinate to that by which he was appointed. Article 311(2) ensures that no civil servant is dismissed or reduced in rank except after an inquiry held in accordance with the rules of natural justice. The Court emphasized that the charge sheet must be approved by the disciplinary authority to comply with these constitutional protections. The Court found that the procedure followed by the appellants did not meet these requirements, as the charge memo was not approved by the Finance Minister.

Validity of the Disciplinary Proceedings Initiated
The Court examined the office order No. 205 of 2005, which prescribes the competent authority for various stages of disciplinary action. Clause (8) of the order specifies that the competent authority for approval of the charge memo is the Finance Minister. The Court rejected the ASG's argument that approval for initiating disciplinary proceedings includes approval of the charge memo. The Court also noted that the appellants have amended the procedure to require the Finance Minister's approval for the charge memo after 2009.

In conclusion, the Court upheld the decisions of the CAT and the Delhi High Court, ruling that the charge sheet issued without the Finance Minister's approval was non est in the eye of law. The appeals filed by the Union of India were dismissed, and the liberty granted by CAT to take appropriate action in accordance with the law was not disturbed.