Supreme Court Upholds Dismissal of Employee for Accepting Hospitality from Bidder During Tender Process. Attending IEEMA Conference Without Permission and Availing Air Ticket from M/s. Secure Meters Constitutes Misconduct Under Service Regulations.

  • 7
Judgement Image
Font size:
Print

Case Note & Summary

The appellant, Rathin Ghosh, was a Superintending Engineer with 22 years of unblemished service in the West Bengal State Electricity Distribution Company Ltd. In February 2007, he was asked to prepare draft specifications for single-phase static meters, which were approved and used in a tender process. In January 2008, a fresh tender for 10 lakh meters was issued. The appellant was part of a team that tested sample meters, and M/s. Secure Meters was one of the technically qualified bidders. On 16 April 2008, the appellant informed his superior about attending an IEEMA conference in New Delhi on 17 April 2008. He booked air tickets through Globe Travel Agency, which was the travel agent of M/s. Secure Meters, and the agency raised an invoice on M/s. Secure Meters for Rs. 12,350. The appellant repaid the amount on 28 April 2008 after an inquiry. The company suspended him on 29 April 2008 and initiated disciplinary proceedings. The appellant resigned on 13 May 2008, but the resignation was not accepted due to pending proceedings. A charge-sheet was issued on 28 May 2008 alleging two charges: (i) attending the IEEMA conference without permission, and (ii) availing hospitality from M/s. Secure Meters by having his airfare borne by them while the tender was pending. An inquiry found the charges proved, and the disciplinary authority imposed punishment of dismissal, permanent withholding of pension, forfeiture of gratuity, and confirmation of suspension period. The appellate authority upheld the punishment. The appellant filed a writ petition, which was allowed by a Single Judge who set aside the entire disciplinary proceedings and ordered reinstatement with back wages. The Division Bench of the Calcutta High Court allowed the company's appeal and set aside the Single Judge's order. The Supreme Court, after hearing both sides, dismissed the appeal, upholding the Division Bench's judgment. The Court held that the charges were proved and the punishment was proportionate. The Court noted that the appellant had placed himself under pecuniary obligation to a bidder, which was a serious misconduct in public procurement. The Court also held that the High Court in writ jurisdiction should not interfere with disciplinary findings unless there is procedural violation or perversity, which was not present here. The appeal was dismissed, and the judgment of the Division Bench was affirmed.

Headnote

A) Service Law - Disciplinary Proceedings - Misconduct - Acceptance of Hospitality - The appellant, a Superintending Engineer, attended an IEEMA conference in New Delhi without prior permission and availed air tickets from M/s. Secure Meters, a bidder in a pending tender process. The court held that this constituted misconduct as it placed him under pecuniary obligation to a bidder, violating service regulations. (Paras 9-10)

B) Service Law - Proportionality of Punishment - Dismissal - The court upheld the punishment of dismissal, permanent withholding of pension, and forfeiture of gratuity, finding it proportionate to the gravity of misconduct involving breach of trust and integrity in public procurement. (Paras 11-12)

C) Service Law - Judicial Review - Interference with Disciplinary Findings - The court reiterated that the High Court in writ jurisdiction cannot re-appreciate evidence like an appellate court; interference is limited to cases of procedural violation or perversity. The Division Bench correctly set aside the Single Judge's order which had exceeded this scope. (Paras 13-14)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the disciplinary proceedings and dismissal order against the appellant were valid and whether the High Court Division Bench erred in setting aside the Single Judge's order of reinstatement.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The Supreme Court dismissed the appeal, upholding the judgment of the Calcutta High Court Division Bench dated 20.09.2017, which had set aside the Single Judge's order of reinstatement. The disciplinary proceedings and dismissal order were upheld.

Law Points

  • Disciplinary proceedings
  • Misconduct
  • Acceptance of hospitality from bidder
  • Natural justice
  • Proportionality of punishment
  • Judicial review of disciplinary proceedings
Subscribe to unlock Law Points Subscribe Now

Case Details

2019 lawtext (SC) (7) 115

Civil Appeal No.5633 of 2019 (@ SLP(Civil) No.31374 of 2017)

2019-07-16

Ashok Bhushan

Shyam Divan, Udayaditya Banerjee

Rathin Ghosh

West Bengal State Electricity Distribution Company Ltd. & Ors.

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Civil appeal against judgment of Calcutta High Court Division Bench which set aside Single Judge's order of reinstatement and upheld dismissal of employee.

Remedy Sought

Appellant sought to set aside Division Bench judgment and restore Single Judge's order of reinstatement with back wages.

Filing Reason

Appellant was dismissed from service for attending IEEMA conference without permission and accepting air ticket from a bidder during tender process.

Previous Decisions

Single Judge set aside disciplinary proceedings and ordered reinstatement; Division Bench allowed appeal and set aside Single Judge's order.

Issues

Whether the disciplinary proceedings were vitiated by procedural irregularities or lack of evidence. Whether the punishment of dismissal was disproportionate to the misconduct.

Submissions/Arguments

Appellant argued that he had informed his superior and taken casual leave for attending the conference, and that he repaid the airfare before any demand, thus no misconduct. Respondent argued that the appellant accepted hospitality from a bidder while tender was pending, which is a serious misconduct and the punishment is proportionate.

Ratio Decidendi

An employee in a public sector undertaking who accepts hospitality, including airfare, from a bidder during a pending tender process commits misconduct as it places him under pecuniary obligation. The punishment of dismissal is proportionate given the gravity of the misconduct involving breach of trust and integrity in public procurement. The High Court in writ jurisdiction should not interfere with disciplinary findings unless there is procedural violation or perversity.

Judgment Excerpts

The charges against the delinquent employee were two folds i.e. (i) he gave a presentation in the seminar on 17.04.2008 at New Delhi hosted by IEEMA without having any permission from his higher authority (ii) he availed the hospitality of SML as his air fare from Kolkata to New Delhi on 16th April, 2008 and return journey from New Delhi to Kolkata on 17th April, 2008 was borne by SML when he was officially dealing with SML in the tender process, which was pending finalization for placement of orders to the successful company of suppliers. He thus placed himself under pecuniary obligation under SML.

Procedural History

The appellant was suspended on 29.04.2008, charge-sheeted on 28.05.2008, inquiry report submitted on 26.12.2008, punishment order passed on 02.06.2009, appeal dismissed on 10.11.2009. Writ petition filed in 2010 allowed by Single Judge on 29.06.2015. Division Bench allowed appeal on 20.09.2017. Supreme Court heard appeal on 16.07.2019 and dismissed it.

Acts & Sections

  • West Bengal State Electricity Board Employees’ Service Regulations: 61, 63
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
Supreme Court Supreme Court Upholds Dismissal of Employee for Accepting Hospitality from Bidder During Tender Process. Attending IEEMA Conference Without Permission and Availing Air Ticket from M/s. Secure Meters Constitutes Misconduct Under Service Regulations.
Related Judgement
Supreme Court Supreme Court Clarifies Rules on Advocate Appearances and Vakalatnama Compliance in Court Proceedings. Supreme Court Bars Unauthorized Advocate Appearances, Reinforces Accountability in Legal Practice