The Supreme Court has set aside the dismissal of an employee of the U.P. Cooperative Federation, holding that a disciplinary enquiry is vitiated where no witnesses are examined despite the denial of charges.
The appellant, who was in charge of a paddy procurement centre, was dismissed from service on allegations of short delivery of paddy and embezzlement, along with a recovery order of over ₹9.5 lakh. His challenge before the High Court failed, leading to the present appeal.
Before the Court, the appellant argued that no oral enquiry was conducted and no witnesses were examined to prove the charges. The respondents contended that the appellant’s reply was evasive and amounted to an admission.
Rejecting this contention, the Bench of Justice Sanjay Karol and Justice Manoj Misra held that there was no clear admission of guilt, observing that “A departmental charge-sheet is not a plaint that an evasive reply thereto may amount to an admission. In a departmental enquiry, unless the charge is admitted, the burden to prove the charge lies on the employer/ department.”
The court reiterated that where charges are denied, the employer must lead evidence and provide an opportunity for cross-examination. It held that “unless the charged employee accepts his guilt in clear terms, an enquiry on the charges would have to be held…unless the relied upon documents are admitted… a witness would have to be examined to prove those documents.” Reference was made to Sur Enamel and Stamping Works Ltd. v. Workmen, AIR 1963 SC 1914 and State of Uttaranchal & Ors. v. Kharak Singh, (2008) 8 SCC 236 & Chamoli District Co-operative Bank Limited & Another vs. Raghunath Singh Rana & Others, (2016) 12 SCC 204.
On facts, the Court noted that no witness was examined despite the denial of charges and held that the enquiry stood vitiated. Consequently, the dismissal and recovery orders were set aside.
The Court granted liberty to the employer to conduct a de novo enquiry within six months, failing which the appellant would be entitled to reinstatement with consequential benefits.