As per case facts, the Petitioner was removed from service following a disciplinary proceeding initiated due to allegations of fraud. He challenged this order and a subsequent appellate order, arguing ...
IN THE HIGH COURT AT CALCUTTA
CONSTITUTIONAL WRIT JURISDICTION
APPELLATE SIDE
Present:
The Hon’ble Justice Md. Shabbar Rashidi
W.P.A. 10285 of 2019
Sudip Mandal
Vs.
Bangiya Gramin Vikas Bank And Others
For the Petitioner : Mr. Arya Bhattacharyya, Adv.
Mr. A.N. Bhattacharyya, Adv.
For the Respondents : Mr. Baidurya Ghosal, Adv.
Mr. Sourav Mukherjee, Adv.
Mr. Saikat Mukherjee, Adv.
Heard on : 01.09.2026
Judgment on : 28.09.2026
Md. Shabbar Rashidi, J.:-
1. The writ petitioner has assailed the order No. 28/2016 dated
December 30, 2016 passed by the Disciplinary Authority and General
Manager of Bangiyo Gramin Vikas Bank and order No. 12 of 2018
dated December 31, 2018 passed by the Appellate Authority/
Chairman.
2
2. By the impugned order dated December 30, 2016, the writ
petitioner was removed from service following a disciplinary
proceeding initiated against him. The petitioner preferred an appeal
against the order of disciplinary authority and by an order dated
December 31, 2018, the appeal was dismissed.
3. Learned advocate for the petitioner submitted that the order
of removal from service was passed by the disciplinary authority in
violation of an order dated May 12, 2026 passed in W. P. No. 8286 (W)
of 2016. It was submitted that the order dated December 30, 2016
was passed by the authorities during the subsistence of order dated
May 12, 2016. Learned advocate for the petitioner further submitted
that by such order passed by this Court, the authorities were directed
not to proceed with the disciplinary proceeding without the leave of
this Court. However, the authorities proceeded with such proceeding
without seeking requisite leave from this Hon’ble Court and proceeded
to pass an order of ‘removal from service’ against the petitioner.
4. It was also contended by learned advocate for the petitioner
that W.P. No. 8286 (W) of 2016 was dismissed for default without any
specific order specifically vacating the interim order dated May 12,
2016. Subsequently the said writ petition was restored to its original
file and number by an order passed by this court. With such a
restoration of the writ petition, the interim order dated May 12, 2016
also revived automatically. In that view of the facts, continuance of the
3
disciplinary proceeding resulting in an order for removal of the
petitioner from service was bad in law. In support of his contention,
learned advocate for the petitioner relied upon the authority in (2004)
6 SCC 378 (Vareed Jacob v. Sosamma Geevarghese & Ors.) and an
unreported decision passed by a Division Bench of this Court on
October 12, 2023 in MAT 937 of 2023 (Union of India v. West
Bengal Kerosene agents’ welfare Association & Others) .
5. Learned advocate for the petitioner further submitted that the
respondents were party to such writ petition and despite having
knowledge of the order dated May 12, 2016, proceeded to dispose of
the disciplinary proceeding against the petitioner without seeking
leave from this Court, resulting in removal of the petitioner from
service. It was also contended by learned advocate for the petitioner
that an order passed by an authority despite knowledge of the interim
order of the Court is of no consequence and remains a nullity. To such
proposition, learned advocate for the petitioner placed reliance upon
2022 SCC OnLine Ori 780 (Amar Kumar Behera v. State of
Odisha & Others).
6. Learned advocate for the writ petitioner also contended that
the impugned order of removal from service of the writ petitioner was
passed by an officer who was inferior to the appointing authority of the
petitioner. Such an action on the part of the respondents was violative
of the provisions of Article 311 of the Constitution of India. According
4
to learned advocate for the petitioner, in terms of Article 311 of the
Constitution of India, the order of removal from service of the
petitioner ought to have been passed by an officer not below the rank
of the appointing authority of the petitioner.
7. On the other hand, learned advocate for respondent Bank
contended that the writ petitioner was an employee of Regional Rural
Bank governed by the Regional Rural Banks Act, 1976. The employees
of such Regional Rural Bank do not hold a civil post within the
meaning of Article 311 of the Constitution of India. In support of his
contention, learned advocate for the respondent relied upon (1970) 1
SCC 177 (S.L. Agarwal v. General Manager, Hindustan Steel
Ltd.).
8. Learned advocate for the respondents further submitted that
in terms of the amended provisions of West Bengal Bangiya Gramin
Vikas Bank (Officers and Employees) Service Regulations, 2010, the
General Manager is designated as the Competent Disciplinary
Authority for Scale I and Scale II officers. Therefore, the impugned
order of removal of the petitioner from service was passed by the
appropriate authority designated in the applicable regulations.
Learned advocate for the respondents further submitted that in case of
Banking/Statutory entities, the appointing authority need not be
vested with the powers of disciplinary authority unless it is expressly
provided by the applicable service rules.
5
9. Learned advocate for the respondents also contended that the
impugned order was passed by the disciplinary authority upon due
adherence to the rule of natural justice. The petitioner was provided
with sufficient opportunity to defend himself and that the findings of
the inquiry officer, was based on cogent evidence.
10. Learned advocate for the respondent bank also submitted that
a bank officer should act with utmost fidelity, honesty and high
institutional discipline. The diversion of ₹40,00,000/- by the writ
petitioner demonstrated gross misconduct which could not be
accepted in usual banking business. It was further contended that
punishment imposed in a departmental proceeding for such gross
misconduct should not be interfered in a writ jurisdiction. In support
of his contentions, learned advocate for the respondents relied upon
(2005) 7 SCC 435 (State Bank of India v. Bela Bagchi) , (2003) 4
SCC 364 (Chairman and MD, United Commercial Bank v. P.C.
Kakkar), (2011) 4 SCC 584 (State Bank of Bikaner & Jaipur v.
Nemai Chand Nalwaya) and (2015) 2 SCC 610 (Union of India v.
Gunasekaran).
11. Learned advocate for the respondent also contended that the
writ petitioner filed the statutory appeal against the order passed by
the disciplinary authority on October 10, 2018 i.e. after a delay of
about two years. The regulations of 2010 do not provide for
condonation of delay. The petitioner sat tight over his rights and now,
6
he cannot pray for any relief in this writ jurisdiction. To such
proposition, the learned advocate for the respondents relied upon
(2014) 4 SCC 108 (Chennai Metropolit an Water Supply and
Sewerage Board v. T.T. Murali Baby).
12. The writ petitioner was appointed as Probationary Officer
under JMG Scale I in Bangiya Gramin Vikas Bank on June 18, 2014.
He was initially appointed for a period of 2 years and on satisfactory
completion of such period of probation, his services were likely to be
confirmed. However, during such period, an FIR had to be lodged
against the writ petitioner on the allegation that the writ petitioner, on
April 13, 2015 suo motu enhanced the cash credit limit of account no.
516220000569 from ₹10,000/- to ₹45,00,000/- and on the same day
a sum of ₹40,00,000/- was transferred through NEFT from such
account to another account.
13. Upon detection of the alleged fraud perpetrated by the writ
petitioner, he was suspended by an order passed on September 11,
2015. Simultaneously, a departmental proceeding was also initiated
against the petitioner. A chargesheet was served upon the writ
petitioner on March 18, 2016. A disciplinary proceeding was
conducted between April 26, 2016 and September 9, 2016. The writ
petitioner was afforded the requisite reasonable opportunity to defend
and present his case. Upon conclusion of the disciplinary proceeding
the Senior Manager (Credit), Bangiya Gramin Vikas Bank (BGVB), the
7
writ petitioner was found guilty of cheating and misappropriation of
bank funds causing wrongful loss to the bank to the tune of
₹40,00,000/-. On the basis of the findings of the enquiry officer, the
disciplinary authority passed the impugned order No. 28 dated
December 30, 2016 imposing a punishment of ‘removal from service
which shall not be a disqualification for future employment’. Such
order was duly communicated to the petitioner.
14. On October 10, 2018, the writ petitioner preferred a statutory
appeal against such order dated December 30, 2016 in terms of
regulations 49, 50 and 51 of the amended Bangiya Gramin Vikas
Bank (Officers and Employees) Service Regulations, 2010. Such appeal
was however, was rejected by the appellate authority on the ground
that the same was out of time and the regulations of 2010 did not
contain any provision for condonation of delay.
15. In the meantime, the writ petitioner approached before this
Court by way of a writ petition being WP 8286 (W) of 2016, challenging
the legality and validity of simultaneous actions by the respondents in
the form of criminal case as well as departmental proceeding over the
self-same cause of action against the petitioner. By an order dated
May 12, 2016 passed in such writ petition, a Coordinate Bench of this
Court directed to the following:
“The petitioner complains of parallel proceedings being
conducted with a criminal complaint and a departmental
8
action in respect of the same alleged misconduct being
pursued in tandem.
It does not appear that the criminal complaint filed by the
employer has matured in any charge-sheet being filed yet.
Let this petition appear a week after the summer vacation.
The employer will cite this order before the investigating
agency so that the investigation into the alleged offence is
taken up with utmost expedition and that an appropriate
report is filed before the relevant criminal court without undue
delay.
The petitioner should file his reply to the charge-sheet by
the time the matter appears next, but the inquiry proceedings
should not be commenced without the leave of court.
This order is made since the criminal and departmental
actions pertain to the same transaction or series of
transactions.
The desirability of continuing both the sets of actions
together will be considered on the returnable date.”
16. WP 8286 (W) of 2016 was subsequently, dismissed for default
by an order passed on June 13, 2016. Such order recorded that since
none appeared in support of the petition, the writ petition was directed
to be dismissed for default. However, by an order dated August 5,
2016 the writ petition being WP 8286 (W) of 2016 was restored to its
file and number. The said order recorded as follows:-
“Cause shown is sufficient. The order of dismissing the
writ petition for default stands recalled.
The writ petition is restored to its original file and number
The application for restoration stands allowed.
9
Put up the writ petition as ‘Motion’ in the Combined
Monthly List of September, 2016."
17. The said writ petition was thereafter listed on July 15, 2024
when the learned advocate for the writ petitioner submitted that the
writ petitioner was not willing to proceed with the writ petition. He
undertook to file written instruction in this regard by the next date i.e.
July 22, 2024. However, no such written instruction was filed on
behalf of the writ petitioner on such date and by an order passed on
July 24, 2024 the writ petition was again dismissed for default for
non-representation on behalf of writ petitioner. Such order specifically
noted that, “interim order, if any, shall stand vacated.”
18. After the statutory appeal filed by the writ petitioner against
the order of disciplinary authority was dismissed, the writ petitioner
filed the instant writ petition challenging the order passed by the
disciplinary authority as well as that by the appellate authority. Such
writ petition was initially, disposed of by an order passed on December
12, 2019. The said order noted that,
“The petitioner complains of breach of the provision of
Article 311(1) of the Constitution of India. Article 311 (1) of the
Constitution of India reads as follows:-
No person who is a member of a civil service of the Union or
an all India service or a civil service of a State or holds civil
post under the Union or a State shall be dismissed or removed
by an authority subordinate to that by which he was
appointed.
10
The petitioner was appointed by the Chairman of the
Bangiya Gramin Vikash Bank on 18th June, 2014.
Pursuant to a disciplinary proceeding initiated against him,
the petitioner was removed from service by the order passed
by the disciplinary authority and the General Manager on
30th December, 2016.
The appeal preferred by the petitioner before the Chairman
stood rejected on 31st December, 2018.
The petitioner is aggrieved by the same.
The petitioner submits that as the petitioner was appointed
by the Chairman who is a superior authority he could not
have been removed from service by the order of the General
Manager who is junior in rank.
The petitioner prays for setting aside the order of
punishment imposed upon him.
The Bank submits that by a notification dated 12th August,
2013 published in the Gazette of India, Extraordinary on
November 18, 2013, the Bangiya Gramin Vikash Bank
(Officers and Employees) Service Regulations, 2010 was
amended. By virtue of the amendment, the “competent
authority” meant the Chairman in respect of officers in Scale
3, 4 and 5 and General Manager in respect of officers in Scale
1 and 2. As the petitioner is a Scale 1 officer, the General
Manager is the competent authority in view of the 2013
amendment of the Regulation.
The order removing the petitioner from service appears to
have been passed by an authority subordinate to the
appointing authority. The same is impermissible.
In view of the above, the order passed by the disciplinary
authority is bad in law and liable to be set aside. The same is
accordingly, set aside.
The parties shall be at liberty to take steps strictly in
accordance with law.
11
W.P 10285 (W) of 2019 is disposed of.
Urgent photostat certified copy of this order be supplied to
the parties, if applied for, as early as possible.”
19. Respondents in the writ petition 10285 of 2019 preferred an
appeal against the order dated December 12, 2019 being FMA 1237 of
2021. By an order passed on July 28, 2025 the appeal was disposed of
setting aside the order dated December 12, 2019 passed in the writ
petition 10285 of 2019. Such order directed as follows:
“1. Mr. Mishra, learned Counsel for the appellants and Mr.
Bhattacharyya, learned Counsel for the respondent no.1/writ
petitioner are present.
2. With the consent of the parties, the appeal and the
connected application are taken up together and are finally
heard.
3. Learned Counsel for the appellant/Bank submits that as
per the Bangiya Gramin Vikash Bank (Officers and
Employees) Service Regulations, 2010, the writ petitioner’s
services were terminated by the General Manager, who is the
Competent Disciplinary Authority for inflicting such
punishment against a Scale-I Officer. The learned Single
Judge has assigned the following reason for interference in
the impugned order of punishment:
“The order removing the petitioner from service
appears to have been passed by an authority
subordinate to the appointing authority. The same
is impermissible.”
4. Learned Counsel for the appellants advance singular
contention and submits that the learned Single Judge appears
to have drawn analogy from Article 311 of the Constitution of
India and, therefore, came to hold that the removal of the writ
12
petitioner by an Authority inferior to the appointing Authority
is bad in law. However, the learned Single Judge has failed to
consider the aspect whether Article 311 of the Constitution of
India can be pressed into service for a Bangiya Gramin
Vikash Bank employee who was not a civil post holder. Thus,
the impugned order may be set aside and the writ petition
may be restored to its original file and number.
5. Learned Counsel for the other side supported the
impugned order but could not point out anything from the
impugned order which throws light about any discussion
regarding applicability of Article 311 of the Constitution of
India in relation to an Officer of Bangiya Gramin Vikash Bank.
6. Thus, we find substance in the argument of learned
Counsel for the appellant/Bank that the question of
competence of the Disciplinary Authority needs to be looked
into in sufficient detail.
7. The impugned order dated 12th December, 2019 is set
aside. The writ petition is restored to its original file and
number. It will be open to the parties to raise all possible
points while arguing the writ petition, keeping in view the writ
petitioner is out of employment from December, 2016. We
deem it proper to request the learned Single Judge to take up
the matter at the earliest and decide in accordance with law.
8. The appeal being FMA/1237/2021 and the connected
application being IA No: CAN/2/2021 are accordingly
disposed of.
9. Urgent photostat certified copy of this order, if applied
for, be made available to the parties upon compliance with all
requisite formalities.”
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20. At the time of hearing learned advocate for the petitioner
pressed the writ petition mainly on two points, namely:
i. “The authorities while passing the impugned order of
‘removal from service’ of the petitioner, did not consider that
such order was passed in violation of Article 311 of the
Constitution of India i.e. by an officer who is inferior to the
appointing authority of the petitioner; and
ii. Such order was passed ignoring an order passed in the
earlier writ petition at the behest of the petitioner where it
was specifically directed that the inquiry proceedings should
not be commenced without the leave of court. The inquiry
proceeding was commenced and conducted without seeking
such leave and therefore, the entire departmental proceeding
and the impugned order passed therein, was a nullity.”
21. As to the first point, apparently, the writ petitioner was
appointed by the Chairman of the Bangiya Gramin Vikas Bank
(BGVB). He was offered appointment as a Probationary Officer, JMG
Scale I; by a letter issued in the pen of the Chairman vide Ref. No.
BGVB/HO/CM/1402/2014 dated June 18, 2014 and his services as
such officer were subject to terms and conditions stated in the letter.
It would be apposite to set out conditions ‘H’ and ‘I’ of such letter,
which are as follows:
H. Your services as an Officer JMG Scale-I in the bank will
be governed by the existing Bangiya Gramin Vikas Bank
14
Officers and Employees Service Regulation, 2010 and also
by such rules and regulations as may be introduced or
amended from time to time. One of such rules is that
every Officer JMG Scale-I is liable for transfer to any place
or branch of the bank.
I. Notwithstanding anything contained hereinabove, you will
be bound to abide by the instructions of the Competent
Authority to be issued from time to time.
22. A departmental enquiry was conducted against the petitioner
and on conclusion of such enquiry, the disciplinary authority &
General Manager of the bank passed the order of punishment
imposing a penalty of ‘Removal from Service which shall not be a
disqualification for future employment’.
23. It was contended that the disciplinary authority being inferior in
rank to the appointing authority of the petitioner being the chairman,
could not have passed the order of removal from service in view of
Article 311 of the Constitution of India. Therefore, such order is bad in
law and cannot be acted upon. The relevant provision of Article 311 of
the Constitution of India reads, thus:
“311. Dismissal, removal or reduction in rank of persons
employed in civil capacities under the Union or a State.—(1)
No person who is a member of a civil service of the Union or
an all-India service or a civil service of a State or holds a civil
post under the Union or a State shall be dismissed or removed
15
by an authority subordinate to that by which he was
appointed.
(2) ………………………………
(3) ……………………………….”
24. In S.L. Agarwal (Dr) (supra), the Hon’ble Supreme laid down to
the following:-
“10. On the other hand, in State of Bihar v. Union of India
[(1970) 1 SCC 67]. Hindustan Steel Limited was not held to be
a “State” for purposes of Article 131. The question whether
Hindustan Steel Limited was subject to the jurisdiction of the
High Court under Articles 226 and 227 was left open. In
dealing with the above conclusion, reference was made to the
incorporation of Hindustan Steel Limited as an independent
company and thus a distinct entity. In Praga Tools Corpn. v.
C.V. Imanual [(1969) 1 SCC 585] it was pointed out that a
company in which 88% of the capital was subscribed by the
Union and the State Governments could not be regarded as
equivalent to Government because being registered under the
Companies Act it had a separate legal existence and could not
be said to be either a Government Corporation or an industry
run by or under the authority of the Union Government.
Similar views were also expressed in the High Courts. In
Lachmi v. Military Secretary to the Government of Bihar [AIR
1956 Pat 398] the expression “civil post under the Union or the
State” was held to mean that the civil post must be in the
control of the State and that it must be open to the State to
abolish the post or regulate the conditions of service. Although
the case concerned a Mali employed in Raj Bhavan, it was
held that it was not a post under the State even though the
funds of the State were made available for paying his salary.
In a later case Subodh Ranjan Ghosh v. Sindhri Fertilisers
16
and Chemicals Ltd. [AIR 1957 Pat 10] the employees of the
Sindhri Fertilizers were held not entitled to the protection of
Article 311. Our brother Ramaswami (then Chief Justice)
noticed that the corporation was completely owned by the
Union Government; that the Directors were to be appointed by
the President of India who could also issue directions. He
nevertheless held that in the eye of law the company was a
separate entity and had a separate legal existence. In our
judgment the decision in the Patna case is correct. It has also
the support of a decision reported in Ram Babu Rathaur v.
Divisional Manager, Life Insurance Corporation of India [AIR
1961 All 502] and another in Damodar Valley Corporation v.
Provat Roy. [LX CWN 1023] Our brother Ramaswami relied in
particular upon an English case Tamlin v. Hennaford [(1950) 1
KBD 18] . In that case it was held in relation to a business
that although the minister was really incharge, the corporation
was different from the Crown and the services of the
corporation were not civil services. Justice P.B. Mukherjee of
the Calcutta High Court, to whose judgment we referred
earlier distinguished the English case by pointing out certain
differences between the Corporation in that case and
Hindustan Steel Limited. He pointed out that (a) in the English
Corporation no shareholders were required to subscribe the
capital or to have a voice in the affair, (b) the capital was
raised by borrowing and not by issuance of shares, (c) the
loss fell upon the consolidated fund and (d) the corporation
was non-profit making. In our judgment these differences
rather accentuate than diminish the applicability of the
principle laid down in the English case to our case. The
existence of shareholders, of capital raised by the issuance of
shares, the lack of connection between the finances of the
corporation and the consolidated fund of the Union rather
make out a greater independent existence than that of the
17
corporation in the English case. We must, therefore, hold
that the corporation which is Hindustan Steel Limited
in this case is not a department of the Government nor
are the servants of it holding posts under the State. It
has its independent existence and by law relating to
Corporations it is distinct even from its members. In
these circumstances, the appellant, who was an
employee of Hindustan Steel Limited, does not answer
the description of a holder of “a civil post under the
Union” as stated in the Article. The appellant was not
entitled to the protection of Article 311. The High Court
was therefore right in not affording him the protection.
The appeal fails and is dismissed but in the circumstances of
the case we make no order about costs.”
(Emphasis supplied)
25. Applying the ratio laid down in S.L. Agarwal (Dr) (supra),
Bangiya Gramin Vikas Bank cannot be said to be a government within
the meaning of Article 311 of Constitution of India and as an employee
of such bank, the writ petitioner cannot be held to be holding a civil
post under the Union or the State. In that view of the facts, the
petitioner cannot be extended the protection of such provisions of the
Constitution of India. Moreover, the service conditions of the officers
and employees of Bangiya Gramin Vikas Bank are governed by
Bangiya Gramin Vikash Bank (Officers and Employees) Ser vice
Regulations, 2010. As noted above , the petitioner agreed to be
governed by such regulations, with his eyes open, at the time of
joining. Such regulations, specifically define the ‘Competent Authority’
18
and its powers. The petitioner cannot be allowed to turn around to say
that he is entitled for the benefits of Article 311 of the Constitution.
26. So far as the second point is concerned, it is evident from the
materials placed before this Court that the writ petitioner was served
with a charge sheet, contemplating a departmental proceeding on
March 18, 2016. The enquiry proceeding was started on April 26,
2016 and it was concluded on September 9, 2016. Materials on record
also demonstrate that notices were issued upon the writ petitioner for
each and every date fixed in the enquiry proceeding. It was noted in
the proceeding every day that the enquiry officer took up the
proceeding after waiting for the appearance of the writ petitioner.
However, the petitioner never turned up at such proceeding, though,
the petitioner had submitted his written statement of defence in such
proceeding. The petitioner also prayed for supply of documents sought
to be relied in the departmental proceeding. He also prayed for an
adjournment of the proceeding on April 26, 2016. In v iew of the
aforesaid materials, I am of the opinion that the writ petitioner was
provided with sufficient opportunity to defend himself in the
proceeding.
27. The writ petitioner then filed a writ petition being WP 8286 (W) of
2016. In the said writ petition an order was passed on May 12, 2016
to the effect that ‘the petitioner should file his reply to the charge-
sheet by the time the matter appears next, but the inquiry proceedings
19
should not be commenced without the leave of court ’. Such order
passed by the High Court was communicated by the writ petitioner to
the Chairman BGVB by a letter dated May 12, 2016. Subsequently,
the said writ petition was dismissed for default on June 13, 2016.
However, by an order dated August 5, 2016 the writ petition being WP
8286 (W) of 2016 was restored to its file and number. According to
learned advocate for the petitioner, since the order dismissing the writ
petition did not specifically spoke about vacating of the interim order,
such order automatically revived with the restoration of the writ
petition to its original file and number.
28. In support of such contention learned advocate for the petitioner
placed reliance upon Vareed Jacob (supra), where upon consideration
of various decisions of different High Courts, the Hon’ble Supreme
Court laid down to the following:
“18. In the case of Saranatha Ayyangar v. Muthiah
Moopanar [AIR 1934 Mad 49 : ILR 57 Mad 308] it has been
held that on restoration of the suit dismissed for default all
interlocutory matters shall stand restored, unless the order of
restoration says to the contrary. That as a matter of general
rule on restoration of the suit dismissed for default, all
interlocutory orders shall stand revived unless during the
interregnum between the dismissal of the suit and restoration,
there is any alienation in favour of a third party.
19. A similar view has been taken by the Patna High Court
in the case of Bankim Chandra v. Chandi Prasad [AIR 1956
Pat 271 : 1956 BLJR 454] in which it has been held that
orders of stay pending disposal of the suit are ancillary orders
20
and they are all meant to supplement the ultimate decision
arrived at in the main suit and, therefore, when the suit,
dismissed for default, is restored by the order of the court all
ancillary orders passed in the suit shall revive, unless there is
any other factor on record or in the order of dismissal to show
to the contrary. This was also a matter under Order 39.
20. In the case of Nandipati Rami Reddi v. Nandipati
Padma Reddy [AIR 1978 AP 30: (1977) 2 APLJ 64] it has been
held by the Division Bench of the Andhra Pradesh High Court
that when the suit is restored, all interlocutory orders and
their operation during the period between dismissal of the suit
for default and restoration shall stand revived. That once the
dismissal is set aside, the plaintiff must be restored to the
position in which he was situated, when the court dismissed
the suit for default. Therefore, it follows that interlocutory
orders which have been passed before the dismissal would
stand revived along with the suit when the dismissal is set
aside and the suit is restored unless the court expressly or by
implication excludes the operation of interlocutory orders
passed during the period between dismissal of the suit and
the restoration.
21. In the case of Nancy John Lyndon v. Prabhati Lal
Chowdhury [(1987) 4 SCC 78] it has been held that in view of
Order 21 Rule 57 CPC it is clear that with the dismissal of the
title execution suit for default, the attachment levied earlier
ceased. However, it has been further held that when the
dismissal was set aside and the suit was restored, the effect
of restoring the suit was to restore the position prevalent till
the dismissal of the suit or before dismissal of the title
execution suit. We repeat that this judgment was under Order
21 Rule 57 whose scheme is similar to Order 38 Rule 11 and
Rule 11-A CPC and therefore, we cannot put all interlocutory
orders on the same basis.”
21
29. Similarly, in the case of West Bengal Kerosene agents’ welfare
Association (supra), a Division Bench of this Court upon noting the
ratio laid down in Vareed Jacob (supra) observed as follows:-
“18. In the backdrop of the above, observations of the
Supreme Courtand the discussions o n the facts indicated
hereinabove, the only conclusion that one can reach in the
instant case is that the interim order dated 28th October,
2016 confirmed until disposal of the writ petition on 24th
April, 2017 stood revived upon the recall of the order of
dismissal of the writ petition.”
30. In the case of Amar Kumar Behera (supra), the Orissa High
Court noted that,
“In the case of Manohar Lal (dead) by LRs vs. Ugrasen
(dead) by LRs & Ors, reported in (2010) 11 SCC 557, the Apex
Court relying upon its earlier decision in the case of Gurunath
Manohar Pavaskar & Ors vs. Nagesh Siddappa Navalgund &
Ors , reported in (2007) 13 SCC 565 held that any order
passed by any authority in spite of the knowledge of the
interim order of the Court is of no consequence as it remains a
nullity and therefore the parties are to be brought back to the
same position as if the order had not been violated. In other
words, in such cases, restoration of the status quo ante is the
appropriate relief to be granted.
As has already been held hereinbefore, the Government by
issuing the impugned order without obtaining leave of the
Tribunal despite clear orders to do so must therefore be held
to have acted in violation thereof for which the impugned order
has to be treated as a nullity in the eye of law and is
therefore, held as such.
22
Consequently, the impugned order is set aside and the
parties are restored to the position as existing prior to
issuance of the impugned order. Further, the opposite party
authorities are restrained from passing any final order in the
disciplinary proceeding till finalization of the writ petition.”
31. However, in the case at hand, nothing appears to have been
placed on record that such orders wer e communicated to the
respondents or the enquiry officer enabling them to hold their hands
from the inquiry proceedings. Incidentally, the writ petition being WP
8286 (W) of 2016 was never pursued by the petitioner and it was again
dismissed for default on July 24, 2024. As apparent from materials on
record of the writ petition, no steps were taken by the writ petitioner to
obtain a specific order with regard to stay of the departmental
proceeding after its restoration. As noted above, the writ petitioner
never appeared in the enquiry proceeding despite several notices
served upon him on each and every date fixed therein.
32. Not only that, the enquiry proceeding concluded in an order of
punishment on December 30, 2016. Statutory appeal was provided in
the relevant regulations. However, the writ petitioner filed such appeal
after much delay and it was dismissed on the ground that there was
no provision in the regulations for condonation of delay. Such appeal
was decided on December 31, 2018. Such conduct on the p art of the
petitioner demonstrates that the writ petitioner was not at all diligent.
23
He sat tight over his rights. He ignored the departmental proceeding
and approached the appellate authority with considerable delay.
33. In the instant case the writ petitioner was found guilty of
embezzlement of an amount of ₹40,00,000/- in the departmental
proceeding. In Bela Bagchi (supra), the Hon’ble Supreme Court
observed as follows:-
“15. A bank officer is required to exercise higher standards of
honesty and integrity. He deals with money of the depositors
and the customers. Every officer/employee of the bank is
required to take all possible steps to protect the interests of
the bank and to discharge his duties with utmost integrity,
honesty, devotion and diligence and to do nothing which is
unbecoming of a bank officer. Good conduct and discipline are
inseparable from the functioning of every officer/employee of
the bank. As was observed by this Court in Disciplinary
Authority-cum-Regional Manager v. Nikunja Bihari Patnaik
[(1996) 9 SCC 69: 1996 SCC (L&S) 1194] , it is no defence
available to say that there was no loss or profit which resulted
in the case, when the officer/employee acte d without
authority. The very discipline of an organisation more
particularly a bank is dependent upon each of its officers and
officers acting and operating within their allotted sphere.
Acting beyond one's authority is by itself a breach of discipline
and is a misconduct. The charges against the employee were
not casual in nature and were serious. That being so, the plea
about absence of loss is also sans substance.”
24
34. As regards the scope of a writ petition, the Hon’ble Supreme
Court in the case of P.C. Kakkar (supra) held to the following:-
“12. To put it differently, unless the punishment imposed by
the disciplinary authority or the Appellate Authority shocks
the conscience of the court/tribunal, there is no scope for
interference. Further, to shorten litigation it may, in
exceptional and rare cases, impose appropriate punishment
by recording cogent reasons in support thereof. In the normal
course if the punishment imposed is shockingly
disproportionate it would be appropriate to direct the
disciplinary authority or the Appellate Authority to reconsider
the penalty imposed.”
35. Similarly in Nemi Chand Nalwaya (supra), it was laid down the
following observations:-
“7. It is now well settled that the courts will not act as an
appellate court and reassess the evidence led in the domestic
enquiry, nor interfere on the ground that another view is
possible on the material on record. If the enquiry has been
fairly and properly held and the findings are based on
evidence, the question of adequacy of the evidence or the
reliable nature of the evidence will not be grounds for
interfering with the findings in departmental enquiries.
Therefore, courts will not interfere with findings of fact
recorded in departmental enquiries, except where such
findings are based on no evidence or where they are clearly
perverse. The test to find out perversity is to see whether a
tribunal acting reasonably could have arrived at such
conclusion or finding, on the material on record. The courts
will however interfere with the findings in disciplinary
matters, if principles of natural justice or statutory regulations
25
have been violated or if the order is found to be arbitrary,
capricious, mala fide or based on extraneous considerations.”
36. Also in P. Gunasekaran (supra), the Hon’ble Supreme Court
was of the view that,
“19. The disciplinary authority, on scanning the inquiry report
and having accepted it, after discussing the available and
admissible evidence on the charge, and the Central
Administrative Tribunal having endorsed the view of the
disciplinary authority, it was not at all open to the High Court
to reappreciate the evidence in exercise of its jurisdiction
under Articles 226/227 of the Constitution of India.”
37. Therefore, on the basis of discussions made hereinabove, I am of
the opinion that the writ petitioner has not been able to demonstrate
that the disciplinary authority/competent authority passed the
impugned order imposing punishment upon the petitioner with the
knowledge and in wilful disobedience of order of this Court in an earlier
writ petition filed at the behest of the petitioner which rendered it a
nullity. As such, I find no merit in the writ petition.
38. The writ petition being WPA 10285 of 2019 is, accordingly,
disposed of. Connected applications, if any shall also stand disposed of.
39. Urgent photostat certified copy of this judgment, if applied for,
be supplied to the parties on priority basis upon compliance of all
formalities.
[MD. SHABBAR RASHIDI, J.]
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