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Issues: (i) Whether railway servants could be proceeded against departmentally for serious misconduct alleged in connection with their role in a railway employees' co-operative society; (ii) whether the subsidiary rule made by the General Manager was beyond authority or otherwise invalid; (iii) whether the charge framed against petitioner 3 was unsustainable on the basis that he was not treasurer during the relevant period.
Issue (i): Whether railway servants could be proceeded against departmentally for serious misconduct alleged in connection with their role in a railway employees' co-operative society.
Analysis: The governing railway disciplinary rules permitted action for dismissal where a servant was guilty of serious misconduct. The Court held that misconduct is not confined to conduct during working hours or strictly within the course of employment. Conduct outside duty hours may still amount to misconduct if it is prejudicial to the employer's interests, inconsistent with faithful service, or otherwise makes retention in service unsafe. The Court treated the cited principles as reflections of the implied conditions of service and held that the alleged acts, if proved, could fall within the scope of serious misconduct. At the stage of the writ petition, the factual foundation necessary to exclude such a finding had not been established.
Conclusion: Departmental proceedings for serious misconduct were maintainable against the petitioners, and the challenge on this ground failed.
Issue (ii): Whether the subsidiary rule made by the General Manager was beyond authority or otherwise invalid.
Analysis: The Court held that the main disciplinary power already flowed from the rules framed under the statutory source preserved by the Constitution. The subsidiary rule did not enlarge or curtail that power, but merely gave effect to the principal rules. The Court also accepted that the General Manager had framed the subsidiary rule and rejected the objection that it was not promulgated by him. Since the substantive authority to proceed existed under the principal rule itself, the validity or scope of the subsidiary rule did not assist the petitioners.
Conclusion: The objection to the subsidiary rule failed, and the disciplinary action was not vitiated on that basis.
Issue (iii): Whether the charge framed against petitioner 3 was unsustainable on the basis that he was not treasurer during the relevant period.
Analysis: The petition initially asserted that petitioner 3 had ceased to be treasurer well before the period mentioned in the charge, but that assertion was denied on affidavit. The Court held that the factual dispute could not be resolved in the writ proceedings and that the truth of the assertion had to be examined in the disciplinary enquiry in the first instance. On the material before it, the Court was not prepared to hold that the charge was invalid.
Conclusion: The challenge by petitioner 3 also failed at the writ stage.
Final Conclusion: The Court upheld the department's competence to continue the disciplinary enquiries and declined writ relief, resulting in dismissal of the petitions.
Ratio Decidendi: Misconduct for disciplinary purposes is not limited to acts committed during working hours or in the direct course of employment; conduct outside duty may justify departmental action if, on the facts proved, it amounts to serious misconduct or is inconsistent with the implied conditions of service.