TaxTMI 
TaxTMI 
2015 (7) TMI 1238
X X X X Extracts X X X X
X X X X Extracts X X X X
....ment. However, on and after 28.06.2002, it became fully owned Central Government Educational Institute under the exclusive control and supervision of Central Government and was accordingly named as NIT. 4) The respondent was originally appointed as Deputy Registrar (Accounts) on 17.07.1986 by the erstwhile REC in their Institute. After few years, the respondent, on being selected, was appointed as Registrar of the REC. However, he was asked to hold the post of Deputy Registrar (Accounts) till the said post was regularly filled up. 5) In the year 1994-95, it was noticed in the audit that while functioning as Registrar/Deputy Registrar(Accounts), the respondent had committed several serious financial as also administrative irregularities. The irregularities were related to the acts of insubordination, dereliction of duties while attending to the work of the Institute, suppression of facts from the higher authorities and misappropriation of Institution's funds thereby putting the Institute to suffer loss etc. 6) The Management of REC accordingly issued three show cause notices/charge sheets two on 24.10.1994 (Annexure-P-1collectively) and one on 01.02.1995 (Annexure P-3) ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....that since he has challenged his suspension order in Court, the departmental proceedings initiated against him be stayed awaiting the outcome of the Court proceedings. 11) The Committee considered the prayer made by the respondent and was of the view that in the absence of stay order passed by any Court, there is no justification to stay the departmental proceedings as prayed by the respondent. The Committee, therefore, rejected the prayer made by the respondent and issued another notice to the respondent requesting him to appear before the Committee on 10.01.1996. The respondent did not appear and hence the inquiry proceedings were adjourned for 18.01.1996. In the notice sent to the respondent for his appearance on 18.01.1996, it was specifically mentioned that in case the respondent fails to appear on that date, no further notice would be sent to him of the proceedings. The respondent, despite service of notice, remained absent even on 18.01.1996. The Committee then concluded its proceedings on the basis of material produced before it by the Management and submitted its 16-page report on 29.02.1996 (Annexure-P-4), concluding therein that all the charges leveled against the res....
X X X X Extracts X X X X
X X X X Extracts X X X X
....G had delegated their powers in favour of Principal & Secretary to take appropriate disciplinary action against the respondent as their delegate, yet mere reading of the resolutions passed by the BOG in this behalf would go to show that no such power was conferred or/and delegated to the Principal & Secretary so as to empower him to pass dismissal order of the respondent. 16) The appellant (as respondent in the writ petition) while opposing the writ petition defended their action, which had culminated in respondent's dismissal from service and contended that it was passed as per the Rules. According to the appellant, the entire action proposed, initiated and eventually taken against the respondent which resulted in his dismissal from service was taken by the BOG and later approved by the BOG in their meetings held on various dates and hence it was wrong on the part of the respondent to contend that the dismissal order was not passed by the BOG but was passed by the Principal & Secretary. It was pointed out that the Principal & Secretary was also authorized by the BOG to initiate and take disciplinary action against the respondent in consultation with the Chairman, BOG and do....
X X X X Extracts X X X X
X X X X Extracts X X X X
....it was conducted strictly in accordance with the Rules prescribed. 22) In the second place, his contention was that the Principal & Secretary was duly authorized by the BOG to initiate departmental proceedings and to take appropriate action in consultation with the Chairman of the BOG against the respondent. In support of his contention, learned counsel placed reliance on various Resolutions passed by the BOG from time to time and, in particular, Resolutions dated 07.12.1994, 08.06.1995, 11.03.1996, and 22.08.1996. 23) In the third place, he contended that the BOG was involved in all the deliberations at every stage of the departmental proceedings as would be clear from the minutes of meetings of the BOG and hence it can not be said that the BOG did not take any decision or it was not aware of the proceedings or did not approve of the action taken against the respondent by the Principal & Secretary. 24) In the fourth place, it was contended that the entire action in question having been approved or/and ratified by the BOG in their last meeting held on 22.08.1996, whatever so-called defects even if existed in the departmental proceedings including passing of the dismissal o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f the meetings of the BOG, to show as to how the issue of the respondent was dealt with by the BOG: (1) Minutes of the Meeting held on 07.12.1994 "Item-7(a): To receive a note of recent financial stalemate created by Shri Pannalal Choudhury, Registrar who was also holding the charge of Deputy Registrar (Accounts) and suggest remedial measures to avoid such situation in future: The Board approved the action taken by the Principal & Secretary, on the advice of the Hon'ble Chairman, BOG, regarding financial stalemate as ex-post facto. Further, while discussing various charges of insubordination, dereliction of duty, suppression of facts etc. brought against and accordingly charge-sheets served to Shri Pannalal Choudhury, Registrar who was also holding the charge of Deputy Registrar (Accounts), by the Principal & Secretary, the Board of Governors took the matter with all seriousness and directed the Principal & Secretary to take necessary legal advice for further disciplinary actions in consultation with the Hon'ble Chairman, BOG, REC Silchar." "Item-8: To consider rectification of irregularities observed by A.G. Audit in the accounts of Reg....
X X X X Extracts X X X X
X X X X Extracts X X X X
....medical ground.] The Board of Inquiry has already completed its assigned job and the report of the Board will be placed on the table for detailed discussion by the Hon'ble Members of the Board of Governors and for necessary action thereafter." (3) Minutes of Meeting held on 11.03.1996 "Item-6: To decide on the case of Shri Pannalal Choudhury Registrar (under suspension). The report of the Board of inquiry was placed before the Board and after a detailed discussion, the board authorized the Principal and Secretary to prepare a draft show cause notice on behalf of the Board to be served to Shri Pannalal Choudhury, Registrar (under suspension) for imposing the punishment and to send a copy of the same to the Ministry of Human Resource Development, New Delhi with a request to communicate their comments, if any, within 21 days. The board also authorized the Principal & Secretary to submit the draft show cause notice after expiry of the above period of the Ministry of Human Resource Development and after taking legal advice to the Chairman, Board of Governors for serving the said show cause notice by the Board to Sri Pannalal Choudhury, Registrar (under suspens....
X X X X Extracts X X X X
X X X X Extracts X X X X
....epartmental proceedings and secondly use of such expression in the Resolution before the start of departmental inquiry could have been construed as prejudging the issue against the respondent thereby indicating existence of bias attitude of the Members of the Board of Governors towards the respondent and lastly as said above, the three expressions used in the Resolution did clothe the Principal & Secretary with the power to pass appropriate orders which included the order imposing punishment of dismissal as prescribed in the Rules, against the respondent depending upon the outcome of the departmental inquiry and subject to grant of final approval by the BOG. Indeed the expression "and to take necessary action as the Chairman/Board advises" and "to do the needful" used in the Resolution were very apt words rightly used in the resolutions for taking intended action which was in contemplation, against the respondent. 33) In the light of aforesaid discussion and keeping in mind the contents of the Resolutions, it is difficult to agree with the view taken by the High Court that the BOG did not pass the dismissal order but it was passed by the Principal & Secretary. In other words, ke....
X X X X Extracts X X X X
X X X X Extracts X X X X
....acting on behalf of the Company in doing so, because, he purported to act in pursuance of the invalid resolution. Therefore, it was open to a regularly constituted meeting of the Board of Directors to ratify that action which, though unauthorised, was done on behalf of the Company. Ratification would always relate back to the date of the act ratified and so it must be held that the services of the appellant were validly terminated on 17-12-1953." 38) This view was approved by this Court in High Court of Judicature for Rajasthan Vs. P.P. Singh & Anr. (2003) 4 SCC 239. 39) The aforesaid principle of law of ratification was again applied by this Court in Maharashtra State Mining Corpn. Vs. Sunil (2006) 5 SCC 96. In this case, the respondent was an employee of the appellant Corporation. Consequent to a departmental enquiry, he was dismissed by the Managing Director of the appellant. The respondent then filed a writ petition before the High Court. During the pendency of the writ petition, the Board of Directors of the appellant Corporation passed a resolution ratifying the impugned action of the Managing Director and also empowering him to take decision in respect of the officers ....