IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR TUESDAY, THE 16TH JUNE 2009 / 26TH JYAISHTA 1931 WP(C).No. 17029 of 2004(B) -------------------------- PETITIONER(S): --------------- 1. P.K.MANOJKUMAR, ASSISTANT ENGINEER (UNDER SUSPENSION), KERALA STATE HOUSING BOARD, RESIDING AT DOCTOR'S QUARTERS, P.H.CENTRE, P.O.THENKURISSI, PALAKKAD 676 673. 2. K.ABOOBACKER, ASSISTANT ENGINEER (UNDER SUSPENSION), KERALA STATE HOUSING BOARD, RESIDING AT C.7147, C.H.NAGAR, VELLIMADUKUNNU P.O. KOZHIKODE 673 012. BY ADV. SRI.K.P.DANDAPANI, SENIOR ADVOCATE RESPONDENT(S): --------------- 1. THE KERALA STATE HOUSING BOARD, SANTHI NAGAR, THIRUVANANTHAPURAM 691 001, REPRESENTED BY ITS SECRETARY. 2. THE CHAIRMAN, KERALA STATE HOUSING BOARD, SANTHI NAGAR, THIRUVANANTHAPURAM 691 001. BY ADV. SRI.A.JAYASANKAR, SC KSHB, TVM FOR R1 & 2 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 16/06/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: 2 APPENDIX PETITIONERS' EXHIBITS: EXT.P1 TRUE COPY OF ORDER NO. HBO/35/Ad3(a) 2001/VIG DATED 17.1.2001 OF THE SECRETARY, KERALA STATE HOUSING BOARD, THIRUVANANTHAPURAM. EXT.P2 TRUE COPY OF THE MEMO OF CHARGES AND STATEMENT OF ALLEGATIONS, VIDE NO. 11310/Ad3(a)/00/VIG. DATED 14.8.2001 ISSUED TO THE FIRST PETITIONER BY THE FIRST RESPONDENT. EXT.P3 TRUE COPY OF THE MEMO OF CHARGES AND STATEMENT OF ALLEGATIONS, VIDE NO. 11310/Ad3(a)/00/Vig. DATED 14.8.2001 ISSUED TO THE 2ND PETITIONER BY THE FIRST RESPONDENT. EXT.P4 TRUE COPY OF THE STATEMENT OF DEFENCE DATED 11.10.2001 SUBMITTED BY THE FIRST PETITIONER BEFORE THE SECRETARY, KERALA STATE HOUSING BOARD, THIRUVANANTHAPURAM. EXT.P5 TRUE COPY OF THE STATEMENT OF DEFENCE DATED NIL SUBMITTED BY THE 2ND PETITIONER BEFORE THE SECRETARY, KERALA STATE HOUSING BOARD, THIRUVANANTHAPURAM. EXT.P6 TRUE COPY OF SHOW CAUSE NOTICE VIDE NO.11310/Ad3(a)/2001/Vig DATED 15.5.2002 ISSUED TO THE 1ST PETITIONER BY THE 1ST RESPONDENT. EXT.P7 TRUE COPY OF SHOW CAUSE NOTICE VIDE NO. 11310/Ad3(a)/2001/VIG. DATED 15.5.2002 ISSUED TO THE 2ND PETITIONER BY THE FIRST RESPSONDENT. EXT.P8 TRUE COPY OF THE EXPLANATION DATED 8.6.2002 SUBMITTED BY THE 1ST PETITIONER BEFORE THE SECRETARY, KERALA STATE HOUSING BOARD, THIRUVANANTHAPURAM. EXT.P9 TRUE COPY OF ORDER NO. 353/Vig DATED 4.7.2002 OF THE SECRETARY, KERALA STATE HOUSING BOARD, THIRUVANANTHAPURAM. EXT.P10 TRUE COPY OF ORDER NO. 353/Vig DATED 4.7.2002 OF THE SECRETARY, KERALA STATE HOUSING BOARD, THIRUVANANTHAPURAM. EXT.P11 TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 31.7.2002 SUBMITTED BY THE FIRST PETITIONER BEFORE THE CHAIRMAN, KERALA STATE HOUSING BOARD, THIRUVANANTHAPURAM. EXT.P12 TRUE COPY OF THE MEMORANDUM OF APPEAL DATED 31.7.2002 SUBMITTED BY THE 2ND PETITIONER BEFORE THE CHAIRMAN, KERALA STATE HOUSING BOARD, THIRUVANANTHAPURAM. EXT.P13 TRUE COPY OF THE STATEMENT GIVEN AT THE TIME OF PERSONAL HEARING ON 12.6.2003 BY THE FIRST PETITIONER BEFORE THE CHAIRMAN, KERALA STATE HOUSING BOARD, THIRUVANANTHAPURAM. EXT.P14 TRUE COPY OF THE ;STATEMENT DATED 12.6.2003 FROM THE 2ND PETITIONER TO THE CHAIRMAN, KERALA STATE HOUSING BOARD, THIRUVANANTHAPURAM. EXT.P15 TRUE COPY OF ORDER HBO NO. 97/11310/Ad3(a)/01/Vig DATED 18.3.2004 OF THE CHAIRMAN, KERALA STATE HOUSING BOARD, THIRUVANANTHAPURAM. EXT.P16 TRUE COPY OF ORDER HBO NO. 97/11310/Ad3(a)/01/Vig DATED 18.3.2004 OF THE CHAIRMAN, KERALA STATE HOUSING BOARD, THIRUVANANTHAPURAM. 3 RESPONDENTS' EXHIBITS: EXT.R1(a) TRUE COPY OF THE JUDGMENT IN OP 3245 OF 2001 BEFORE THE HONOURABLE HIGH COURT OF KERALA DATED 16.7.2001 EXT.R1(b) TRUE COPY OF THE CIRCULAR DATED 18.6.1997 TRUE COPY P.S. TO JUDGE. C.N. RAMACHANDRAN NAIR, J. -------------------------------------------- W.P.C. NO. 17029 OF 2004 -------------------------------------------- Dated this the 16th day of June, 2009 JUDGMENT Of the two petitioners, who filed the Writ Petition, second petitioner is no more and consequently there is abatement of the Writ Petition so far as the second petitioner is concerned. Writ Petition is filed challenging the proceedings issued by the Housing Board to recover compensation from petitioners who have caused loss to the institution. Petitioners were admittedly Asst. Engineers engaged by the Housing Board to conduct site inspection and report about the progress of construction of building by borrowers. On enquiry it was found that petitioners issued bogus certificates about stages of completion of construction of the building by the borrowers. Consequently loans paid could not be recovered from the loanees, is the case of the Housing Board. It is evident that in the vigilance enquiry as well as the enquiry by the Secretary of the Housing Board and by Regional Engineer of the Board, allegations against the petitioners stand proved. Even though counsel for the petitioners submitted that enquiry report is not 2 submitted, I do not think there is any scope for considering this issue because contrary to the allegation of the Housing Board, petitioners have not produced any evidence about the stages of completion of construction of the building certified by them. Therefore there is no scope for interference with the finding of facts against the petitioners, whose bogus certificates led to release of loans against inadequate security. Therefore Housing Board is entitled to recover entire amount with interest from petitioners. It is surprising to note that Board did not take disciplinary action against the petitioners for gross indiscipline which is in the form of breach of trust, violation of conduct rules, leading to loss to the organisation. I feel cases of this nature should not be taken lightly and invariably Housing Board should take disciplinary action against those engaged in similar malpractices. 2. Counsel for the petitioners pointed out that Housing Board has security with them and the amounts can be recovered by sale of security. I do not think the Board should engage in this exercise because loans are advanced based on the certificates issued by the petitioners and therefore they are accountable for the loss. However, 3 as and when full amount is remitted with interest or recovered from the first petitioner and from legal heirs of second petitioner, and Board will assign available security documents/agreements in favour of the first petitioner and legal heirs of the second petitioner for them to pursue action for recovery against the loanees. W.P. is disposed of as above. (C.N. RAMACHANDRAN NAIR) Judge kk 4