Case: National Institute Of Technology  Vs. Pannalal Choudhury

3) The appellant is a reputed Technical Educational Institute in the country. It is known as "National Institute of Technology" (hereinafter referred to asat Silchar in the State of Assam. Till 28.06.2002, it was functioning as Regional Engineering College (hereinafter referred to asin equal participation of State and Central Government. 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 Institutions 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) to the respondent under Rule 9 of the Assam Services (Discipline and Appeal) Rules, 1964 (hereinafter referred to as. The details of the irregularities/misconduct committed by the respondent were enclosed with the charge sheets. The respondent was asked to file his written reply to the aforesaid charge sheets. He was also asked to inspect the relevant documents, if he so desired to do so.7) The matter was accordingly placed in the 66th meeting of the Board of Governors (in shortheld on 07.12.1994 as agenda Item Nos. 7 (a) and 8 under the caption –receive a note of recent financial stalemate created by Shri Pannalal Choudhary, Registrar who was also holding the charge of Deputy Registrar (Accounts) and suggest remedial measures to avoid such situation inconsider rectification of irregularities observed by A.G. Audit in the accounts of RECThe BOG discussed the matter under reference in the said meeting and viewed the same as being serious because of nature of charges and the allegations made in support thereof. The BOG approved the action proposed, initiated and taken by the Principal & Secretary against the respondent so far and further directed to take next disciplinary step in consultation with the Chairman, BOG.9) This led to constitution of an inquiry Committee consisting of three Members by the Management for holding a regular departmental inquiry into the charges leveled against the respondent. Out of three Members, one Dr. S.K. Das – Head of the Department of Humanities of REC Silchar was appointed as the Presiding Officer while Sri. R. Gupta, Head of the Department of Applied Mechanics and Sr. A.I. Laskar, Lecturer in the Department of Civil Engineering were the Members. Since the charges leveled against the respondent were serious in nature, the BOG, by order dated 17.02.1995 put the respondent under suspension pending departmental inquiry.10) The Committee then issued notices to the respondent for his appearance on various dates such as 04.07.1995, 20.07.1995, 03.08.1995, 14.08.1995 and 27.12.1995 to participate in the inquiry but he failed to appear for the reasons best known to him. The Management accordingly examined four witnesses in support of the charges on 14.08.1995. Thereafter, on 27.12.1995 the respondent sent a letter to the Committee praying therein 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 respondent in 3 charge sheets stood proved.12) On 11.03.1996, the report of the Committee was placed before the BOG in their 68th meeting as Agenda Nos. 6 and 24 to decide further action keeping in view the findings of the Committee. The BOG, after perusing the report, accepted all the findings of the Committee and accordingly resolved to impose punishment on the respondent. The BOG also authorized the Principal & Secretary to prepare the show cause notice and take necessary action as the Chairman/Board advises (Annexure-P-5) and do the needful in the matter.13) Accordingly, a show cause notice was sent to the respondent on 07.06.96 (Annexure-P-6) by registered post along with the copy of the Inquiry report dated 29.02.1996 proposing therein the punishment of dismissal of the respondent from the service. Even after receipt of the show cause notice, the respondent did not file any reply. The Principal & Secretary accordingly informed the Chairman by his letter dated 01.07.1996 (Annexure-P-7) about non-submission of any reply by the respondent. The Principal & Secretary by his order dated 16.08.1996(Annexure-P-8) dismissed the respondent from the services of REC.14) The matter was then placed before the BOG in their 69th meeting held on 22.08.1996 as Item No. 2 for appropriate orders, if any, in relation to the respondents services. The BOG, in express terms, after deliberating the matter approved the minutes of earlier meeting and also approved of the action taken against the respondent by the Principal & Secretary and accordingly noted its compliance made in that behalf.15) It is with these aforementioned facts, which are undisputed, the respondent, felt aggrieved by the dismissal order dated 16.08.1996, filed writ petition before the High Court. The challenge to dismissal order in the writ petition was essentially on one ground, namely, that the authority, which passed the dismissal order, had no power to pass and hence it was illegal and thus liable to be set aside. It was contended that the power to pass the dismissal order, as per the Rules, vests with the BOG and hence only the BOG could pass such order. It was pointed out that since the dismissal order was passed by the Principal & Secretary, who had no authority to pass such order under the Rules, hence dismissal order was bad in law. It was also contended that even assuming that the BOG 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 respondents 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 the needful, which he did pursuant to such power delegated to him, and later also sought its approval from the BOG. It was lastly contended that when the BOG, in their last meeting held on 22.08.1996 approved the entire action including passing of the dismissal order then all previous actions taken by the Principal & Secretary stood ratified by the BOG from the date they were taken and thus became legal and proper. The appellant also defended the entire departmental proceedings initiated against the respondent contending that the departmental proceedings were held in accordance with law by following proper procedure prescribed in the Rules and giving full opportunity to the respondent to defend and hence no flaw can be noticed in the proceedings.17) As mentioned above, the writ court (single judge) allowed the respondents writ petition and set aside the dismissal order dated 16.08.1996 on the short ground that since the competent authority did not pass the dismissal order prescribed in the Rules, i.e., the BOG, whereas it was passed by the Principal & Secretary who had no authority to pass such dismissal order under the Rules and hence it was liable to be set aside being against the rules. The writ court accordingly set aside the dismissal order dated 16.08.1996 with a direction to the appellant to reinstate the respondent in their services by giving him all consequential benefits.18) Aggrieved by the said order, the appellant filed intra court appeal. By impugned order, the Division Bench concurred with the view taken by the Single Judge (writ court) dismissed the appellants appeal. Challenging, the said order, the appellant filed this appeal by way of special leave before this Court.

Reasoning:
30) Reading of the aforementioned four Resolutions passed by the BOG in juxtaposition in no uncertain terms show that the BOG monitored, dealt with and eventually decided the case of the respondent in their various meetings since inception and also authorized the Principal & Secretary to deal with the same in consultation with the Chairman of Board of Governors and to do the needful by passing appropriate orders. It is also clear that in the last meeting held on 22.08.1996, the BOG approved the Resolution passed in the earlier 68th meeting held on 11.03.1996, which had dealt with the case of respondent at Item Nos. 6 and 24.31) In our considered view, the expressionto take necessary action as the Chairmanin Item No. 6 and lastly, the expressiondo the needfulin Item No. 24 in the Resolution dated 11.03.1996 were wide enough to clothe the Principal & Secretary with a power to pass the dismissal order, if occasion soIn 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, keeping in view the contents of the four Resolutions, we have no hesitation to hold that the dismissal order dated 16.08.1996 was passed by the BOG and the Principal & Secretary only signed the order for and on behalf of the BOG on the strength of authorization made in his favour by the BOG vide Resolution dated 11.03.1996.34) That apart, the issue in question could be examined from yet another angle by applying the law relating to "Ratification" which was not taken note of by the HighApplying the aforementioned law of ratification to the facts at hand, even if we assume for the sake of argument that the order of dismissal dated 16.08.1996 was passed by the Principal & Secretary who had neither any authority to pass such order under the Rules nor there was any authorization given by the BOG in his favour to pass such order yet in our considered view when the BOG in their meeting held on 22.08.1996 approved the previous actions of the Principal & Secretary in passing the respondents dismissal order dated 16.08.1996, all the irregularities complained of by the respondent in the proceedings including the authority exercised by the Principal & Secretary to dismiss him stood ratified by the Competent Authority (Board of Governors) themselves with retrospective effect from 16.8.1996 thereby making an invalid act a lawful one in conformity with the procedure prescribed in Rules.41) In such circumstances, the respondents grievance that the dismissal order had not been passed by the competent authority, i.e., the BOG is no longer survived.42) In the light of foregoing discussion, we differ with the view taken by the High Court and accordingly hold that the dismissal order dated 16.08.1996 was passed by the Competent Authority, namely, the BOG as prescribed in the Rules and hence it was legal and proper. It is accordingly upheld.43) As already mentioned above, no other point was urged by the respondent in the writ petition and also in intra court appeal of the appellant by filing cross objection therein for assailing the legality and correctness of the dismissal order on other grounds except the one which we have decided. It is, therefore, not necessary to go into any other question.