Narinder Mohan Arya vs United India Insurance Co.Ltd. & Ors

The appellant herein was appointed as an Inspector by the first respondent. He was at the material time posted at Hisar. He issued four insurance cover notes in favour of one M/s Aman Singh Munshi Lal (firm) on 21.10.1976. The payment in respect of all four cover notes was made by one cheque. The three cover notes were issued against goods to be transported through railways and one cover note for the goods to be transported by road. The cover notes were despatched from Hisar to its divisional office at Sirsa which were received on 23.10.1976. On 22.10.1976 bales of cotton despatched by the firm caught fire. The appellant was on leave from 23.10.1976 to 30.10.1976. He was in Chandigarh on 23.10.1976. The said firm raised a claim in respect of the loss of goods suffered by it in the said incident of fire.

However, in respect of the said incident a disciplinary proceeding was initiated against the respondent on or about 11.1.1978 on an allegation of antedating one insurance cover note for Rs. 1 lakh after the said fire broke out on 22.10.1976 which is said to have been issued on 31.10.76. In the departmental proceedings the Enquiry Officer found him guilty of the said charge, whereupon he was removed from service by an order of the Disciplinary Authority dated 24.7.79. No second show cause notice however, was served upon him. He preferred a departmental appeal in terms of Rule 37 of the General Insurance (Conduct, Discipline & Appeal) Rules , 1975 (Rules). The said appeal was dismissed by an order dated 29.9.1980.

The first respondent herein being aggrieved by and dissatisfied with the said judgment and decree dated 7.10.1980 passed in Suit No. 50/59 of 1978-79 preferred an appeal before the said High Court which was dismissed by an order dated 4.10.1982. The matter was not carried further.

After delivery of the judgment by the civil court the appellant filed a memorial bringing to the notice of the Chairman-cum-Managing Director of the company thereabout, which was dismissed summarily stating:

He filed a writ petition before the High Court of Punjab and Haryana against the said orders which was marked as Civil Writ Petition No. 3232 of 1981. The writ petition filed by the appellant was allowed by the High Court directing the respondent to reinstate him in service with continuity of service and full back wages including the benefit of seniority and promotion. The High Court in support of its judgment relied upon the judgment of the civil court. However, the first respondent filed a Letters Patent Appeal thereagainst before the said High Court which was marked as LPA No. 344 of 1991. By an order dated 16.3.94 the said appeal was dismissed. A Special Leave Petition filed thereagainst by the first respondent was marked as SLP

A learned Single Judge of the High Court after remittance of the matter by this Court allowed the said writ petition by an order dated 11.1.2002. However, on a Letters Patent Appeal filed by the respondent No.1 herein, by an order dated 13.3.2002 the Division Bench of the High Court remanded the matter again to the learned Single Judge directing him not to be influenced by the finding of the Civil Court on issue No. 2 and 3 in the suit filed by the said firm. The writ petition filed by the appellant herein was dismissed by an order dated 22.5.2002. The Letters Patent Appeal filed by the appellant herein has been dismissed by the impugned judgment.

By reason of the impugned judgment the Division Bench dismissed the intra-court appeal filed by the appellant summarily.

(Emphasis supplied) The appellate authority, therefore, could not ignore to exercise the said power.

For the foregoing reasons the impugned judgments cannot be sustained which are set aside accordingly. Although, the consequence of setting aside of the said orders would have been to remit the matter back to the disciplinary authority for consideration of the matter afresh on merit, but having regard to the fact that the disciplinary proceedings were initiated against the appellant as far back in 1976, we refrain ourselves from doing so. He indisputably, have suffered a lot. However, the question which arises is what relief should be granted to the appellant. The appellant shall be reinstated in service. We, however, while directing reinstatement of the appellant, keeping in view of the fact that no work had been taken from him, direct that only 50% of the back wages shall be payable. The appeal is allowed with the abovementioned directions.

In the facts and circumstances of the case the parties shall bear their own costs.