Case: UCO Bank &amp; Another Vs. Rajinder Lal Capoor

2. Respondent was working with the appellant - Bank. Almost immediately prior to his retirement, he was asked to show cause as to why action under the UCO Bank (Officers) Service Regulations, 1979 (for short "the 1979 Regulations") should not be taken against him by notices dated 24.10.1996 and 30.10.1996.3. Respondent reached his age of superannuation on 30.11.1996. A disciplinary proceeding was initiated against him immediately thereafter. A charge sheet, however, was issued only on 13.11.1998. He was dismissed from service upon initiating a departmental proceedings.4. A writ petition filed by him was allowed. Petitioner - Bank filed an appeal upon grant of special leave there against. One of the questions which arose for consideration before this Court was whether in absence of any charge sheet having been issued, the disciplinary proceedings could be said to have been initiated in view of the decisions of this Court in Union of India etc. etc. v. K.V. Jankiraman, etc. etc. [AIR 1991 SC 2010 ], Union of India and Ors. v. Sangram Keshari Nayak [2007 (6) SCALE 348 ] and Coal India Ltd. and Ors. v. Saroj Kumar Mishra [2007 (5) SCALE 724 ].5. When the said question was raised, the 1979 Regulations were not before us. This Court asked the learned counsel to handover the regulations by the next day. It was not complied with. However, on 18.05.2007 when the judgment was to be delivered, a prayer was made to defer the pronouncement of the judgment so as to enable the appellants to place the regulations. The said prayer was declined and the judgment was pronounced. It is in the aforementioned factual backdrop, this review petition has been filed.6. In the review application, the petitioner inter alia seeks to bring to our notice the relevant provisions of the 1979 Regulations so as to contend that by reason thereof, a legal fiction has been created to the effect that a disciplinary proceedings shall be deemed to be pending, if the delinquent officer was placed under suspension or any notice was issued to him to show cause why any disciplinary proceedings shall not be initiated against him and will be deemed to be pending until the final orders are passed by the competent authority.7. Indisputably, the appellants have framed three different regulations governing the conditions of service of its employees.8. The UCO Bank Officer Employees (Discipline and Appeal) Regulations, 1976 (for short "the 1976 Regulations) have been framed by reason of Section 19 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 in consultation with the Reserve Bank of India and with the previous sanction of the Central Government. Regulation 4 of the 1976 Regulations provides for the penalties. Regulation 6 provides for the procedure for imposing major penalties. Sub-regulation (1) of Regulation 6 provides that no proceeding for imposing major penalties shall be initiated except after an inquiry is held in accordance with the provisions thereof. Sub-regulation (2) of Regulation 6 provides that when the disciplinary authority is of the opinion that there were grounds for inquiring into the truth of any imputation of misconduct, an inquiry officer is to be appointed. Sub-Regulations (3), (4) and (5) of Regulation 6 read asWhere it is proposed to hold an inquiry, the Disciplinary Authority shall frame definite and distinct charges on the basis of the allegations against the officer employee and the articles of charge, together with a statement of the allegations, on which they are based, shall be communicated in writing to the officer employee, who shall be required to submit within such time as may be specified by the Disciplinary Authority (not exceeding 15 days) or within such extended time as may be granted by the said Authority, a written statement of his defence.(4) On receipt of the written statement of the officer employee, or if no such statement is received within the time specified, an enquiry may be held by the Disciplinary Authority itself, or if it considers it necessary so to do appoint under sub-regulation (2) an Inquiring Authority for the purpose:Provided that it may not be necessary to hold an inquiry in respect of the articles of charge admitted by the officer employee in his written statement but shall be necessary to record its findings on each such charge.(5) The Disciplinary Authority shall, where it is not the inquiring authority, forward to the inquiring authority:(i) a copy of the articles of charges and statement of imputations of misconduct or misbehaviour;.In exercise of the same power, the Board of Directors have also framed the UCO Bank Officer Employees (Conduct) Regulations, 1976 (for short "the 1976 Conduct Regulations") providing for the code of conduct for the bank officers. Any breach in terms of Regulation 24 of the 1976 Conduct Regulations is deemed to constitute a misconduct punishable under the 1976 Regulations.10. The 1979 Regulations were also framed under the same power by the Board of Directors of the Bank. The 1979 Regulations deal with different terms of the employment of service. Chapter IV deals with appointments, probation, confirmation, promotions, etc. Chapter V deals with allowances. Chapter VI deals with medical aid, residential accommodation, etc. Chapter VII provides for the kinds of leave to which an employee is entitled to. Chapter VIII provides for traveling allowances, etc. Chapter IX provides for provident fund and pension. Chapter X provides for transfer of employees from one branch to another. Chapter XI provides for power to implement regulations.

Court's reasoning:
16. It is worth noticing the distinction between terminologies "proceeding pending" or "proceeding initiated". Clause (ii) of Sub-regulation (3) of Regulation 20 defines what would be pending, viz., for the purpose of attracting Clause (i) thereof. A disciplinary proceeding is initiated in terms of 1976 Regulations, which are applicable only in a case where a proceeding is initiated for the purpose of taking disciplinary action against a delinquent officer for the purpose of imposing a punishment on him. Disciplinary proceedings, thus, are initiated only in terms of the 1976 Regulations and not in terms of the 1979 Regulations. It is worth noticing that the 1979 Regulations would be attracted when no disciplinary proceeding is possible to be initiated. The 1976 Regulations, however, on the other hand, would be attracted when a disciplinary proceeding is initiated. Both operate in separate fields. We do not see any nexus between Regulations 20(1) and 20(2) of the 1979 Regulations and the 1976 Regulations.In terms of the 1976 Regulations drawing up of a charge sheet by the disciplinary authority is the first step for initiation of a disciplinary authority. Unless and until, therefore, a charge sheet is drawn up, a disciplinary proceedings for the purpose of the 1976 Regulations cannot be initiated.22. Drawing up of a charge sheet, therefore, is the condition precedent for initiation of a disciplinary proceedings. We have noticed in paragraph 15 of our judgment that ordinarily no disciplinary proceedings can be continued in absence of any rule after an employee reaches his age of superannuation. A rule which would enable the disciplinary authority to continue a disciplinary proceedings despite the officers reaching the age of superannuation must be a statutory rule. A fortiori it must be a rule applicable to a disciplinary proceedings.23. There cannot be any doubt whatsoever that the employer may take resort to a preliminary inquiry, but it will bear repetition to state that the same has a limited role to play. But, in absence of the statutory rules operating in the field, resorting to a preliminary enquiry would not by itself be enough to hold that a departmental proceeding has been initiated.24. Initiation of a disciplinary proceeding may lead to an evil or civil consequence. Thus, in absence of clear words, the court must lean in favour of an interpretation which has been applied by this Court in the main judgment.