Shimla, Dec 11: In a significant judgment, the Himachal Pradesh High Court has quashed disciplinary actions taken against K.C. Bhardwaj, an employee of the Kangra Central Cooperative Bank (KCCB).
Justice Ajay Mohan Goel ruled that the participation of the bank's Managing Director (MD) in the appellate decision-making process violated fundamental principles of natural justice.
The case revolved around the withholding of increments and a demotion imposed on Bhardwaj following disciplinary proceedings. Bhardwaj challenged the orders, citing that the MD, who issued the disciplinary order, had also participated in the appellate process as part of the Board of Directors.
The court deemed this as a clear conflict of interest, stating, "One cannot be a judge in his own cause."
The court observed that while the Board of Directors amended the penalty from demotion to the withholding of two increments, the MD actively participated in the appeal's deliberations, even expressing dissent. This, the court held, rendered the entire appellate process invalid.
The Registrar, Cooperative Societies, had earlier upheld the Board's decision, dismissing Bhardwaj's second appeal. However, Justice Goel criticized the Registrar for overlooking the MD's involvement and ruled that the Registrar's findings were unsustainable in law.
The court has now quashed the Board's resolution and the Registrar's subsequent order, marking a significant victory for Bhardwaj, who is nearing retirement.
The judgment underscores the importance of unbiased adjudication in disciplinary matters and sets a precedent for fair proceedings in cooperative institutions.
Senior Advocate Shrawan Dogra, assisted by Advocate Kameshwar Singh Dhaulta, argued that the orders were vitiated as they contravened the principles of natural justice.
The Managing Director of the Bank had initially imposed a penalty of reversion, which was challenged in an appeal under the Bank’s service rules before the Board of Directors (Appellate Authority).
It was contended that the Managing Director, who had passed the penal order, also participated in the Board of Directors’ meeting that decided the appeal.
This amounted to sitting in judgment over his own decision, violating fundamental principles of natural justice.
In the second appeal before the Registrar of Cooperative Societies, the plea regarding the MD's influence on the appellate decision was dismissed, and the penalty was upheld.
The High Court, taking cognizance of this procedural irregularity, quashed the orders of both the Bank and the Registrar, deeming them flawed and illegal.
The Court directed the Bank to reconsider the case of the appellant and issue a fresh decision without being influenced by its previous orders.
