# Satya Prakash Singh v. State Public Services Tribunal, Lucknow - **Citation:** (2011) 2 ILRA 570 - **Court:** High Court of Judicature at Allahabad - **Decided:** 2016-02-25 - **Source:** https://unisonlegal.in/judgment/allahabad-high-court/satya-prakash-singh-v-state-public-services-tribunal-lucknow-43706 - **Pages:** 8 ## Headnote Motor Vehicles Act, 1988 - Sections 149(2), 166 - Motor accident claim - Liability of insurer - Driving licence - Absence or non-production of licence - Effect. Motor accident claim - Where the Motor Accident Claims Tribunal has recorded a categorical finding of fact that the accident occurred without any negligence or fault on the part of the deceased driver and such finding has not been challenged, the question as to whether the deceased driver was holding a valid driving licence or not becomes redundant. Driving licence - Mere non-production of driving licence by the claimants or owner of the vehicle is not sufficient to absolve the insurer of its statutory liability, unless it is proved that the insured had wilfully and consciously committed breach of the terms of the insurance policy by permitting a person without a valid licence to drive the vehicle and that such breach had a nexus with the cause of the accident. Liability of insurer - The burden to establish breach of policy conditions lies on the insurance company. In absence of any evidence showing negligence of the driver or wilful breach on the part of the insured, the insurer cannot avoid liability merely on technical grounds. Appeal dismissed. ## Text 930 INDIAN LAW REPORTS ALLAHABAD SERIES 9. Therefore, the petitioner-appellant who had obtained certificate of Adhikari Pariksha issued by Gurukul Vishwavidyalaya in the year 2000, was holding a valid certificate and rejection of his candidature for BTC Course-2010, was neither legal nor justified. 10. For the aforesaid reasons, the present appeal succeeds and is allowed and the impugned judgment is set aside. The candidature of the petitioner-appellant shall be considered afresh in accordance with law if he applies. ---------- ORIGINAL JURISDICTION CIVIL SIDE DATED: LUCKNOW 11.04.2016 BEFORE THE HON'BLE SUDHIR AGARWAL, J. THE HON'BLE ANANT KUMAR, J. Service Bench No.- 394 Of 1999 Satya Prakash Singh ...Petitioner Versus State Public Services Tribunal, Lucknow ...Respondent Counsel for Petitioner: R.N. Singh, B.N. Singh, Krishan Mohan, Ratnesh Singh Tomar, Santosh Kumar Srivastava Counsel for Respondent: C.S.C. Proceedings The petitioner challenged the judgment and order dated 02.12.1998 passed by the State Public Services Tribunal, which had rejected his claim petition against the order of removal dated 16.04.1990. The petitioner argued that the major penalty of removal was imposed without conducting any oral inquiry, violating principles of natural justice. The Court examined statutory provisions, Tribunal records, and extensive precedents from the Apex Court and High Court, all establishing that oral inquiry is mandatory before imposing a major punishment such as removal from service. Procedure Petitioner received only the charge-sheet but no oral inquiry was conducted. Tribunal rejected petitioner's claim petition on 02.12.1998. Petitioner challenged the rejection via writ petition. Court examined the necessity of oral inquiry for major penalties. Court relied on numerous precedents establishing that charges must be proved through oral and documentary evidence in the presence of the employee. Respondent argued petitioner did not reply or request an oral inquiry; Court held that this does not absolve the department of its duty. 4 All. Satya Prakash Singh Vs State Public Services Tribunal, Lucknow 931 Court quashed Tribunal order and set aside punishment of removal, granting all consequential benefits. Penal Sections / Statutory Provisions Service rules regarding major penalty proceedings. Principles of natural justice under Articles 14 and 21 of the Constitution of India. Case Law / Principles Meenglas Tea Estate v. The Workmen, AIR 1963 SC 1719 - Employee must know accusations, evidence, and be allowed to rebut. State of U.P. v. C.S. Sharma, AIR 1968 SC 158 - Omission to allow witnesses or cross-examination vitiates proceedings. Punjab National Bank v. A.I.P.N.B.E. Federation, AIR 1960 SC 160 - Evidence must be recorded in presence of employee. S.C. Girotra v. United Commercial Bank, 1995 Supp (3) SCC 212 - Dismissal without crossexamination set aside. Subhas Chandra Sharma v. Managing Director, 2000 (1) UPLBEC 541 - Oral inquiry mandatory before major penalty. State of U.P. & another vs. T.P. Lal Srivastava, 1997 (1) LLJ 831 - Department bears initial burden of proof; oral evidence necessary. Subhash Chandra Gupta v. State of U.P., 2012 (1) UPLBEC 166 - Non-compliance with inquiry rules renders punishment unsustainable. Other supporting cases: Roop Singh Negi v. Punjab National Bank, Mahesh Narain Gupta v. State of U.P., Salahuddin Ansari v. State of U.P. Head Notes Major punishment such as removal from service cannot be imposed without conducting a proper oral inquiry in accordance with statutory rules and principles of natural justice. The burden to prove charges lies with the department, requiring oral and documentary evidence. Non-holding of oral inquiry is a serious procedural lapse and vitiates the order of dismissal/removal. Refusal or non-participation by employee does not absolve department of its duty to lead evidence. The writ petition was allowed, and both Tribunal order and removal punishment were set aside. Facts Petitioner was removed from service by order dated 16.04.1990. Only a charge-sheet was served; no oral inquiry conducted. Petition to Tribunal (Claim Petition No. 526/III/90) rejected on 02.12.1998. Petitioner's heirs filed writ petition challenging the Tribunal's order. Department did not lead oral evidence to prove charges. Contentions Petitioner: Major penalty of removal imposed without oral inquiry, violating natural justice. Respondent: Petitioner did not reply or request oral inquiry; Tribunal decision valid. Petitioner relied on legal precedents showing oral inquiry is mandatory for major punishment. Analysis 932 INDIAN LAW REPORTS ALLAHABAD SERIES Mandatory Oral Inquiry: Apex Court and High Court precedents clearly mandate oral inquiry before imposing major punishment. Burden of Proof: Initial burden lies on department to prove charges by oral and documentary evidence. Natural Justice: Non-holding of inquiry violates principles of fair play and fair hearing. Quasi-Judicial Role of Inquiry Officer: Inquiry officer must act independently and impartially; cannot rely solely on charge-sheet. Exceptions Not Applicable: No facts of admitted charges, glaring evidence, or lack of prejudice to employee exist here. Conclusion: Tribunal erred in upholding removal; departmental proceedings vitiated. Conclusion Writ petition allowed. Tribunal order dated 02.12.1998 and punishment of removal dated 16.04.1990 were quashed. Claim petition filed by petitioner (through legal heirs) stands allowed. Petitioner entitled to all consequential benefits, reaffirming that oral inquiry is mandatory before imposing major penalties, ensuring adherence to principles of natural justice. (Delivered by Hon'ble Sudhir Agarwal, J. & Hon'ble Anant Kumar, J.) 1. Heard learned counsel for petitioner and learned Standing Counsel for respondents. 2. The writ petition is directed against judgment and order dated 02.12.1998 passed by State Public Services Tribunal, Lucknow (hereinafter referred to as 'Tribunal') rejecting Claim Petition No. 526/III/90 of petitioner-Satya Prakash Singh, who has now died and substituted by his legal heirs. Petitioner challenged the order of punishment of removal dated 16.04.1990 but has failed before Tribunal. 3. Counsel for petitioner submitted that only a chargesheet was served upon petitioner which he could not reply and thereafter without holding oral enquiry whatsoever enquiry report was submitted and thereafter impugned punishment order has been passed. 4. It is contended that punishment of removal is a major punishment and therefore, could not have been passed without holding an oral enquiry. 5. Our attention has been drawn to paragraphs 2 and 3 of claim petition wherein it was pleaded that no oral enquiry was conducted and in the counter affidavit filed before Tribunal in para 3 it has not been disputed that no oral enquiry was conducted. However, it is said that petitioner has neither submitted any reply nor requested for personal hearing. 6. It is vehemently contended by learned counsel for petitioner that no procedure for major penalty was initiated. It was mandatory on the part of respondents authority to hold oral inquiry in the matter, but no such inquiry was conducted, therefore, entire proceedings including punishment order are vitiated. 4 All. Satya Prakash Singh Vs State Public Services Tribunal, Lucknow 933 7. The question, that calls for determination is, whether oral inquiry is necessary when employer intends to impose a major punishment. 8. In Meenglas Tea Estate v. The workmen., AIR 1963 SC 1719, the Supreme Court observed "It is an elementary principle that a person who is required to answer a charge must know not only the accusation but also the testimony by which the accusation is supported. He must be given a fair chance to hear the evidence in support of the charge and to put such relevant questions by way to cross-examination as he desires. Then he must be given a chance to rebut the evidence led against him. This is the barest requirement of an enquiry of this character and this requirement must be substantially fulfilled before the result of the enquiry can be accepted. 9. In State of U.P. v. C. S. Sharma, AIR 1968 SC 158, Court held that omission to give opportunity to the officer to produce his witnesses and lead evidence in his defence vitiates the proceedings. The Court also held that in the enquiry witnesses have to be examined in support of the allegations, and opportunity has to be given to the delinquent to cross-examine these witnesses and to lead evidence in his defence. 10. In Punjab National Bank v. A.I.P.N.B.E. Federation, AIR 1960 SC 160, (vide para 66) the Supreme Court held that in such enquiries evidence must be recorded in the presence of the charge-sheeted employee and he must be given an opportunity to rebut the said evidence. The same view was taken in A.C.C. Ltd. v. Their Workmen, (1963) II LLJ. 396, and in Tata Oil Mills Co. Ltd. v. Their Workmen, (1963) II LLJ. 78 (SC). 11. In S.C. Girotra v. United Commercial Bank 1995 Supp. (3) SCC 212, Court set aside a dismissal order which was passed without giving employee an opportunity of cross-examination. 12. This Court in Subhas Chandra Sharma v. Managing Director and another reported 2000(1) UPLBEC 541, said:- "In our opinion after the petitioner replied to the charge-sheet a date should have been fixed for the enquiry and the petitioner should have been intimated the date, time and place of the enquiry and on that date the oral and documentary evidence against the petitioner should have been led in his presence and he should have been given an opportunity to cross-examine the witnesses against him and also he should have been given an opportunity to produce his own witnesses and evidence. If the petitioner in response to this intimation had failed to appear for the enquiry then an ex parte enquiry should have been held but the petitioner's service should have not been terminated without holding an enquiry. In the present case it appears that no regular enquiry was held at all. All that was done that after receipt of the petitioner's reply to the charge-sheet he was given a show-cause notice and thereafter the dismissal order was passed. In our opinion this was not the correct legal procedure and there was violation of the rules of natural justice. Since no date for enquiry was fixed nor any enquiry held in which evidence was led in our opinion the impugned order is clearly violative of natural justice." 934 INDIAN LAW REPORTS ALLAHABAD SERIES 13. The above judgment was followed by a Division Bench in Subhas Chandra Sharma v. U.P.Co-operative Spinning Mills and others reported 2001 (2) UPLBEC 1475 and Court held: "In cases where a major punishment proposed to be imposed an oral enquiry is a must, whether the employee request, for it or not. For this it is necessary to issue a notice to the employee concerned intimating him date, time and place of the enquiry as held by the Division Bench of this Court in Subhash Chandra Sharma v. Managing Director, (2000) 1 UPLBEC 541, against which SLP has been dismissed by the Supreme Court on 16-8-2000." 14. In State of Uttar Pradesh v. Saroj Kumar Sinha reported (2010) 2 SCC 772 Court said :- "An inquiry officer acting in a quasi-judicial authority is in the position of an independent adjudicator. He is not supposed to be a representative of the department/disciplinary authority/Government. His function is to examine the evidence presented by the Department, even in the absence of the delinquent official to see as to whether the unrebutted evidence is sufficient to hold that the charges are proved. In the present case the aforesaid procedure has not been observed. Since no oral evidence has been examined the documents have not been proved, and could not have been taken into consideration to conclude that the charges have been proved against the respondents. When a departmental enquiry is conducted against the government servant it cannot be treated as a casual exercise. The enquiry proceedings also cannot be conducted with a closed mind. The inquiry officer has to be wholly unbiased. The rules of natural justice are required to be observed to ensure not only that justice is done but is manifestly seen to be done. The object of rules of natural justice is to ensure that a government servant is treated fairly in proceedings which may culminate in imposition of punishment including dismissal/removal from service." 15. In Roop Singh Negi v. Punjab National Bank, (2009) 2 SCC 570 the Court said:- "Indisputably, a departmental proceeding is a quasi-judicial proceeding. The enquiry officer performs a quasi-judicial function. The charges levelled against the delinquent officer must be found to have been proved. The enquiry officer has a duty to arrive at a finding upon taking into consideration the materials brought on record by the parties. The purported evidence collected during investigation by the investigating officer against all the accused by itself could not be treated to be evidence in the disciplinary proceeding. No witness was examined to prove the said documents. The management witnesses merely tendered the documents and did not prove the contents thereof. Reliance, inter alia, was placed by the enquiry officer on the FIR which could not have been treated as evidence." 16. One of us (Justice Sudhir Agarwal) in Rajesh Prasad Mishra v. Commissioner, Jhansi Division, Jhansi and others reported 2010 (1) UPLBEC 216 observed as under after a detail analysis of earlier authorities on the subject: 4 All. Satya Prakash Singh Vs State Public Services Tribunal, Lucknow 935 "Now coming to the question, what is the effect of non-holding of oral inquiry, I find that, in a case where the inquiry officer is appointed, oral inquiry is mandatory. The charges are not deemed to be proved suo motu merely on account of levelling them by means of the charge sheet unless the same are proved by the department before the inquiry officer and only thereafter it is the turn of delinquent employee to place his defence. Holding oral enquiry is mandatory before imposing a major penalty, as held by Apex Court in State of U.P. & another Vs. T.P.Lal Srivastava, 1997 (1) LLJ 831 as well as by a Division Bench of this Court in Subhash Chandra Sharma Vs. Managing Director & another, 2000 (1) U.P.L.B.E.C. 541." 17. In Subhash Chandra Gupta v. State of U.P. reported 2012 (1) UPLBEC 166, a Division Bench of this Court, after survey of law on this issue, observed as under: "It is well settled that when the statute provides to do a thing in a particular manner that thing has to be done in that very manner. We are of the considered opinion that any punishment awarded on the basis of an enquiry not conducted in accordance with the enquiry rules meant for that very purposes is unsustainable in the eye of law. We are further of the view that the procedure prescribed under the inquiry rules for imposing major penalty is mandatory in nature and unless those procedures are followed, any out come inferred thereon will be of no avail unless the charges are so glaring and unrefutable which does not require any proof. The view taken by us find support from the judgement of the Apex Court in State of U.P. & another Vs. T.P.Lal Srivastava, 1997 (1) LLJ 831 as well as by a Division Bench of this Court in Subash Chandra Sharma Vs. Managing Director & another, 2000 (1) U.P.L.B.E.C. 541. . A Division Bench decision of this Court in the case of Salahuddin Ansari Vs. State of U.P. and others, 2008 (3) ESC 1667 held that non holding of oral inquiry is a serious flaw which can vitiate the order of disciplinary proceeding including the order of punishment has observed as under:- " 10....... Non holding of oral inquiry in such a case, is a serious matter and goes to the root of the case. 11.A Division Bench of this Court in Subash Chandra Sharma Vs. Managing Director & another, 2000 (1) U.P.L.B.E.C. 541, considering the question as to whether holding of an oral inquiry is necessary or not, held that if no oral inquiry is held, it amounts to denial of principles of natural justice to the delinquent employee. The aforesaid view was reiterated in Subash Chandra Sharma Vs. U.P.Cooperative Spinning Mills & others, 2001 (2) U.P.L.B.E.C. 1475 and Laturi Singh Vs U.P.Public Service Tribunal & others, Writ Petition No. 12939 of 2001, decided on 06.05.2005." 18. Even if an employee refuses to participate in the enquiry, employer cannot straightaway dismiss him, but he must hold an inquiry where evidence must be led as held in Imperial Tobacco Co. Ltd. v. Its Workmen, AIR 1962 SC 1348, Uma Shankar v. Registrar, 1992 (65) FLR 674 (All). 936 INDIAN LAW REPORTS ALLAHABAD SERIES 19. A Division Bench of this Court in Mahesh Narain Gupta v. State of U.P. and others reported (2011) 2 ILR 570 had also has an occasion to deal with this issue. It has held: "At this stage, we are to observe that in the disciplinary proceedings against a delinquent, the department is just like a plaintiff and initial burden lies on the department to prove the charges which can certainly be proved only by collecting some oral evidence or documentary evidence, in presence and notice charged employee. Even if the department is to rely its own record/document which are already available, then also the enquiry officer by looking into them and by assigning his own reason after analysis, will have to record a finding that hose documents are sufficient enough to prove the charges. In no case, approach of the Enquiry Officer that as no reply has been submitted, the charge will have to be automatically proved can be approved. This will be erroneous. It has been repeatedly said that disciplinary authority has a right to proceed against delinquent employee in exparte manner but some evidence will have to be collected and justification to sustain the charges will have to be stated in detail. The approach of the enquiry officer of automatic prove of charges on account of non filing of reply is clearly misconceived and erroneous. This is against the principle of natural justice, fair play, fair hearing and, thus, enquiry officer has to be cautioned in this respect." 20. The principal of law emanates from above judgments are that initial burden is on the department to prove charges. In case of procedure adopted for inflicting major penalty, the department must prove the charges by oral evidence also. 21. From the pleadings as also a perusal of enquiry report it is demonstrably proved that no oral evidence has been led by the department. When a major punishment is proposed to be passed the department has to prove the charges against the delinquent/employee by examining the witnesses and by documentary evidence. In the present case neither any witness was examined by department, nor any officer has been examined to prove documents in the proceedings. 22. It is trite law that the departmental proceedings are quasi judicial proceedings. The Inquiry Officer functions as quasi judicial officer. He is not merely a representative of the department. He has to act as an independent and impartial officer to find out truth. The major punishment awarded to an employee visit serious civil consequences and as such the departmental proceedings ought to be in conformity with the principles of natural justice. Even if, an employee prefers not to participate in the enquiry, department has to establish charges against such employee by adducing oral as well as documentary evidence. In case the charges warrant major punishment then oral evidence by producing witnesses is necessary. 23. We may hasten to add that the above mentioned law is subject to certain exception. When the facts are admitted or no real prejudice has been caused to employee or no other conclusion is possible, in such situation the order may not be vitiated for such lapse. Reference may be made to the some of the decision in K.L.Tripathi v. State Bank of India reported AIR 1984 SC 273 ; 4 All. The New India Assurance Co. Ltd. Vs Smt. Vidhya Devi & Ors. 937 State Bank of Patiala v. S.K. Sharma reported AIR 1996 SC 1669 and Biecco Lawrie Ltd. v. West Bengal reported (2009) 10 SCC 32. 24. In the present case the stand taken by respondents is that petitioner despite opportunity given to him, did neither submit reply nor requested for oral inquiry. Even if the said statement is assumed to be correct, obligation on the department to prove charges is not discharged. 25. In the result, writ petition is allowed. Impugned judgment dated 02.12.1998 passed by Tribunal is hereby quashed. Impugned order of punishment i.e. removal dated 16.4.1990 is also set aside and claim petition filed by petitioner stands allowed. Petitioner shall also be entitled to all consequential benefits. ---------- APPELLATE JURISDICTION CIVIL SIDE DATED: ALLAHABAD 25.02.2016 BEFORE THE HON'BLE SURYA PRAKASH KESARWANI, J. First Appeal From Order No.- 624 Of 2016 The New India Assurance Co. Ltd. ...Appellant Versus Smt. Vidhya Devi & Ors. ...Respondents Counsel for the Appellant: Saurabh Srivastava Motor Vehicles Act, 1988 - Sections 149(2), 166 - Motor accident claim - Liability of insurer - Driving licence - Absence or non-production of licence - Effect. Motor accident claim - Where the Motor Accident Claims Tribunal has recorded a categorical finding of fact that the accident occurred without any negligence or fault on the part of the deceased driver and such finding has not been challenged, the question as to whether the deceased driver was holding a valid driving licence or not becomes redundant. Driving licence - Mere non-production of driving licence by the claimants or owner of the vehicle is not sufficient to absolve the insurer of its statutory liability, unless it is proved that the insured had wilfully and consciously committed breach of the terms of the insurance policy by permitting a person without a valid licence to drive the vehicle and that such breach had a nexus with the cause of the accident. Liability of insurer - The burden to establish breach of policy conditions lies on the insurance company. In absence of any evidence showing negligence of the driver or wilful breach on the part of the insured, the insurer cannot avoid liability merely on technical grounds. Appeal dismissed.