Court rules punishment of recovering Rs. 214.87 lacs as excessive, sets aside order while upholding other disciplinary actions.
In a significant ruling, the Allahabad High Court has set aside a disciplinary order that mandated the recovery of Rs. 214.87 lacs from an employee of the Uttar Pradesh Power Corporation Ltd. The court deemed the punishment "shockingly disproportionate" in relation to the employee's alleged misconduct.
The case involved Satyaverat, an Accountant at the Electricity Distribution Division-III in Shamli, accused of failing to diligently pursue the recovery of outstanding electricity dues from M/s Sikka Papers Ltd. Despite an inquiry committee exonerating him from the charges, the Disciplinary Authority partially disagreed, leading to an order for recovery of the substantial amount.
Justice Saurabh Shyam Shamshery highlighted the lack of evidence proving Satyaverat's sole responsibility for the financial loss, noting the absence of any proven financial gain or misconduct on his part. The court emphasized the principle of proportionality in disciplinary actions, referencing the Supreme Court's stance in "Punjab & Sind Bank v. Sh. Raj Kumar" on avoiding excessively harsh penalties that fail to align with the misconduct's gravity.
While the court upheld the punishments of 'Censure' and the withholding of a financial increment, it invalidated the recovery order, citing the lack of reasoning and evidence supporting such a severe penalty. The judgment underscores the necessity for disciplinary authorities to impose penalties that are commensurate with the employee's actual culpability and the circumstances of the case.
Bottom Line:
Disciplinary proceedings - Punishment of recovery of an entire outstanding amount from an employee without assigning reasons or establishing sole responsibility is shockingly disproportionate and cannot be sustained.
Statutory provision(s): Uttar Pradesh Government Electrical Undertakings (Dues Recovery) Act, 1958, Insolvency and Bankruptcy Code, 2016.
Satyaverat v. State of U.P., (Allahabad) : Law Finder Doc id # 2880327
