JAI BHAVANI SHIKSHAN PRASARAK MANDAL vs. RAMESH .

Case Type: Civil Appeal

Date of Judgment: 29-03-2022

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REPORTABLE IN THE SUPEME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO.7937 of 2011 JAI BHAVANI SHIKSHAN PRASARAK MANDAL      … APPELLANT(S) VERSUS RAMESH & ORS.     …RESPONDENT(S) J U D G M E N T V. Ramasubramanian, J. 1. The removal from service of respondent No.1 herein from the post of Principal of the Institute of Pharmacy, having been set aside by the School Tribunal, Aurangabad and the same having been confirmed by the learned Single Judge and the Division Bench of the High Court, the Educational Society running the Institute of Signature Not Verified Digitally signed by SWETA BALODI Date: 2022.03.29 16:27:45 IST Reason: Pharmacy has come up with the above appeal. 1 2. We   have   heard   the   learned   counsel  appearing   for   the  first respondent and the learned counsel for the State of Maharashtra. 3. The appellant is an Educational Society registered under the Bombay Public Trusts Act. It is running an institute of Pharmacy at Gadhi Georai Dist., Beed. In the year 1991, the first respondent herein was appointed as the Principal of the said Institute. In the year 2004 disciplinary proceedings were initiated against him on certain   allegations   of   serious   nature.   The   Departmental   Inquiry Committee held an inquiry in which the first respondent was given all   opportunities   of   fair   hearing,   including   permission   to   be represented by a lawyer. After the completion of the inquiry, the Inquiry Committee submitted a report on 31.07.2004 holding 7 out of 10 charges proved. Therefore, after issuing a show cause notice enclosing a copy of the Inquiry Report, the Management passed an order dated 19.08.2004 imposing upon the first respondent, the penalty of removal from service. 4. The first respondent challenged the penalty before the School Tribunal by way of an appeal under Section 9 of the Maharashtra Employees of Private Schools (Conditions of Service) Regulation Act, 2 1977   ( hereinafter   referred   to   as   the   ‘Act’ ).   The   School   Tribunal framed five issues as arising for consideration namely:  (i)  Whether the Inquiry Committee constituted by the Management to conduct further   inquiry   against   the   employee   was   proper,   legal   and permissible   by   law?   (ii)   Whether   the   Management   did   not   pay subsistence   allowance   and   whether   non­payment   of   subsistence allowance   vitiated   the   inquiry?;     Whether   the   inquiry   was (iii) vitiated on account of the fact that the Management conducted the inquiry   by   engaging   a   lawyer?;   (iv)   Whether   the   Management conducted the inquiry by following Rule 37 of MEPS Rules, 1981?; and   (v)   Whether   the   impugned   dismissal   order   was   legal   and sustainable in law.   Out of these five issues, the Tribunal found only the issue relating to the constitution and composition of the Inquiry   Committee   to   be   not   in   accordance   with   the   Rules. Therefore, the said appeal was allowed by the Tribunal by an order dated 22.06.2006, primarily on the ground that the constitution of the Inquiry Committee was not in accordance with Rule 36(2)(b) of 3 the   Maharashtra   Employees   of   Private   Schools   (Conditions   of Service) Rules, 1981 ( hereinafter referred to as the “MEPS Rules ”).   5. The appellant­Management filed a writ petition in WP No.5387 of 2006 on the file of the High Court of Judicature at Bombay, Aurangabad Bench. A learned Judge of the High Court dismissed the writ petition, affirming the view taken by the School Tribunal.   6. The intra­court appeal filed by the appellant­Management was dismissed   by   the   division   Bench,   by   placing   reliance   upon   the decision   of   the   Full   Bench   of   the   High   Court   in   National Education   Society,   Nagpur   and   another   vs.   Mahendra,   s/o 1    Aggrieved by the said order the Baburao Jamkar and another . Management is on appeal before us. 7. Since the entire dispute revolves around the constitution of the Departmental Inquiry Committee with reference to Rule 36 of the MEPS Rules, it is necessary first to look into Rule 36. “ 36.  Inquiry Committee .­ (1) If an employee is allegedly found to be guilty on (any of the grounds specified in sub­ rule (5)  of Rule 28) and the Management decides to hold an inquiry, it shall do so through a properly constituted Inquiry Committee. Such a committee shall conduct an inquiry only in such cases where major penalties are to be inflicted. The 1 2007(3) Mh.L.J 707 4 Chief Executive Officer authorised by  the Management  in this behalf (and in the case of an inquiry against the Head who is also the Chief Executive Officer, the President of the Management)   shall   communicate   to   the   employee   or   the head  concerned  by   Registered  Post  acknowledgement   due the allegations and demand from him a written explanation within seven days from the date of receipt of the statement of allegations.  (2)  If the Chief Executive Officer or the President, as the case may be, finds that the explanation submitted by the employee   or   the   Head   referred   to   in   sub­rule   (1)   is   not satisfactory, he shall place it before the Management within fifteen days from the date of receipt of the explanation. The Management shall in turn decide within fifteen days whether an   inquiry   be   conducted   against   the   employee   and   if   it decides   to   conduct   the   inquiry,   the   inquiry   shall   be conducted   by   an   Inquiry   Committee   constituted   in   the following manner, that is to say­ (a)  in the case of an employee­ (i) one member from amongst the members  of the Management   to   be   nominated   by   the Management,   or   by   the   President   of   the Management   if   so   authorised   by   the Management  whose   name   shall   be communicated to Chief  Executive Officer within 15 days from the date of the  decision of  the Management; (ii) One   member   to   be   nominated   by   the   employee from amongst the employees of any   private school; (iii) one   member   chosen   by   the   Chief   Executive   Officer from the panel of teachers on  whom   state/National Award has been conferred; (b) in the case of the Head referred to in sub­rule (1)­ (i) one member who shall be the President of  the  Management; 5 (ii) one member to be nominated by the Head from  amongst   the   employees   of   any private school; (iii) one member chosen by the President from the  panel   of   Head   Masters   on   whom State/National  Award   has   been conferred. (3) The Chief Executive Officer or, as the case may be, the President   shall   communicate   the   names   of   members nominated under sub­rule  (2)   by   Registered   Post acknowledgement due to the employee or the Head referred to in sub­ rule (1), as the case may be, directing him to nominate a person on his behalf on the proposed Inquiry Committee and to forward the name alongwith the written consent of the person so nominated to the Chief Executive or to the President, as the case may be, within fifteen days of the receipt of the communication to that effect. (4) If   the   employee   or   the   Head,   as   the   case   may   be, communicates the name of the person nominated by him the Inquiry   Committee   of   three   members   shall   be   deemed   to have been  constituted   on   the   date   of   receipt   of   such communication   by   the   Chief   Executive   Officer   or   the President, as the case may be. If the employee or such head fails to communicate the name of his nominee within the stipulated  period, the Inquiry Committee shall be deemed to have been constituted on expiry of the stipulated period consisting of only two members as provided in sub­rule (2). (5) The   Convener   of   the   respective   Inquiry   Committee shall be the nominee of the President, or as the case may be, the   President   who   shall   initiate   action   pertaining   to   the conduct of the Inquiry Committee and shall maintain all the relevant record of the Inquiry. (6) The meetings of the Inquiry Committee shall be held in the   School   premises   during   normal   school   hours   or immediately thereafter, if the  employee   agrees   and   even during vacation.” 6 8. Two expressions namely “ Head ” and “ Chief Executive Officer ” used   in   sub­rule   (1)   of   Rule   36   provide   the   fulcrum   of   the controversy on hand. The expression “ Head ” is not defined in the Rules. However, the expression “ Chief Executive Officer ” is defined in Rule 2(1)(c) as follows:­ “Chief   Executive   Officer”   means   the   Secretary,   Trustee, Correspondent or a person by whatever name called who is empowered   to   execute   the   decisions   taken   by   the Management.” 9. The word “ Head ” is defined in Section 2(9) of the Maharashtra Employees of Private Schools (Conditions of Service) Regulation Act, 1977 as follows:­ “Head of a school” or “Head” means the person, by whatever name called in charge of the academic and administrative duties   and   functions   of   a   school   conducted   by   any Management   and   recognised   or   deemed   to   be   recognised under   this   Act,   and   includes   a   principal,   vice   principal, head­master,   head­mistress,   assistant   head­master, assistant head­mistress or superintendent thereof” 10. Sub­rule (2) of Rule 36 provides for the composition of the Inquiry   Committee   in   a   particular   manner   in   the   case   of   “ an employee ”   and   it   provides   for   the   composition   of   the   Inquiry Committee in a different manner in the case of “ ”. In other the Head 7 words,   the   Inquiry   Committee   can   comprise   of   (i)   one   member amongst   the   members   of   the   Management,   nominated   by   the management or the President;   (ii)   one member nominated by the employee   from   amongst   the   employees;   and   (iii)   one   member chosen by the Chief Executive Officer from the panel of teachers, if the inquiry is against “an employee”. But if the inquiry is against the   Head,   the   Inquiry   Committee   should   comprise   of:   (i)   the President of the Management;   one member to be nominated by (ii) the Head from amongst the employees of any private schools; and (iii)   one member chosen by the President from the panel of Head Masters. 11. In the case on hand, there is and there can be no dispute about the fact that the first respondent was the Head within the meaning of the expression in terms of Section 2(9) of the Act, as he was   the   Principal   of   the   Institute.   But   admittedly   the   first respondent was not the Secretary, Trustee or Correspondent of the Institute,   to   fall   within   the   definition   of   the   expression   “ Chief Executive Officer ” under Rule 2(1)(c) of the Rules. 8 12. The   main   contention   of   the   first   respondent   which   was accepted by the School Tribunal and the High Court was that by virtue   of   Rule   36(2)(b)   of   the   Rules,   the   President   of   the Management should have been one of the members of the Inquiry Committee. There is no dispute about the fact that the President of the appellant­Society was not a member of the Inquiry Committee. But this fact provides only one part of the story. 13. The other part of the story is that the Departmental Inquiry Committee   as   originally   constituted,   had   the   President   of   the appellant­Society as a Member. But the case of the management is that   by   a   letter   dated   13.06.2004,   the   President   requested   the appellant­Society to relieve him due to ill health. Therefore, by a letter dated 14.06.2004 one of the Vice­Presidents was requested to be part of the Inquiry Committee. But the said Vice­ President also recused   due   to   family   problems.   Therefore,   by   a   letter   dated 16.06.2004 another Vice­President was nominated to be part of the Inquiry   Committee.   The   said   Vice­President   also   opted   out. Therefore,   by   a   Resolution   dated   22.06.2004,   the   Management decided   to   confer   all   the   powers   of   the   President   to   one   Shri 9 Amarsingh   Shivaji   Rao   Pandit.   The   said   resolution   reads   as follows:­ “Resolution no. 4:­ The President Mr. Shivajirao Ankushrao Pandit   is   the   president   and   inviter   of   the   Departmental Enquiry   Committee   for   inquiry   of   Mr.   Kalkotwar   R.   S. (Suspended   Principal).   Therefore,   he   is   president   of   the enquiry   committee   for   Departmental   enquiry   of   Mr. Kalkotwar,   but   Mr.   Shivajirao   Ankushrao   Pandit   by   his application due to ill health and as per advice of doctors have intimation to take rest. His application and documents annexed   thereto   have   been   considered   and   his   excuse appears   reasonable.   Therefore,   all   the   powers   of   the president of Jaibhawani Shikshan Prasarak regarding the work   to   conduct   the   Enquiry   id   hereby   given   to   Mr. Amarsingh Shivajirao Pandit. Therefore, it was unanimously decided by all that, henceforth, Mr. Amarsingh Shivajirao Pandit   will   see   the   work   as   president   and   inviter   of   the departmental enquiry committee conducting inquiry of Mr. Kalkotwar R.S.” 14. But the School Tribunal held that the aforesaid Resolution dated   22.06.2004   surfaced   only   after   the   conclusion   of   the arguments in the appeal and that, therefore, it could have been prepared as an afterthought. The learned Single Judge of the High Court refused to interfere with this finding of fact, on the ground that   the   supervisory   jurisdiction   of   the   High   Court   was   limited under Article 227 of the Constitution. 15. But the School Tribunal as well as the High Court omitted to take note of the very pleadings of the first respondent in his appeal 10 before the Tribunal. In paragraph 7 of the Memorandum of Appeal submitted by the first respondent before the School Tribunal, he admitted   that   the   charge­sheet   was   signed   by   Shri   Shivaji   Rao Pandit,   the   President   of   the   Society.   In   paragraph   9   of   the Memorandum of Appeal, the respondent No.1 also admitted that by a letter dated 26.06.2004 he was informed about the ill health of the President of the Society and the appointment of Shri Amarsingh Shivaji   Rao   Pandit   in   his   place.   Paragraphs   9   and   10   of   the Memorandum of Appeal filed by the first respondent herein, before the School Tribunal reads as follows:­ “The   appellant   states   that   when   the   inquiry   was   under progress, the Administrative officer of the Respondent No. 1 Society,   vide   his   letter   dated   26.6.2004,   informed   the appellant that since the President of the Society was ill, his representative Shri. Amarsing Shivajirao Pandit, who is the Member   of   the   Respondent   No.   1   Society,   shall   be   the Convenor  of  the Inquiry  Committee.  A copy  of this  letter dated 26.6.2004 issued by the Administrative officer of the Respondent No.1 Society is annexed herewith and marked as EXHIBIT “G”.  The   appellant   further   states   that   vide   letter   dated 30.6.2004, the Administrative Officer of the Respondent No. 1 Society has issued a Corrigendum whereby it was informed that Shri Amarsinh Pandit would act as the Convenor of the Inquiry Committee and the President during the course of the   Inquiry.   A   copy   of   the   said   Corrigendum   dated 30.6.2004,   issued   by   the   Administrative   Officer   of   the 11 Respondent   No.   1   is   annexed   herewith   and   marked   as EXHIBIT “H”.” 16. Unfortunately the School Tribunal as well as the High Court failed to take note of the very pleadings of the first respondent with regard to the circumstances in which the President of the Society could not continue as part of the Inquiry Committee. Therefore, the order of the School Tribunal was vitiated by perversity. 17. In any case, Rule 36(2)(a) begins with the words “ in the case of ”. Rule 36(2)(b) begins with the words “ an employee in the case of the Head referred to in sub­rule (1) ”. 18. The interpretation given by the School Tribunal and the High Court to the aforesaid Rule would have been acceptable, if Rule 36(2)(b) had began only with the words “ in the case of the Head ”. But it begins with the words “ in the case of the Head referred to in sub­rule (1) ”. 19. Sub­rule (1) refers to the Head who is also the Chief Executive Officer. Therefore, clause (b) of sub­rule (2) of Rule 36 should be construed to apply only to a person who is the “ ” and who is Head 12 also the “ Chief Executive Officer ”. Otherwise the words “ referred in sub­rule (1) ” appearing in clause (b) would become redundant. 20. The Division Bench of  the High Court relied upon the full Bench decision of the High Court in  National Education Society (supra), to come to the conclusion that irrespective of whether the Head of the Institute is also the Chief Executive Officer or not, Rule 36(2)(b)  mandates  the   President  to  be   a  member   of  the   Inquiry Committee. A perusal of the Judgment of the Full Bench of the High Court of Bombay in   National Education Society   (supra) shows that   the   full   Bench   framed   two   questions   for   its   consideration. Question No.2 framed by the Full Bench reads as follows:­ “Whether   the   President   of   the   management   has   to   be   a member of the Enquiry Committee as specified in Rule 36(2) (b)(i)   for   holding   disciplinary   enquiry   against   the   Head, whether or not he is the Chief Executive Officer within the meaning of Rule 2(c) of the Rules of 1981.” 21. The above question was taken up for consideration by the full Bench in Paragraph 17 of its decision. In paragraphs 18 and 19, the full Bench held as under:­ “18. Rule 36(1)(a) of the Rules provides for constitution of Inquiry   Committee   in   respect   of   an   employee   while   Rule 36(2)(b) provides for constitution of Inquiry Committee for the Head. We have already quoted the definition of “Head” in 13 terms of Section 2(9) of the Act. If it is held that there is no requirement for the President of the management to be a member of the Inquiry Committee in case of the Head who is not the Chief Executive Officer, providing separate Inquiry Committee for the Head in Rule 36(2)(b) would be nugatory. In case such an interpretation is accepted Head of the school would be an employee for the purposes of Rule 36(2)(a) and there was no need to have separate constitution of Inquiry Committee in terms of Section 36(2)(b). It is well settled that the   Legislature   does   not   use   any   word   unnecessarily.   It would be appropriate to quote paragraph 9 of the judgment of the Apex Court in Utkal Contractors & Joinery Pvt. Ltd. v. State   of   Orissa   reported   in   MANU/SC/0077/1987   : [1987]3SCR317.   In   para   9,   the   Apex   Court   observed   as under: …Just   as   Parliament   is  not   expected   to use unnecessary expressions, Parliament is also not   expected   to   express   itself   unnecessarily. Even   as   Parliament   does   not   use   any   word without   meaning   something,   Parliament   does not legislate where no legislation is called for. Parliament cannot be assumed to legislate for the sake of legislation; nor can it be assumed to make pointless legislation. Parliament does not indulge in legislation merely to state what it is unnecessary to state or to do what is already validly done. Parliament may not be assumed to legislate unnecessarily…. 19. We, therefore, hold that in case of Head whether or not he   is   empowered   to   act   as   Chief   Executive   Officer,   the President   of   the   management   shall   be   a   member   of   the Inquiry Committee as contemplated by Rule 36(2)(b)(i) of the Rules of 1981.” 22. As could be seen from the portion of the Judgment extracted above, the full Bench was unduly carried away by the fact that the 14 Head of an Institution will become equated to an employee, if it was held that the President of the Society need not be a member of the Inquiry Committee. But what the Full Bench omitted to take note of was   that   the   Chief   Executive   Officer   of   a   Society,   such   as   the President, Secretary or Treasurer cannot be an employee of the Institution run by the Society and that a Chief Executive Officer such as the President or Secretary is liable to get elected and not entitled   to   remuneration.   On   the   other   hand,   the   Head   of   the Institution   is   essentially   an   employee   who   is   entitled   to remuneration, seniority, promotion, continuance in service till the age of superannuation etc., and who is subject to the disciplinary control of the Management. In fact the President or Secretary of the Society cannot be removed under the MEPS Rules. But the Head of the   Institution   can   be   removed   only   in   terms   of   the   Rules. Therefore, the interpretation given by the Full Bench of the High Court of Bombay in     (supra), under National Education Society Rule 36(2)(b) may not be correct. 23. In any case, the High Court, in the impugned order, failed to take the note of doctrine of necessity. Once it is admitted,   that (i) 15 the disciplinary proceedings commenced with an Inquiry Committee of which the President was a member; and  ) that subsequently he (ii was replaced by someone due to ill health, the doctrine of necessity would come into play. Hence the impugned orders of the High Court and the School Tribunal are liable to be reversed. Since the School Tribunal   rejected   all   other   contentions   of   respondent   No.1,   but upheld   only   the   contention   revolving   around   Rule   36(2)(b),   the penalty of removal from service imposed upon the first respondent is liable to be upheld. However, if by virtue of any interim order passed by any forum, the respondent No.1 has been granted any monetary benefit, the same shall not be recovered from him. The appeal is accordingly allowed on the above terms and there shall be no order as to costs.   ……………………………….J. (HEMANT GUPTA) ………………………………..J. (V. RAMASUBRAMANIAN) New Delhi March 29, 2022 16