Even minor penalties require a departmental inquiry when factual charges are denied.

The petitioner, an Assistant Engineer promoted to Executive Engineer, received a show-cause notice alleging irregularities during 19 November 1984 to 18 October 1985.

He sought an extension of time and copies of the measurement book and other relevant documents, stating that he could not respond effectively without them.

Although time was extended, the documents were not supplied.

The respondents nevertheless imposed a penalty of withholding two annual increments without cumulative effect on 4 December 2001.

The petitioner denied the factual charges and made further representations, but no regular departmental inquiry was conducted.

Whether the respondents could impose a minor penalty for disputed factual charges without supplying the requested relevant documents or conducting an inquiry.

Whether the punishment order was liable to be quashed for breach of natural justice.

Under the principles of natural justice, an employee must have an opportunity to respond to charges.

Where factual charges are denied, an inquiry is required even in proceedings concerning a minor penalty; withholding increments with or without cumulative effect does not dispense with that requirement.

The Court relied on O.K. Bhardwaj v. Union of India & Ors., (2001) 9 SCC 180, which held that an inquiry should be called for when factual charges are denied and that this is a minimum requirement of natural justice.

The petitioner repeatedly sought the measurement book and other relevant documents needed to answer the allegations, but the respondents imposed the penalty without supplying them.

Because the petitioner denied charges that were factual in nature, the respondents were also required to establish those charges through an inquiry.

The failure to provide the material and to conduct an inquiry deprived the petitioner of a reasonable opportunity to defend himself and violated natural justice.

The respondents were directed to extend all consequential benefits within three months of receiving a certified copy of the order; any unpaid amount would carry interest at 6% per annum from the date of entitlement until payment.

As the petitioner had retired, the Court granted no liberty to the respondents to take fresh action against him.