Kanagavel. R vs. The District Manager

Facts

The petitioner, R. Kanagavel, was an employee of the Tamil Nadu State Marketing Corporation Limited (TASMAC). He faced charges for selling IMFL liquor at an additional rate of Rs. 10 per unit. Initially, the respondent, the District Manager of TASMAC, directed the petitioner to pay a penalty along with the GST amount. When the petitioner failed to pay, an inquiry was conducted, charges were proved, and the petitioner was terminated from service through an order dated 16.11.2020. The petitioner filed a writ petition challenging this termination order. The petitioner expressed willingness to pay the penalty of Rs. 10,000 and the GST amount of Rs. 1,800. The respondent, on instructions, agreed to reinstate the petitioner if these amounts were paid instead of termination.

Held

The Court held that the impugned order of termination passed by the respondent dated 16.11.2020 is set aside. This decision was based on the mutual submissions of both counsels. The petitioner's willingness to pay the penalty and GST, coupled with the respondent's agreement to reinstate him upon payment, formed the basis of the Court's order. The Court directed that the termination order would be revoked only upon the petitioner paying a total sum of Rs. 11,800/- (Rs. 10,000/- penalty + Rs. 1,800/- GST) to the respondent as expeditiously as possible. The Court did not expressly leave any issue undecided. The ratio decidendi is that in cases of employee misconduct involving financial irregularities, reinstatement with payment of dues can be a permissible alternative to termination, especially when both parties agree to such a resolution.

Key Issues

1. Whether the termination of the petitioner from service is illegal, arbitrary, and in violation of law, considering the petitioner's willingness to pay the penalty and GST amount? (Question of law and fact, turning on principles of natural justice and proportionality of punishment). Petitioner's contention: The petitioner argued that he was willing to pay the penalty of Rs. 10,000/- and the GST amount of Rs. 1,800/-, as per the original order. The petitioner sought quashing of the termination order and reinstatement with back wages. Respondent's contention: The respondent, through its standing counsel, submitted that reinstatement was possible if the petitioner paid the penalty amount along with the GST amount, as an alternative to the punishment of termination.