D.P.Mohaptra, C.J. - (1.) This appeal filed under Chapter VIII, Rule 5 of the Allahabad High Court Rules by the U.P. Financial Corporation through its Chairman, the Managing Director of the Corporation and the Board of Directors of the Corporation through its Chairman is directed against the judgment dated 1.8.1994 of Civil Misc. Writ Petition No. 8472 of 1984. In the impugned judgment the learned single Judge has allowed the writ petition, quashed the order passed by the Board of Directors of the Corporation (for short, the Board) dated 30th June, 1984, which was communicated to the petitioner by the Managing Director of the Corporation by his letter dated 30th June, 1984 (Annexure 27 to the writ petition) and directed that the petitioner shall be reinstated on the post held by him forthwith with all benefits, leaving it open to the Corporation to initiate fresh proceedings against the petitioner if it so desires.
(2.) On analysis of the farts of the case, the findings recorded and the observations made by the learned single Judge and the arguments of the learned Counsel for the parties, the only question which needs determination is whether in the facts and circumstances of the case, the petitioner- respondent No. 1 is entitled to full backwages / salary for the period from the order of dismissal till his reinstatement in service. The learned Counsel for the appellants accepted the position that on the findings recorded by the learned single Judge, the direction for reinstatement of the petitioner- respondent No. 1 in service cannot be assailed. Therefore, learned Counsel for the parties concentrated on the question of payment of arrear salary wages to the petitioner-respondent No. 1.
(3.) The facts of the case, sans unnecessary details, may be stated thus : The petitioner-respondent No. 1 Shri V.P. Sharma was appointed as Senior Manager (Finance) by the Corporation. He was posted as Zonal Manager in the year 1978 and later on he was designated as Regional Manager in the year 1979. When he was posted as Regional Manager at Jhansi, the Managing Director of the Corporation ordered initiation of disciplinary proceeding against him and his suspension on 5. 11. 1981 and the said order was served on him on 10.11.1981. In the charge-sheet dated 5.11.1981 served on the petitioner- respondent No. 1, in short, the following charges were framed against him. (i) In the case of M/s. Farmer Brothers, Jhansi a proprietorship concern of Shri Azamat Khan in whose favour a term loan of Rs.1. 89 lacs was -sanctioned by the Internal Committee of the Corporation for setting up a unit of Bakery at D - 16. UPSIDC. Industrial Area. Bajoli. District Jhansi, the petitioner- respondent No. 1. authorised payment to be made to the Bank in contravention of the set norms of the Corporation and further despite the fact that the building plan of the unit was not approved by the competent authority, he authorised disbursement against the building, which was against the norms prescribed by the Corporation. Under this charge it was further alleged that although the security furnished by the party was giving zero per cent margin on the previously disbursed loan as against the stipulated margin of 15 per cent and no further disbursement was recommended by the Assistant Manager (T) of the Regional Office. Jhansi. the petitioner - respondent No. 1 authorised the payment of Rs. 18,540/- on 31.3.1980 despite the fact that the earlier disbursed loan had not been utilised properly. It was also alleged that during inspection of the unit on 7.1.1981 conducted by Shri Y.P. Gupta. Deputy Senior Manager (P) it was reported inter alia that the specifications of the machines brought by the party were not in accordance with the specification approved by the sanctioning authority and that from the exterior appearance it was evident that this showed that the petitioner respondent No. permitted disbursement in the case without observing due precautions, which resulted into mis-utilisation and mis-appropriation of the loan advanced by the Corporation. (ii) M/s. Bundelkhand Cones and Tubes. Jhansi. a sole proprietorship concern of Shri Sudharshan Kumar, were sanctioned a term loan of Rs. 3.75 lacs for setting up a unit to manufacture paper cones at plot No. ZO-30. Industrial Area, Bijoli. Jhansi by the Internal Committee of the Corporation vide its meeting held on 17.8.1979. The petitioner-respondent No. 1 authorised the disbursement of Rs. 2,84,711/- on the payment note dated 19.2.1980 to the party at the time of first disbursement despite several discrepancies pointed out by the office. Further, payment of Rs. 2,66,644/- was released on 18.2.1980, but no subsequent inspections of the site were arranged by the petitioner- respondent No. 1, which resulted in non-arrival of machines, documents in respect of which were retired by the Corporation. (iii) The petitioner-respondent No. 1 put up the proposal of M/s. Lokpriya Cream Centre. Jhansi. a partnership firm having its head office at 9.25. Premganj, Sipri Bazar, Jhansi, to the Internal Committee of the Corporation for sanction of term loan of Rs. 3,26 lacs, despite the fact that he was aware that the Internal Committee had already sanctioned in its meeting held on 17.8.1979, a term loan of Rs. 3.75 lacs to M/s. Bundelkhand Cones and Tubes. Jhansi, a proprietorship concern of Shri Sudarshan Kumar, who was the main person for the project in both the cases, but the petitioner-respondent No. 1 failed to comment on this aspect in his report, which showed that he did not take necessary precautions in processing the case of M/s. Lokpriya Cream Centre, Jhansi. (ui) Mr. Budelkhand Kagaz Karkhana, a proprietorship concern of Sri S,M. Husain having its registered office at 483, Mashiha Ganj. Jhansi. applied for sanction of a term loan of Rs. 2.00 lacs on 13.8.1979. Despite certain objections raised by the office and the proposal to require the party to clarify certain positions which were important and relevant for processing the papers, the petitioner-respondent No. 1 ordered on 13. 10. 1979 to process the case and put it up before the Regional Committee on 16. 10. 1979. Accprclingly, the case was put up before the Regional Committee. The loan was sanctioned on 16.10.1979. The allegation was that he pressurised the dealing officer to prepare the loan proposal and put it up before the Regional Committee without observing necessary and due precautions, which resulted into the sanction of a term loan of Rs. 2,00 lacs on wrongful lines. As the charge-sheet shows, the evidence in support of all the charges was the report dated 9.6.1981 of Shri A.K. Kulshrestha, Senior Manager (Tech.).;