S K MITTAL ADMINISTRATIVE OFFICER Vs. NATIONL INSURANCE COMPANY LTD
LAWS(P&H)-2008-1-28
HIGH COURT OF PUNJAB AND HARYANA
Decided on January 25,2008

S K MITTAL ADMINISTRATIVE OFFICER Appellant
VERSUS
NATIONL INSURANCE COMPANY LTD Respondents

JUDGEMENT

- (1.) THE petitioner has invoked the writ Jurisdiction of this Court for quashing of the charge-sheet served upon him on 23. 5. 2003 and the order dated 5. 11. 2003, passed by the Disciplinary Authority imposing major penalty of reduction of basic pay of the petitioner by three stages. The petitioner has also challenged the order dated 27-5-2004 and the order dated 15-9-2004 passed by the Appellate Authority and the reviewing Authority respectively affirming the order of punishment passed by the Disciplinary Authority. The petitioner, while working as Branch Manager in the Branch Office, Barnala of the respondent-Company during the year 1998-99, was served with a charge-sheet having authorized one outsider namely Sushil Kumar to issue Cover Notes from the Cover Note Book obtained by the petitioner for his personal use. By such process, the petitioner has violated the Agency Commission Structure and gave credit of business to Shri Pardeep Kumar, agent, who had no role in procurement of the business. It was also alleged that the petitioner simultaneously used two Cover Note Books in violation of the manual of the issuance of the Cover Note books and violated the Rules.
(2.) THE petitioner submitted a reply dated 21. 7. 2003 to the charge-sheet served upon him. In the said reply, the petitioner admitted that he has authorized an outsider namely Sushil Kumar to issue a Cover note from the Book issued to him. It was pointed out by the petitioner that, in fact, Sushil Kumar was earlier doing insurance business of M/s. New India insurance Company Limited, but on his persuasion, he agreed to do the business of the respondent-Company. It was pointed out that Sushil Kumar has given the business to the tune of Rs. 10,00,000 annually and the claim ratio was less than 10%. It was pointed out that he had to authorize him to issue the Cover Notes from his book to compete with the other subsidiaries of the Company, It is also admitted by the petitioner that since Sushil Kumar was not having the Insurance Agency himself, he promoted the business procured by Sushil Kumar and given credit of business to another Agent Mr. Pardeep Kumar.
(3.) ON the basis of the averments contained in the reply, the Competent Authority passed an order of reduction of basic pay of the petitioner by three stages. The appeal and review against the said order have been dismissed, as mentioned above.;


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