Departmental inquiry and recovery of money at belated stage is not permissible as it is against principle of Natural Justice

Punjab and Haryana High Court: In a verdict that may have huge implications, especially for government employees, the Punjab and Haryana High Court has held that departmental inquiries against employees cannot be permitted at a belated stage and that orders for recovery of money at a belated stage amounts to violation of natural justice. Pronouncing its verdict in a case where Punjab Forest Corporation took action against an employee after 17 years, the HC held, "It is not expected of any employee to defend an action after the lapse of such a long period because, at this juncture, with passage of time, the employee would not be in possession of relevant material and evidence. It also ordered the department to refund the amount recovered by the department to the appellant. A division bench comprising Chief Justice A K Sikri and Justice Rakesh Jain passed these orders after allowing an appeal by Nirmal Singh, field supervisor, Punjab State Forest Development Corporation.
The appellant was working as field supervisor and incharge of Kalanaur depot under project officer, Gurdaspur, in the Forest Development Corporation. In July 1993, there were heavy rains, which caused floods in and around Kiran drain, adjacent to Kalanaur depot, as a result of which lots of wood got swept away in floods. According to the appellant, he immediately reported the matter to higher ups. However, on September 1, 2010, around 17 years after the incident, the department issued an order holding him responsible for the loss of wood and also ordered recovery of Rs 3,76,090 from his salary. He approached the higher authority against the recovery orders but failed to get any relief. Finally, he moved the Punjab and Haryana high court. (Nirmal Singh v. Punjab State Forest Corporation Ltd., LPA No. 2027 of 2011, decided on October 3, 2012)