27 January 1993
Supreme Court
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Vs

Bench: MOHAN,S. (J)
Case number: /
Diary number: 3 / 0748


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PETITIONER: UNION OF INDIA AND ORS.

       Vs.

RESPONDENT: K. K. DHAWAN

DATE OF JUDGMENT27/01/1993

BENCH: MOHAN, S. (J) BENCH: MOHAN, S. (J) SHARMA, L.M. (CJ) BHARUCHA S.P. (J)

CITATION:  1993 AIR 1478            1993 SCR  (1) 296  1993 SCC  (2)  56        JT 1993 (1)   236  1993 SCALE  (1)199

ACT: Central Civil Services (Classification, Control and  Appeal) Rules, 1965-Rule 14-Disciplinary proceedings against  Income Tax  Officer for violation of Rule 3(1)(i)(ii),(iii) of  the Central   Civil   Services  (Conduct)  Rules,   1964   while conducting assessments in irregular manner, in undue  haste, conferring undue favour upon the assessees-Legality of.

HEADNOTE: The respondent while working as Income Tax Officer completed certain assessments during the year 1982-83. A charge memorandum, was served on him, proposing to hold an inquiry  against  him  under Rule 14 of  the  Central  Civil Services (Classification, Central Appeal) Rules, 1965. A  statement  of article of charge was  framed  against  the respondent.  The substance of the charge was the  completion of  nine assessments in an irregular manner, hastily with  a view to confer undue favour upon the assessees, and by  such act,  he failed to maintain absolute integrity and  devotion to  duty  and exhibited a conduct unbecoming  of  government servant. The  details relating to misconduct or misbehaviour  of  the respondent- were furnished and he was charged for  violating the  provisions  of Rules 3 (1) (i), 3 (1) (ii)  and  3  (1) (iii) of the Central Civil Services (,Conduct) Rules,  1964. In support of the allegations, he was also supplied with the necessary documents. Against   the  memorandum,  the  respondent   preferred   an application  before  the  Central  Administrative  Tribunal, praying  for a stay of the disciplinary proceedings  and  to consider his case for promotion on merits without resort  to the sealed cover procedure. On  8.2.1991, the Tribunal directed the  appellant-Union  of India  to  open  the  sealed  cover  and  to  implement  the recommendations of the 297 Departmental  Promotion Committee to promote the  respondent to the post of Deputy Commissioner of Income Tax, if he  was found  fit for promotion within two weeks from the  date  of order.

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Later  on  223.1991, the Tribunal allowed  the  respondent’s application,   holding   that  the  action  taken   by   the respondent-officer  was quasi judicial and should  not  have formed the basis of disciplinary action.  The Tribunal  also made its earlier order dated 8.2.1991 absolute. The Union of India preferred the present appeals by  special leave against the orders of the Tribunal, contending that in a  case where disciplinary proceedings were pending  against the  respondent, the procedure of opening the  sealed  cover should  not  have  been resorted to.   Otherwise,  it  would amount  to  putting  a  premium on  misconduct  ;  that  the Tribunal failed to appreciate the ratio of the order in C.A. Nos.  4986-87/90;  that as the respondent  was  charged  for violation  of Rules 3(1)(i), 3(1)(ii) and 3(1)(iii)  of  the Central Civil Services (Conduct) Rules, 1964; immunity  from the disciplinary action could not be claimed. The  respondent  contended that the opening  of  the  sealed cover  was  correctly ordered because on the date  when  the Departmental  Promotion  Committee  met in  March  1989,  no charge-sheet  was  served  on the respondent;  that  as  the respondent  was exercising quasi-judicial functions,  orders made by him if were wrong, the remedy by way of an appeal or revision  could  be resorted to; that if in  every  case  of wrong  order, disciplinary action was resorted to, it  would jeopardize  the  exercise  of judicial  functions;  and  the immunity  attached  to the officer while  exercising  quasi- judicial powers would be lost. On  the question, whether an authority enjoys immunity  from disciplinary proceedings with respect to matters decided  by him  in exercise of quasi-judicial functions;  allowing  the appeals, this Court, HELD  :  1.01. The disciplinary action can be taken  in  the following cases : (i)  Where  the  Officer  had acted in  a  manner  as  would reflect  on  his reputation for integrity or good  faith  or devotion to duty ; (ii) if  there is prima facie material to show  recklessness or misconduct in the discharge of his duty; (iii)     if he has acted in a manner which is unbecoming of a govern- 298 ment servant; [311E-F] (iv) if  he  had acted negligently or that  he  omitted  the prescribed  conditions which are essential for the  exercise of the statutory powers; (v)  if he had acted in order to unduly favour a party, (vi) if  he  had been actuated by  corrupt  motive  however, small the bribe may be. [311G-H] The  instances above catalogued are not exhaustive.   For  a mere  technical  violation or merely because  the  order  is wrong and the action not falling under the above  enumerated instances, disciplinary action is not warranted.  Each  case will  depend  upon  the facts and no absolute  rule  can  be postulated. [312A-B] 1.02.     There is a great reason and justice for holding in such cases that the’ disciplinary action could be taken.  It is  one  of  the cardinal principles  of  administration  of justice that it must be free from bias of any kind. [311B] 1.03.     The  officer  who  exercises  judicial  or  quasi- judicial  powers acts negligently or recklessly or in  order to confer undue favour on a person is not acting as a judge. [311C] 1.04.     In  the present case, this Court Is not  concerned with  the  correctness or legality of the  decision  of  the respondent but the conduct of the respondent in discharge of

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his  duties as an officer.  The legality of the orders  with reference  to  the  nine assessments may  be  questioned  in appeal or revision under the Act. [311D] 1.05.     In  the  case on hand, article of  charge  clearly mentions that the nine assessments covered by the article of charge were completed (i)  in an irregular manner, (ii) in undue haste, and (iii)     apparently with a view to confer unduefavour  upon the assessees concerned. [310A-B] Therefore, the allegation of conferring undue favour is very much 299 there and certainly disciplinary action is warranted. [310C] Govinda Menon v. Union of India, AIR 1967 SC 1274; Thayre v. The London, Brighton and South Coast Railway Company, 22 TLR 240 and Thompson v. British Berna Motor Lorries Limited,  33 TLR 187 at page 188, referred to. Union  of  India & Ors. v. A.N. Saxena, [1992]  3  SCC  124, explained. SLP (C) Nos. 2635-36/89 in CA No. 4986-87/90, distinguished

JUDGMENT: CIVIL  APPELLATE JURISDICTION: Civil Appeal Nos. 266-267  of 1993. From  the Judgment and Order dated 8.2.91 &  22.3.91-of  the Central  Administrative Tribunal Principal Bench, New  Delhi in O.A. No. 2540/89 & M.P. No. 219 of 1991. K.T.S. Tulsi, Additional Solicitor General B.  Parthasarthy, P. Parmeshwaran and C.V.S. Rao for the Appellants. Indu Malhotra for the Respondent. The Judgment of the Court was delivered by MOHAN, J. Leave granted. The respondent, while working as Income Tax Officer, Muktsar during  the year 1982-83 completed certain  assessments.   A charge  memorandum dated 2.5.1989 was served on him  to  the effect it was proposed to hold an inquiry against him  under Rule  14  of  the Central  Civil  Services  (Classification, Central  & Appeal) Rules, 1965.  A statement of  article  of charge framed against him was to the following effect :              STATEMENT OF ARTICLE OF CHARGE FRAMED              AGAINST, SHRI K.K. DHAWAN, A GROUP ’A’              NOW POSTED AS ASSISTANT COMMISSIONER                    OF INCOME TAX, BOMBAY. Article I       Shri K.K. Dhawan while functioning as I.T.O. "A" 300 Ward, Muktsar during 1982-1983 completed nine assessments in the case of : (1)  M/s Chananna Automobiles, (2)  N/s Gupta Cotton Industries, (3)  M/s Ajay Cotton Industries, (4)  M/s National Rice Mills, (5)  M/s Tek Chand Buchram, (6)   M/s Tilak Cotton Industries, (7)  M/s Chandi Ram Behari Lal, (8)  M/s Phuman Mal Chandi Ram and (9)  M/s Modern Tractors in an irregular manner, in undue haste and apparently with a view to conferring undue favour upon the assessees concemed By  his above acts Shri Dhawan failed to  maintain  absolute integrity  and  devotion  to duty and  exhibited  a  conduct unbecoming of a Govt. servant, thereby violating  provisions

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of  Rules  3(1)  (i), 3(1) (ii) and 3(1) (iii)  of  the  CCS (Conduct) Rules, 1964. This  was  accompanied by a statement of imputation  of  his misconduct  or  misbehaviour in support of  the  article  of charge framed against him. In each of the nine cases of the assesses above referred to, the  details  relating to misconduct  or  misbehaviour  were furnished.   Therefore, it was charged that  the  respondent had  violated the provisions of Rule 3(1)(i),  3(1)(ii)  and 3(1)(iii)  of  the Central Civil Services  (Conduct)  Rules, 1964.    The  necessary  documents  in  support   of   these allegations were also enclosed. Against  the  said memorandum dt. 2.5.1989,  the  respondent preferred an application O.A. No. 2540/89 before the Central Administrative Tribunal, New Delhi praying for a stay of the disciplinary  proceedings  and  to  consider  his  case  for promotion  on  merits  without resort to  the  sealed  cover procedure. 301 By its order dt. 8.2.1991, Central Administrative  Tribunal, Principal Bench, New Delhi directed the respondent Union  of India to open the sealed cover immediately and implement the recommendations  of the Departmental Promotion Committee  in so far as it pertained to the petitioner and to promote  him to  the post of Deputy Commissioner of Income Tax if he  was found  fit for promotion within two weeks from the  date  of said order. Thereafter,  by  a detailed judgment  dated  22.3.1991,  the Tribunal  relying  on S.L.P. (C) Nos.  2635-36/89  in  Civil Appeal  No.  4986-87/90, held that the action taken  by  the officer  was quasi-judicial and should not have  formed  the basis  of disciplinary action.  Therefore,  the  application was  allowed and the impugned memorandum dated 2.5.1989  was quashed.   The  earlier  order dated 8.2.1991  to  open  the sealed   cover   and  implement   the   recommendations   of Departmental Promotion Committee was made absolute. Aggrieved  by  these two orders, the present  special  leave petitions have been preferred. The  teamed  counsel  for the appellant  Shri  K.T.S.  Tulsi submits as under:               (i)   That   in  a  case  where   disciplinary               proceedings    are   pending    against    the               respondent,  the  procedure  of  opening   the               sealed cover should not have been resorted to.               Otherwise,  it  would  amount  to  putting   a               premium on misconduct.               (ii)The  Tribunal  failed  to  appreciate  the               ratio  of the order in C.A.  Nos.  4986-87/90.               In  that case, the enquiry report showed  that               the charge framed against the officer had  not               been proved.  That is entirely different  from               holding  that  in  a  case  of  quasi-judicial               action  taken by the Officer  no  disciplinary               action  could be taken.  The true  purport  of               that  observation  is  only  to  buttress  the               earlier  finding that the charge had not  been               proved.  Therefore, reliance ought not to have               been placed on this ruling which turned on the               peculiar facts and circumstances of that case.               302               (iii)Though  nine  cases  were  cited  in  the               charge  memorandum, only one of the cases  had               been discussed.               (iv)Lastly,   it   is   submitted   that   the               respondent  is charged for violation  of  Rule

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             3(1)(i),  3(1)(ii)  and 3(1)(iii)  of  Central               Civil Services (Conduct) Rules, 1964.               Therefore,  if the conduct of  the  respondent               could  be  brought  within the  scope  of  the               Rules,  immunity from the disciplinary  action               cannot be claimed. In support of these submissions, reliance is placed on Union of India & Ors. v. A.N. Saxena, [1992] 3 SCC 124. In  Civil  Appeal No. 560 of 1991, the  peculiar  facts  art different;  in disregard to the instructions of the  Central Board  of  Direct  Taxes,  refund  of  taxes  was   ordered. Further,  there  was no allegation of corrupt motive  or  to oblige  any person on account of extraneous  considerations. Therefore, that ruling is distinguishable. The  respondent  would  try to support  the  impugned  order contending  that  the  opening  of  the  sealed  cover   was correctly ordered because on the date when the  Departmental Promotion  Committee met in March 1989, no charge-sheet  had been served on the respondent.  The charge memorandum  dated 2.5.1989  came up to be served only on 5.5.1989.  Therefore, following the earlier procedure such a direction was given. This is a case in which the respondent was exercising quasi- judicial functions.  If the orders were wrong the remedy  by way  of an appeal or revision could have been  resorted  to. Otherwise,  if  in every case of wrong  order,  disciplinary action  is resorted to, it would jeopardize the exercise  of judicial  functions.  The immunity attached to  the  officer while   exercising  quasi-judicial  powers  will  be   lost. Rightly, therefore, the Tribunal relied on Civil Appeal Nos. 4986-87/90   where  this  Court  took  the  view   that   no disciplinary  action can be taken in respect  of  exercising quasi-judicial  functions.   To  the same  effect  in  Civil Appeal  No. 560/91 the decision relied on by  the  appellant namely  Union of India & Ors., [1992] 3 SCC 124 (supra)  has no application to the instant case. The charge memorandum dated 2.5.1989 states as follows 303                        MEMORANDUM               "The  President  proposes to hold  an  inquiry               against Shri K.K. Dhawan under Rule 14 of  the               Central   Civil   Services    (Classification,               Central and  Appeal)  Rules,   1965.    The               substance of the imputations of misconduct  or               misbehaviour  in respect of which the  inquiry               is  proposed  to  be held is set  out  in  the               enclosed statement of article of charge." At this stage, we will refer to Rule 3(1)(i) , 3(1)(ii)  and 3(1)(iii)  of  the Central Civil Services  (Conduct)  Rules, 1964 which are as under   Rule 3 (1) : Every government servant shall at all time- (i)  maintain absolute integrity; (ii) maintain devotion to duty and (iii)  do  nothing  which  is  unbecoming  of  a  government servant. The  substance  of  the charge is  the  completion  of  nine assessments  in an irregular manner, hastily with a view  to confer  undue  favour upon the various assessees.   By  such act,  the respondent failed to maintain  absolute  integrity and  devotion to duty and exhibited a conduct unbecoming  of government servant.  Certainly, it cannot be contended  that concerning  the  violation of these rules,  no  disciplinary action could be taken.  However, what is urged is that in so far   as  the  respondent  was   exercising   quasi-judicial functions,  he could not be subject to disciplinary  action. The order may be wrong.  In such a case, the remedy will  be

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to take up the matter further in appeal or revision. The question, therefore, arises whether an authority  enjoys immunity  from  disciplinary  proceedings  with  respect  to matters  decided  by  him  in  exercise  of   quasi-judicial functions? In Govinda Menon v. Union of India, AIR 1967 SC 1274, it was contended  that no disciplinary proceedings could  be  taken against  appellant for acts or omissions with regard to  his work  as  Commissioner  under  Madras  Hindu  Religious  and Charitable Endowments Act, 1951.  Since the 304 orders  made by him were quasi-judicial in  character,  they should be challenged only as provided for under the Act.  It was further contended that having regard to scope of Rule  4 of  All India Services (Discipline and Appeal) Rules,  1955, the  act  or  omission of the  Commissioner  was  such  that appellant  was not subject to the administrative control  of the  Government and therefore, the disciplinary  proceedings were void.  Rejecting this contention, it was held as  under :               "It  is  not  disputed  that  the  appropriate               Government  has  power  to  take  disciplinary               proceedings against the appellant and that  he               could  be removed from service by an order  of               the  Central Government, but it was  contended               that I.A.S. Officers are governed by statutory               rules, that ,any act or omission’ referred  to               in  Rule  4(1)  relates  only  to  an  act  or               omission of an officer when serving under  the               Government,   and  that  ’serving  under   the               Government’     means    subject    to     the               administrative  control of the Government  and               that   disciplinary  proceedings  should   be,               therefore, on the basis of the relationship of               master  and  servant.  It was argued  that  in               exercising  statutory powers the  Commissioner               was not subject to the administrative  control               of the Government and disciplinary proceedings               cannot,  therefore, be instituted against  the               appellant  in  respect of an act  or  omission               committed   by  him  in  the  course  of   his               employment as Commissioner.  We are unable  to               accept  the proposition contended for  by  the               appellant  as  correct.  Rule  4(1)  does  not               impose  any limitation or qualification as  to               the  nature of the act or omission in  respect               of  which  disciplinary  proceedings  can   be               instituted.   Rule 4(1) (b) merely  says  that               the   appropriate  Government   competent   to               institute  disciplinary proceedings against  a               member of the Service would be the  Government               under whom such member was serving at the time               of the commission of such act or omission.  It               does  not  say-that the act or  omission  must               have  been committed in the discharge  of  his               duty  or in the course of his employment as  a               Government servant.  It is, therefore, open to               the    Government   to    take    disciplinary               proceedings  against the appellant in  respect               of his acts or omissions which cast               305               a reflection upon his reputation for integrity               or good faith or devotion to duty as a  member               of  the service.  It is not disputed that  the               appellant  was,  at the time  of  the  alleged

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             misconduct,  employed as the First  Member  of               the  Board of Revenue and he was at  the  same               time  performing  the duties  of  Commissioner               under the Act in addition to his duties as the               First Member of the Board of Revenue.  In  our               opinion, it is not necessary that a member  of               the Service should have committed the  alleged               act or omission in the course of discharge  of               his  duties as a servant of the Government  in               order  that it may form the subject-matter  of               disciplinary proceedings.  In other words,  if               the  act or omission is such as to reflect  on               the   reputation  of  the  officer   for   his               integrity  or good faith or devotion to  duty,               there   is   no   reason   why    disciplinary               proceedings  should not be taken  against  him               for  that act or omission even though the  act               or  omission relates to an activity in  regard               to which there is no actual master and servant               relationship.  To put it differently, the test               is  not  whether  the  act  or  omission   was               committed  by the appellant in the  course  of               the discharge of his duties as servant of  the               Government.   The test is whether the  act  or               omission  has some reasonable connection  with               nature and condition of his service or whether               the  act or omission has cast  any  reflection               upon  the  reputation  of the  member  of  the               Service for integrity or devotion to duty as a               public  servant.  We are of the  opinion  that               even  if the appellant was not subject to  the               administrative control of the Government  when               he  was functioning as Commissioner under  the               Act and was not the servant of the  Government               subject  to its orders at the  relevant  time,               his act or omission as Commissioner could form               the subject-matter of disciplinary proceedings               provided  the  act or omission  would  reflect               upon his reputation for integrity or  devotion               to  duty as a member of the service." In  this               context reference may be made to the following               observations  of  Lopes,  LJ.  in  Pearce   v.               Foster, [1866] 17 OBD 536, p.542.               "If  a  servant  conducts  himself  in  a  way               inconsistent with the               306               faithful discharge of his duty in the service,               it  is  misconduct which  justifies  immediate               dismissal.   That misconduct, according to  my               view,  need not be misconduct in the  carrying               on  of  the service of the  business.   It  is               sufficient   if   it  is  conduct   which   is               prejudicial or is likely to be prejudicial  to               the  interests  or to the  reputation  of  the               master, and the master will be justified,  not               only if he discovers it at the time, but  also               if  he discovers it afterwards, in  dismissing               that servant." (emphasis supplied)               Concerning,  the  exercise  of  quasi-judicial               powers   the  contention  urged  was  to   the               following effect :               "We next proceed to examine the contention  of               the   appellant  that  the  Commissioner   was               exercising   a  quasi-judicial   function   in               sanctioning  the leases under the Act and  his

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             order,  therefore,  could  not  be  questioned               except  in accordance with the  provisions  of               the Act.  The proposition put forward was that               quasi-judicial  orders, unless  vacated  under               the  provisions  of  the Act,  are  final  and               binding  and  cannot  be  questioned  by   the               executive   Government  through   disciplinary               proceedings.  It was argued that an appeal  is               provided under S.29(4) of the Act against  the               order of the Commissioner granting sanction to               a  lease  and  that it is open  to  any  party               aggrieved to file such an appeal and  question               the  legality or correctness of the  order  of               the Commissioner and that the Government  also               may in revision under S.99 of the Act  examine               the  correctness or legality of the order.  it               was  said that so long as these  methods  were               not adopted the Government could not institute               disciplinary  proceedings and reexamining  the               legality  of  the order  of  the  Commissioner               granting sanction to the leases."               That was rejected as under:               ’The  charge is, therefore, one of  misconduct               and   recklessness  disclosed  by  the   utter               disregard  of the relevant provisions of  S.29               and  the Rules thereunder in  sanctioning  the               leases.   On behalf of the respondents it  was               argued               307               both by Mr. Sarjoo Prasad and Mr. Bindra  that               the  Commissioner was not  discharging  quasi-               judicial functions in sanctioning leases under               S.29  of the Act, but we shall proceed on  the               assumption    that   the   Commissioner    was               performing    quasi-judicial   functions    in               granting  leases under S.29 of the Act.   Even               upon that assumption we are satisfied that the               Government    was   entitled   to    institute               disciplinary  proceedings if there  was  prima               facie  material  for showing  recklessness  or               misconduct on the part of the appellant in the               discharge of his official duty.  It is true if               the provisions of S.29 of the Act or the Rules               are disregarded the order of the  Commissioner               is   illegal  and  such  an  order  could   be               questioned  in  appeal under S.29  (4)  or  in               revision  under S.99 of the Act.  But  in  the               present  proceedings  what  is  sought  to  be               challenged  is  not  the  correctness  or  the               legality  of the decision of the  Commissioner               but  the  conduct  of  the  appellant  in  the               discharge of his duties as Commissioner.   The               appellant was proceeded against because in the               discharge of his functions, he acted in  utter               disregard of the provisions of the Act and the               Rules.    It  is  the  manner  in   which   he               discharged his functions that is brought up in               these proceedings.  In other words, the charge               and the allegations are to the effect that  in               exercising  his  powers  as  Commissioner  the               appellant  acted in abuse of his power and  it               was  in regard to such misconduct that  he  is               being  proceeded  against.   It  is  manifest,               therefore,  that  though  the  propriety   and               legality of the sanction to the leases may  be

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             questioned  in  appeal or revision  under  the               Act,  the  Government is  not  precluded  from               taking  disciplinary action if there is  proof               that  the  Commissioner  had  acted  in  gross               recklessness in the discharge of his duties or               that  he  failed to act honestly  or  in  good               faith  or  that  he  omitted  to  observe  the               prescribed conditions which are essential  for               the  exercise of the statutory power.  We  see               no reason why the Government cannot do so  for               the  purpose of showing that the  Commissioner               acted  in  utter disregard of  the  conditions               prescribed  for the exercise of his  power  or               that he was               308               guilty of misconduct or gross negligence.   We               are  accordingly  of  the  opinion  that   the               appellant  has  been unable to make  good  his               argument on this aspect of the case." The   above  case,  therefore,  is  an  authority  for   the proposition that disciplinary proceedings could be initiated against the government servant even with regard to  exercise of quasi-judicial powers provided :               (i)   The  act  or  omission  is  such  as  to               reflect  on the reputation of  the  government               servant  for  his integrity or good  faith  or               devotion to duty, or               (ii)there is prima facie material  manifesting               recklessness or misconduct in the discharge of               the official duty, or               (iii)the officer had failed to act honestly or               in  good faith or had omitted to  observe  the               prescribed conditions which are essential  for               the exercise of statutory power. We may also usefully refer to two English decisions.  Thayre v. The London, Brighton and South Coast Railway Company,  22 T.L.R. 240 states:               "Dishonesty’  included dishonesty outside  the               service  of the company as well as  dishonesty               towards the company." In Thompson v. British Berna Motor Lorries Limited 33 T.L.R. 187 at page 188, it has been held as under :               "It  was  the duty of the  servant  to  render               proper,   full  and  clear  accounts  to   his               principals,  and it was the duty of a  servant               to  render  prompt  obedience  to  the  lawful               orders  of  his  master.  in  this  case   the               plaintiff had failed in both respects.   There               was no question as to the plaintiff’s honesty,               but he had been negligent." The  Tribunal has chosen to rely on Civil Appeal Nos.  4986- 87/90.   The order in that case clearly shows  the  ultimate conclusion was that the charge framed against the delinquent officer  had  not  been established.   In  support  of  that conclusion, it was observed as under 309               "We are also of the view that the action taken               by the appellant was quasi-judicial and should               not  have  formed the  basis  of  disciplinary               action." We  do not think where to buttress the ultimate  conclusion, this  observation was made, that could ever be construed  as laying the law that in no case disciplinary action could  be taken if it pertains to exercise of quasi-judicial powers. Then, we come to Civil Appeal No. 560/91 to which one of  us

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(Mohan, J.) was a party.  The ruling in this case turned  on the peculiar facts.  Nevertheless, what we have to carefully notice is the observation as under :               "On   a  reading  of  the  charges   and   the               allegations   in  detail  learned   Additional               Solicitor General has fairly stated that  they               do  not disclose any culpability nor is  there               any  allegation  of  taking any  bribe  or  to               trying  to  favour  any party  in  making  the               orders  granting  relief in respect  of  which               misconduct is alleged against the respondent." The  above extract will clearly indicate that if  there  was any culpability or any allegation of taking bribe or  trying to favour any party in exercise of quasi-judicial functions, then  disciplinary  action  could be  taken.   We  find  our conclusion is supported by a following observations found in the said order at page 3:               "In  our view, the allegations are  merely  to               the  effect that the refunds were  granted  to               unauthorized instructions of the Central Board               of  Direct  Taxes.  There  is  no  allegation,               however, either express or implied that  these               actions were taken by the respondent  actuated               by any corrupt motive or to oblige any  person               on  account of extraneous considerations.   In               these   circumstances,  merely  because   such               orders  of  refunds were made,  even  assuming               that   they  were  erroneous  or   wrong,   no               disciplinary  action  could be  taken  as  the               respondent   was  discharging   quasi-judicial               function.   If  any erroneous order  had  been               passed  by him correct remedy is by way of  an               appeal  or  revision to have such  orders  set               aside." 310 In the case on hand, article of charge clearly mentions that the  nine assessments covered by the article of charge  were completed (i)  in an irregular manner, (ii) in undue haste, and (iii)     apparently with a view to confer undue favour upon the assessees concerned. (Emphasis supplied) Therefore, the allegation of conferring undue favour is very much  there unlike Civil Appeal No. 560/91.  If that be  so, certainly disciplinary action is warranted.  This Court  had occasion to examine the position.  In Union of India &  Ors. v. A.N. Saxena, [1992] 3 SCC 124 to which one of us  (Mohan, J.) was a party, it was held as under :               "It was urged before us by learned counsel for               the  respondent  that as the  respondents  was               performing    judicial    or    quasi-judicial               functions  in making the assessment orders  in               question  even if his actions were wrong  they               could be corrected in an appeal or in revision               and no disciplinary proceedings could be taken               regarding such actions.               In our view, an argument that no  disciplinary               action can be taken in regard to actions taken               or  purported  to  be done in  the  course  of               judicial or quasi-judicial proceedings is  not               correct.   It is true that when an officer  is               performing    judicial    or    quasi-judicial               functions  disciplinary proceedings  regarding               any  of  his  actions in the  course  of  such               proceedings  should be taken only after  great

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             caution  and a close scrutiny of  his  actions               and only if the circumstances so warrant.  The               initiation of such proceedings, it is true, is               likely  to shake the confidence of the  public               in  the officer concerned and also if  lightly               taken  likely to undermine  his  independence.               Hence,  the need for extreme care and  caution               before initiation of disciplinary  proceedings               against  an  officer  performing  judicial  or               quasi-judicial  functions  in respect  of  his               actions  in  the  discharge  or  purported  to               discharge his functions.  But it is not as  if               such action cannot be taken at all.  Where the               311               actions   of   such   an   officer    indicate               culpability, namely a desire to oblige himself               or  unduly  favour one of the  parties  or  an               improper   motive  there  is  no  reason   why               disciplinary  action should not be taken." This  dictum  fully  supports the stand  of  the  appellant. There  is  a great reason and justice for  holding  in  such cases  that the disciplinary action could be taken.   It  is one of the cardinal principles of administration of  justice that it must be free from bias of any kind. Certainly, therefore, the officer who exercises judicial  or quasi-judicial  powers acts negligently or recklessly or  in order to confer undue favour on a person is not acting as  a Judge.  Accordingly, the contention of the respondent has to be  rejected.  It is important to bear in mind that  in  the present  case, we are not concerned with the correctness  or legality  of the decision of the respondent but the  conduct of the respondent in discharge of his duties as an  officer. The  legality  of  the orders with  reference  to  the  nine assessments  may be questioned in appeal or  revision  under the  Act.   But  we  have no doubt  in  our  mind  that  the Government  is  not precluded from taking  the  disciplinary action  for  violation  of  the  Conduct  Rules.   Thus,  we conclude  that the disciplinary action can be taken  in  the following cases               (i)   Where the officer had acted in a  manner               as   would  reflect  on  his  reputation   for               integrity or good faith or devotion to duty;               (ii)if  there is prima facie material to  show               recklessness or misconduct in the discharge of               his duty;               (iii)if  he  has acted in a  manner  which  is               unbecoming of a government servant;               (iv)if  he  had acted negligently or  that  he               omitted  the prescribed conditions  which  are               essential  for the exercise of  the  statutory               powers;               (v)   if  he  had  acted in  order  to  unduly               favour a party-,               (vi)  if  he  had  been  actuated  by  corrupt               motive however, small the bribe may be because               Lord Coke said long ago "though the bribe  may               be small, yet the fault is great." 312 The instances above catalogued are not exhaustive.  However, we  may  add that for a mere technical violation  or  merely because the order is wrong and the action not falling  under the  above enumerated instances, disciplinary action is  not warranted.  Here, we may utter a word of caution.  Each case will  depend  upon  the facts and no absolute  rule  can  be postulated.

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In view of the foregoing discussion, the appeals will  stand allowed.  There will be no order as to costs. We  make it clear that it is open to the respondent  to  put forth  all defenses open to him in the departmental  inquiry which will be considered on its merit. V.P.R.                       Appeals allowed. 313