Project Report On:

ANALYSIS OF MAJOR AND MINOR

PENALTIES

UNIVERSITY INSTITUTE OF LEGAL STUDIES, PANJAB

UNIVERSITY, CHANDIGARH.

SUBMITTED TO: SUBMITTED BY:

Dr. Sonal Deeksha

11/14, 8th Sem

Section- A

B.A.LLB. (Hons.)

Service law Project.

 ACKNOWLEDGEMENT

It is with profound gratitude and deep reverence that I have completed this
project today, as it would have not been possible for me to do so without the
indispensable guidance of my teacher, Dr. Sonal who encouraged me to go
forward with this project report.

I’m also grateful to the many authors whose books and articles I have used as a
valuable resource for my work. I hope this project meets everyone’s
expectations.

Thank you

(Deeksha)
 TABLE OF CONTENTS
 INTRODUCTION…………………………………………………5
 PENALTIES…………………………………………………........6
 MINOR PENALTIES-
 Censure……………………………………………………..6
 Censure And Warning Distinguished
 Withholding Of Promotion…………………………………8
 Recovery From Pay……………………………………........9
 Withholding Of Increments……..…………………………10
 MAJOR PENALTIES-
 Reduction In To Lower Stage In Time-Scale Of Pay, Grade,
Post Or Service………………………………………………11
 Exceptions:
 Reduction To A Lower Grade/Service/Post Not Held Before
 Reduction In Status Of An Employee From Permanent To
Temporary
 Reduction To A Lower Stage In Time Scale Of Pay For A
Specified Period, No Bar To Promotion
 Imposition Of Two Penalties For One Lapse/Offence
 Compulsory Retirement Under Rule 11……………………..14
 Removal Under Rule 11 (8)………………………………..…14
 Dismissal Under Rule 11(9)…………………………………..15
 Termination Of A Govt. Servant Is Not By Way Of
Punishment If………………………………………………...15
 BIBLIOGRAPHY ………………………………………………16
 Table of cases:

 Jagat Narain v. F.C.I

 Mahabir Prasad v. chairman, HSEB
 M.P.S.A.I.D Corpn. V. Jahan Khan
 R.K. Das v. Coal India Limited
 Tarsem Singh v. State of Punjab
Introduction:

However, as is said by Lord Acton that power corrupts and absolute power
corrupts absolutely, many a times, some Govt. Servants start misusing their
official power and position. They start shirking work, do not do their work as
per rules and orders and indulge in other kinds of misconduct. Therefore, in
order to discipline them and to control them, the concept of departmental
proceedings is provided in the service rules.

With   large   scale   transformations   and   changes   in   social  

lifestyle, work culture and in the functioning of various spheresof administratio
n, bureaucracy, politics and social life, it has   become   imperative   that   all
employees follow a standard code of conduct in their functioning in various
organizations.

Generally the govt. servants are given various kinds of protections as regard to
their services, but the service rules also provide for the imposition of penalties
in case a govt. servant is found guilty of any kind of misconduct, any
blameworthy act. Keeping in view the gravity of misconduct committed by the
employee1, the disciplinary authority is to decide the kind of penalty to be
imposed on him. Disciplinary Proceedings are initiated against a Government
servant who is alleged to have committed a misconduct which is detrimental to
the prospects of the concerned department and the same may have also caused a
pecuniary loss, etc.

As to the meaning of misconduct, The term “Misconduct “is not defined nor any
acts are classified as misconducts in the CCS (CCA) Rules. The dictionary
meaning of the word is given as bad management, malfeasance or culpable
neglect of an official in regard to his office-(Murray’s Dictionary). It is a

1
For example slowness is not a misconduct and penalty cann’t be enforced for this.
violation of definite law, a forbidden act- (Ballentine’s Law Dictionary). It
implies a wrongful intention and not a mere error of judgment-(Law Lexicon)

A misconduct committed even outside office premises, a disciplinary action can

be taken there against. More so, assaulting a colleague even outside office is
misconduct.2

PENALTIES

Relevant rule and Government instructions.--Rule 11 of the Central Civil

Servants (Classification, Control and Appeals), these Rules prescribe the
penalties in departmental proceedings. The following penalties may for good
and sufficient reasons and as herein-after provided, be imposed on a
Government servant by considering the gravity of misconduct, namely-

Minor Penalties-- (i) Censure; (ii) Withholding of promotion. ; (iii) Recovery

from his pay of the whole or part of any pecuniary loss caused by him to the
Government by negligence or breach of orders; (iv) Withholding of increments
of pay.

Major penalties – (a)Removal; (b) Dismissal; (c) Reduction in rank

MINOR PENALTIES:

Censure.--An order of “censure” is formal and public act intended to convey

that the person concerned has been guilty of some blameworthy act or omission
for which it has been found necessary to award him a formal punishment, and
nothing can amount to a “censure” unless it is intended to be such a formal
punishment and imposed for “good and sufficient reason” after following the
prescribed procedure. A record of the punishment so imposed is kept on the
officer’s confidential roll and the fact that he has been “censured” will have its
2
A. Jayaram v. Vice President, 2004 (3) SLJ 95 (CAT-Bangalore)
bearing on the assessment of his merit or suitability for promotion to higher
posts.

Before imposing this kind of penalty, a show cause notice, indicating the points
on which the employee is expected to give reply, to provide him with a
reasonable opportunity for defense.

There may be occasions, on the other hand, when a superior officer may find it
necessary to criticize adversely the work of an officer working under him (e.g.
point out negligence, carelessness, lack of thoroughness, delay etc.) or he may
call for an explanation for some act or omission and taking all circumstances
into consideration, it may be felt that, while the matter is not serious enough to
justify the imposition of the formal punishment of “censure”, it calls for some
informal action such as the communication of a written warning, admonition or
reprimand. If the circumstances justify it, a mention may also be made of such a
warning etc., in the officer’s confidential roll. However, the mere fact that it is
so mentioned in the 11 character roll does not convert the warning etc. into
“censure”. Although such comments, remarks, warning etc. also would have the
effect of making it apparent or known to the person concerned that he has done
something blameworthy and, to some extent, may also affect the assessment of
his merit and suitability for promotion, they do not amount to the imposition of
the penalty of “censure” because it was not intended that any formal punishment
should be inflicted.

Censure and Warning Distinguished -

A "censure" may be distinguished from "warning". While censure is a formal

penalty, warning is an administrative action. It is an administrative device in the
hands of the superior officer for cautioning the subordinate officials with a view
to toning up efficiency and maintaining discipline.
 Sometimes, circumstances justify the mention of warning in the officials
Confidential Roll. However, the mere fact that it is so mentioned in the
Confidential Roll does not convert a "warning" into a "censure".

When a copy of warning is kept in the Confidential Roll of the employee, it will
be taken as adverse entry. In that case, the employee concerned will have the
right to represent against it in accordance with the rules. The procedure laid
down for imposing minor penalties is to be followed in such cases. Though,
mention of a warning in the Confidential Roll, would have the effect of making
it apparent that the employee concerned has done something blameworthy and
to some extent may also effect the assessment of his merit and suitability for
promotion, it would not, however, amount to the imposition of the penalty of
censure, because it was not intended that any formal punishment should be
inflicted. In the case of R.K. Das v. Coal India Limited 3 Refusal to consider the
name for promotion only on this ground has been held illegal. If at the end of
the year the authority feels that the conduct of the employee has not improved
despite the warning, it may make mention of such warning in confidential report
and copy of it to be kept in confidential roll file.

Withholding of promotion.- every govt. servant has the right to be

considered for promotion. And that right has to be judged by checking seniority
cum merit.

However the withdrawal of promotion is itself one of the minor penalties, which
can be imposed on the govt. Servants. But promotion can be withheld if no
prima facie case has been established against him. If the case is so established
and it is intended to take action against him, then govt. can withhold his
promotion. In Jagat Narain v. F.C.I,4 the promotion orders of the petitioner
were cancelled as he was facing disciplinary proceedings on day of his
3
1999(1) SLR (cal) 58.
4
2008 (3) SLR 316.
promotion. Five vigilance cases were pending against him. The sealed cover
procedure adopted by the respondent in respect of the petitioner, in denying him
the promotion, was held not to be arbitrary, unfair or unjust.

But before imposing this penalty, the disciplinary authority must ensure that
initiation of enquiry was not outcome of nay bias or malafide. Though for
imposing this penalty notice of proposed punishment is not necessary, but the
govt. servant would have the right to make the representation against the order.

Recovery from pay:

Every govt. servant is expected to exercise the same vigilance in respect of the
public money as in respect of his own money. Where some pecuniary loss has
been caused to govt. due to his act or omission by negligence or breach of order,
the govt. by imposing this penalty can recover the whole or part of the loss.

The following requirements are to be met for imposing this kind of penalty:

 Recovery can be ordered only from pay, not from pension or allowances
 Recovery cannot be ordered for an amount more than the actual loss to
the government
 The loss for which the recovery is to be ordered, must be pecuniary
 The loss must have been caused to the govt.
 The loss has been caused either by negligence or breach of orders.

The liability should not be fixed in arbitrary manner. The status and financial
condition of the employee should be kept in view while fixing the amount and
deciding mode of recovery. It should be regulated in such a manner that it
doesn’t impair the future efficiency.
In M.P.S.A.I.D Corpn. V. Jahan Khan5, it has been held that the penalty of
recovery from pay cannot be imposed without conducting an enquiry as
otherwise it is impossible to arrive at the correct finding with regard to causing
of the loss by the employee by his negligence or breach of duty and with regard
to quantum of loss.

Withholding of increments.- withholding of increments has been held to

be a minor penalty.as a measure of minor penalty, the increment can be
withheld for a specified period only. Unless a specific order for withholding of
increment payable to a govt. servant is passed by the disciplinary authority, he
earns the increment in a scale of pay, as the matter of right and as a matter of
course. Stoppage of increment for one year without any future effect has
nothing to do with the determination of his seniority. An order of withholding
the increments is quasi judicial in nature. It must, therefore be a speaking order.
It must be passed after application of mind by authority on employee
explanation to the show cause notice.

The penalty of withholding an increment takes effect from the date of

increment accruing to the officer after the issue of the punishment orders. It
cannot affect the increment which was due prior to the issue of the punishment
orders even though it may not have actually been drawn due to the officer being
on leave or other administrative reasons. When the penalty of withholding of
increment is awarded to an employee, it is obligatory on the part of the
disciplinary authority to specify the period for which the penalty should remain
current. A doubt has been raised whether in such a case, all the increments
falling due during the currency of the penalty or only one increment should
remain withheld during the specified period. It is clarified that an order of
withholding of increment for a specified period implies withholding of all the

5
AIR 2007 SC 3153.
increments admissible during that specified period and not the first increment
only.

The following shall not amount to a penalty:

a) Withholding of increments for failure of the employee to pass any

departmental examination in accordance with the service rules;6
b) Stoppage of a government servant at the efficiency bar (E.B) in the time
scale of pay on the ground of his unfitness to cross the efficiency bar.7

Stoppage of increments with cumulative effect is a kind of major penalty8, as it

has perpetual effect on the entire tenure of service of the employee. Thus it
could not be imposed without following the procedure of issuing notice and
charge sheet.

In Tarsem Singh v. State of Punjab9, it has been held that stoppage of

increments with cumulative effect is a major penalty and can be imposed only
after holding a regular departmental enquiry.

MAJOR PENALTIES-

1. Reduction in to lower stage in time-scale of pay, grade, post or

service

An order imposing the penalty should invariably specify the stage in terms of
rupees to which the employee is reduced. It should also indicate the extent to
which the order should operate to postpone future increments.

When a govt. servant is reduced to a particular stage, his pay will remain
constant at the stage of entire period of reduction. Every order passed by a
6
Explanation (1), C.C.S. (C.C.A.) rules, 1965
7
Explanation (2), C.C.S. (C.C.A.) rules, 1965
8
P.S.E.B v. Raj Kumar Goel, (2014) 4 SLR 199 (P. & H.)
9
(2013) 5 SLR 502(P. & H.)
competent authority, imposing on a Government servant the penalty of
reduction to a lower stage in a time-scale, post, grade or service should indicate:

(i) the date from which it will take effect and the period (in terms of years
and months) for which the penalty shall be operative ;
(ii) the stage in the time-scale (in terms of rupees) to which the Government
servant is reduced ; and
(iii) the extent (in terms of years and months), if any, to which the future
increments are postponed, unless the intention is that the reduction
should be permanent or for an indefinite period.
(iv) Whether the govt. servant shall regain his original seniority in the higher
time scale of pay, grade, post or service.

EXCEPTIONS:

The following shall not amount to be a penalty of reduction to a lower stage in

the time scale of pay, grade, post or service:

(i) reversion of a govt. servant officiating in a higher services, grade or post,

on the ground that he is considered to be unsuitable for such higher
services, grade or post or on any administrative ground unconnected with
his conduct;
(ii)reversion on probation on a higher service, grade or post, to his permanent
service, grade or post, in accordance with the terms of his appointment or
the rules or the standing order governing such probation;
(iii) Replacement of the services of govt. servant, whose services had been
borrowed from the state govt. or any authority under the control of that
govt.

Reversion to a lower post:

 In Mahabir Prasad v. chairman, HSEB 10 , it has been held that reversion to
a lower post is a major penalty. It cannot be imposed without conducting a
regular inquiry.

Reduction To A Lower Grade/Service/Post Not Held Before:

it has been held that the power to reduce in rank by way of punishment can
only be exercised in respect of those employees who were appointed by
promotion to a higher post, service etc. therefore a directly appointed
employee cannot be reverted to a lower post against which he was never
appointed.

Reduction in status of an employee from permanent to temporary:

This is not one of the recognized penalties that can be imposed on a govt.
servant under the service rules. Even a quasi permanent employee cannot be
relegated to a temporary status for reasons of efficiency or as a disciplinary
measure. The reason being that the penalties permissible under the rules can
only be imposed.

Reduction to a lower stage in time scale of pay for a specified period, no

bar to promotion:

This penalty has the following implications:

 the penalty can be imposed for a specified period only and it should be
reasonable one
 the reduction in pay can be ordered to any lower stage in the time scale,
but cannot be fixed at the amount below the minimum scale
 it is obligatory for the authority to make orders:

10
(2013) 3 SLR (188) (P. & H.)
  whether the employees will draw his normal increments during the
e occurrence of the punishment
 Whether the reduction will have effect of postponing his future
increments.

Imposition of two penalties for one lapse/offence: normally there should be

no necessity for imposing two statutory penalties at a time for a single offence
committed by a govt. Servant. But there is no bar in awarding penalty of
recovery of pay along with any other penalty.

2) Compulsory retirement under rule 11

Though the penalty of compulsory retirement doesn’t find a mention in article

311 of the constitution, the apex court has held that the penalty is deemed to be
included in term ‘removal from service’11. The penalty differs from the
dismissal or removal from service in regard to retirement benefits. While
dismissal or removal from service entails forfeiture of past services and
deprivation of retirement benefits, the person on whom the penalty of
compulsory retirement is imposed, remains entitled to the proportionate pension
on the basis of the service rendered by him. There is also no bar to his re-
employment under the govt.

3) Removal under rule 11 (8)

Removal means removal from service which shall not be disqualification for
future employment under the govt.

4) Dismissal under rule 11(9)

11
Union of India v. Tulsiram Patel, AIR 1985 SC 1416
Dismissal means dismissal from service which shall ordinarily be a
disqualification for future employment under the govt.

In every case in which the charge of possession of assets or disproportionate to

known source of income or the charge of acceptance from any person or
gratification, other than legal remuneration, as a motive or reward for doing or
forbearing to do any official act is established, the penalty mentioned in clause
(8) or clause (9) shall be imposed. Further in any exceptional case and for
special reasons recorded in writing, any other penalty may be imposed.

Termination of a govt. servant is not by way of punishment if:

a) Termination of a govt. servant appointed on probation, during or at the

end of period of his probation, in accordance with the terms of his
appointment or the rules or orders governing such probation.
b) Of a temporary govt. servant in accordance with the provisions of sub
rule (1) of rule 5 of Central Civil Services(Temporary Service Rules,
1965;
c) A govt. servant employed under an agreement, in accordance with the
terms of the agreement.

Bibliography
 Kumar Narinder, Law Relating to Government Services and Management
of Discipline Proceedings,
 http://www.grkarelawlibrary.yolasite.com/resources/SM-Jul14Lab-3-
Sarita.pdf
 http://www.rmlnlu.ac.in/webj/rajat_pradhan.pdf
 http://14.139.60.114:8080/jspui/bitstream/123456789/679/41/Disciplinar
y%20Proceedings.pdf
 http://www.legalservicesindia.com/article/1927/Disciplinary-
Proceedings-against-a-Govt.-Servant.html