In Brief
A paddy procurement centre employee was dismissed for alleged short delivery of grain and embezzlement. The employee denied all charges in written replies, but the inquiry officer concluded the case without holding an oral hearing or examining any witnesses, relying only on documentary evidence. The Supreme Court quashed the dismissal, holding that once charges are denied, the employer must lead oral evidence and allow cross-examination. An "evasive reply" does not constitute admission of guilt. The Court ruled that departmental inquiries must observe substantive natural justice principles, not mere formalities. The Federation was permitted to conduct a fresh inquiry within six months, with the employee on suspension allowance; failure to do so results in full reinstatement with back wages.
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