In Brief
A Panchayat Assistant was dismissed for misappropriating Panchayat funds. The High Court set aside the dismissal, finding the inquiry violated Natural Justice principles—specifically that the employee was not given a copy of the Inquiry Report or opportunity to comment on it. However, instead of remitting the case for a proper inquiry, the High Court ordered reinstatement with back wages. The Supreme Court held that the correct remedy for a vitiated inquiry is remand to the Disciplinary Authority to conduct the inquiry afresh with proper procedures, not direct reinstatement. The Court quashed the High Court's reinstatement order and remitted the case for fresh inquiry, though it awarded costs to the employee as compensation for repeated procedural violations."
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