Rajasthan High Court Quashes Recovery From Employee Over Missing Stock, Says Misappropriation Allegations Require Disciplinary Proceedings
The Rajasthan High Court has held that when there is any serious misconduct on part of employee resulting in financial loss to the employer, the latter ought to initiate appropriate proceedings as permissible under the regulations, rather than ordering recovery solely on verification report.
The bench of Justice Munnuri Laxman was hearing a petition filed by government employee who was working as a Mechanic with Rajasthan State Road Transport Corporation (RSRTC). A physical verification of stock was conducted by the authority in which 8 tyres and 6 rims were found missing.
A verification report was made, based on which a show cause notice was issued to the petitioner for his explanation, and when the explanation was not found satisfactory, order was passed seeking recovery from the petitioner. This order was challenged.
It was contended by the petitioner that at the time of the concerned physical verification, he was not posted at that particular place. Hence, he could not be held liable for the alleged loss.
After hearing the contentions, the Court held,
“…there is a serious charge of misappropriation. When there is any serious misconduct which resulting in financial loss to the respondents, the respondents ought to have initiated appropriate proceedings as permissible under the regulations. In the present case, simply basing on the verification report, a show cause notice has been issued and after submission of petitioner's explanation to the show cause notice, the impugned order of recovery has been passed.”
It was further held that the order did not talk about the defence taken by the petitioner, or whether the deficit tyres and rims went missing during the period when the petitioner was posted at the concerned place.
The Court held that the order suffered from vagueness and was passed without following the required procedure.
Accordingly, the order was set aside.
Title: Ashok Kumar Saini v Rajasthan State Road Transport Corporation & Ors.
Citation: 2026 LiveLaw (Raj) 158