State Govt Can't Suo Motu Entrust Inquiry Against Employees Of Statutory Bodies To Lok Ayukta : Karnataka High Court

A division bench of Justice B V Nagarathna and Justice Hanchate Sanjeev Kumar on going through the Karnataka Lokayukta Act (KL) and Rules and the Karnataka Civil Services (Classification, Control and Appeal) Rules, 1957, (CCA), said,

"On a conjoint reading of Rule 14-A with Rules 2(d) and 3 of the CCA Rules, it is evident that the CCA Rules are not applicable to the petitioners in the instant cases. Although the employees of such a statutory body or a Corporation or a Government company are "public servants" and therefore, the provisions of KL Act applies to them, they are not "Government servants" within the meaning of Rule 2(d) read with Rule 14-A of the CCA Rules."

Further the court held "The State Government is also not the Disciplinary Authority in respect of such public servants. Therefore, the State Government on receipt of the report from the Lokayukta or the Upa-lokayukta must submit the same to the Disciplinary Authority constituted under the particular C&R Rules/Regulations (Cadre and Recruitment rules) of the entity in which the public servant is employed. The Disciplinary Authority can then entrust the inquiry to the Lokayukta, if Rule 14-A of the CCA Rules have been adopted in the C&R Rules of the particular Entity."

The court also observed "Alternatively, the C&R Rules can expressly prescribe entrustment of inquiry to the Lokayukta or the Upa-lokayukta. In the absence of either of the two contingencies, the State Government cannot usurp jurisdiction under Rule 14-A of the CCA Rules to entrust the inquiry to the Lokayukta."

The court passed the order while hearing a petition filed by RF Hudedavar and others who were employees of Karnataka Rural Infrastructure Development Ltd., challenging the order passed by the State Government entrusting inquiry to the Lokayukta against them.

Section 2 (6) of the Karnataka Lokayukta Act, 1984 reads thus: "Government Servant" means a person who is a member of the Civil Services of the State of Karnataka or who holds a civil post or is serving in connection with the affairs of the State of Karnataka and includes any such person whose services are temporarily placed at the disposal of the Government of India, the Government of another State, a local authority or any person, whether incorporated or not, and also any person in the service of the Central or another State Government or a local or other authority whose services are temporarily placed at the disposal of the Government of Karnataka;

Section 2(12) (g) reads thus: "Public servant" means a person who is in the service of pay of,- (i) a local authority in the State of Karnataka. (ii) a statutory body or a corporation (not being a local authority) established by or under a State or Central Act, owned or controlled by the State Government and any other board or Corporation as the State Government may, having regard to its financial interest therein, by notification, from time to time, specify. (iii) a company registered under the Companies Act, 1956, in which not less than fifty-one percent of the paid up share capital is held by the State Government, or any company which is a subsidiary of such a company. (iv) a society registered or deemed to have been registered under the Karnataka Societies Registration Act, 1960, which is subject to the control of the State Government and which is notified in this behalf in the Official Gazette. (v) a co-operative Society; (vi) a university;

Rule 14-A of CCA rules reads thus: Procedure in cases entrusted to the Lokayukta.—(1) The provisions of subrule (2) shall, notwithstanding anything contained in Rules 9 to 11-A and 13, be applicable for purposes of proceeding against 'Government Servants' whose alleged misconduct has been investigated into by the Lokayukta or an Upa-lokayukta either under the provisions of the Karnataka Lokayukta Act, 1984 or on reference from Government (or where offences alleged against them punishable under the Prevention of Corruption Act, 1947, or the Prevention of Corruption Act, 1988 has been investigated by the Karnataka Lokayukta Police before 21st day of December, 1992.

Findings

The bench observed "It is necessary to note that Rule 14-A of the CCA Rules applies only to Government servants and not public servants. As to the definition of Government servants under CCA Rules is concerned, Rule 2(d) of the CCA Rules defines a "Government Servant" in identical terms as "Government Servant" is defined under the KL Act. The expression 'Government servant' under the CCA Rules does not include within its scope and ambit a 'public servant'."

The court then held "Even though under the provisions of KL Act and rules the competent authority for employees of such a statutory body or a Corporation or a Government Company (who are in any case public servants within the meaning of Section 2(12) of the KL Act) is the Government of Karnataka, but, such employees are "not Government servants" within the meaning of Rules 2(d) and 3 of the CCA Rules. Hence, on receipt of a report under Section 12(2) of the KL Act by the competent authority, namely, the Government of Karnataka, vis-à-vis the employees of such statutory bodies or Corporation or Government Companies, such as KRIDL in the instant case, it has to be sent to the Disciplinary Authority under the C&R Rules of KRIDL for the purpose of taking a decision with regard to the conduct of inquiry and not directly entrust the inquiry to the Lokayukta under Rule 14-A of the CCA Rules."

To avoid litigation regarding jurisdiction of entrustment of inquiry to Lokayukta the court suggested "It would be useful for all the entities which are excluded under Rule 3 of the CCA Rules to incorporate a provision akin to Rule 14-A of the CCA Rules in their respective C&R Rules or adopt Rule 14-A of the CCA Rules expressly."