Hon’ble Supreme Court heard the case of Chairman-cum-Managing Director, Mahanadi Coalfields Limited v. Sri Rabindra Choubey. The Court by a majority of 2:1 observed that disciplinary inquiry against an employee can continue even after his retirement. Moreover, if the service rules permit, the employee can also be punished for the same; by way of dismissal or removal. The bench consisted of Justices Arun Mishra, MR Shah, and Jaswant Singh Gill.
Mahanadi Coalfield Limited framed Conduct, Discipline & Appeal Rules. Being that, Rule 34 provides for special procedures in certain cases. Moreover, it also permits the continuance of disciplinary proceedings even after the final retirement of an employee. The same authority has to conduct disciplinary proceedings in the manner as if the person was still in service.
Furthermore, no gratuity will be paid to a guilty person or it will be recovered if already paid. Prior to this, the High Court while delivering the judgment relied upon the dictum of Jaswant Singh Gill v. Bharat Coking Coal Ltd. (2007) SC; It contented that if the person attains the age of superannuation the question of imposing a major penalty would not arise. However, in Appeal, the Supreme Court while pronouncing the aforesaid judgment overruled the Jaswant Singh Case.