The Delhi High Court will on July 04 hear the Centre's plea against the court's single judge bench order quashing suspension of State Trading Corporation's CMD Khaleel Rahim against whom the CBI lodged a case of cheating, conspiracy, breach of trust and misappropriation of stock to cause financial loss to the tune of Rs 2, 112 crores to the corporation.
On May 18, the HC's single judge bench in its order said that the prolonged suspension of the official without deciding his representation for review of action taken against him was wholly unjustified.
Referring to the Supreme Court order, the single judge bench also said that the apex court mandated that a suspension order should not be extended beyond the period of three-month and during this period, the charge-sheet should be served upon the delinquent officer.
On June 29, the Centre moved the HC challenging the May 18 order, stating that the latter erred in quashing the November 26 order of suspension against the CMD of the corporation.
The Centre argued that the HC's single judge bench did not take into account the fact that the CBI filed a case against the CMD and others for alleged abuse of official position, fraud, criminal conspiracy and misappropriation of stock to cause financial loss of multi-million crore.
In its contention, the Central government also said that the STC CMD's representation could not be acted upon as the corporation's Employees (Conduct, Discipline and Appeal) Rules, 1975 has no provision for the review of suspension.
The Centre had argued that in view of nature of the CBI's allegations against the CMD, revocation of his suspension amounted to placing him in a position "where from he may interfere in the free and fair preliminary enquiry and/or criminal investigation by either tempering with evidence or by threatening/winning over witnesses."