M.P.STATE AGRO INDUSTRIES DEV.CORPN.&ANR vs JAHAN KHAN

The Supreme Court held that the imposition of a major penalty, such as stoppage of increments, requires a proper departmental inquiry as per the established procedure under Articles 226/227 of the Constitution. The Court affirmed the High Court's decision to quash the disciplinary authority's order due to the lack of a proper inquiry, thereby upholding the principle that due process must be followed in disciplinary actions against employees. The appeals by the Corporation were dismissed, allowing the respondent to retain his increments.