M.D., U.P. COOP. UNION LTD. vs MOHAN BABU SRIVASTAVA .

The Supreme Court held that the inquiry against the respondent was flawed as the inquiry officer failed to apply his mind to the materials presented, violating principles of natural justice. The Court found that the High Court's order for reinstatement was unsustainable, as the respondent had not participated in the proceedings. Consequently, the matter was remitted for a de novo inquiry, with the stipulation that the respondent would not receive subsistence allowance for the period of his absence from the inquiry process.