Dear Varsha,
Would you mind providing proper background information on what exactly happened? What was the type of misconduct, what was the designation of the employee, was the d0mestic enquiry conducted before awarding the information and so on. Please provide the information in chronological sequence. In fact, this is the basic expectation from the member who raises the post. Such posts could get deleted also, nevertheless, it was courtesy of senior members like Mr Umakanthan M who has given the reply, notwithstanding the inadequate information.
The "Conflict of Interest" is defined as, a situation in which the concerns or aims of two different parties are incompatible OR a situation in which a person is in a position to derive personal benefit from actions or decisions made in their official capacity. Please check whether the incident that has happened in your company fits within the definition. If not, then better not to do a further discussion on "conflict of interest" but as a matter of procedure of handling discipline.
Thanks,
Dinesh Divekar