This case examines the jurisdiction to initiate disciplinary proceedings after an officer’s superannuation. The Supreme Court ruled that such proceedings, initiated post-retirement or post-extended service, lack jurisdiction and are void-ab-initio. Consequently, the penalty imposed on the respondent was quashed, and all due benefits were directed to be released.

1. Facts and Background:

• Appointment and Superannuation: Respondent joined SBI in 1973 and was due to retire in 2003 upon completing 30 years of service. His service was extended to October 1, 2010.
• Allegations: Accused of irregular loan sanctions during extended service. Notice issued on August 18, 2009.
• Disciplinary Action: Suspension followed on August 21, 2009. A charge memo was issued post-retirement on March 18, 2011.

2. Legal Provisions Discussed:

• Rule 19 of SBI Service Rules: Governs retirement contingencies and disciplinary proceedings post-superannuation.
• Section 68(1): Disciplinary action must initiate during service or deemed continuation.
• Judicial Precedents: Cases like Union of India vs. K.V. Janakiraman and UCO Bank vs. Rajinder Lal Capoor clarified that disciplinary proceedings commence only upon issuance of a charge memo.

3. Key Legal Findings:

• Jurisdiction: The charge memo issued on March 18, 2011, was post-retirement (October 1, 2010), making proceedings void-ab-initio.
• Legal Fiction: Under Rule 19(3), proceedings initiated pre-superannuation could continue post-retirement. However, no such initiation occurred.
• No Master-Servant Relationship: Post-October 1, 2010, the respondent was no longer in service.

4. Ratio Decidendi:

Disciplinary proceedings must be initiated during service or deemed service through legal fiction. Initiation post-retirement violates jurisdiction, rendering all consequential actions invalid.

Acts and Sections Discussed:

1. State Bank of India Act, 1955
2. State Bank of India Officers’ Service Rules, 1992
   • Rule 19(1): Retirement contingencies (age of 60, 30 years of service, or pensionable service).
   • Rule 19(3): Disciplinary proceedings continuation post-superannuation.
3. Judicial precedents: Union of India vs. K.V. Jankiraman, UCO Bank vs. Rajinder Lal Capoor.

Subjects:

Employment Law, Disciplinary Proceedings, Retirement Jurisprudence

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