Case Note & Summary
The case involved an appeal against the dismissal of an employee from Punjab National Bank due to a conviction for embezzlement, which was deemed an offence involving moral turpitude. The appellant, Sushil Kumar Singhal, was appointed as a Peon in 1971 and was convicted in 1988 for failing to deposit Rs. 5000/- entrusted to him for a telephone bill. Following his conviction, the bank issued a show cause notice and subsequently dismissed him from service. The appellant raised an industrial dispute, which was referred to the Tribunal, but his claim for reinstatement was rejected. The High Court upheld the Tribunal's decision, leading to the current appeal. The appellant argued that the benefit of probation granted under the Probation of Offenders Act, 1958 should have allowed for his reinstatement, as it removed the disqualification associated with his conviction. Conversely, the respondent bank contended that the conviction itself remained valid and justified the dismissal. The Supreme Court analyzed the legal implications of the appellant's conviction and the provisions of the Probation of Offenders Act, concluding that the benefit of probation does not erase the conviction's impact on employment. The court cited several precedents to reinforce that a conviction for moral turpitude permits dismissal from service, regardless of probation status. Ultimately, the court dismissed the appeal, affirming the legality of the dismissal and the Tribunal's award.
Headnote
A) Employment Law - Dismissal for Conviction - Justification for Dismissal - The Banking Regulation Act, 1949, Section 10(1)(b)(i) - The court held that a conviction for an offence involving moral turpitude justifies dismissal from service, and the benefit of probation does not negate the fact of conviction. The appellant's conviction under Section 409 IPC was upheld, and the dismissal was found to be lawful (Paras 27-29).
Issue of Consideration
Whether the benefit granted under the Probation of Offenders Act, 1958 entitles the appellant to reinstatement in service despite conviction.
Final Decision
The Supreme Court dismissed the appeal, affirming the dismissal of the appellant from service due to conviction for an offence involving moral turpitude, as per the provisions of the Banking Regulation Act, 1949.
Law Points
- Disciplinary proceedings
- moral turpitude
- probation
- conviction
- reinstatement



