Case Note & Summary
This case involved an appeal by the General Manager of Punjab & Sind Bank against a judgment by the Allahabad High Court that set aside the dismissal of a bank manager, Daya Singh, for misconduct. The respondent was found to have sanctioned loans against non-existent Fixed Deposit Receipts (FDRs) and left his post without handing over charge. The inquiry revealed that the respondent had misappropriated funds by issuing loans to fictitious persons, with entries in his handwriting. The inquiry officer concluded that the charges were proven based on documentary evidence. The High Court, however, found the inquiry report to be sketchy and lacking in detailed reasoning, thus ordering a fresh inquiry. The Supreme Court, upon review, determined that the High Court had erred in its assessment, emphasizing that the inquiry officer's findings were supported by substantial evidence. The Court reinstated the dismissal, stating that the respondent's actions constituted serious misconduct, and dismissed the High Court's order along with the contempt proceedings initiated by the respondent.
Headnote
A) Administrative Law - Misconduct - Establishment of Charges - Punjab & Sind Bank Officers Employees (Conduct) Regulations, 1981 - The inquiry officer found substantial evidence of misconduct by the respondent, including unauthorized loans against fictitious FDRs. The High Court's conclusion that the inquiry report was sketchy was held to be erroneous as the evidence was clear and substantial. Held that the dismissal was justified based on the established misconduct (Paras 12-20).
Issue of Consideration
Whether the High Court erred in setting aside the dismissal of the respondent based on the inquiry officer's report.
Final Decision
The Supreme Court allowed the appeal, set aside the High Court's judgment, and upheld the dismissal of the respondent for misconduct.
Law Points
- Misconduct
- departmental inquiry
- natural justice
- judicial review
- burden of proof


