Case Note & Summary
The case involved an appeal by Punjab National Bank challenging the dismissal of its appeal against a High Court judgment that set aside the removal of K.K. Verma from service. The respondent, a manager at the bank, was charged with multiple allegations, including misconduct and misuse of his position. Following a departmental inquiry, he was found guilty of some charges, leading to his removal. The High Court ruled that the respondent was not provided a copy of the inquiry report prior to the disciplinary authority's decision, violating principles of natural justice. The Supreme Court examined whether the bank was required to furnish the inquiry report before imposing punishment. The court noted that the inquiry report was crucial for the employee to defend himself against the charges. It emphasized that the service regulations mandated providing the report when the disciplinary authority disagreed with the inquiry officer's findings. The court upheld the High Court's decision, modifying it to ensure the respondent received the inquiry report and an opportunity to explain his position. The court recognized the serious implications of removal from service and directed that the competent authority consider the respondent's long absence from work and impending retirement date when reviewing the case.
Headnote
A) Employment Law - Disciplinary Proceedings - Right to Inquiry Report - Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, Section 19 - The court held that the employee must be provided with a copy of the inquiry report before the disciplinary authority decides on the punishment, ensuring adherence to principles of natural justice. The failure to provide the report denied the employee the opportunity to defend against the charges effectively (Paras 12-31).
Issue of Consideration
Whether the respondent was entitled to a copy of the inquiry report before the issuance of the order of punishment.
Final Decision
The Supreme Court upheld the High Court's decision, modifying it to ensure the respondent received a copy of the inquiry report and an opportunity to explain his position regarding the charges before any decision on punishment was made.
Law Points
- natural justice
- disciplinary proceedings
- inquiry report
- opportunity to defend
- service regulations



