Bombay High Court Upholds Removal of Bank Officer for Misconduct in Loan Transaction. Disciplinary proceedings based on loan of Rs.6,500 sanctioned in 1976 held valid despite delay, as charges of moral turpitude and pecuniary benefit were proved.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
  • 4
Judgement Image
Font size:
Print

Case Note & Summary

The petitioner, Shri Sagar Sadashiv Kasture, was initially appointed as a Clerk in the Central Bank of India on 5 March 1973 and later promoted as an Officer (Grade I) in February 1981. He was subjected to disciplinary proceedings in December 1991 for alleged misconduct committed while working as a Clerk at the Vadgaon Anand Branch between 5 March 1973 and 21 September 1981. The charge was that he misused his position as an employee of the Bank by deriving pecuniary benefits from a loan of Rs.6,500 sanctioned and disbursed on 31 July 1976 in the name of one Manaji Baban Kokane. The petitioner denied the charges. An Inquiry Officer was appointed, who conducted a detailed inquiry and found the charges proved. The Disciplinary Authority, by order dated 28 August 1993, imposed the penalty of removal from service, with the clarification that the order would not be a disqualification for future employment. The Appellate Authority confirmed the order on 1 December 1993. The petitioner challenged both orders by way of a writ petition under Article 226 of the Constitution of India. The main legal issues were whether the disciplinary proceedings were vitiated by delay, whether the principles of natural justice were violated, and whether the punishment of removal was disproportionate. The court held that the delay in initiating proceedings was not fatal as the charges involved moral turpitude and the petitioner had not demonstrated any prejudice. The court also found that the petitioner was given full opportunity to defend himself and that the findings of the Inquiry Officer were based on evidence. On the question of proportionality, the court held that the punishment of removal was not disproportionate to the misconduct, as the petitioner had misused his position for personal gain. The court dismissed the petition, upholding the orders of the Disciplinary and Appellate Authorities.

Headnote

A) Service Law - Disciplinary Proceedings - Misconduct - Bank Employee - The petitioner, a bank officer, was removed from service for deriving pecuniary benefit from a loan of Rs.6,500 sanctioned in the name of a third party. The court held that the charges of misconduct were proved and the punishment of removal was not disproportionate. (Paras 1-10)

B) Service Law - Delay in Initiation of Proceedings - The disciplinary proceedings were initiated in December 1991 for misconduct committed between 1973 and 1981. The court held that the delay was not fatal as the charges involved moral turpitude and the petitioner had not raised any prejudice. (Paras 2-5)

C) Service Law - Natural Justice - The petitioner was given full opportunity to defend himself in the disciplinary proceedings. The court found no violation of principles of natural justice. (Paras 3-5)

D) Service Law - Proportionality of Punishment - The punishment of removal from service was held to be proportionate to the gravity of the misconduct, as the petitioner had misused his position for personal gain. (Paras 6-10)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the order of removal from service passed by the Disciplinary Authority and confirmed by the Appellate Authority is legal and valid, and whether the punishment of removal is proportionate to the misconduct proved.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The court dismissed the writ petition, upholding the order of removal from service passed by the Disciplinary Authority and confirmed by the Appellate Authority.

Law Points

  • Disciplinary proceedings
  • misconduct
  • bank employee
  • pecuniary benefit
  • removal from service
  • Article 226 of Constitution of India
  • delay in initiation of proceedings
  • natural justice
  • proportionality of punishment
Subscribe to unlock Law Points Subscribe Now

Case Details

2010 LawText (BOM) (06) 32

WRIT PETITION NO.2421 of 1994

2010-06-15

P.B.Majmudar, R.M.Savant

Mr.H.S.Venegavkar for petitioner, Mr.S.K.Talsania, Senior Advocate i/by M/s.Sanjay Udeshi & Co. for respondents

Shri Sagar Sadashiv Kasture

Central Bank of India through its Chairman and Managing Director, Regional Manager/Disciplinary Authority, Zonal Manager/Appellate Authority

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Writ petition under Article 226 of the Constitution of India challenging the order of removal from service passed by the Disciplinary Authority and confirmed by the Appellate Authority.

Remedy Sought

The petitioner sought quashing of the order of removal from service dated 28 August 1993 and the appellate order dated 1 December 1993.

Filing Reason

The petitioner was removed from service for alleged misconduct of deriving pecuniary benefit from a loan sanctioned in the name of a third party.

Previous Decisions

The Disciplinary Authority imposed penalty of removal from service on 28 August 1993, which was confirmed by the Appellate Authority on 1 December 1993.

Issues

Whether the disciplinary proceedings were vitiated by delay in initiation? Whether the principles of natural justice were violated? Whether the punishment of removal from service is disproportionate to the misconduct proved?

Submissions/Arguments

The petitioner argued that the proceedings were initiated after a long delay of about 15 years, causing prejudice. The petitioner contended that the findings of the Inquiry Officer were perverse and not based on evidence. The respondents argued that the charges involved moral turpitude and the delay was not fatal as the petitioner had not raised any objection during the inquiry. The respondents submitted that the punishment of removal was proportionate to the gravity of the misconduct.

Ratio Decidendi

The court held that delay in initiation of disciplinary proceedings is not fatal when charges involve moral turpitude and the employee has not demonstrated prejudice. The punishment of removal from service for deriving pecuniary benefit from a loan transaction is proportionate to the misconduct.

Judgment Excerpts

By way of this petition filed under Article 226 of the Constitution of India, the petitioner has challenged the order passed by the Disciplinary Authority of the respondent Bank dated 28081993, by which the petitioner is subjected to penalty of removal from the services. The petitioner was initially appointed as a Clerk in the respondent Bank on 05031973 and was working at the relevant time, at Vadgaon Anand Branch of the Bank upto 21091977. It was alleged that the petitioner while working as Clerk at the said Branch during the period between 05031973 to 21091981, committed misconduct by misusing his position as an employee of the Bank by deriving pecuniary benefits for himself through the loan of Rs.6,500/ which was sanctioned and disbursed on 31071976 in the name of one Manaji Baban Kokane.

Procedural History

The petitioner was appointed as Clerk on 5 March 1973, promoted as Officer in February 1981. Disciplinary proceedings initiated in December 1991. Inquiry Officer found charges proved. Disciplinary Authority imposed penalty of removal from service on 28 August 1993. Appellate Authority confirmed the order on 1 December 1993. Petitioner filed writ petition under Article 226 in 1994. The High Court dismissed the petition on 15 June 2010.

Acts & Sections

  • Constitution of India: Article 226
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Upholds Removal of Bank Officer for Misconduct in Loan Transaction. Disciplinary proceedings based on loan of Rs.6,500 sanctioned in 1976 held valid despite delay, as charges of moral turpitude and pecuniary benefit were proved.
Related Judgement
High Court Madras High Court Dismisses Writ Appeals Against Provisional Assessment Order Under Section 126 of Tamil Nadu Electricity Act — Opportunity of Hearing Available Before Final Order. The provisional assessment order is merely a show-cause notice and ...