Supreme Court Allows State Bank of India's Appeal Against Direction for Repeated Hearing to Delinquent Employee. The Court held that once a delinquent employee refuses to avail the opportunity of hearing, he cannot be granted another opportunity on the ground of justice.

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Case Note & Summary

The case pertains to a disciplinary proceeding against Atindra Nath Bhattacharyya, a Chief Manager of State Bank of India, who was charge-sheeted with 16 charges of irregularities in credit and local clearing instruments. The inquiry officer found 10 charges proved, and the appointing authority imposed the penalty of removal from service on January 24, 2003, which was affirmed by the appellate authority on April 19, 2005. The respondent filed a writ petition, and the Single Bench of the Calcutta High Court set aside the punishment on January 13, 2016, on the ground that the delinquent was not given an opportunity to show cause on the nature and quantum of punishment. The Bank did not challenge this order but called the respondent for a personal hearing on March 24, 2016, April 7, 2016, and April 22, 2016, but the respondent refused to appear, stating that he had filed an appeal. The Division Bench of the High Court dismissed the respondent's appeal on April 7, 2017, but directed the Bank to grant another opportunity of hearing. The Bank appealed to the Supreme Court. The Supreme Court held that once the respondent had refused to avail the opportunities provided, he was not entitled to another opportunity. The Court also noted that the allegations of financial irregularities were grave and serious, and the order of removal could not be said to be unjust. The appeal was allowed, and the direction of the Division Bench to grant another opportunity was set aside.

Headnote

A) Service Law - Disciplinary Proceedings - Opportunity of Hearing - Refusal to Avail - Once a delinquent employee refuses to avail the opportunity of hearing granted by the disciplinary authority, he cannot be granted another opportunity on the ground of justice. The Division Bench's direction to grant another opportunity was set aside. (Paras 9-10)

B) Service Law - Disciplinary Proceedings - Previous Punishments - Consideration - The requirement of second show cause notice stands omitted by 42nd Amendment; there is no bar to take into consideration previous punishments in the constitutional scheme. (Para 7)

C) Service Law - Disciplinary Proceedings - Major Penalty - Opportunity of Hearing - If the inquiry report is furnished and opportunity given to the delinquent, there is no further requirement of another opportunity before imposing penalty. (Para 8)

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Issue of Consideration

Whether the Division Bench of the High Court was justified in directing the Bank to grant another opportunity of hearing to the respondent after he had repeatedly refused to avail the opportunities provided.

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Final Decision

The Supreme Court allowed the appeal, set aside the direction of the Division Bench to grant another opportunity of hearing, and upheld the order of removal from service.

Law Points

  • Natural justice
  • opportunity of hearing
  • disciplinary proceedings
  • refusal to avail opportunity
  • no further opportunity after refusal
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Case Details

2019 LawText (SC) (7) 49

Civil Appeal No. 5842 of 2019 (Arising out of SLP (Civil) No. 16640 of 2017)

2019-07-25

L. Nageswara Rao, Hemant Gupta

State Bank of India & Ors.

Atindra Nath Bhattacharyya & Anr.

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Nature of Litigation

Civil appeal against the order of the Division Bench of the Calcutta High Court directing the appellant Bank to grant another opportunity of hearing to the respondent in a disciplinary proceeding.

Remedy Sought

The appellant Bank sought setting aside of the Division Bench's direction to grant another opportunity of hearing to the respondent.

Filing Reason

The respondent was charge-sheeted for irregularities while working as Chief Manager, and after inquiry, was removed from service. The Single Bench set aside the punishment for lack of opportunity to show cause on quantum. The Bank offered hearing but respondent refused. The Division Bench directed another opportunity, which the Bank challenged.

Previous Decisions

Single Bench of Calcutta High Court set aside punishment on January 13, 2016; Division Bench dismissed respondent's appeal but directed another opportunity on April 7, 2017.

Issues

Whether the Division Bench was justified in directing the Bank to grant another opportunity of hearing to the respondent after he had refused to avail the opportunities provided.

Submissions/Arguments

Appellant argued that the respondent refused to avail opportunities and cannot be granted another opportunity, relying on Bank of India v. Apurba Kumar Saha and State Bank of India v. Mohammad Badruddin. Respondent argued that before imposing major penalty, he was entitled to be heard, relying on State Bank of India v. Ranjit Kumar Chakraborty.

Ratio Decidendi

Once a delinquent employee refuses to avail the opportunity of hearing granted by the disciplinary authority, he cannot be granted another opportunity on the ground of justice. The delaying tactics cannot be rewarded.

Judgment Excerpts

Once opportunity has been granted to the respondent, he is not entitled to another opportunity on the ground of compassion. The delaying tactics cannot be rewarded in such a manner.

Procedural History

Charge sheet issued on December 28, 1999; inquiry report submitted on January 14, 2002; punishment of removal imposed on January 24, 2003; appeal dismissed on April 19, 2005; writ petition filed; Single Bench set aside punishment on January 13, 2016; Bank offered hearing on March 24, April 7, April 22, 2016; respondent refused; Division Bench dismissed appeal but directed another opportunity on April 7, 2017; present appeal filed.

Acts & Sections

  • Constitution of India:
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