High Court of Bombay at Nagpur Quashes Dismissal of Bank Manager in Disciplinary Proceeding — Penalty Disproportionate to Misconduct Where No Loss Caused to Bank. Employer Must Consider Nature and Gravity of Charges and Unblemished Service Record Before Imposing Major Penalty.

High Court: Bombay High Court Bench: NAGPUR In Favour of Accused
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Case Note & Summary

The petitioner, Kishor Gopichand Ukey, was a Manager with the Central Bank of India. He was served with a charge-sheet containing eight charges in a departmental proceeding. Upon conclusion of the inquiry, all eight charges were held proved. Based on findings for Charge Nos. 1, 3, and 5, a major penalty of dismissal was imposed, while minor penalties were imposed for the remaining charges. Charge No. 1 related to bills purchased by discounting cheques; Charge No. 2 to issuance of cheques without sufficient balance; Charge No. 3 to credit card purchases not cleared; and Charge No. 5 to availing Leave Fare Concession without traveling. The petitioner challenged the dismissal, arguing that no loss was caused to the bank as all amounts were recovered, and that the penalty was disproportionate given his unblemished service record. The court, relying on the judgment in Narayan Salve v. Managing Director, MSRTC, held that even if charges are proved, the employer must consider the nature and gravity of the charges and mitigating circumstances before imposing punishment. Since the bank had recovered all amounts and the petitioner had a clean record, the dismissal was set aside and the matter remitted to the disciplinary authority for reconsideration of penalty.

Headnote

A) Service Law - Disciplinary Proceedings - Proportionality of Punishment - Central Bank of India Service Rules - The court considered whether dismissal was disproportionate where charges of financial irregularities were proved but no loss was caused to the bank and the employee had an unblemished record - Held that the employer must consider nature and gravity of charges and mitigating circumstances before imposing major penalty (Paras 2-7).

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Issue of Consideration

Whether the penalty of dismissal imposed on the petitioner is disproportionate to the charges proved, especially when no loss was caused to the bank and the petitioner had an unblemished service record.

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Final Decision

The petition is allowed. The impugned order of dismissal is quashed and set aside. The matter is remitted back to the disciplinary authority to reconsider the quantum of punishment, taking into account the nature and gravity of the charges and the fact that no loss was caused to the bank. The disciplinary authority shall pass a fresh order within three months.

Law Points

  • Proportionality of punishment
  • Mitigating circumstances
  • Unblemished service record
  • No loss caused to employer
  • Disciplinary proceedings
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Case Details

2026 LawText (BOM) (05) 61

Writ Petition No. 3327 of 2012

2026-05-05

Anil S. Kilor, Raj D. Wakode

Mr. C.G. Barapatre for Petitioner, Mr. Ninad W. Almelkar for Respondents

Kishor S/o. Gopichand Ukey

Chairman & Managing Director, Central Bank of India & Ors.

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Nature of Litigation

Writ petition challenging dismissal from service in disciplinary proceedings.

Remedy Sought

Petitioner sought quashing of dismissal order and reinstatement with consequential benefits.

Filing Reason

Petitioner was dismissed from service as Manager of Central Bank of India based on charges proved in departmental inquiry.

Previous Decisions

Disciplinary authority imposed dismissal based on Charge Nos. 1, 3, and 5; minor penalties for other charges. Appellate and reviewing authorities upheld the dismissal.

Issues

Whether the penalty of dismissal is disproportionate to the charges proved. Whether the disciplinary authority considered the nature and gravity of charges and mitigating circumstances.

Submissions/Arguments

Petitioner argued that no loss was caused to the bank as all amounts were recovered. Petitioner argued that his unblemished service record was not considered. Petitioner relied on Narayan Salve v. MSRTC to argue that employer must consider mitigating circumstances.

Ratio Decidendi

Even if charges are proved in a disciplinary proceeding, the employer must consider the nature and gravity of the charges and mitigating circumstances such as no loss caused and unblemished service record before imposing a major penalty like dismissal. Failure to do so renders the punishment disproportionate.

Judgment Excerpts

Even if it is accepted that the charges are proved against the Petitioner, for the purpose of inflicting any punishment, it is mandatory for the Employer to take into consideration the nature and mitigating gravity of the charges.

Procedural History

Departmental inquiry held against petitioner; charges proved; disciplinary authority imposed dismissal; appeal and review dismissed; writ petition filed in High Court.

Acts & Sections

  • Central Bank of India Service Rules:
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