Case Note & Summary
The appellant, Sri M G Pandit (since deceased, represented by his legal heir Smt. Shobha M. Pandit), was a manager of the Benson Town Branch of Indian Bank from June 25, 1990 to April 9, 1991. During his tenure, he committed serious irregularities in the accounts of Nayan Steels Private Limited and Rajgir Steels Private Limited. He issued third party cheques to the tune of Rs. 2,16,00,000/- for the credit of these companies, far in excess of his powers, violating lending norms and causing loss to the bank. The amount outstanding under BP Returned Unpaid was not recovered to the tune of Rs. 50,40,000/-. The bank initiated disciplinary proceedings and imposed the punishment of dismissal. The appellant challenged the dismissal order by filing a writ petition before the High Court of Karnataka. The learned Single Judge dismissed the writ petition vide order dated July 25, 2013 in Writ Petition No.17400/2009. Aggrieved, the appellant filed the present writ appeal under Section 4 of the Karnataka High Court Act. The Division Bench, after hearing the parties, found no merit in the appeal. The court noted that the appellant had committed serious irregularities and exceeded his powers, causing substantial loss to the bank. The court held that the punishment of dismissal was proportionate and not disproportionate to the gravity of the misconduct. The appeal was dismissed.
Headnote
A) Service Law - Disciplinary Proceedings - Bank Employee Misconduct - Dismissal - The appellant, a bank manager, committed serious irregularities by issuing third party cheques far in excess of his powers, causing loss to the bank. The disciplinary authority imposed the punishment of dismissal, which was upheld by the Single Judge. The Division Bench held that the punishment was proportionate and not disproportionate to the gravity of the misconduct. (Paras 2-3)
Issue of Consideration
Whether the punishment of dismissal imposed on the appellant for committing serious irregularities and exceeding his powers as a bank manager was proportionate and justified.
Final Decision
The appeal is dismissed. The judgment and order dated July 25, 2013 passed by the learned Single Judge in Writ Petition No.17400/2009 is upheld.
Law Points
- Service Law
- Disciplinary Proceedings
- Bank Employee Misconduct
- Proportionality of Punishment
- Judicial Review of Disciplinary Orders
Case Details
2016 LawText (KAR) (02) 31
Writ Appeal No.5546 of 2013 (S-RES)
Subhro Kamal Mukherjee, Chief Justice, Ravi Malimath, Justice
Sri Jagadeeshachari (for appellant), Sri A Keshava Bhat (for respondent)
Sri M G Pandit (Since Deceased) By His Legal Heir Smt. Shobha M. Pandit
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Nature of Litigation
Service dispute - challenge to dismissal order passed by the bank against its manager for misconduct.
Remedy Sought
The appellant sought to set aside the order dated 25/07/2013 passed in Writ Petition No.17400/2009 and the dismissal order.
Filing Reason
The appellant was dismissed from service for committing serious irregularities and exceeding his powers as a bank manager.
Previous Decisions
The learned Single Judge dismissed the writ petition filed by the appellant challenging the dismissal order.
Issues
Whether the punishment of dismissal imposed on the appellant was proportionate to the misconduct committed.
Submissions/Arguments
The appellant argued that the punishment of dismissal was disproportionate to the alleged misconduct.
The respondent bank argued that the appellant committed serious irregularities causing loss to the bank, warranting dismissal.
Ratio Decidendi
The punishment of dismissal imposed on a bank manager for committing serious irregularities and exceeding his powers, causing substantial loss to the bank, is proportionate and not disproportionate to the gravity of the misconduct. The court will not interfere with the disciplinary authority's decision unless the punishment is shockingly disproportionate.
Judgment Excerpts
This is an appeal against the judgment and order dated July 25, 2013, passed by the Hon’ble Single Judge in Writ Petition No.17400 of 2009.
The writ petitioner –appellant was posted as the Manager of Benson Town Branch of the Indian Bank between June 25, 1990 to April 9, 1991. During his tenure, he committed serious irregularities in the accounts of Nayan Steels Private Limited and Rajgir Steels Private Limited.
He, also, issued third party cheques to the tune of ` 2,16,00,000/- (Rupees two crore sixteen lakh) only, for the credit of the said two companies. From 1990 onwards, those cheque purchases were far in excess of his powers.
Procedural History
The appellant was dismissed from service by the Indian Bank. He challenged the dismissal order by filing Writ Petition No.17400/2009 before the High Court of Karnataka. The learned Single Judge dismissed the writ petition on July 25, 2013. The appellant then filed the present Writ Appeal No.5546/2013 under Section 4 of the Karnataka High Court Act. The appeal was heard by a Division Bench and dismissed on February 29, 2016.
Acts & Sections
- Karnataka High Court Act: Section 4
