Case Note & Summary
The petitioner, B. Narayana Rao, was appointed as a Clerk in Syndicate Bank on 22.5.1972 and rose to the position of Senior Manager in Grade Scale-V by 2006. On 20.3.2009, he was suspended due to alleged misconduct. A charge sheet with three charges was issued, and after a departmental enquiry, the Enquiry Officer found all charges proved. The petitioner's statement against the findings was considered, and the disciplinary authority imposed a penalty of reduction of two-third of his pension for a period of five years by order dated 20.10.2012. An appeal against this order was rejected on 31.12.2012. Aggrieved, the petitioner filed a writ petition under Articles 226 and 227 of the Constitution of India seeking quashing of both orders and direction to pay full pension under the Syndicate Bank (Employees) Pension Regulations, 1995. The court noted that the Chief Manager had reduced the pension without issuing a show cause notice to the petitioner, which is a violation of principles of natural justice. The court held that the order reducing pension was invalid and set aside both the order dated 20.10.2012 and the appellate order dated 31.12.2012. The court directed the respondent bank to restore the full pension to the petitioner and pay arrears within four weeks. The writ petition was allowed.
Headnote
A) Service Law - Pension - Reduction of Pension - Syndicate Bank (Employees) Pension Regulations, 1995 - The court considered whether the Chief Manager could reduce pension by two-thirds without issuing a show cause notice to the petitioner. Held that such reduction without affording an opportunity of hearing is violative of principles of natural justice and the Regulations. (Paras 1-5) B) Service Law - Pension - Show Cause Notice - Syndicate Bank (Employees) Pension Regulations, 1995 - The court held that before imposing a penalty of reduction of pension, the employer must issue a show cause notice to the employee. The failure to do so renders the order invalid. (Paras 4-5) C) Service Law - Pension - Proportionality - Syndicate Bank (Employees) Pension Regulations, 1995 - The court observed that reduction of two-third of pension is disproportionate and excessive. The bank must consider the gravity of misconduct and impose a proportionate penalty. (Para 5)
Issue of Consideration
Whether the reduction of two-third of the pension payable to the petitioner by the Chief Manager, Syndicate Bank, without issuing a show cause notice, is legal and valid under the Syndicate Bank (Employees) Pension Regulations, 1995.
Final Decision
The writ petition is allowed. The order dated 20.10.2012 and the appellate order dated 31.12.2012 are quashed. The respondent bank is directed to restore the full pension to the petitioner and pay the arrears within four weeks.
Law Points
- Pension reduction without show cause notice is violative of natural justice
- Pension Regulations must be strictly construed
- Two-third pension reduction is disproportionate
