JUDGMENT

K. JAGANNATHA SHETTY, J.:— Nagaraj Shivarao Kajagi, the petitioner in SLP No. 4415 of 1989 has challenged his compulsory retirement and in Writ Petition No. 1287 of 1989 he has questioned the validity of the direction dated 21 July 1984 issued by the Finance Ministry, Government of India. Since the questions raised in both the cases are interlocked, we grant special leave in the S LP and proceed to dispose of the same along with the writ petition.

2. The events leading to these cases may briefly be stated. In 1982, the petitioner was a Manager of the Syndicate Bank (the Bank, at East Patel Nagar Branch at New Delhi. He discounted a cheque of the sum of Rupees 50,000/- drawn on Punjab National Bank, Madras, after obtaining, by phone prior approval of the Regional Divisional Manager of the Bank. The cheque was sent for realisation to the Punjab National Bank at Madras, but it was returned unpaid. The petitioner did not take prompt action to recover the amount from the person in whose favour he discounted the cheque. He kept the cheque with him even without reporting, to the higher authorities. In 1983, the Assistant General Manager of the Bank called upon him to explain why t