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2006 Supreme(SC) 408

2006(5) Supreme 127
SUPREME COURT OF INDIA
(From Punjab & Haryana High Court)
B.N. Srikrishna and Lokeshwar Singh Panta, JJ.
D.A. Aggarwal (Dead) by LRs. — Appellant
versus
State Bank of India & Anr. — Respondents
Civil Appeal Nos. 959-960 of 2000
Decided on 27-4-2006
Counsel for the Parties :
For the Appellants : Jaideep Gupta, Sr. Advocate, Sandeep Parekh, Rajeev Mishra (for M/s. P.H. Parekh & Co.) Advocates.
For the Respondents : Rekesh Dwivedi, Sr. Advocate, Sanjay Kapur, Ms. Vimla Sinha, Abhishek Chaudhary, Gaurav Bhatia, Ms. Shubra Kapur, Rajiv Kapur and Ms. Arti Singh, Advocates.

Counsel for the Parties :
For the Appellants :Jaideep Gupta, Sr. Advocate, Sandeep Parekh, Rajeev Mishra (for M/s. P.H. Parekh & Co.) Advocates.
For the Respondents:Rekesh Dwivedi, Sr. Advocate, Sanjay Kapur, Ms. Vimla Sinha, Abhishek Chaudhary, Gaurav Bhatia, Ms. Shubra Kapur, Rajiv Kapur and Ms. Arti Singh, Advocates.

IMPORTANT POINT
There is no right vested in bank employee to demand an extension beyond the age of fifty eight years. Non extension of service is no reflection on the calibre of the officer and it carries no stigma.

Headnote:SERVICE LAW — State Bank of India Rules — Rule 15 — Removal from service — On challenge, alteration of punishment to demotion by two grades — Non consideration for promotion — Non extension of service upto the age of sixty years — Appellant had joined respondent bank as Probationary Officer on 15.1.1960 — He got repeated promotions during the period 1960-1980, reaching upto Top Executive Grade Scale VI as a Deputy General Manager — On 4.1.1981, appellant was posted as Deputy General Manager of respondent bank at Chandigarh — On 8.7.1981, appellant’s explanation was called for in respect of some irregularities pertaining to his work — He was placed under suspension — On challenge, Central Vigilance Commission appointed an enquiry officer who exonerated appellant of most of the major charges — Disciplinary Authority imposed punishment of demotion by two grades on appellant — Appellant was relegated to Middle Management Scale IV — Appellant joined the demoted post and was transferred to Bhopal but appellant did not join — During this period, appellant was not considered for promotion to the post of General Manager — On challenge, enquiry against appellant was quashed — Appellant was transferred to Hyderabad as Deputy General Manager, but he refused to join there as a matter of protest — Subsequently, appellant was posted at Chandigarh once again — He retired w.e.f. 10.9.1993 after working as Deputy General Manager and died in 2005 — Whether legal heirs could be granted the monetary benefits — (No).

       Held : We agree with the impugned judgment of the High Court that no fault could be found with the Interview Committee when they assessed the performance of the appellant to be poor. We have seen the record and the three questions that the Committee put to the appellant. Answers to those three questions would have demonstrated the depth of knowledge the appellant had in his professional field. The answers given by him to the questions asked, suggest that either he was incapable of answering them or that he was deliberately filibustering the interview. In either event, he did not deserve to be selected by the Interview Committee. No fault can be found with the decision of the Interview Committee or with the decision of the respondent-bank that the appellant was not fit for promotion to TEGS VII.(Para 24)

       If the bank considers that the continuance of services of an officer is desirable in the interest of the bank, it may allow him to continue beyond the age of superannuation. If the bank considers that the service of the officer is not required beyond the age of superannuation, that is the end of the matter. Further, non-extension of service is no reflection on the calibre of the officer and it carries no stigma. It appears to us that these principles were not kept in mind by the learned Single Judge when he interfered with the discretion of the respondent-bank not to grant an extension to the appellant.(Paras 28 and 29)

       There is another issue that precludes any relief being granted to the appellant. As a matter of fact, the appellant retired from service on 9.9.1993 and died in 2005. The learned counsel for the appellant contended that even though the appellant had died, his legal heirs could be granted the monetary benefits on the footing that the appellant was entitled to get extension of service by two years and was also entitled to promotion to TEGS VII. In our view, both these contentions are unsustainable. Even if the appellant were to succeed in his appeal, the most favourable order for him could have been a direction to the respondent-bank to reconsider his case for promotion to TEGS VII as also to reconsider extension of his service beyond the age of fifty-eight years. Thus, even with such a direction, it would not have been possible for us to say that the respondent-bank was bound to grant either of the appellant’s claims. Thus, there is no question of monetary relief being granted to the legal heirs of the appellant.(Para 30)

JUDGMENT

Srikrishna, J. — These two appeals arise between the same parties and are interconnected. Hence, they can be disposed of by a common judgment.

2. The appellants are the legal representatives of one D.C. Aggarwal, an erstwhile employee of the respondent-State Bank of India, who have brought these appeals claiming : (a) the benefits of an extension in service of the said D.C. Aggarwal up to the age of sixty years; and (b) the benefits arising out of notional promotion which ought to have been granted to the said employee, etc. For the purpose of convenience, the said D.C. Aggarwal shall be referred to as “the appellant” in the course of our judgment.

Background to the Promotion Issue

3. The appellant joined the respondent-bank as Probationary Officer on 15.1.1960. He got repeated promotions during the period 1960-1980 reaching all the way to Top Executive Grade Scale VI (hereinafter “TEGS VI”) as a Deputy General Manager on 27.7.1980. On 4.1.1981, the appellant was posted as Deputy General Manager of the respondent-bank at Chandigarh and was put in charge of the respondent-bank’s branches in the State of Haryana and in the Union Territory of Chandigarh. On 8.7.1981 the appellant’s explanation was called for in respect of some irregularities pertaining to his work. He gave an explanation, which was not acceptable to the respondent-bank and on 11.7.1981, he was placed under suspension. The respondent-bank conducted an inquiry and the investigating officials held an ex-parte inquiry. The appellant challenged the investigation and the matter ultimately landed up in this Court. This Court disposed of the matter by a direction that the Central Vigilance Commission appoint an inquiry officer who would re-open the inquiry from the stage it was closed. Further directions were given so as to enable the parties to lead evidence and to ensure that the inquiry was conducted expeditiously.

4. The inquiry was conducted by one A.K. Rastogi, a senior IAS officer, who submitted his report on 30.5.1985 by which he exonerated the appellant of most of the major charges; and put on record that most of the charges were fabricated and were intended to denigrate the conduct of the appellant as a senior and responsible official of the bank. The report of A.K. Rastogi was considered by the Central Vigilance Commission, which, however, disagreed with his findings and found the charges proved against the appellant. It recommended that, at the very least, the appellant be removed from service. The Disciplinary Authority of the respondent-bank, through an elaborate order, agreed with the findings of the Central Vigilance Commission, except with regard to the recommendation on the quantum of punishment. It found that the recommended punishment of removal from service, was too harsh and instead imposed the punishment of demotion by two grades on the appellant.

5. Consequently, the appellant was relegated to Middle Management Scale IV, virtually resulting in the forfeiture of almost more than a decade’s service of the appellant. This order was confirmed by the executive committee of the respondent-bank on 4.11.1987. The appellant joined the demoted post of Secretary, Banking Services Recruitment Board, Chandigarh, though under protest. Within twenty-six-days, he was transferred to Bhopal. He, however, did not join the post at Bhopal on the ground that it was against the rule for officers of Middle Management Grade Scale to be transferred out of the circle. After about six months, the transfer of the appellant was cancelled and he was permitted to join in the demoted post as Officer on Special Duty, Zonal Office, Chandigarh. A departmental appeal carried by the appellant against the order of the penalty imposed on him, was dismissed.

6. During the aforesaid period, the appellant was not considered for promotion to the post of General Manager (TEGS VII) on 1.8.1984, 20.2.1986, 8.6.1987, 1.8.1988, 24.4.1989 and 3.2.1992. Also, the appellant’s case was not conside












































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