JUDGMENT

H.K.SEMA,J

Leave granted.

The challenge in these appeals is to the order dated 7.12.2005 passed by the Division Bench of the High Court of Delhi, whereby the appeal preferred by the respondent-bank was allowed by setting aside the order dated 28.4.2005 of the learned Single Judge passed in W.P.( C ) No.6805 of 2002.

We have heard the parties.

The appellant was appointed by the respondent-bank as Officer Grade Scale-I. Thereafter, he was promoted to Officer Grade Scale-II, Scale-III and Scale-IV. At the relevant time, he was working as Chief Manager at Gurgaon branch of the respondent-bank.

By an order dated 23.12.1995, the appellant was placed under suspension in contemplation of the drawing up of the disciplinary proceedings. By the memorandum dated 20th August, 1998 he was served with the charge memo on the ground that he has violated Regulation 3(1) of Oriental Bank of Commerce Officer Employees (Conduct) Regulations, 1982 ( in short the Regulations, 1982).

The statement of imputation of misconduct in respect of article of charge framed against the appellant are as follows:-

"Sh.Suresh Pathrella, Chief Manager (under suspension) while posted and functioning as

Incumbent-in-charge at B/O Gurgaon had misappropriated an amount of Rs.10.00 lac of

a customer namely Sh.G.C. Luthra without his authority/consent.

On 27.1.1994, one party of B/O, Saket, New Delhi namely M/s Moradabad Builders Pvt.

Ltd., had sent a Pay Order No.536966/128/94 of Rs. 10.00 lacs in favour of Sh.G.C. Luthra to our B/O Gurgaon for crediting to his account. Sh. Suresh Pathrella while functioning as Incumbent-in-Charge at B/O. Saket,New Delhi with an endorsement to the effect that 'Payee's account will be credited on realisation' and also instructed vide his letter dated 27.1.94 to issue TPO in favour of Sh. G.C. Luthra for the proceeds. Accordingly, a TPO No.153935/22/94 dated 28.1.94 for Rs.10.00 lac favouring Sh.G.C. Luthra was issued and sent by B/O Saket to B/O Gurgaon. On 29.1.94, Sh. Suresh Pathrella opened a new saving bank account No.13392 with the malafide intention in the name of Shri G.C.Luthra without obtaining any account opening form and without the consent/authority of Sh.G.C.Luthra who was already maintaining his saving bank account No.12154 at B/O. Gurgaon since January, 1993. The proceeds of the said instrument amounting to Rs.10.00 lac was credited to newly opened-saving bank account No.13392 of Sh.Luthra and Sh.Suresh Pathrella himself with his own hand writing prepared and signed following three transfer vouchers by debiting Rs.10.00 lacs to the said account on the same day i.e. on 29.1.1994 without any authority;

a) Rs.2.00 lac transferred to Cash Credit A/C of M/s. M.K.Fertilizers.

b) Rs.3.00 lac transferred to current Account No.1408 of M/s. Maharishi Aurvedic Corporation.

c) Rs.5.00 lac transferred to Cash Credit Account of M/s. Agro Chemicals.

Thereafter the newly opened saving bank account No.13392 was closed on the same day leaving nil balance. Thus, Sh.Suresh Pathrella had misappropriated an amount of Rs.10.00 lac without the consent and authority of the beneficiary. By his above acts Sh.Suresh Pathrella has violated Regulation 3(1) of Oriental Bank of Commerce Officer Employees (Conduct) Regulations, 1982 which is punishable under Officers' Discipline and Appeal Regulations."

An Enquiry Officer was appointed, who submitted a Report that the charge is proved. The disciplinary authority accepted the findings of the Enquiry Officer and the appellant was removed from service by an order dated 28.5.1998. Aggrieved thereby, the appellant challenged the order by filing Writ Petition. The learned Single Judge was of the view that the main allegation of misappropriation of Rs.10 lacs is unfounded and the amount actually went to the account of the Bank to be set off against overdrafts of the three firms. In other words, no loss thereby was occasioned to the Bank. He was further of the view that the main allegatio