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2009 Supreme(SC) 650

2009(4) Supreme 44
SUPREME COURT OF INDIA
(From Madhya Pradesh High Court)
S.B. Sinha and Dr. Mukundakam Sharma, JJ.
The Regional Manager, Central Bank of India — Appellant
versus
Vijay Krishna Neema & Ors. — Respondents
Civil Appeal No. 2242 of 2009
(Arising out of SLP (C) No.2369 of 2007)
Decided on : 08-04-2009

Advocates appeared:
For the Appellants :Jaideep Gupta, Sr. Adv., dinesh Mathur, Advocates.
For the Respondents:Saurabh Jain (for Rameshwar Prasad Goyal), Niraj Sharma, Vikrant Singh, Advocates.

IMPORTANT POINT
If despite service of notice the employee did not report for duty, the consequences therefor would ensue.

Headnote:(a) Banking Laws – Shashtri Award – Clause 16 – Absence without leave for a long time may constitute a grave misconduct on the part of the employee concerned – But in view of clause 16 of the Shastri Award, an employee can be treated to have ceased from employment. (Para 14)

        (2005) 5 SCC 337; (2001 (1) SCC 214; (2000) 5 SCC 65; (2008) 3 SCC 446 – Relied upon.

        (b) Banking Laws – Shashtri Award – Clause 16 – Requirement of Notice – Natural justice – Principle of natural justice does not operate irrespective of the statutory provisions – Clause 16 of the Shastri Award provides for issuance of such notice – If despite service of notice the employee did not report for duty, the consequences therefor would ensue. (Pars 15)

        (1998) 6 SCC 538; (2001) 1 SCC 61; (2006)11 SCC 42; (1993) 3 SCC 259; (2004) 4 SCC 268 – Relied upon.

        (c) Banking Laws – Shashtri Award – Clause 16 – Concurrent finding establishing non-service of notice – No interference warranted. (Para 16)

       Facts of the case :

        1. Respondent has been in employment of the appellant bank since 1973. On or about 22.7.1986, he had taken four days’ leave upto 25.7.1986. He extended his leave from 26.7.1986 to 1.8.1986. He neither joined his services nor filed any further application for extension of leave.

        2. Two memos dated 4/5.8.1986 and 18.8.1986 were issued. A letter dated 13.10.1986 was thereafter issued which was returned to the bank with an endorsement ‘Refused’.

        3. As he did not join his duties, a show-cause notice dated 9.2.1987 was issued as to why a disciplinary proceeding shall not be initiated against him.

        4. By reason of an order dated 6.4.1987, respondent was informed that he had ceased to be in the bank’s employment with effect from 9.3.1987 having voluntarily abandoned the service.

        5. Respondent also preferred an appeal on 2.5.1987 which was considered by the authorities under direction from the High Court, and was rejected.

        6. A second writ petition was filed by the respondent questioning the legality and/or validity of the said order. By reason of a judgment and order dated 29.10.2004, a learned Single Judge of the said Court allowed the writ application.

       Finding of the Court :

        In view of the concurrent finding establishing non-service of notice, no interference is warranted.

       Result : Appeal dismissed.

       

JUDGMENT

S.B. Sinha, J.—

1. Leave granted.

2. Application of Clause 16 of the Shastri Award is in question in this appeal which arises out of a judgment and order dated 16.10.2006 passed by a Division Bench of the High Court of Madhya Pradesh at Indore in Writ Appeal No.322 of 2006 whereby and whereunder a judgment and order dated 29.10.2004 passed by a learned Single Judge of the said Court in writ petition No.521 of 2004 was affirmed.

3. Respondent has admittedly been in employment of the appellant bank since 1973. On or about 22.7.1986, he had taken four days’ leave upto 25.7.1986. He extended his leave from 26.7.1986 to 1.8.1986. He neither joined his services nor filed any further application for extension of leave.

Two memos dated 4/5.8.1986 and 18.8.1986 were issued. A letter dated 13.10.1986 was thereafter issued which was returned to the bank with an endorsement ‘Refused’. The said letter reads as under :

“With Reference to our office letters dated 5.8.1986, 18.8.1986 requesting to submit proper leave application and reasons of remaining absent from the Bank.

Mr. V.K. Neema has not submitted any application after 2.8.1986 and reasons of his remaining absent from the duties.

Mr. V.K. Neema is hereby advised to report for duties immediately and submit the reasons of his absence from the bank. Within three days, failing which disciplinary action will be taken against him.”

4. As he did not join his duties, a show-cause notice dated 9.2.1987 was issued as to why a disciplinary proceeding shall not be initiated against him, stating :

“Attention of Shri V.K. Neema Clerk is drawn that he applied for 4 days leave from 22.7.86 to 25.7.86 and thereafter extended the leave for 26.7.86 to 1.8.86. After expiry of the said period Shri V.K. Neema, neither reported for duty nor submitted any leave application for any reason whatsoever.

Vide our letters dated 5.8.86, 18.8.86 and 13.10.86 Mr. Neema was advised to report for duty immediately and to submit the reasons of his absence from the bank within days Mr. V.K. Neema did not comply with the instruction and he refused to accept our letter dated 13.10.1986 which was sent at his residence address by Regd. Post.

In the circumstances, Bank has reason to believe that he has no intention of continuing in the services of the Bank. However, he is once again called upon to report for duty at our Branch within 30 days of this letter and submit his explanation for his unauthorized absence from 2.8.86. If he fails to report for duty within the period stipulated above, it will be deemed that he has voluntarily retires from the service of the Bank on the expiry of said period of 30 days and his name will be struck off from the Rolls of the Bank, and the bank will take suitable action to recover its dues.”

5. Respondent filed a representation upon receipt of the said notice.

6. By reason of an order dated 6.4.1987, respondent was informed that he had ceased to be in the bank’s employment with effect from 9.3.1987 having voluntarily abandoned the service.

Indisputably, respondent had taken some loan from the bank, he had shifted from 192, Jawahar Marg, Indore to 62, Vandana Nagar, Indore. A recovery suit was filed by the bank wherein the address of the respondent was stated as 62, Vandana Nagar, Indore.

7. Respondent also preferred an appeal on 2.5.1987 against the said order dated 6.4.1987. He thereafter filed a writ petition before the High Court of Madhya Pradesh, Indore Bench, Indore which was marked as W.P.586 of 1988. By reason of an order dated 22.4.1997, the said writ petition was disposed of by the High Court, observing :

“However, it has not been disputed before me, that Annexure-G, an appeal has not been disposed of by the Respondents in accordance with law. It has further not been disputed that against the Order passed by Respondents (Annexure-A and E), an appeal would lie to Zonal Manager in terms of clause 19.14 of the Bi-partite Settlement.”

The High Court opined :

“Thus, on totality

















































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