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2011 Supreme(SC) 375

R.M.LODHA, AFTAB ALAM
S. B. I. – Appellant
Versus
Hemant Kumar – Respondent


Judgement Key Points

Key Points: - The court held that the principles of natural justice cannot render in-house proceedings unworkable. (!) - The appeal allowed; Tribunal and High Court findings that the enquiry was defective were set aside. (!) (!) - The evidence showed the respondent admitted guilt multiple times and the enquiry proceeded with ex parte examination of a management witness. (!) (!) - The Tribunal’s reasons relying on adjournment applications and requirement of rebuttal evidence were rejected as untenable. (!) (!) - The Supreme Court emphasized expeditious and fair conduct of internal disciplinary proceedings, cautioning against overextending natural justice. (!) - The respondent deposited Rs.14,000 to make good defalcation and had admitted guilt in writing and orally. (!) (!) - The enquiry led to dismissal by the management authority, which was later contested in tribunals. (!) (!) - The High Court’s dismissal of writ petition and the Tribunal’s reinstatement order were overturned. (!) (!) - The court noted the danger of delays and undue leniency in internal investigations if natural justice is misapplied. (!) - The final judgment sets aside the Tribunal’s findings and the High Court’s award, upholding the appeal. (!)

How to determine whether principles of natural justice can be stretched to render in-house proceedings unworkable?

What is the appropriate standard of review when a domestic enquiry in a bank's disciplinary action is challenged for alleged violation of natural justice?

What are the consequences when an enquiry officer conducts proceedings ex parte or without adequate opportunity to the respondent?


JUDGMENT

Aftab Alam, J. —

1. Delay condoned.

2. Leave granted.

3. This appeal is directed against the judgment and order dated August 8, 2008 passed by the High Court of Uttarakhand. By the impugned judgment, the High Court dismissed the Writ Petition filed by the appellant before it and affirmed the award dated November 6, 1998 made by the Central Government Industrial Tribunal-cum-Labour Court, Pandu Nagar, Kanpur, directing reinstatement of the respondent in the service of the appellant-bank with full back-wages.

4. The respondent worked in the appellant-bank as Cashier-cum-Clerk. In January, 1994 it was discovered that the respondent had been indulging in misappropriation of money by making fictitious entries and manipulations in the bank’s ledgers. On his malfeasance coming to light, the respondent not only admitted his guilt in writing vide memo dated March 3, 1994 but also deposited the amount of Rs.14,000/- to make good the amount earlier defalcated by him. He was given a chargesheet detailing his various acts of omission and commission to which he did not give any reply. Nevertheless, before the Enquiry Officer in course of the preliminary enquiry he expressed the intent














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