2011 (6) Supreme 128
SUPREME COURT OF INDIA
Aftab Alam and R.M. Lodha, JJ.
State Bank of Mysore & Others etc. — Appellants
versus
M.C. Krishnappa — Respondent
Civil Appeal Nos.5055-5056 of 2011
[Arising out of SLP (Civil) Nos.20719-20720 Of 2008]
with
M.C. Krishnappa — Appellant
versus
State Bank of Mysore represented by its Managing Director & Ors. — Respondents
Civil Appeal No.5057 of 2011
[Arising out of SLP (Civil) No.15378 Of 2009]
Decided on : 6-7-2011
(2010) 5 SCC 775 – Relied upon
(b) Administrative Law – Judicial Review – Service matters – Charge of financial irregularities and of making fraudulent withdrawals deriving pecuniary gain proved – In a bank an offence of this kind is one of the most serious offences – Order of removal passed by disciplinary authority could not be said to be unreasonable or unduly harsh – Reviewing Authority modifying the order and giving a lighter punishment which was accepted without ado – Interference by High Court not warranted. (Para 9)
Facts of the case:
1. The respondent was charge sheeted, proceeded against and punished with demotion in rank with bar on promotion for seven years.
2. The respondent accepted the punishment but after lapse of the bar period, moved the High Court against order of punishment. This petition was partially allowed.
Finding of the Court:
Interference by High Court was not warranted.
JUDGMENT
Aftab Alam, J. —
SLP (CIVIL) NOS.20719-20720 OF 2008
1. Leave granted.
2. The respondent - M.C. Krishnappa is an employee of the appellant - State Bank of Mysore. He was originally inducted in the service of the bank in the clerical cadre but at the material time, by virtue of promotions, he was in the Junior Management Grade Scale-I. He was served with a charge sheet on September 25, 1990. The charges, in brief, were as under:-
“a) Prepared and passed a withdrawal slip for Rs.10,000/- on 29.05.1989 in the Savings Bank account No.4738 of Smt. Lalithamma despite being aware that there was no sufficient balance in the said account and derived pecuniary gain for himself.
“b) Caused fraudulent withdrawal of Rs.6,000/- on 02.03.1989 in the Savings Bank account No.941 of Shri N. Narayanappa, without posting the voucher in the said account and to conceal his acts, he had checked the ledgers on the day the voucher was passed.”
3. The charges were duly established in a departmental enquiry following which the disciplinary authority passed the order of his removal from service on February 8, 1993. The respondent made an appeal against the order passed by the disciplinary authority but it was rejected by the appellate authority by order dated July 28, 1993. The respondent took the matter before the Reviewing Authority where he was able to partial relief. The Reviewing Authority, by order dated April 2, 1994, modified the respondent’s punishment and reduced it from removal from service to demotion from the cadre of Junior Management Grade Scale-I to the cadre of clerk with a further bar against promotion for a period of seven years.
4. The respondent rejoined the service, accepting the punishment given to him in terms of the review order. But after the expiry of the period of seven years, he moved the Karnataka High Court, challenging the punishment awarded to him, in Writ Petition No.40666 of 2001 (S-RES) which was partly allowed by judgment and order dated April 21, 2006 passed by a learned single judge of the High Court.
5. It was contended on behalf of the respondent that regulation 67(e) of the State Bank of Mysore Officer’s Service Regulations, 1979 permitted reduction of rank of an Officer to a lower rank in the Officer Grade itself and the respondent, therefore, could not have been demoted to the cadre of clerks. A grievance was also made in regard to the bar against promotion for the period of seven years. The learned single judge noted that the only grievance of the Writ Petitioner (the respondent in this appeal) was in relation to the levy of penalty. He rejected the contention that the Writ Petitioner could not be put down in the clerk’s cadre and his demotion could only be confined to a lower rank in the Officer Grade itself. The learned judge, however, felt that the bar against promotion for the period of seven years was quite harsh and in that connection observed as follows:-
“There is some force in the contention of the learned counsel for the petitioner that total punishment levied on the petitioner is too harsh and disproportionate to the charge levelled against the petitioner.
xxx xxx xxx
Having regard to the nature of charges, I am of the view that the total penalty levied on the petitioner is little more harsh and shocks my conscience. The petitioner having been demoted from the Officer cadre to the cadre of Clerk, must be given an opportunity to improve himself and if he improves, he should be promoted to further higher cadre if he is so entitled. The total bar on any promotion for a period of 7 long years is too harsh and requires to be modified. If the petitioner improves his performance, his integrity and his devotion to work in the cadre of Clerk, he should not be denied further promotion from that cadre.”
6. Having taken the view as appearing from the above, the single judge set aside the bar of promotion against the respondent for the period of seven years subject to the qualification, however, that the orde
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