IMPORTANT POINTS
Issuing a cheque from personal account without having sufficient funds is not a misconduct.
Charge sheet issued after unexplained delay of 7 years of incident, that too after the employee crossing efficiency bar and getting promotion is liable to be set aside on ground of delay and latches.
Making an employee face departmental proceeding without subsistence allowance would be vitiated.
Punishment of dismissal cannot be imposed after superannuation.

JUDGMENT :

Madan B. Lokur, J.

1. This appeal raises an interesting question of law on access to justice in a departmental inquiry. In our opinion, the respondent (Rajendra Shankar Shukla) was not given a fair opportunity to defend himself by denying him financial resources. On the merits of the case also, we are of the view that the impugned judgment and order of the High Court does not call for any interference.

2. The allegation against Shukla was that while in charge of the extension counter of the UCO Bank from 3rd October, 1987 to 8th July, 1994 he issued a cheque on 25th January, 1991 for an amount of Rs.3 lakhs in favour of his brother. At that time, Shukla had only about Rs.1,000/- in his account. We are only concerned with this broad allegation.

3. Shukla was issued a charge sheet on 20th May, 1998 (after about 7 years) by the respondent (Bank) under the provisions of the UCO Bank Officer Employees’ (Conduct) Regulations, 1976. The articles of charge against Shukla were as follows:-

(I) Shri R.S. Shukla issued/got issued a cheque on his joint account without making any arrangement of adequate balance and intention to honour it, only to cause wrongful benefit to his relative, at the cost of the Bank. He has thus failed to discharge his duties with utmost integrity and honesty, which is violative of Regulation 3 of UCO Bank Officer Employees’ (Conduct) Regulations, 1976 as amended.

(II) Shri Shukla, by making available the official correspondence (exchanged between regional office, Raipur and his branch) to his son which he later quoted in his proposal for compromise of Transport Loan availed by him, has not only acted against the interest of the Bank but also has deliberately divulged information of a confidential nature to a person - his son, not entitled to it, which is violative of Regulation 4 of UCO Bank Officer Employees’ (Conduct) Regulations, 1976 as amended.

(III) By availing loans and that also frequently, far in excess of the permissible amount against NSCs and FDRs without paying interest at the applicable rates, Shri R.S. Shukla has failed to discharge his duties with devotion, honesty and utmost integrity. This act is violative of Regulation 3 of UCO Bank Officer Employees’ (Conduct) Regulations, 1976 as amended.

4. Shukla was due to superannuate on 31st January, 1999. A few days prior to his superannuation, the Competent Authority issued a letter invoking Regulation 20(3)(iii) of the UCO Bank (Officers’) Service Regulations, 1979 (for short “the Regulations”). Regulation 20(3)(iii) reads as follows:-

“The officer against whom disciplinary proceedings have been initiated will cease to be in service on the date of superannuation but the disciplinary proceedings will continue as if he was in service until the proceedings are concluded and final order is passed in respect thereof. The concerned officer will not receive any pay and/or allowance after the date of superannuation. He will also not be entitled of the payment of retirement benefits till the proceedings are completed and final order is passed thereon except his own contributions to CPF.”

5. In view of the aforesaid Regulation, Shukla ceased to be in service on 31st January, 1999 on attaining his superannuation but the disciplinary proceedings against him continued. Shukla denied the charges levelled against him but the Enquiry Officer submitted a report in which Charges 1 and 3 were proved while Charge 2 was not proved. The Disciplinary Authority came to the conclusion that all three charges were proved and as far as Charge 1 is concerned, he passed an order on 30th June, 1999 dismissing Shukla from service which would ordinarily be a disqualification for future employment.

6. A departmental appeal was filed by Shukla. During the pendency of the departmental appeal, Shukla filed a writ petition in the Madhya Pradesh High Court. Later, the departmental appeal filed by Shukla was dismissed. The writ petition was transferred to the Chhattisgarh High Court and by