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IN THE HIGH COURT OF JUDICATURE AT HYDERABAD FOR THE STATE OF TELANGANA AND THE STATE OF ANDHRA PRADESH
P. NAVEEN RAO, J.
A.X. Edwin – Appellant
Versus
State Bank of Hyderabad, rep. by its Managing Director & Others – Respondents
Writ Petition No. 43044 of 2015
Decided On : 20-01-2016
(B) Service Law – Disciplinary Proceedings – Relationship of employee–employer is based on trust and confidence of employer on employee – If employer has an element of doubt on conduct and character of employee, employer may not be willing to continue employee in his service---However, before taking action against an employee in public service, the employer is required to follow due process and on establishment of charges leveled against him, appropriate punishment can be imposed---In domestic enquiry on the charges leveled against the employee what is required is preponderance of probabilities of charges leveled against him. Circumstantial evidence can be taken into consideration to hold that charge is proved and to impose appropriate punishment.
(C) Service Law – Disciplinary Proceedings – Nature of evidence required in departmental proceedings is quite different from nature of evidence that is required in criminal proceedings – Criminal law requires that charges leveled against a person must be proved beyond reasonable doubt and burden lies on the prosecution to establish charges – Any deficiency and element of doubt will go against prosecution.
(D) Service Law – Disciplinary Proceedings – Stay – Burden is on the employee to satisfy Court that charges leveled in both proceedings are same; material facts and evidence relied on by employer is same; that there are complicated questions of law and facts involved; and he has not disclosed his defense so far – Even if employee satisfies parameters, Court may refuse to stay domestic enquiry if there is a likelihood of delay in commencement and conclusion of criminal proceedings.
Result – Writ Petition dismissed.
1. This writ petition is filed praying to grant direction to defer holding of disciplinary proceedings pending conclusion of criminal proceedings.
2. Facts relevant for consideration of this case are as under. Petitioner is presently holding Middle Management Grade Scale-III cadre post. Petitioner worked as Branch Manager of Kankal Branch from 29.06.2009 to 22.05.2012 and Branch Manager, Rangampet Branch from 12.06.2012 to 02.02.2014.
3. Alleging that grave illegalities were committed while functioning as Branch Manager in the above two Branches, petitioner was served with two separate charge memos dated 20.01.2015 and 23.02.2015. Alleging that grave financial irregularities committed by the petitioner a s Assistant General Manager, respondent bank lodged complaint dated 03.02.2014 with the Station House Officer, Kulcharam Police Station, Medak District. Crime No.07 of 2014 was registered under Sections 409, 420, 464, 465, 467, 471 read with 34 of Indian Penal Code and police have taken up investigation. Petitioner contends that the case is now entrusted to the Central Bureau of Investigation (CBI) and CBI is investigating into the allegations leveled against the petitioner and other co-employees.
4. The substance of the allegations in the charge memo dated 20.01.2015 is disbursement of 246 fictitious agricultural term loans during the period of his tenure in Rangampet branch violating the laid down extant guidelines regarding sanction, release and conduct of agricultural loans and without obtaining loan documents in some cases and in majority of cases obtained multiple documents with ulterior motive and defrauded the bank for an amount of Rs.8,80,79,000/-. In charge memo dated 23.02.2015, the substance of the allegations is petitioner sanctioned and disbursed 86 fictitious, benami / fraudulent / multiple crop loans and that loan accounts were opened without collateral and documentary support during the period of his tenure in Kankal branch.
5. Alleging that request of the petitioner for deferment of the disciplinary proceedings is not acceded and petitioner was asked to participate in the enquiry, this writ petition is filed.
6. Learned counsel for petitioner contended that the charges leveled in the disciplinary proceedings and the complaint lodged with the Kulcharam Police Station are one and the same and when the police are investigating into the allegations leveled against him in the complaint lodged by the respondent bank, there is no justification to simultaneously conduct disciplinary proceedings without waiting for the outcome of investigation by the police. If petitioner is compelled to participate in the disciplinary proceedings, the disclosure of his defense in the enquiry would cause serious prejudice in the investigation by the police. Learned counsel further contended that nature of allegations being identical and based on the same set of facts and are complicated, it is but necessary to defer the disciplinary proceedings pending investigation by the police.
7. In support of the said contention, learned counsel for petitioner placed reliance on the following decisions:
i) Delhi Cloth and General Mills Ltd. V. Kushal Bhavan (AIR 1960 SC 806 (1)
ii) Tata Oil Mills Co.Ltd., v. The Workmen (AIR 1965 SC 155 (1)
iii) Capt. M.Paul Anthony v. Bharat Gold Mines Ltd and another (AIR 1999 SC 1416(1)
iv) State Bank of India and others v. R.B.Sharma (AIR 2004 SC 4144)
v) Kendriya Vidyalaya Sangathan and others v. T.Srinivas (AIR 2004 SC 4127)
vi) State of Rajasthan v. B.K.Meena and others (AIR 1997 SC 13)
vii) Kusheshwar Dubey v. M/s.Bharat Coking Coal Ltd and others (AIR 1988 SC 2118).
8. The issue for consideration in this writ petition is whether a mandamus can be issued to disciplinary authority to defer the disciplinary proceedings pending investigation into Crime No.07 of 2014?
9. Disciplinary proceedings and criminal proceedings operate in two different fields. Disciplinary action relates to employer losing trust and conf
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