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2024 Supreme(AP) 811

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
K. Manmadha Rao, J.
Gaddala Jhonson Babu - Petitioner
Versus
The State Bank of India, rep. by its Chief Manager and others - Respondents
Writ Petition No.21914 of 2021
Decided On : 30-08-2024

Advocates:
Advocate Appeared:
For the Petitioner: Sri G.V.S. Meher Kumar
For the Respondent: Sri N. Ashwani Kumar

IMPORTANT POINT
The appellate authority must provide a reasoned decision and adhere to principles of natural justice in disciplinary proceedings.

Headnote:

Mandamus - Writ Petition - Article 226 - The court discussed the principles of natural justice and the Payment of Gratuity Act, particularly Section 4 (6) (a) & (b), emphasizing the need for a reasoned order in disciplinary proceedings and the right to a fair hearing.

Fact of the Case:

The petitioner, a bank employee, was dismissed after a departmental inquiry found him responsible for a cash shortage. He appealed the dismissal, claiming the process violated natural justice, but his appeal was rejected without proper consideration.

Finding of the Court:

The court found that the appellate authority failed to provide a reasoned order and did not adequately consider the petitioner's objections, leading to a mechanical rejection of the appeal.

Issues: Whether the dismissal and subsequent rejection of the appeal violated principles of natural justice and whether the appellate authority provided a reasoned decision.

Ratio Decidendi: The court held that the appellate authority must provide a reasoned order and adequately consider the grounds of appeal, as mandated by principles of natural justice.

Result: The court set aside the dismissal order and remanded the case for a fresh inquiry with proper consideration of the petitioner's appeal.

ORDER :

K. Manmadha Rao, J.

This writ petition is filed under Article 226 of the Constitution of India for the following relief:

    “to..... issue a Writ Order or Direction more particularly one in the nature of Writ of Mandamus declaring the orders passed by the 2nd respondent vide No. A and R/VK 61 dated 5.2.2021 rejecting the appeal filed by me and confirming the orders of the 3rd respondent made in No VIG/FIMM/VJS/789 dated 26.11.2020 without considering the grounds of appeal and without considering the explanation dated 7.10.2020 to the show cause and Enquiry report is illegal, arbitrary and violative of principals of natural justice and consequently set aside the same and to pass..”

2. The facts of the case are that initially the petitioner joined in the service of the Sate Bank of Hyderbad and subsequently he was promoted in the same bank and finally he was working as Chief Associate of Cash In-charge of 4th respondent bank. Subsequently, the said State Bank of Hyderabad was merged with State Bank of India and now he was working in the respondent bank till the petitioner’s service was terminated. While he was working in the 4threspondent bank, on 5.12.2019, his branch manager informed the petitioner that he has undergoing training program from 5.12.2019 to 7.12.2019 at SBILD, Machilipatnam and he was directed the petitioner to relieve the same and handed over the cash in-charge as on that date to Associate Smt. D. Prabhavathi and Haritha. Accordingly, the petitioner was handed over the cash and securities to above said persons as directed by the 4threspondent herein. Thereafter, the petitioner relieved by the 4threspondent and he had undergone training program at SBILD, Machilipatnam. It is submitted that, after completion of the said training program, when the petitioner was returning to his house, the said D.Prabhavathi called him through phone and informed the petitioner that there was a shortage of Rs. 12,00,000/-. Immediately, the petitioner went to the bank on 8.12.2019, and verified the cash and cash book registered, which is signed by the 4threspondent on 7.12.2019 and found that there was a shortage of Rs. 12,00,000/- and instructed her to adjust the same in next working day, otherwise, he will inform to 4threspondent and other higher officials. However, the 4th respondent made a complaint. Basing on the said complaint, the 3rdrespondent herein initiated departmental proceedings while issuing the show cause notice on 28.5-.020 raising certain irregularities while working Cash-in-charge of the as 4threspondent bank from 1.6.2019 to 11.12.2019 and also ordered enquiry by appointing the Enquiry Officer. Later, after conducting enquiry, the Enquiry Officer submitted a report on 29.9.2020 and the same was served upon the petitioner. Immediately, the petitioner submitted his explanation to the show cause notice as well as enquiry report on 7.10.2020. Further it is stated that the 3rdrespondent herein afforded an opportunity of personal hearing to the petitioner and recorded the evidence of both sides and also basing on the enquiry report, finally passed an order of Dismissal from service without notice and also forfeited gratuity amount to an extent of Rs.7,00,000/- caused loss to the bank and other benefits which he entitled as per Rules vide orders dated 26-11-2020. Aggrieved by the same, the petitioner preferred an appeal to the 2ndrespondent herein raising several grounds. But without considering the grounds which were raised in the appeal, the 2nd respondent passed an order of rejecting the appeal by confirming the findings of the 3rdrespondent vide orders dated 5.2.2021. Hence the present writ petition.

3. The counter affidavit has been filed by the respondents. While denying all the allegations made in the petition, inter alia contended that, as per Section 4 (6) (a) & (b) of the Payment of Gratuity Act, Employer is entitled to forfeit the Gratuity amount to the extent of loss caused to the Bank due to misconduct of t

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