IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
K. MANMADHA RAO, J.
V. Srinivasulu - Petitioner
Vs.
Indian Bank and Others - Respondent
WRIT PETITION NO: 1207/2021
Decided On : 13-03-2025
(A) Constitution of India - Article 226 - Writ of Mandamus - Dismissal from service - The petitioner, a bank manager, was dismissed for misutilizing funds and sanctioning loans exceeding discretionary powers - The dismissal was confirmed by appellate and reviewing authorities - The court found that the disciplinary authority failed to follow principles of natural justice, as the petitioner was not afforded a personal hearing and the reasons for dismissal were not adequately provided. (Paras 11, 12, 13, 14)
(B) Disciplinary Proceedings - The court emphasized that proper opportunity for personal hearing must be afforded to the petitioner, and the inquiry findings must be based on a thorough consideration of the explanations provided. (Paras 14, 15)
Facts of the case:
The petitioner was dismissed from service on allegations of misutilizing funds and sanctioning loans to relatives. The dismissal was challenged on grounds of violation of natural justice and lack of proper inquiry.
Findings of Court:
The dismissal order was set aside due to the failure to provide a personal hearing and adequate reasoning.
Issues: The main issues included whether the dismissal was justified and if the principles of natural justice were followed.
Ratio Decidendi: The court ruled that the dismissal was invalid due to the lack of personal hearing and failure to consider the petitioner's explanations adequately.
Result: The dismissal order was set aside and the matter was remanded for fresh consideration.
Order :
K. MANMADHA RAO, J.
The Writ Petition is filed under Article 226 of the Constitution of India, seeking the following relief:
“….. to issue a writ, order or direction more particularly one in the nature of writ of MANDAMUS declaring the order of the Disciplinary authority/4th respondent dated 28.10.2016 communicated vide Letter bearing No.IB:ZO:VIG:VJA:123-2016-17, dated 28.10.2016 through which the petitioner was dismissed from the service and consequent order of the Appellate/3rd respondent dt.02.03.2017 communicated vide Letter bearing No.VIG:VIJ:Appeal:27519:2852:2016-17, dated 06.03.2017 confirming the order of the Disciplinary Authority and order of the Reviewing Authority/2nd respondent dated 18.02.2019 communicated vide letter bearing CO:VIG:VJA:Review:27519::2828::2018-19, dated 18.02.2019 rejecting the review petition of the petitioner as illegal, arbitrary, violative of Article 14 and 16 of the Constitution of India , violative of principles of natural justice and set aside the same and further declare that the petitioner is entitled for continuity of service with all consequential benefits, viz., pay and allowances from the date of suspension till the date of retirement, seniority and promotions and terminal benefits including pension….”
2. Brief facts of the case are that the petitioner was employed as Manager at the respondent bank’s Gannavaram Branch, Krishna District, Andhra Pradesh. While so, the petitioner was dismissed from the service vide order of the 4th respondent, dated 28.10.2016, communicated vide letter bearing No.IB:ZO:VIG:VJA:123-2016-17, dated 28.10.2016 on the allegations of misutilizing the funds in a Government Account of Executive Engineer, RWS, Project Division, Vijayawada and sanctioning loans to relatives, exceeding his discretionary powers, during the period from 25.07.2013 to 13.09.2015. Aggrieved by the same, the petitioner filed an appeal, which was dismissed vide order of the 3rd respondent, dated 02.03.2017, communicated vide letter bearing No.VIG:VIJ:Appeal:27519:2852:2016-17, dated 06.03.2017. The petitioner then filed a revision before the 2nd respondent, which was rejected on 18.02.2019 and communicated vide letter bearing No.CO:VIG:VJA:Review:27519::2828::2018-19, dated 18.02.2019. Aggrieved by the same, the present writ petition has been filed.
3. The respondents 1 to 3 filed a counter affidavit denying the allegations made in the writ petition and stated that the petitioner deliberately and intentionally misused the powers vested in him as the bank’s branch head. The petitioner committed various misappropriations and misused funds, particularly the government accounts of the Executive Engineer, RWS, Project Division, Vijayawada. In addition to this, without following due procedure and the bank’s guidelines, the petitioner sanctioned loans to his relatives, exceeding his discretionary powers. All these actions took place while the petitioner was discharging his duties as the bank manager at the Gannavaram Branch, Krishna District, Andhra Pradesh, during the period from 25.07.2013 to 13.09.2015. As such, his dismissal was correct, and the same was confirmed by the appellate and reviewing authorities. It is further stated that the petitioner is liable to be punished under Regulation 24 of the Indian Bank Officer Employees' (Conduct) Regulations, 1976, as his actions would be in breach of Regulation 3(1) of the said Regulations. Every bank official is bound to adhere to the operational guidelines of the bank, which are framed from time to time, with the purpose of ensuring discipline and punctuality. Due to the petitioner’s acts and misappropriations, the government took back all its deposits from the bank's branch. The bank’s fiscal operations primarily involve accepting deposits and lending amounts, which the petitioner completely ignored.
4. The reply affidavit filed by the petitioner states that all the loans were sanctioned in the normal course of business and were cleared b
Dismissal from service without affording a personal hearing violates principles of natural justice, necessitating remand for reconsideration.
Judicial review in disciplinary matters is limited; courts cannot interfere unless there are gross violations of procedure or principles of natural justice.
The appellate authority must provide a reasoned decision and adhere to principles of natural justice in disciplinary proceedings.
The appellate authority must provide a reasoned decision when rejecting an appeal in disciplinary proceedings, ensuring adherence to natural justice.
The court emphasized the limited scope of its interference in disciplinary proceedings and the importance of integrity in handling bank funds.
The principles of natural justice are a fundamental requirement of any disciplinary proceedings and the failure to follow these principles renders the proceedings and any orders passed pursuant to th....
Termination without notice or opportunity to be heard violates natural justice principles, necessitating remand for proper inquiry.
The main legal point established is the requirement for a workman governed by the Industrial Disputes Act to exhaust the statutory remedy by approaching the Central Industrial Tribunal before challen....
Dismissal for misconduct in banking, despite no financial loss, is justified to maintain integrity and trust; procedural irregularities alone do not negate findings unless they cause specific prejudi....
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