High Court of Judicature at Calcutta
MANJULA CHELLUR & ARIJIT BANERJEE, JJ.
Punjab & Sind Bank & Others – Appellant
Versus
Sri Jogeswar Mukherjee – Respondent
A.P.O. No. 101 of 2009 with W.P. No. 1880 of 2001 (Original Side)
Decided On : 23-02-2015
P&S BANK OFFICERS EMPLOYEES (CONDUCT) REGULATIONS, 1981 - DISMISSAL - CHARGES - INORDINATE DELAY - DE NOVO INQUIRY - SECOND SHOW CAUSE NOTICE - NATURAL JUSTICE - PRINCIPLES - APPLICABILITY - REASONING - RECORDING - SUFFICIENCY - STANDARD OF PROOF - PREPONDERANCE OF PROBABILITY.
Fact of the Case:
Respondent, a Manager-in-Charge of Punjab & Sind Bank, was charged with misconduct under the Punjab and Sind Bank Officers Employees (Conduct) Regulations of 1981. The charges stemmed from a 1983-84 incident involving the disbursement of 99 loans sponsored by SC/ST Development and Finance Corporation, Midnapore, in a fraudulent manner. The respondent denied the charges, and a de novo inquiry was ordered by the disciplinary authority. The second Inquiry Officer submitted a report on 28.9.1999, and the respondent was permitted to submit his representation. Ultimately, the disciplinary authority imposed the penalty of compulsory retirement from service. The statutory appeal was dismissed, and the respondent challenged the order of punishment before the High Court.
Finding of the Court:
The High Court quashed the order of punishment and the order of the Appellate Authority, holding that the charge-sheet was not sustainable in view of the stale charges in respect of the charge sheet dated 01.6.1994 pertaining to the allegation of 1983-84 as there was no satisfactory explanation for the inordinate delay. It was also held that de novo inquiry on the basis of the selfsame charge sheet was not permissible. The court further held that both Enquiry Officers opined in the reports that the charges were not proved against the respondent. The court also noted that the bank was unable to summon any witness of their case, and hence the charges could not be held as proved.
Issues: 1. Whether the charge-sheet was sustainable in view of the inordinate delay in issuing the articles of change? 2. Whether de novo inquiry on the basis of the selfsame charge sheet was permissible? 3. Whether the principles of natural justice were violated during the disciplinary proceedings? 4. Whether the disciplinary authority was justified in disagreeing with the opinion of the enquiry report of the Enquiry Officer and imposing the penalty of compulsory retirement?
Ratio Decidendi: 1. The delay in issuing the charge-sheet was not solely attributable to the laxity of the management employer, as the involvement of the respondent came to light only when the West Bengal SC/ST Development Finance Corporation, Midnapore, gave the investigation report. 2. The respondent did not challenge the order to conduct a de novo inquiry and participated in the second round of disciplinary proceedings. Hence, the second round of proceedings could not be set aside on the ground that the de novo inquiry itself was illegal and not permissible. 3. The disciplinary authority, after opining that the Enquiry Authority gave a favorable opinion to the respondent on trivial grounds, proceeded to analyze every allegation in the charge-sheet. The disciplinary authority found that the respondent was negligent in discharging his duties and his action in disbursing the loan was unbecoming of a prudent Officer of the Bank. 4. The standard of proof in a departmental inquiry need not be beyond all reasonable doubt. If the material on record points out the probability of involvement of the charged employee, that itself would be enough to opine the guilt of the Officer.
Final Decision: The appeal was allowed, and the cross-appeal was dismissed. The judgment of the High Court was set aside, and the order of the disciplinary authority imposing the penalty of compulsory retirement was upheld.
Manjula Chellur, J.
In brief the facts of the present appeal are narrated as under:-
The respondent was Manager-in-Charge of Branch Office of Bhagalpur and Kharagpur of the appellant bank. While performing his official duties, according to appellant, he committed misconduct under the Punjab and Sind Bank Officers Employees (Conduct) Regulations of 1981 particularly under Regulation 3(1) and 3(2) read with Regulation 24 of the Regulations. The gist of the charges in the departmental enquiry initiated against the respondent is, through a middleman named Sukumar Singh, during the year 1983-84, the respondent Manager disbursed 99 loans sponsored by SC/ST Development and Finance Corporation, Midnapore in a fraudulent manner by grabbing large chunk of loan amount which is evident from numerous documents wherein interpolations are made. Even the names of the sponsored persons sent by the aforesaid Corporation were challenged.
The charges came to be denied by the respondent. By order dated 05.12.1998, the disciplinary authority rejected the report of Enquiry Officer and ordered to conduct a de novo enquiry in the above charges. This came to be challenged by the respondent Manager. This came to be confirmed by order dated 16.01.1999. The second Enquiry Officer submitted enquiry report on 28.9.1999 to the disciplinary authority. Delinquent employee was permitted to submit his representation. Ultimately, disciplinary authority imposed punishment against the writ petitioner awarding penalty of compulsory retirement from service of the bank.
The statutory appeal came to be filed questioning the order of punishment and the said appeal was dismissed by order dated 18.12.2008. Before learned Single Judge it was contended that the charge-sheet was not sustainable in view of the stale charges in respect of charge sheet dated 01.6.1994 pertaining to allegation of 1983-84 as there was no satisfactory explanation for the inordinate delay. It was also contended that de novo enquiry on the basis of selfsame charge sheet was not permissible. It was contended by the delinquent employee before the learned Single Judge that both Enquiry Officers opined in the reports that the charges were not proved against the delinquent. Over and above this, when the bank was unable to summon any witness of their case, the charges cannot be held as proved.
In the light of above factual situation, the disciplinary authority ought not to have arrived at a decision on the basis of certain documents without giving any opportunity to the delinquent is the stand of the delinquent.
So far as statutory appellate authority order, it was contended by the writ petitioner that the same suffers from non-application of mind as no reasons whatsoever are assigned for such conclusion. In the writ petition, the learned Judge ultimately opined that the charge-sheet dated 01.6.1994 issued by Assistant General Manager Zonal Head Office need not be interfered with, but the order dated 05.12.1998 by the disciplinary authority to conduct de novo enquiry proceedings and the impugned order of punishment dated 19.10.2000 and order of the Appellate Authority came to be quashed and set aside.
Aggrieved by the same, the present appeal is preferred.
According to the appellant, learned Single Judge was not justified in opining that principles of natural justice were violated. According to appellant bank, application of principles of natural justice cannot be in the vacuum, and have to be tested on the touchstone of prejudice, if any, alleged to have suffered by the persons claiming such violation. If the provisions of Regulation 7 of the Punjab & Sind Bank Officers Employees (Discipline & Appeal) Regulations, 1981 (for short referred to as Regulations) was read in its proper perspective so far as the question of conducting a fresh enquiry, the end result of the writ petition would have been otherwise is the stand of the appellant Bank. According to appellant Bank, there is no violation of natura
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