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2021 Supreme(Del) 2298

IN THE HIGH COURT OF DELHI AT NEW DELHI
C. Hari Shankar, J.
Sunil Kumar Nagpal - Appellant
Versus
Central Bank Of India & Ors - Respondent
W.P.(C) No. 7401 of 2017
Decided On : 26-03-2021

Advocates appeared:
Parmod Kumar Bhardwaj, Advocate, Sunil Kumar Nagpal, Advocate, Rajesh Sharma, Advocate

Headnote:(A) Central Bank of India Officer Employees (Discipline & Appeal) Regulations, 1976 - Regulations 4 (j), 5, and 6 - Disciplinary proceedings - Dismissal of Chief Manager for gross misconduct including financial impropriety and failure in duties - Regulations ensure adherence to proper procedure, accountability, and maintenance of integrity in banking operations. (Paras 1, 15, 26, 40)

(B) Natural Justice - Principles of natural justice observed during inquiry and appeal process - Adequate opportunity provided to the petitioner to respond to charges - Dismissal upheld even in absence of intent of criminality as serious negligence was evident. (Paras 16, 20, 26, 39)

(C) Dismissal as a penalty - The severity of the penalty of dismissal from service found appropriate in light of the gravity of misconduct and resultant loss to the bank. (Paras 33, 40, 45)

Facts of the case:
The petitioner, with a 30-year service history, was dismissed after an inquiry into misconduct involving fraudulent transactions and negligence in duties, leading to potential losses exceeding Rs.12 crores for the bank.

Findings of Court:
The inquiry followed all proper procedures, the findings of misconduct were reasonable, and the penalty of dismissal was proportional to the offenses committed.

Issues: Whether the disciplinary proceedings violated the principles of natural justice, and whether the penalty imposed was disproportionate.

Ratio Decidendi: The court emphasized that the Disciplinary Authority holds broad discretion in such matters, and mere lack of criminal intent did not mitigate the seriousness of the misconduct.

Result: Writ petition dismissed.

Table of Content
1. overview of disciplinary proceedings and consequences (Para 1 , 4 , 5 , 6 , 7 , 8 , 10 , 14)
2. findings of inquiry authority on charges against the petitioner (Para 11 , 12 , 15 , 30 , 36)
3. petitioner's review petition and its dismissal (Para 16 , 18 , 19)
4. arguments put forth by the petitioner and responses (Para 22 , 24 , 25 , 28 , 39)
5. dismissal of the writ petition (Para 44 , 45)

JUDGMENT

C. Hari Shankar, J. - Disciplinary proceedings against the petitioner, who was working as Chief Manager at the South Extension Branch of the Respondent Bank ("the Bank" hereinafter), were initiated vide charge sheet dated 11th December, 2013 and an Addendum Memorandum dated 21st March, 2014. These proceeded to an inquiry report dated 7th January, 2015 and culminated in an order dated 27th March, 2015 by the Disciplinary Authority("DA") whereby the petitioner was dismissed from service. The Petitioner's appeal against this order, and revision therefrom, were dismissed vide orders dated 10th February, 2016 and 7th January, 2017 respectively.

2. The petitioner prays that the Inquiry Report dated 7th January, 2015, order dated 27th March, 2015, order dated 10th February, 2016 and order dated 7th January, 2017 be quashed and set aside. Consequently, the petitioner prays for a writ of mandamus directing reinstatement of the petitioner in service with consequential benefits along with arrears and interest @18% per annum.

3. Alternatively, it is prayed that the respondents be directed to impose any other suitable penalty apart from dismissal from service.

    Facts

4. The petitioner was appointed to the post of Probationary Officer at the Bank in 1984 and, in the month of June 2011, came to be posted as Chief Manager at the South Extension branch of Bank.

5. On 27th September, 2013, the petitioner was served a Memorandum by the Zonal manager, Zonal office alleging acts of omission and commission committed by him while discharging his duties at the South Extension branch and at the Khan Market branch of the Bank, to which the petitioner replied vide letter dated 14th October 2013.

6. Vide letter dated 22nd October, 2013, the petitioner was informed that his reply was not satisfactory and that disciplinary action was initiated against him. Further, vide Memo dated 26th October, 2013, the petitioner was placed under suspension, followed by the charge sheet dated 11th December, 2013 issued by the Senior Regional Manager acting as the DA.

7. The charge-sheet proposed to hold a departmental enquiry against the petitioner in regard to alleged acts of misconduct committed by him as set out in 17 Articles of Charge. The petitioner was directed to submit his written statement of defence within seven days of the receipt of the charge-sheet.

8. In continuation of the aforementioned charge-sheet dated 11th December, 2013 (supra), an Addendum dated 21st March 2014 was also issued to the petitioner wherein 10 additional charges were added to the existing Articles of Charge. The petitioner was directed to submit a written statement of defence within 7 days of the receipt of this Addendum.

9. Thereafter, vide orders dated 29th March, 2014, the Inquiry Authority ("IA") and the Presenting Officer ("PO") were appointed.

10. Inquiry proceedings against the petitioner commenced on 6th May, 2014, and were concluded on 25th November, 2014. Written briefs were submitted by the PO on 10th December, 2014 and the petitioner on 11th December, 2014, culminating in an Inquiry Report dated 7th January, 2015.

11. Out of the 17 charges which formed part of the Charge-sheet dated 11th December, 2013 (supra), the IA had held charges 1, 3, 6, 9 to 13 and 15 as proved and Charges 2, 4, 5, 7, 8, 14, 16 and 17 as not proved, and out of the 10 charges which constituted part of the Addendum to Memorandum dated 21st March, 2014 (supra), three charges were held to be proved against the Petitioner.

12. The Senior Regional Manager of the Bank, as DA, on 13/19th January, 2015, addressed

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