Limited scope of judicial review in disciplinary proceedings, necessity of adherence to principles of natural justice, seriousness of fraud in banking sector

JUDGMENT

Satish Chandra Sharma, C.J. The present Appeals are arising out of an order dated 18.01.2023 passed by the learned Single Judge in W.P.(C.) No. 4852/2014 titled Smt Sneh Aggarwal Vs. Punjab National Bank.

2. The LPA 182/2023 is an Appeal preferred by the Punjab National Bank against the order dated 18.01.2023 to the extent the punishment of dismissal has been moderated to that of compulsory retirement.

3. The LPA 303/2023, which has been preferred by Smt. Sneh Aggarwal, is an appeal against the order dated 18.01.2023 claiming reinstatement and against the findings arrived at by the learned Single Judge by which the learned Single Judge has upheld the departmental enquiry proceedings and the consequential orders passed by Disciplinary Authority and Appellate Authority as well as by the Industrial Tribunal.

4. For deciding both the aforesaid Appeals, which are arising out of a common judgment, the facts as narrated in LPA 182/2023 titled Punjab National Bank Vs. Smt Snbh Aggarwal, are being dealt with as under.

5. The facts of the case reveal that the Respondent herein was appointed as a Clerk-cum-Cashier in the Services of Punjab National Bank on 15.09.1978 and, at the relevant point of time, she was posted as Advanced Level Punching Machine Operator (ALPM) at Branch Office Parliament Street, New Delhi.

6. The facts further reveal that a Fixed Deposit Receipt (FDR) bearing NO. 20/91 dated 02.02.1991 for a sum of Rs.60,000/- was deposited by the Respondent at Parliament Street Branch on 04.02.1991 and the Respondent Employee applied for loan of Rs.60,000/- by pledging the FDR with the Bank. Loan of Rs.60,000/- was sanctioned in her favour. However, in an audit report, it was brought to the notice of the authorities that the FDR which was deposited by the Respondent Employee, though reflected Rs.60,000/-, was not a FDR in respect of the amount of Rs.60,000/- and only a sum of Rs.6,000/- deposited with the Bank on 03.02.1991. The fraud was detected by the Bank and the Respondent Employee refunded the loan amount of Rs.60,000/- which she took against the FDR on 28.01.1992.

7. The matter was reported to the Central Bureau of Investigation (CBI) and the CBI lodged a case in respect of fraud committed at Kallirampur, Meerut Branch of the the Bank, where one Mr. P.S. Bedi, was the manager.

8. It is pertinent that Mr. P. S. Bedi has already been dismissed from the service. The CBI advised the Bank to proceed with disciplinary action in respect of the Respondent Employee and a charge-sheet was issued on 07.02.1994 to the Respondent Employee. The Respondent Employee did submit a reply to the charge-sheet and, thereafter, Enquiry Officer was appointed to hold an enquiry in the matter.

9. The Enquiry Officer after following due process of law, submitted an enquiry report holding the employee guilty of the misconduct. The Disciplinary Authority agreeing with the findings of the Enquiry Officer issued a show cause notice to the Respondent Employee and after hearing the Respondent Employee, finally passed an order of dismissal on 11.08.1995.

10. The Respondent Employee preferred an appeal in the matter and the Appellant Authority has dismissed the appeal. The Respondent Employee thereafter took shelter of the provisions of the Industrial Disputes Act, 1947 (ID Act) raising a industrial dispute and the appropriate Government vide order dated 30.09.1997 forwarded the reference to the Tribunal for adjudication. The reference forwarded by the Industrial Tribunal by the appropriate Government reads as under:

""Whether the action of the management of PNB in dismissing the Service of Sneh Lata Aggarwal Clerk-cum-Cashier w.e.f. 11.8.95 Is just and fair. If not, to what relief the workman is entitled ?"."

11. The Respondent Employee filed a claim statement stating that prior to her posting at Parliament Street Branch she was working under Sh. P. S. Bedi at Tilak Nagar Branch who was later on transferred to Kallirampur Branch, Meerut, a