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IN THE HIGH COURT OF DELHI
V. Kameswar Rao, J.
Suresh Puri - Appellant
Versus
State Bank of India - Respondent
W.P.(C) 12042 of 2018 & CM. No. 46619 of 2018
Decided On : 05-01-2023




Disciplinary actions must adhere to natural justice principles; unauthorized deductions from retirement benefits are impermissible unless explicitly authorized by law.

Headnote:(A) Constitution of India - Article 12 - Writ of Certiorari - Disciplinary proceedings - Petitioner challenged the disciplinary orders reducing salary and withholding benefits, alleging malafide transfers and unauthorized deductions - The Court noted the authority of the Bank to issue transfers and the principle that employees have no enforceable legal right to a specific posting. (Paras 1-130)

(B) Natural Justice - Disciplinary authority must not pre-judge cases; the inquiry results must objectively assess employee behavior rather than relying solely on procedural failures. (Paras 22-34)

(C) Terminal Benefits - Recovery from retirement dues not permissible unless grounded on express contractual provisions and statutory authority; terminal benefits, including pension and gratuity remain protected from unauthorized deductions. (Paras 40-134)

(D) Censure imposed showed leniency despite serious misconduct due to unauthorized absences and breach of order, with no substantial loss established to the employer stemming from the employee's actions. (Paras 120-134)

Findings of Court:
The Court emphasized the lack of evidence for alleged malice in the transfer-related actions, upholding the Bank’s authority to manage employee postings under its administrative policy and stating that the petitioner's rights to terminal benefits remain immune from deductions contrary to established legal principles.

Issues: Whether the Bank's actions in the transfer and disciplinary proceedings violated principles of natural justice, and the legality of the recovery of amounts from terminal benefits.

Ratio Decidendi: While employees are accountable for compliance with transfer orders, the absence of specific provisions for deduction from terminal benefits establishes that such recoveries cannot occur unless explicitly authorized.

Result: Petitioner’s appeals against recovery orders allowed, with directions for refund of deducted amounts.

Table of Content
1. petitioner details background and employment history. (Para 1 , 2 , 3)
2. arguments related to harassment and disfavor by the bank. (Para 4 , 5 , 6 , 12)
3. disciplinary proceedings and penalties examined. (Para 21 , 22 , 24)
4. determination of improper deduction from terminal benefits. (Para 119 , 125 , 130)
5. bank must return improperly deducted amounts. (Para 134)

JUDGMENT

V. Kameswar Rao, J.

1. The present petition has been filed with the following prayers:

    "(A) Issue a Writ of Certiorari or any other appropriate Writ or pass any other appropriate Order directing the Respondents to quash the Order dated 07.02.2017, bearing No. DPD/1688/2466, passed by the Disciplinary Authority of the Respondent against the Petitioner and accordingly direct the Respondent to pay the Petitioner an amount equal to the reduction in salary that was imposed as a result of the Order dated 07.02.2017 along with interest @ 18% p.a. from 07.02.2017 till realization;

    (B) Issue a Writ of Certiorari or any other appropriate Writ and/or Order directing the Respondents to quash the Order dated 16.03.2017, bearing No. DPD/1711/2195, passed by the Disciplinary Authority of the Respondent against the Petitioner;

    (C) Declare that the Respondent has illegally withheld the salary of the Petitioner for the months of 01.02.2015 to 19.05.2015; and direct the Respondent to release the such withheld salary amount to the Petitioner along with interest @ 18% p.a. from 20.05.2015 till realization;

    (D) Declare that the deductions to the tune of Rs. 28,500/- per month from 01.06.2016 to 31.03.2017 from the salary of the Petitioner are unlawful; and accordingly direct the Respondent to reimburse such deducted amount along with interest @ 18% p.a. from 01.06.2016 till realization;

    (E) Issue a Writ of Mandamus or any other appropriate Writ or pass any other appropriate Order directing the Respondents to re-evaulate the amount of Pension, Provident Fund and Gratuity due to the Petitioner after taking into account the payments sought in prayer (a), (c) and (d) and release the differential amount alongwith interest@18% p.a. from 30.11.2017 upto realization;

    (F) Declare that the appropriation of terminal benefits of the Petitioner towards payment of outstanding Home Loan, Education Loan and Vehicle Loan availed by the Petitioner from the Respondent is illegal;

    (G) Issue a Writ of Mandamus or any other appropriate Writ and/or Order directing the Respondents to

    (i) Reverse the debit of Rs. 9,68,027/- from the Personal OD Account of the Petitioner, bearing No. 67087136397, that was appropriated towards payment of outstanding Education Loan Amount alongwith interest @ 18% from the date of such debit upto realization ; and

    (ii) Reverse the closure of the Education Loan Account, bearing No. 67064881260, maintained with the Saket Branch of the Respondent and allow the Petitioner to continue the loan;

    (H) Issue a Writ of Mandamus or any other appropriate Writ and/or Order directing the Respondents to

    (i) Reverse the debit of Rs. 15,50,700/- from the Pension Account of the Petitioner, bearing No. 37233644175, that was appropriated towards payment of outstanding Home Loan and Vehicle Loan alongwith interest @ 18% from the date of such debit upto realization; and

    (ii) Reverse the closure of the Home Loan Account, bearing No. 67166815214 and Vehicle Loan Account, bearing No. 67046842754, maintained with the Sector 18, Gurgaon Branch of the Respondent and allow the Petitioner to continue the loans;

    (I) Issue a Writ of Mandamus or any other appropriate Writ and/or Order restraining the Respondent from marking any lien in the Petitioner's Account bearing No. 67087136397 and Personal OD Account, bearing No. 67087136397 and thereby prohibit it from appropriating the Provident Fund and Gratuity towards any outstanding payment;

    (J) Award costs in favour of the Petitioner; and

    (K) Pass such other Order or further orders or direction as this Hon'ble Court may deem fit and prope


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