T. Nk. Singh, J.

1. Heard Mr. H.S. Paonam, learned senior counsel assisted by Mr. S. Gunabanta, learned counsel appearing for the petitioner and also Mr. N. Ibotombi. learned senior Advocate assisted by Ms Savitri, learned counsel appearing for the respondents. Petitioner, who is now retired Bank Officer, is assailing the punishment of reduction of Middle Management Grade Scale-II to Junior Management Grade Scale-I with his basic pay being fixed at Rs. 9,820/- vide the impugned order/letter No. PD/ DIR/496/1239/2002, February 20th, 2002 issued by the Assistant Chief Manager (D.& I.R.) and also the entire departmental proceedings.

Factual Background:

2. The petitioner was serving as Manager of United Bank of India (for short UBI) Paona Bazar Branch from 16.11.1989 to 08.6.1992. While the petitioner was functioning as Lead Bank Officer with the responsibilities of looking after Districts of Bishenpur and Churachandpur, he was served with the letter of the Assistant General Manager Corporate A/Cs being No. PD/DIR/372/97 dated 31.12.1996/ 2011/1997 that enquiry against the petitioner under Regulation 6 of the UBI Officers Employees' (Discipline and Appeal) Regulation, 1976 for the Article of Charge mentioned therein is proposed. In the said letter, the statements of allegations for the charges are also mentioned. The Article of charges against the petitioner are that during the tenure of his service as Manager of the UBI Paona Bazar Branch from 16.11.1989 to 08.06.1992, the petitioner failed to take all the possible steps to ensure and protect the interest of the Bank and discharge his duties with utmost devotion, diligence and integrity and failed to exercise his best judgment in breach of the provisions contained in Regulations 3(1) and 3(3) read with Regulation 24 of the United Bank of India Officers Employees' (Conduct) Regulations, 1976 and also that the petitioner had sanctioned and disbursed loan amount to the extent of Rs. 18,31,699.00/- in 29 Loan accounts, which are not under the Government Sponsored Schemes, during the period from 27.11.91 to 29.5.92, details of which are given in the Annexure-A1, in utter disregard and in gross violation of the instruction of the Regional Manager, Purbanchal Region, conveyed to the petitioner under his letter No. RMP/ADV/PB/26/ 02/91 dated 11.07.1991 and No. RMP/ ADV/PB/26-A/03/91 dated 22.07.1991 not to use his discretionary power in sanctioning new advances except the advances under the Government Sponsored Scheme, Therefore, the petitioner had failed and neglected to take effective steps for liquidation of the said loan account and as a result of which, out of said 29 loan account, outstanding debit balance exceeded the sanctioned limit in 25 loan accounts as on 4.9.1995 as mentioned in Annexure and in the remaining 4 loan accounts though the debit balance did not exceed the sanctioned limit as on 4.9.1995, there were hardly any repayment made therein. Thus, a total amount of Rs. 18,56,587-85p in the said 29 loan account as categorized as NPA and for which the Bank is likely to suffer financial loss to the extent of Rs. 18,56,587.85p together with the applicable interest thereon. The petitioner also did not report such sanction to his Regional Manager's office through monthly Discretionary Power Statement and also that the petitioner had sanctioned and disbursed a RTO Loan amounting to Rs. 1,08,535/- to one Aribam Goura Chandra Sharma for purchase of Maruty Van in utter disregard of instructions and in gross violation of the instruction of the Regional Manager, Purbanchal Region, conveyed to the petitioner vide his letter No. RPM/ADV/PB/26/02/91 dated 11.7.91 & No. RMP/ADV/PB/26-A/03/91 dated 22.07.91 not to use his Discretionary power in sanctioning new advances except advance under Govt. Sponsored Scheme and in utter violation of the Bank's Circulars No. CPPI/ADV/39/0M-177/91 dated 20.04.91 and No. CPPI/ADV/58/0M-256/91 dated 5.6.91 which envisaged credit restriction imposed