Dama Seshadri Naidu, J.

Back Ground:

1. Appellant Maya Devi was working as a Head Cashier in a branch of the respondent Bank: State Bank of Travancore. In October, 2000, Maya Devi wanted to go on leave. When she was handing over the charge to another employee, Maya Devi's cash balance showed a shortage. To have the shortage confirmed, another official counted the money in Maya Devi's custody and found that Rs. 45,500/- was short. As the Head Cashier—Maya Devi—and the Deputy Manager are the joint custodians, they made good the loss. Yet the Bank initiated disciplinary proceedings against both the employees. We confine to the proceedings vis-à-vis only Maya Devi.

2. Not satisfied with the explanation given by Maya Devi, the Bank appointed an Enquiry Officer, who upon enquiry, submitted a report. Acting on the report, the disciplinary authority had found charges of major misconduct proved against Maya Devi and recommended for her summary dismissal. Aggrieved, Maya Devi took an inter-departmental appeal, in which the punishment was modified to that of compulsory retirement: to be discharged with all superannuation benefits. Further aggrieved, Maya Devi raised an industrial dispu