The employer has the right to recover the amount of fraudulent withdrawal from the gratuity of the employee if the misconduct causes financial loss to the employer, subject to following the principles of natural justice.

JUDGMENT :

1) The original petitioner, namely, Sheikh Mushtaq Ahmad, has sought a direction upon the respondents to compute and release the subsistence allowance in his favour with effect from 27.11.2011 till 29.09.2011 by giving the benefit of pay revisions and increase in rates of subsistence allowance as provided in the rules. A further direction has been sought upon the respondents to release the retiral benefits including monthly pension, leave encashment and provident fund strictly as per the rules governing the field.

2) The original petitioner was working as Cashier-cum-Clerk in Srinagar Branch of the respondent Bank. It appears that one Sheikh Shabnam Qayoom was maintaining a Savings Bank Account bearing No.19693 with UCO Bank, Srinagar. On 29.11.2000, a cheque book was shown to have been issued to the said account holder. On 19.12.2000, a cheque for an amount of Rs.2.20 lacs from out of the aforesaid cheque book was shown to have been issued from the Savings Bank Account of the account holder. On 27.06.2001, Sheikh Shabnam Qayoom, the account holder, lodged a complaint with the respondent Bank that she had not obtained the cheque book nor had she issued the cheque for withdrawal of Rs.2.20 lacs. FIR No.65/2001 came to be lodged with Police Station, Maisuma, by the respondent Bank and after investigation of the case, nothing was proved against the original petitioner, as such, challan was not filed against him. However, the respondent Bank initiated departmental proceedings against the original petitioner and he was placed under suspension on 27.11.2001. On 21.02.2002, a charge sheet was served upon the original petitioner in which it was alleged that he had taken delivery of the cheque book in question and thereafter defrauded the bank by withdrawing an amount of Rs.2.20 lacs. After the original petitioner filed his reply to the charges, a regular enquiry was conducted, wherein his involvement in the matter was established, whereafter penalty of discharge from service was imposed upon him. The Appellate Authority set aside the finding on charge of receiving the cheque book but maintained the finding that the original petitioner had withdrawn the money. Accordingly, the penalty of discharge from service with all superannuation benefits was imposed upon the original petitioner.

3) The aforesaid order came to be challenged by the original petitioner by way of a writ petition bearing SWP No.148/2006 before this Court. Vide judgment dated 09.05.2008 passed in the aforesaid writ petition, the order of imposition of penalty upon the original petitioner was set aside. While doing so, the Court held that the original petitioner was not afforded due opportunity to cross-examine certain witnesses which has resulted in prejudice to him. While allowing the petition, the respondent Bank was given liberty to conduct a fresh enquiry against the original petitioner.

4) Pursuant to the judgment of this Court, the original petitioner was reinstated in service by the respondent Bank but it was provided that suspension order passed against him would continue. A fresh enquiry was conducted by the respondents against the original petitioner and ultimately, the disciplinary authority vide its final order dated 29th September, 2011, imposed penalty of discharge of the original petitioner from service with superannuation benefits i.e., pension, provident fund and gratuity as would be due otherwise under the Rules and Regulations prevailing at the relevant time and without disqualification for future employment. In the same order, the disciplinary authority concurred with the findings of the enquiry officer, who had concluded that the allegation regarding taking delivery of the cheque book relating to the account of Sheikh Shabnam Qayoom has been partly proved whereas the allegation regarding filling up of the cheque leaf from the cheque book in own writing of the original petitioner and thereafter forging signatures of Sheikh Shabnam Qayoom and w