ANITA SUMANTH, G. ARUL MURUGAN
Disciplinary Authority & The Deputy General Manager, Indian Overseas Bank – Appellant
Versus
J. Thomas Karunanithi – Respondent
JUDGMENT :
Anita Sumanth, J.
Prayer : Writ Appeal filed under Clause 15 of Letters Patent against order dated 28.04.2023 made in W.P.No.9912 of 2014.
We have heard Mr.N.L.Rajah, learned Senior Counsel appearing for Mr.K.Srinivasamurthy, learned counsel on record for the appellants/Indian Overseas Bank (in short ‘Bank’) and Mr.T.Mohan, learned Senior Counsel appearing for Ms.P.Vasuky, learned counsel for the respondent (in short ‘respondent’/’writ petitioner’).
2. The appellants challenge an order of the Writ Court dated 28.04.2023. What was impugned before the Writ Court was an order dated 23.03.2013 confirming appellate order dated 08.09.2012, which, in turn confirmed order dated 06.07.2012 dismissing the petitioner from service. Consequential directions were sought for payment of backwages from date of dismissal till due date of superannuation of the Writ Petitioner along with full retirement benefits.
3. The respondent was employed with the appellant Bank. While serving as a Branch Manager in the Hosur Town Branch, he had sanctioned a loan to one V.Murali (in short ‘borrower’). According to the respondent, all due diligence was effected prior to sanction of the loan including in rega
State of U.P. & Others v Nand Kishore Shukla and another (1996) 3 SCC 750
Disciplinary Authority cum Regional Manager and others v Nikunja Bihari Patnaik (1996) 9 SCC 69
Tara Chand Vyas v Chairman & Disciplinary Authority & Others (1997) 4 SCC 565
State Bank of India v Tarun Kumar Banerjee & Others (2000) 8 SCC 12
Noida Enterpreneurs Association v Noida & Others (2007) 10 SCC 385
Workmen of Balmadies Estates v Management
Mihir Kumar Hazara Choudhury v Life Insurance Corporation & another (2017) 9 SCC 404
Boloram Bordoloi v Lakshmi Gaolia Bank & Others (2021) 3 SCC 806
Dev Singh v Punjab Tourism Development Corporation Ltd and another (2003) 8 SCC 9
Ishwar Chandra Jayaswal v Union of India and others (2014) 2 SCC 748
Disciplinary proceedings require strict adherence to procedural regulations, and serious lapses by bank officers justify dismissal, irrespective of the absence of financial loss.
Disciplinary actions must adhere to principles of natural justice, and failure to provide relevant evidence undermines the validity of proceedings.
Distinct allegations against employee charged in the same transaction would be justified being based on a valid classification and no perversity or arbitrariness can be alleged in the process.
The court established that disciplinary actions must be timely and substantiated by evidence, and that employees cannot be held accountable for actions not identified within the stipulated time frame....
The court upheld the disciplinary findings against the employee but modified the penalty to a minor one, emphasizing the need for proportionality in disciplinary actions.
Negligence in banking operations can warrant disciplinary action, but dismissal is excessive if it disproportionately impacts an employee with long service and minimal financial loss to the instituti....
Disciplinary proceedings against a retired bank officer can proceed if initiated prior to retirement, identifying lapses in loan sanctioning as misconduct warranting penalties.
Scope of judicial review against a departmental enquiry proceeding is very limited – It is not in nature of an appeal and a review on merits of decision is not permissible – Scope of enquiry is to ex....
Dismissal for misconduct in banking, despite no financial loss, is justified to maintain integrity and trust; procedural irregularities alone do not negate findings unless they cause specific prejudi....
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