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2025 Supreme(Mad) 3789

IN THE HIGH COURT OF JUDICATURE AT MADRAS
D. BHARATHA CHAKRAVARTHY, J.
The Tiruvannamalai District Central Co-operative Bank Ltd. - Petitioner
Versus
The Joint Registrar of Co-operative Societies, Tiruvannamalai District & Ors. - Respondents
W.P.No.3571 of 2023 and WMP.Nos.3629 & 3632 of 2023
Decided On : 02-01-2025


Advocates Appeared:
For the Petitioner: Mr. Reshmi Christy.
For the Respondents: Mr. Arumugam Additional Govt. Pleader, Mr. L.P. Shanmugasundaram.

Employment law requires that disciplinary action for severe misconduct, such as misappropriation and forgery, must be commensurate with the offenses committed, prioritizing accountability over rehabilitative sympathy.

Headnote:(A) Tamil Nadu Co-operative Societies Act - Section 153 - Dismissal of employee for misappropriation - The petitioner Bank challenged the order of the Joint Registrar reinstating the workman with lesser punishment after she misappropriated Rs.22,20,000/- - The court held that the punishment should fit the severity of the offense, particularly considering the nature of forgery and misappropriation - (Paras 8, 11)

(B) Employment Law - Misappropriation and discipline - The court emphasized the importance of accountability in service roles and dismissed the rehabilitative approach taken by the first respondent as misplaced sympathy - (Paras 8, 10)

Facts of the case:
The petitioner Bank sought to challenge the order restoring a workman, Gnanamari, to service despite her serious charge of forgery and misappropriation of funds. The workman had repaid the funds and sought leniency due to personal circumstances.

Findings of Court:
The court found the initial punishment of dismissal justifiable, emphasizing the serious nature of the charges related to forgery and misappropriation.

Issues: The court addressed whether the punishment of dismissal was disproportionate to the severity of the charges against the workman.

Ratio Decidendi: The court ruled that leniency in response to severe misconduct undermines organizational integrity and emphasized the importance of serious consequences for such actions.

Result: Writ petition allowed; the order reinstating the workman set aside; dismissal restored.

Table of Content
1. overview of the disciplinary action and subsequent reinstatement order. (Para 1 , 2 , 3)
2. arguments presented regarding the appropriateness of punishment. (Para 4)
3. arguments regarding the nature of charges and personal circumstances of the workman. (Para 5 , 6)
4. final decision reinstating the original dismissal order. (Para 7)
5. court's disapproval of leniency in severe misconduct cases. (Para 8 , 9 , 10)
6. restoration of the dismissal order based on serious charges. (Para 11)

ORDER :

The writ petition is filed by the petitioner Bank aggrieved by the order of the Joint Registrar of Cooperative Societies, Thiruvannamalai Region, Thiruvannamalai District dated 25.02.2022, whereby, the revision petition filed by the second respondent Workman was allowed by the Joint Registrar.

2. The brief factual background, in which, this writ petition arises is that the second respondent Gnanamari, who was working as Assistant Manager in the petitioner Bank. While so, a charge memorandum dated 20.02.2020 was issued against her. It is essential to extract the charges against the Second respondent Gnanamari and they read as hereunder:

Details of the Misappropriated funds:

3. Thereafter, disciplinary action continued and by an order dated 05.01.2021, the second respondent was dismissed from service. As against the order of dismissal, the second respondent preferred the revision under Section 153 of the Tamil Nadu Co-operative Societies Act.

4. The first respondent considered the case of the parties. In respect of each of the charges, detail findings are given. Apart from, the fact that the each and every charge has been duly proved in the enquiry, the revisional authority also considered the revision and the additional explanation of the Workman. It is the primary case of the Workman that subsequently, the misappropriated amount has been paid back to the bank. She therefore also undertakes that she will not further involved in such mistakes. She has been neglected by her husband and struggling with two children, who are studying in second year and third year of engineering and she also has one physically handicapped brother and his wife and children to take care and therefore, she prayed that instead of the capital punishment, she must be given any other punishment. The first respondent considered the case of the workman. The first respondent considered the fact that she was 46 years and therefore, she cannot now get employment anywhere else. The Workman had paid all the balance amount to the Society. No criminal case or surcharge proceedings is pending against the Workman. Therefore, the first respondent considered that dismissal from service is disproportionate to the charges levelled and therefore, ordered reinstatement with a lesser punishment of Increment cut for a period of 3 years with cumulative effect and the period of non employment was to be treated as treated on the basis of no work, no pay. Aggrieved by the same, the bank is before this court.

5. Ms.Reshmi Christy, learned counsel appearing on behalf of the petitioner Bank, taking this court through the charges, submitted that the second respondent faces very serious charge. She has indulged in forgery falsification of accounts and withdrawal of the deposit amounts of the customers of the Bank totalling to Rs.22,20,000/- which has been proved to hilt by the bank. The charges are very serious in nature and therefore, the order of the first respondent is erroneous in law.

6. Per contra, Mr.Shanmugasundaram, the learned counsel appearing on behalf the Workman would submit that while imposing the punishment, the condition of the employee should also be taken into account. When the petitioner is a woman aged about 46 years and has been neglected by her husband and finding it difficult to run the life with two children and also with the physically handicapped brother and his family, the Authority has taken a right decision. As a matter of fact, the petitioner herself has cat

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