IN THE HIGH COURT OF ALLAHABAD
V. G. Oak, J.
RAM KISHUN TANDON - Appellant
Versus
OFFICER IN CHARGE CENTRAL BANK OF INDIA LTD., MUTHIGANJ BRANCH, ALLAHABAD - Respondents
Civil Misc. Writ 1087 Of 1956
Decided On : 11/07/1957
INDUSTRIAL DISPUTES - BANKING COMPANIES - DEPARTMENTAL ACTION - AWARD OF INDUSTRIAL TRIBUNAL - EFFECT OF - INDUSTRIAL DISPUTES (BANKING COMPANIES) DECISIONS ACT (41 OF 1955), SECS. 3, 6 - WRIT OF MANDAMUS - WHEN CAN BE ISSUED.
Fact of the Case:
Petitioner, a cashier in Central Bank of India, was suspended and prosecuted for criminal breach of trust and misappropriation of money. He was acquitted by the criminal court. Despite the acquittal, the Bank initiated departmental action against him. Petitioner challenged this action, arguing that it was prohibited under the Sastri Award, which was enforced by the Industrial Disputes (Banking Companies) Decisions Act, 1955.
Finding of the Court:
The court held that the departmental action against the petitioner was not prohibited under the Sastri Award. The award did not lay down an absolute prohibition against departmental action after an acquittal from a criminal court. It recognized that in certain cases, disciplinary action might be necessary despite acquittal.
Issues: 1. Whether the departmental action against the petitioner was prohibited under the Sastri Award? 2. Whether the Industrial Disputes (Banking Companies) Decisions Act, 1955 created a statutory duty on the Bank not to take departmental action against the petitioner?
Ratio Decidendi: 1. The Sastri Award did not prohibit departmental action after an acquittal from a criminal court in all cases. It recognized that in certain cases, disciplinary action might be necessary despite acquittal. 2. The Industrial Disputes (Banking Companies) Decisions Act, 1955 did not create a statutory duty on the Bank not to take departmental action against the petitioner. The Act merely declared the validity of certain awards given previously in industrial disputes.
Final Decision: The petition was dismissed with costs.
( 1 ) THIS is a petition under Article 226 of the Constitution for the issue of writs of mandamus and certiorar. Ram Kishun Tandon petitioner was employed as a cashier in the Central Bank of India ltd. , Mutthigunj Branch, Allahabad. The Officer-in-charge, Central Bank of India Ltd. , mutthigunj Branch, Allahabad and the Chief Agent, Central Bank of India, Kanpur are the two opposite parties in this petition.
( 2 ) THE petitioners case is that in September 1954, the Bank levelled against the petitioner charges of criminal breach of trust and misappropriation of money. The petitioner was suspended from service. The petitioner was also prosecuted in the criminal court under Section 408,. P. C. But the criminal court acquitted the petitioner on 30-9-1955. In spite of the acquittal from the criminal court, the Bank is taking departmental action against the petitioner in order to dismiss him from service. Such departmental action is prohibited under the law. The reason is that certain industrial disputes were, at one time, referred to an Industrial Tribunal commonly known as Sastri Tribunar That Tribunal gave an award recommending that, departmental action should not be taken after acquittal by criminal courts. There was a subsequent award by another Tribunal presided over by Sri Gajendragadkar. These two awards were enforced by the Industrial Disputes (Banking Companies) Decisions Act 1955 (Central Act no. 41 of 1955 ). So the proposed departmental action against the petitioner is illegal.
( 3 ) THE opposite parties have opposed this petition on the ground that, departmental action is not prohibited. The petitioner has filed an affidavit in support of his petition. One L. N. Varshney, offtcer-in-charge of the Central Bank of India Ltd. , Mutthigunj Branch, Allahabad has filed a counter-affidavit.
( 4 ) THE first point for consideration is whether the departmental action against the petitioner is with respect to the same matter, for which he was prosecuted in the criminal court. The judgment of the criminal court shows that the charge against Ram Kishun Tandon was that he committed criminal breach, of trust with respect to a sum of Rs. 8,520/ -. The judgment of the learned assistant Sessions Judge, Allahabad is dated 30-9-1955. Prior to the decision by the criminal court some departmental action was taken against the petitioner. On 30-9-1954 the petitioner was called upon to submit his explanation about the shortage of a sum of Rs. 8,520/ -. That note is annexure "a" to the petition. Annexure "b" dated 14-10-1954 is a note prepared by the Chief Agent, Kanpur. In annexure "b" it was stated that, Sri Tandon misappropriated a sum of Rs. 8,520/ -. Annexure "c" is an explanation furnished by the petitioner. Annexure "d" dated 28-10-1955 is the order of the Chief agent directing that the petitioner will continue to remain under suspension in spite of the acquittal by the criminal court. Annexure "e" dated 9-1-1956 is a note by the Sub-Agent calling upon the petitioner to show cause why his service should not be dispensed with. Annexure "e" also repeats the charge of misappropriation of a sum of Rs. 8,520/ -.
( 5 ) IN paragraph 6 of the counter-affidavit it is stated:
"apart from the charges of criminal misappropriation and criminal breach of trust there is also a charge of gross misconduct on the part of the petitioner. "
But the counter-affidavit does not give any details of the alleged misconduct apart from the misappropriation of money. In the last paragraph of Annexure "e" the Sub-Agent wrote: "the bank has full liberty to dispense with his service on grounds of gross misconduct, criminal misappropriation and criminal breach of trust. " Here again no details of the alleged criminal misconduct were disclosed. Mr. S. N. Verma appearing for the respondent referred to annexure "a". In annexure "a" it was mentioned that, Ram Kishun Tandon was absent from duty from the 24th august to the 10th of September, 1954. So a possible
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