By the Court.—We have heard Shri Samir Sharma for the petitioner. Shri Vipin Sinha appears for the respondent-bank.

2. This writ petition is directed against the orders dated 5.8.2000 passed by the General Manager (D & PB), as the Appointing Authority of the petitioner imposing penalty of dismissal against him after a departmental enquiry, and the appellate order dated 19.3.2001 passed by the Chief General Manager, State Bank of India, as the Appellate Authority rejecting the appeal.

3. The petitioner joined State Bank of India as clerk-cum-typist in the year 1973. He was promoted in the JMGS-I in the year [1981]1 and in the MMGS-II in the year [1996]2. Prior to his promotion in [MSGS-III]3 he was posted as Manager at Indian Oil Corporation Branch of the bank at Panki, Kanpur Nagar. where he was directed by the Asstt. General Manager-I, Zonal Office, State Bank of India, Kanpur to finance the borrowers under the Personal Segment Scheme (Big Buy), of consumer goods, repayable from their salaries received from the company.

4. The petitioner sanctioned various loans under the scheme to the permanent employees of M/s Duncons Industries Ltd., Panki, Kanpur Nagar. In order to safeguard the bank’s interests, permanent check off facility towards repayment of the loans, was provided for deducting installments at source from the monthly salary as was agreed between the parties and affirmed by the employer of the borrowers. The accounts were duly inspected/ verified by the verification auditors in February 1996 and were found in order in the audit report dated 13.2.1996.

5. The petitioner was transferred to Shukla Ganj Branch of the bank at Unnao. His successor Shri Lal Chand confirmed that the check off facility under various Personal Segment Scheme to the employees of M/s Duncons Industries Ltd. was conducted in order, and timely payments were being received. The petitioner was transferred from Shukla Ganj, Unnao Branch to the lead bank office Maharajganj, Gorakhpur in March 1997, where he received, through the AGM, Gorakhpur on 6.8.1997 a suspension order in terms of Rule 68A (1) of the State Bank of India (Officers) Service Rules. He was attached to the branch office of the bank at Gorakhpur. The petitioner preferred an appeal against the suspension order under Rule 69 (1) on 25.8.1997. The appeal was dismissed on 5.8.1998.

6. A charge-sheet dated 13.7.1998 was served on the petitioner on 6.8.1998. The statement of articles of charges against the petitioner for having committed serious irregularities in sanction, disbursement and conduct of loans under Big Bye (P) Segment Scheme and disbursement of car loan for the period July 1995 to February 1996 alleged as follows :

“CHARGES IN BRIEF ARE AS UNDER

CHARGE NO. 1

You extended big buy financing under ‘’P’ Banking Segment in a reckless manner to 107 I.O.C. employees and released/ disbursed of approx.Rs.29/30 lacs between August 1995 to February 1996 by issuing Bankers Cheques in favour of M/s Parakash TV Agencies, Prakash Radio & Electric Co., Suman Electronics & Mamta Furniture. You did not satisfy yourself about the supplier’s whereabouts before releasing/ disbursing these loans. Neither manufacture’s serial No. in respect of TVs, refrigerators etc. have been furnished on the bills issued by these firms/ parties against Big-Buy loan accounts, nor their quotations/ bills contain complete addresses, indicating the firms being fake/ non-existent.

CHARGE NO. 2

You engaged services of Sri A.K. Mathur a middleman, who allegedly misappropriated substantial amount in connivance with you. This is indicative of the fact that you have made personal gains in the deals, in the name of tapping business at the branch.

CHARGE NO. 3

You failed to ensure end-use of the funds so released and disbursed in these Big-Buy loans granted under your discretionary powers. You procured bogus possession certificates from the Big-Buy borrowers and wrongfully confirmed to the controllers about the proper en