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2025 Supreme(MP) 289

IN THE HIGH COURT OF MADHYA PRADESH AT GWALIOR
ASHISH SHROTI, J.
Jitendra Singh Gurjar – Appellant 
Versus
District Central Cooperative Bank Ltd. & Another – Respondent
WRIT PETITION No. 15390 of 2022, 15391 of 2022, 15392 of 2022, 15421 of 2022, 15429 of 2022, 15604 of 2022
Decided On : 19-08-2025

Advocates:
Advocate Appeared:
For the Appellant : Shri Alok Kumar Sharma
For the Respondent: Shri R.B.S. Tomar

Compulsory retirement is justified if based on performance assessments; no inquiry is required unless there is evidence of mala fides or arbitrariness.

Headnote:(A) Constitution of India - Article 226 - Compulsory retirement of employees - The petitioners challenged the CEO's orders for their compulsory retirement based on inefficiency and business losses suffered by the bank - The Court affirmed that such an order serves the public interest and does not require a departmental inquiry - Rules regarding retirement and performance evaluation were outlined, emphasizing subjective satisfaction of the authority in the decision-making. (Paras 2, 4, 10, 11, 12, 18, 26)

(B) Administrative Law - Judicial Review - The Court reiterated that interference in matters of compulsory retirement is limited to instances of mala fides, lack of evidence, or manifest arbitrariness. (Paras 10, 12, 18)

(C) Employment Law - The Court concluded that the petitioners' compulsory retirement was justified based on documented performance failures and the CEO's authority was validated despite procedural criticisms. (Paras 26, 28)

Facts of the case:
Six petitioners were compulsorily retired under Rule 71.2 of the Bank's Service Rules due to poor performance in loan recovery and management, following the recommendation of a Staff Sub-Committee. The petitioners claimed procedural violations and insufficient inquiry before their retirement.

Findings of Court:
The Court upheld the CEO's decision, affirming it as guided by the bank's operational interests and subjective evaluation of the petitioners' performance.

Issues: The main issues revolved around the legality of compulsory retirement without detailed inquiry, the adequacy of performance assessments, and the authority of the CEO in such decisions.

Ratio Decidendi: Compulsory retirement serves the public interest and does not require exhaustive inquiry into past performance, focusing instead on subjective assessments of utility to the organization and the lack of malice in decision-making.

Result: Petitions dismissed.

Table of Content
1. petitioners retired based on performance issues. (Para 1 , 2 , 3)
2. challenge to compulsory retirement process and rules. (Para 4 , 5 , 6 , 7 , 8)
3. legal basis and implications of compulsory retirement orders. (Para 9 , 10 , 11 , 12)
4. rules governing the employment and retirement of bank employees. (Para 13 , 14 , 15)
5. assessing the nature of complaints and procedures in retirement. (Para 16 , 17 , 18 , 19 , 20)
6. validity of committee decisions in relation to the signature issue. (Para 21 , 22 , 23 , 24)
7. subjective satisfaction basis for the decision-making in retirement cases. (Para 25 , 26 , 27)
8. decision upheld, petitions dismissed. (Para 28)

ORDER :

The petitioners in this batch of writ petitions are aggrieved by the order passed by the Chief Executive Officer of respondent-Bank whereby they have been directed to be compulsorily retired from service in public interest. Since, the issue involved in all these petitions is common, the same are being decided by this common order.

[2]. The petitioners have invoked Article 226 of Constitution of India, being aggrieved by the order, dated 24.06.2022, passed by respondent no.2-Chief Executive Officer, District Cooperative Central Bank Mydt., Gwalior, (hereinafter referred to as “Bank”) whereby they have been retired compulsorily in public interest exercising power under Rule 71.2 of SERVICE RULES . The petitioners have also prayed for a direction to the respondents to reinstate them in service with full arrears of salary and interest.

[3]. The facts necessary of decision of this case are that:

i. The petitioner, Jitendra Singh Gurjar in W.P. No.15390/22, was initially appointed as Clerk in the Bank on 07.07.1990 (Annexure P/3) and was subsequently promoted to the post of Assistant Accountant vide order, dated 05.09.1998, (Annexure P/4). At the time when the impugned action is taken by the respondents, the petitioner was working as In-charge Branch Manager at Cheenor Branch of the Bank;

ii. The petitioner, Bhagwati Prasad Parashar in W.P. No.15429/22, was initially appointed as Clerk in the Bank on 22.01.2001 (Annexure P/3). At the time when the impugned action is taken by the respondents, he was working as In-charge Branch Manager at Antari Branch of the Bank;

iii. The petitioner, Prem Dutt Sharma in W.P. No.15604/22, was initially appointed as Clerk in the Bank on 31.12.1988 (Annexure P/3) and was subsequently promoted to the post of Assistant Accountant vide order, dated 05.09.1998, (Annexure P/4). At the time when the impugned action is taken by the respondents, the petitioner was working as In-charge Branch Manager at Dabra Branch of the Bank;

iv. The petitioner, Mahendra Singh Bhadoira in W.P. No.15391/22, was initially appointed as Clerk in the Bank on 01.07.1991 (Annexure P/3) and was subsequently promoted to the post of Assistant Accountant vide order, dated 05.09.1998, (Annexure P/4). At the time when the impugned action is taken by the respondents, the petitioner was working as In-charge Branch Manager at Ghatigaon Branch of the Bank;

v. The petitioner, Arvind Singh Tomar in W.P. No.15392/22, was initially appointed as Clerk in the Bank on 22.04.1995 (Annexure P/3). At the time when the impugned action is taken by the respondents, the petitioner was working as In-charge Branch Manager at Murar Branch of the Bank.

vi. The petitioner, Jugal Kishore Pathak in W.P. No.15421/22, was initially appointed as Clerk in the Bank on 07.07.1990 (Annexure P/3) and was subsequently promoted to the post of Assistant Accountant vide order, dated 05.09.1998, (Annexure P/4). At the time when the impugned action is taken by the respondents, the petitioner was working as In-charge Branch Manager at Cheenor Branch of the Bank.

[4]. The matter of continuance of petitioners in service, on completion of 50 years of age or 20 years of service, was placed before the Staff Sub- Committee in its meeting held on 17.06.2022 (Annexure R/1). The petitioners were given opportunity of pers

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