Disciplinary proceedings under service regulations against superannuated officers commence only on charge-sheet issuance, not show cause notice. Post-retirement continuation invalid; use pension regulations for pecuniary loss recovery instead.

JUDGMENT (PER S. M. MODAK, J.) :-

1. The issues involved in this petition are, ‘Whether disciplinary Digitally signed SEEMA by SEEMA KSHITIJ KSHITIJ YELKAR Seema 1/21 YELKAR D 20 a 2 te 6 : .04.24 enquiry can be initiated under Discipline and Appeal Regulations against an officer, who has retired on superannuation?’ and ‘whether the disciplinary proceedings commence with issuance of a show cause notice or they commence only on issuance of a memorandum of charge-sheet?’.

2. After hearing the submission advanced by both sides, this Court as per order dated 18^th April 2018, directed Respondents “not to proceed with disciplinary enquiry further” till the next date. Thereafter for several reasons, since 2018 this petition was pending. We are not going into reasons for its pendency, but when this petition was placed before us on 25^th March 2026, by consent, it was decided to hear the petition finally at an admission stage.

3. That is how we have heard, learned advocate Shri Akash Menon for the Petitioner and learned advocate Shri Kanade for Respondent-Bank.

4. Before going into the legal aspects, it will be material to record few facts which are relevant for deciding the controversy. They are as follows :-

FACTS

(a) In or about September 2011, the Petitioner was posted as Managing Director of Punjab National Bank (International) Limited at London, United Kingdom. It was wholly owned subsidiary of Respondent-Bank. His deputation came to an end in and around May 2015. Then he returned back to India.

(b) It was observed in December 2016 that there were unusual large number of Non-performing assets accumulated at Punjab National Bank (International) Limited. It was noticed that they were opened during the tenure of the Petitioner.

(c) As per Staff Accountability Policy issued vide circular dated 29^th October 2013, before initiating disciplinary action, certain steps are required to be followed. It was decided to examine staff accountability in those NPA accounts.

(d) The Committee of five members was constituted. Report was submitted identifying the irregularities/lapses in the accounts and officials responsible for the same. 31 such cases were identified.

(e) On the basis of report, explanation of the Petitioner was called as per several letters, including 26^th December 2016, 7^th January 2017, 3^rd February 2017.

(f) Petitioner replied them vide his letters dated 8^th February 2017 and 20^th February 2017 (ground is taken in the affidavit-in-reply that the Petitioner deliberately delayed in replying those letters because his date of superannuation is on the forthcoming).

(g) The note was submitted to the Inspection and Audit division. Staff accountability of the Petitioner was examined on 22^nd February 2017 in isolation, because the Petitioner was about to retire on 28^th February 2017.

(h) Involvement of the Petitioner was found in 17 out of 31 cases. The note was placed before disciplinary authority and decision was taken to initiate the major penalty proceedings after seeking 1^st stage advice from the vigilance department.

(i) First stage reference was sent to the Vigilance department on 27^th February 2017. However, vigilance advice was not received till 28 ^th February 2017. As petitioner was about to retire on that date, notice was issued to him along with annexures-I giving the necessary details to show cause why disciplinary action should not be initiated against him in terms of Punjab National Bank Officers Employees (Discipline and Appeal