BOD resolutions to drop disciplinary charges in cooperative banks require confirmation in next meeting per bye-laws; non-confirmation allows rectification, rendering unconfirmed decision non-binding.

Judgment :

Sandeep Sharma, J.

Petitioner herein, who at present is discharging his duties as Deputy General Manager (in short “DGM”) in Kangra Central Cooperative Bank Ltd., Dharamshala, District Kangra, Himachal Pradesh, is aggrieved by the non-implementation of the decision of Board of Directors (in short “BOD”) dated 28.04.2025 (Annexure P-15), whereby it came to be resolved that ongoing disciplinary inquiry against the petitioner, be immediately stopped and related charges be dropped.

2. Quint-essential facts, as emerge from the pleadings, adduced on record by the respective parties are that on 29.09.2022, meeting of Departmental Promotion Committee (in short “DPC”) for promotion of the petitioner along with other eligible candidates to the post of DGM was held, however, name of the petitioner was kept in sealed cover on account of pendency of disciplinary proceedings. On 28.02.2023, disciplinary authority i.e. Managing Director, KCC Bank Dharamshala, imposed major penalty of reversion to lower grade/post, as a result thereof, petitioner herein came to be demoted to the post of Senior Manager. Petitioner preferred an appeal against the aforesaid order passed by disciplinary authority before BOD of the respondent/bank. Majority of the members of BOD were of the opinion that penalty imposed is not commensurate with the mis-conduct, but Managing Director gave his dissent, however, resolution dated 22.10.2024 came to be passed by BOD upholding order dated 17.04.2023.

3. Being aggrieved and dissatisfied with order dated 22.10.2024 upholding the order dated 17.04.2023 passed by BOD, petitioner herein preferred CWP No.15133 of 2024, titled as Sh. K.C. Bhardwaj Vs. State of H.P & others before this Court, which came to be allowed, vide judgment dated 11.12.2024 (Annexure P-3), with a direction to BOD to decide the appeal preferred by the petitioner against the order passed by Disciplinary Authority afresh within a period of four weeks, by ensuring that the authority, which has passed the order under challenge does not participate in the process.

4. Pursuant to afore directions issued by this Court in aforesaid writ petition, BOD heard the appeal of the petitioner afresh and waived off the penalty imposed upon the petitioner by the disciplinary authority i.e. Managing Director of the respondent/bank (Annexure P-4). In pursuance to decision of BOD, the penalty imposed upon the petitioner was completely waived off vide order dated 06.02.2025 (Annexure P-5). Consequent to passing of aforesaid decision taken by the BOD on 23.12.2024, respondent/bank opened the sealed cover of the DPC proceedings of the petitioner and respondent No.2 issued the promotion order dated 06.02.2025 of the petitioner, as DGM (Annexure P-6). It is pertinent to take note of the fact that prior to promotion of the petitioner to the post of DGM, vide order dated 06.02.2025, an inquiry was initiated against the petitioner, vide order dated 13.08.2024, by respondent No.2 under Rule 56 (b) (iii) of Bank Service Rules read with Rule 14 of CCS (CCA) Rules, 1965, wherein one Mr. Amit Gupta, General Manager, was appointed as Inquiry Officer. Petitioner raised objections qua appointment of above named Inquiry Officer, vide representation dated 21.09.2024 (Annexure P-7). Pursuant to aforesaid representation of the petitioner, Mr. Navdeep Mahajan, DGM, was appointed as Inquiry Officer, vide order dated 25.09.2024 (Annexure P-8).

5. Petitioner again filed objections/representations vide letter dated 28.10.2024 (before opening of sealed cover)