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2023 Supreme(Online)(Kar) 28695
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 5TH DAY OF APRIL, 2023 BEFORE THE HON'BLE MR JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 14643 OF 2014 (S-RES)
BETWEEN:
SHRI K. RAVINDRANATH SHETTY, AGED ABOUT 61 YEARS, S/O LATE A. VEERANNA SHETTY, EARLIER WORKING AS MANAGER, MIDDLE MANAGEMENT SCALE-II, STAFF CODE NO.5661, VIJAYA BANK, REGIONAL OFFICE, HASSAN, SINCE RETIRED FROM SERVICE, AND RESIDING AT, 'ARADHANA', HOUSE NO.1-N-4-345/23, ABBAKKA NAGAR BADAVANE, 3RD MAIN, KOTTARA, MANGALORE-575 0006.
…PETITIONER Digitally (BY SRI. S. VITTAL SHETTY, ADVOCATE)
signed by NARASIM HA MURTHY AND:
VANAMALA Location:
1. VIJAYA BANK, HIGH COURT OF A BODY CONSTITUTED UNDER THE BANKING KARNATAKA COMPANIES, (ACQUISITION AND TRANSFER OF UNDERTAKINGS)
ACT, 1980, HAVING ITS HEAD OFFICE, AT 41/2, M. G. ROAD, BANGALORE-560 001.
REPRESENTED BY ITS CHAIRMAN AND MANAGING DIRECTOR.
2. THE EXECUTIVE DIRECTOR, DISCIPLINARY AUTHORITY, VIJAYA BANK, HEAD OFFICE, NO.41/2, M. G. ROAD, BANGALORE - 560 001.
3. THE CHAIRMAN & MANAGING DIRECTOR, APPELLATE AUTHORITY, VIJAYA BANK, HEAD OFFICE, NO.41/2, M. G. ROAD, BANGALORE - 560 001.
4. THE SECRETARY, VIJAYA BANK PENSION FUND, P.A. AND PENSION DIVISION, VIJAYA BANK, HEAD OFFICE, PERSONNEL DEPARTMENT, NO.41/2, M. G. ROAD, BANGALORE - 560 001. 5. BANK OF BARODA, A BODY CONSTITUTED UNDER THE BANKING COMPANIES, (ACQUISITION AND TRANSFER OF UNDERTAKINGS)
ACT, 1980, HAVING ITS HEAD OFFICE AT BARODA CORPORATE CENTRE, C-26, 'G' BLOCK, BANDRA KURLA COMPLEX, BANDRA (E), MUMBAI - 400 051.
REPRESENTED BY ITS MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER.
6. THE GENERAL MANAGER, BANK OF BARODA, ZONAL OFFICE (FORMER H.O. VIJAYA BANK), BANGALORE - 560 001.
…RESPONDENTS (BY SRI. S. R. KAMALACHARAN, ADVOCATE)
THIS WRIT PETITION IS FILED UNDER ARTICLES
226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH ORDER DATED 27.02.2012, PASSED BY THE DISCIPLINARY AUTHORITY OF THE BANK, ORIGINAL OF WHICH IS PRODUCED TO THE WRIT PETITION AS ANNEXURE-G, AND TO QUASH ORDER DATED 06.12.2012, PASSED BY THE APPELLATE AUTHORITY OF BANK, COPY WHICH IS PRODUCED TO THE WRIT PETITION AS ANNEXURE-J, AND TO QUASH LETTER DATED 11.1.2013 OF THE BANK GRANTING COMMUTATION AND MONTHLY PENSION TO THE PETITIONER ORIGINAL OF WHICH IS PRODUCED TO THE WRIT PETITION AS ANNEXURE-K, IN SO FAR AS BY THE SAID LETTER THE PETITIONER HAS BEEN PAID REDUCED AMOUNT OF PENSION, AS THESE ORDERS ARE ARBITRARY, ILLEGAL, AGAINST THE PRINCIPLES OF NATURAL JUSTICE, AGAINST THE PROVISIONS OF THE VIJAYA BANK OFFICER EMPLOYEES' (DISCIPLINE AND APPEAL) REGULATIONS, 1981, THE VIJAYA BANK (EMPLOYEES') PENSION REGULATIONS, 1995, AND VIOLATIVE ARTICLE 14, 16 AND 21 OF THE CONSTITUTION OF INDIA AND DECLARE THAT THE BANK CANNOT REDUCE THE PENSION AND COMMUTATION AMOUNT ON PENSION TO THE PETITIONER BY VIRTUE OF THE PUNISHMENT IMPOSED DURING THE SERVICE; TO DIRECT THE MANAGEMENT OF THE BANK OF BARODA TO GRANT TO THE PETITIONER ALL THE CONSEQUENTIAL BENEFITS, SUCH AS FULL SALARY, ALLOWANCES AND OTHER BENEFITS FOR THE PERIOD OF THE PUNISHMENT, AND FULL PENSION, COMMUTATION AMOUNT ON PENSION, LEAVE ENCASHMENT AND ALL OTHER FINANCIAL BENEFITS WHICH THE PETITIONER IS ENTITLED HAD THE PUNISHMENT NOT BEEN IMPOSED ON HIM, WITH INTEREST AT THE RATE OF 18% ON THE AMOUNT SO PAYABLE, FROM THE DATE OF RETIREMENT ON SUPERANNUATION, TILL DATE OF PAYMENT; TO DIRECT THE CONTESTING RESPONDENTS TO PAY THE PETITIONER COSTS OF THESE PROCEEDINGS.
THIS PETITION, COMING ON FOR FINAL HEARING, THIS DAY, THE COURT MADE THE FOLLOWING:
ORDER
The petitioner, a retired Senior Branch Manager with M/s. Bank of Baroda [formerly, M/s. Vijaya Bank], has filed this petition calling in question the second respondent’s Order dated 27.02.2012 and the first respondent’s Order dated 06.12.2012. The second respondent is the petitioner’s Disciplinary Authority and the first respondent is the Appellate Authority. The petitioner has also impugned the consequential communication dated 11.01.2013 [Annexure-K] informing the petitioner the details of the computation of commutation and monthly pension in consonance with the Order dated
27.02.2012.
2. The petitioner was working as a 'Senior Branch Manager', Lamington Road Branch, Hubballi between May 2003 and May 2006 and he has attained superannuation on 31.12.2012. On 04.05.2010, the petitioner is issued with the Articles of charge under Regulation 6 of Vijaya Bank Officer Employees' [Discipline and Appeal] Regulations, 1981 - [hereafter referred to as the Discipline and Appeal Regulations]. The imputation against the petitioner is that he had processed loan papers of M/s. S M Mirjankar and Company and its associates [borrowers] and released loan amounts without adhering to the prescribed banking procedures. 3. A summary of imputation against the petitioner is as follows:
| Charge No. 1. | The Petitioner recommended for sanction of a Mortgage Loan bearing A/c No. 230038 dated 17.07.2003 of Rs. 65 Lakhs to M/s S M Mirjankar and Co [one of the borrowers] without having obtained OPL [Opinion of Previous Lender] from other banks where the borrower had maintained accounts, and the petitioner had failed to obtain from M/s BPCL a Power of Attorney for remittance of transport charges directly to the branch. |
| Charge No. 2. | The Petitioner recommended sanction of Pronote Loan A/c No. 230069 of Rs. 35 Lakhs to M/s S M Mirjankar and Co and after the sanction the proceeds were credited to the Current A/c of the borrower and then transferred to borrower’s account at Sirsi Urban Co-Op bank through clearing on 04.12.2003, and therefore, the petitioner failed to ensure end-use of the funds. |
| Charge No. 3. | The petitioner recommended for sanction of Rs.15 Lakhs as Working Capital Limit i.e., CC(M) A/c No 230039 to M/s S M Mirjankar and Co without verifying the working capital facility the borrower had availed from UCO Bank. |
| Charge No.4. | The petitioner further enhanced the existing Cash Credit Limit of Rs.15 Lakhs to Rs.95 Lakhs of M/s Mirjankar and Co [another by taking over borrower] the Working from UCO Capital Limit of Rs.40 Lakhs Bank which had already been overdrawn to the extent of Rs 46.77 Lakhs. In enhancing such limit, the petitioner had committed certain irregularity such as failing to obtain periodical OPL, a copy of the license from M/s BPCL and failing to ensure all liabilities, except two were closed. |
| Charge No. 5. | The petitioner further sanctioned Rs.16 Lakhs ML A/c No. 105108451000002 to M/s Mirjankar and Co without obtaining the Letter of Continuing Security. |
| Charge No.6. | The petitioner recommended for sanction of PL A/c No. 240027 of Rs.25 Lakhs to the borrower and a fresh PL A/c No. 240040 of Rs.30 Lakhs to liquidate the balance of |
| earlier loan account ie. PL A/c No. 240027 showing an unfair favour to Sri Ramarao Shankar Rao Mirjankar. | |
| Charge No. 7. | The petitioner recommended for sanction of V Rent A/c No. 250007 of Rs. 51 Lakhs to Sri Ramarao S Mirjankar by converting the Mortgage Loan A/c No. 230038 without fulfilling the condition of registration of the lease agreement. |
| Charge No. 8. | The petitioner released Rs.5,54,900/- and Rs.5,50,330 when the Regional Office had permitted to take over the Housing Loan Facility of the different borrowers to the tune of Rs.5.30 Lak |
