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2023 Supreme(Online)(SC) 9719

SANJAY KAROL, HRISHIKESH ROY, JJ
STATE BANK OF INDIA & ORS. – Appellant
Versus
P. ZADENGA – Respondent
CIVIL APPEAL NO.2518 OF 2012



Advocates:
For the Appellants/Petitioners: Mr. Vikas Singh
For the Respondents: Mr. Jitendra Bharti

The court affirmed that disciplinary proceedings can continue simultaneously with criminal trials, and acquittal in a criminal case does not automatically affect related departmental proceedings.

Headnote:(A) Memorandum of Settlement dated 10th April 2002 - Clause 4 - Disciplinary proceedings - Nature of disciplinary and criminal proceedings being separate; acquittal in criminal proceedings does not automatically affect disciplinary proceedings. (Paras 29.1, 30)

(B) Departmental proceedings vs. Criminal proceedings - There is no prohibition on simultaneous disciplinary proceedings during criminal trials, but specifics of case must be considered. (Paras 14, 15, 27)

Facts of the case:
The respondent was dismissed from the bank's services after allegations of misconduct. The High Court initially ruled in favour of the respondent, citing Clause 4 of the MoS as a barrier to disciplinary proceedings during ongoing criminal trials. The appeal was based on whether such proceedings should continue despite acquittal.

Findings of Court:
The court found that Clause 4 does not prohibit disciplinary proceedings during the pendency of a criminal trial and affirmed the dismissal of the respondent. The two types of proceedings serve different purposes and standards of proof.

Issues: The questions addressed involved the applicability of Clause 4 of the MoS concerning ongoing disciplinary proceedings during concurrent criminal trials and the implications of acquittals in criminal proceedings on the disciplinary process.

Ratio Decidendi: Acknowledging the distinct nature of disciplinary proceedings, the court ruled that acquittal in criminal matters does not preclude continuation of departmental proceedings, and the MoS does not completely halt such actions. The completion of the trial must occur within a reasonable timeframe. (Para 29.1, 29.2)

Result: The appeal was allowed, restoring the dismissal of the respondent.

Table of Content
1. key issues for consideration presented. (Para 1 , 2)
2. background of the dismissal and connected disciplinary proceedings. (Para 3 , 4 , 5)
3. arguments concerning the continuation of proceedings. (Para 10 , 11)
4. interpretation of the mos on disciplinary action amid criminal trials. (Para 12 , 13)
5. principles regarding simultaneous proceedings. (Para 14 , 15)
6. acquittal in criminal trials does not terminate disciplinary matters. (Para 17)
7. conclusion on the validity of prior proceedings. (Para 20 , 29)
8. restoration of the dismissal decision. (Para 28 , 30)

JUDGEMENT

SANJAY KAROL, J.

1. The instant lis presents two questions for consideration by this Court. They are- a)Does clause 4 of the Memorandum of Settlement dated 10th April 2002 create a bar on departmental proceedings continuing when the person subjected thereto is being tried before a criminal court for offences of the same origin? Page 1 of 19 Digitally signed by NITIN TALREJA Date: 2023.10.03 18:03:08 IST Reason:

    Signature Not Verified b)Does acquittal in some of the connected proceedings entail a benefit in the surviving proceedings? Further, inuring a right upon the delinquent employee of automatic discharge in disciplinary proceedings?

2. This appeal, by way of special leave, is directed against the final judgement and order dated 7th January 2009 passed in Writ Appeal No.03/2006 by which the order passed in Writ Petition (Civil) No.12 of 2005 dated 25th July 2005 allowing the appeal of the Respondent herein against the order of dismissal from bank services dated 28th March 2003 and the rejection of the departmental appeal vide order 16th August 2004, was allowed and the order of the Learned Single Judge confirmed.

Background

3. The facts of the instant dispute as they emanate from the record are:-

3.1 The respondent namely P. Zadenga1 was employed in the State Bank of India2 as Assistant (CAT) at the Dawrpui Branch, Aizawl. Three government retailers lodged a complaint with the Aizawl Police Station that their challan- 1 Hereinafter referred to as “the delinquent employee”

2 Hereinafter, the “Appellant Bank”

deposits with the said Branch had not been entered into the cash receipt scroll. The District Civil Supply Officer, Aizawl West, also lodged a complaint that a certain retailer had taken the delivery of particular food stuff using a fake challan.

3.2 Pursuant thereto, disciplinary proceedings were initiated against the respondent with the issuance of a Memorandum dated 8th December 1999, wherein it was alleged that he had received Rs.61,908 for a deposit on 19th April,1996 in respect of which a challan was issued, but the amount never deposited in the respective account. Two other similar occurrences dated 21st February 1995 regarding Rs.24,640 and Rs.27,412 were also alleged.

3.3 Three different FIRs stood registered against him, under which he was arrested but later released on bail. In his written show cause to this Memorandum, the Delinquent employee contended that the disciplinary proceedings should be either dropped or closed since criminal cases were pending him, arising from the same set of transactions.

3.4 The appellant-bank proceeded to appoint an inquiry officer who, in his report, submitted that three out of four charges stood established. The Delinquent Employee, again denying the charges, filed a response to that but was eventually dismissed from the services at the bank, vide the order of dismissal dated 28th March 2003. The departmental appeal filed by him, after due opportunity of hearing, was dismissed on 16th August 2004.

4. Aggrieved by the dismissal of the departmental appeal, the delinquent employee filed Writ Petition (Civil) No.12 of 2005 before the Gauhati High Court. The question before the said Court was: whether, in view of the Memorandum of Settlement dated 10th April 20023, the disciplinary proceedings against the delinquent employee (respondent) herein ought to have been stayed or not.

5. Having recorded that post sig









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