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CASE NO.:

Appeal (civil) 2961-2962 of 2008

PETITIONER:

The Managing Director State Bank of Hyderabad and Anr

RESPONDENT:

P. Kata Rao

DATE OF JUDGMENT: 24/04/2008

BENCH:

S.B. Sinha & D.K. Jain

JUDGMENT:

J U D G M E N T

REPORTABLE

CIVIL APPEAL NOS. 2961-2962 OF 2008

(Arising out of SLP (C) Nos. 14356-14357 of 2007)

S.B. Sinha, J.

1. Leave granted.

2. Appellant is aggrieved by and dissatisfied with a judgment and order

dated 4.6.2007 passed by a Division Bench of the Andhra Pradesh High

Court in Writ Appeal No. 627/628 of 2005 whereby and whereunder it

refused to interfere with the judgment and order passed by a learned Single

Judge of the said Court in WP No. 476 of 2001.

3. Respondent at all material times was an employee in the appellant

Bank. He was placed under suspension on or about 13.8.1998. A

departmental proceeding was initiated against him.

12 items of charges were drawn up; charge Nos. 11 and 15 whereof

read as under:

"Charge No. 11: He authorized cash and transfer

credits to the demand loan accounts against pledge

of gold ornaments of Smt. P. Lakshmi, his wife,

from out of proceeds of loan amounts released to

two DIR and one cash credit borrowers. Thus he

facilitated his wife to get undue pecuniary benefit by

permitting unauthorized adjustments which were

done with his prior knowledge.

Charge No. 15: He sanctioned and released

loans to his close relatives in contravention of H.O.

Cir. No. ADV/98 of 1976 dated the 2nd December,

1976."

4. He was also proceeded against in a criminal case. He was acquitted

of the criminal charges.

5. However, the departmental proceedings continued during pendency of

the criminal proceedings as prayer for stay thereof was not acceded to. The

Enquiry Officer found that all the charges apart from charge Nos. 1(a), 2(b),

3 were proved.

6. The Appointing Authority passed an order of dismissal. An appeal

preferred thereagainst by the respondent was dismissed.

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7. By an order dated 29.12.1995, the appellant was acquitted of the

charges framed against him in the criminal proceeding under Sections 120B,

420 and 468 of the Indian Penal Code. He was also acquitted of the charges

for alleged commission of offences under Section 5(1)(d) read with Section

5(2) of the Prevention of Corruption Act.

8. Respondent, however, was convicted under Section 477(A) of the

Indian Penal Code as also under Section 5(1)(d) and 5(2) of the Prevention

of Corruption Act. He preferred an appeal thereagainst before the High

Court.

A Writ Petition was also filed questioning the said order of dismissal.

9. By an order dated 12.3.1999, a learned Single Judge of the High Court

quashed the order of punishment and directed the disciplinary authority to

issue a show cause notice indicating the modified punishment and pass an

appropriate order.

10. A show cause notice was issued, pursuant to the said direction.

11. Again an order of dismissal was passed on 2.7.1999. An appeal

preferred thereagainst was dismissed. Another writ petition was filed by the

respondent aggrieved by and dissatisfied therewith.

12. The Criminal Appeal filed by the appellant came up for consideration

before a learned Single Judge of the High Court and by a judgment and

order dated 3.10.2001, it was held:

"... In such a case, it is difficult to believe that the

appellant had any intention to benefit himself or

other persons. It has to be noted that the above

reasoning of the trial court is most perverse and

without any material. In my considered view the

trial court had jumped to the conclusion without

any basis."

13. As regards, alleged commission of offence under Section 477A of the

Indian Penal Code, it was stated:

"From the above discussion, I am of the

considered opinion that the appellant could not