Judgment

H.K. Sema, J.—This appeal, preferred by Syndicate Bank is directed against the Judgment and Order dated 16th April, 2004 passed by the Division Bench in Writ Appeal No. 7997 of 1999 affirming the order dated 14th June, 1999 of the learned Single Judge passed in Writ Petition No. 12594 of 1991 allowing the Writ Petition filed by the respondent herein.

2. Briefly stated the facts are as follows:-

The respondent was working as Manager of the appellant’s bank at Horti Branch (Karnataka) between 30.12.1976 and 22.7.1981. It is alleged that during the said period the respondent in collusion with certain staff members got necessary documents signed and arranged loans in the name of poor illiterate villagers under the Integrated Rural Development Program and misappropriated the proceeds of such loans. The allegations are:-

“a) On 20.06.1979 he obtained loan application and other documents from one Sri. S.M. Desai with Sr. N.C. Yelasangi as the proposed surety/co-obligant without informing them the purpose for which the same was obtained. A loan of Rs. 6000/- for working capital needs of Sri. S.M. Desai’s Boosari business was sanctioned and arranged by the respondent though the said Sr