IMPORTANT POINT
Pendency of the criminal case cannot be the sole basis to suspend disciplinary proceedings for indefinite period.

JUDGMENT :

A.M. Khanwilkar, J.

The short question involved in this appeal is: whether the High Court was justified in directing stay of the disciplinary proceedings initiated by the appellant-Bank against the respondent until the closure of recording of prosecution evidence in the criminal case instituted against the respondent, based on the same facts?

2. The respondent was appointed in the clerical cadre of the appellant-Bank. At the relevant time, she was working as an Assistant (Clearing). Allegedly, some time on 29th May 2006, the respondent by her acts of commission and omission caused loss to the Bank in the sum of Rs. 44,40,819/- by granting credit to one Laxman Parsad Ratre (who was an employee of Bhilai Steel Plant). The respondent herself introduced Laxman Parsad Ratre to open an account in the appellant Bank. On 7th November 2006, the respondent was placed under suspension for indulging in gross irregularities and misconduct including of misplacing the clearing instruments relating to various customers. The respondent vide letter dated 8th November 2006, not only admitted her misdeeds but assured the Chief Manager of returning the amount commensurate to the financial loss caused to the Bank because of her lapses at the earliest, failing which suitable action can proceed against her. The said communication reads thus:-

“To,

      Chief Manager

      State Bank of India

      Main Branch, Durg (Ch.G.)

Sir,

Context :- Your memo number – Serial number/branch/2006 – 07/196

dated 30.10.2006.

In context of your aforesaid memo I am sorry for the wrong ways adopted by me. I admit that I have done a wrong deed and I am suffering from the feeling of guilt.

1. Whatever amount comes in this context that I will try to pay as early as possible after obtaining the amount from the known sources. At present I am able to arrange Rs. 60,000/- and I am depositing the same.

2. By mortgaging the family movable and immovable property, arrangement for obtaining the amount, thought and efforts are continued for making such arrangement as early as possible. Because this works take time, I should be given proper time to go further in effort and to finish the work of mortgage.

3. Our relatives staying nearby and far away and in other states, with them my contact is continued and arrangement for the amount is continued. This work is also taking time. Therefore to continue my effort proper time to be given to me.

4. Amount of my C.P.F and salary is to be used for compensating this amount. I will keep on informing you regarding my every effort and will deposit the money received in bank account.

I have done this work in mental stress and due to pressure of situation for which my heart is feeling sorry that I have used all wrong ways and means. I have two small children, wife and old and ill mother and father, considering all this give me an opportunity to deposit the amount received from my aforesaid efforts for which I will be grateful to you for my whole life. I have not taken such a wrong step in fourteen years of my bank service but this step I have taken due to mental stress and situation. By giving me apology, proper time to accomplish my efforts.

I assure you that I will not commit this kind of mistake in future.

If I fail in the above efforts, you are independent for initiating proceedings on me.

Thanking you

Dated :- 8.11.06

Sd/-

(Neelam Nag)

Senior Assistant”

3. Nevertheless, a FIR was lodged in connection with the said irregularities and misdeeds committed by the respondent bearing FIR No.1043/2006, for offences punishable under Sections 409, 34 of the IPC by appellant-Bank. Laxman Parsad Ratre has also been named as an accused in the said FIR. It is alleged in the FIR that Laxman Parsad Ratre who had account in State Bank of India issued two cheques in favour of Tanishk Securities both valued Rs.6,50,000/-, knowing that he did not have balance in his a