IMPORTANT POINTS
(1) Reduction of penalty from dismissal to that of reduction in time scale of pay does not result in exoneration of Appellant of charges framed against him.
(2) If reinstatement is a consequence of imposition of a lesser punishment, neither back-wages nor continuity of service nor consequential benefits follow as a natural or necessary consequence of such reinstatement.

JUDGMENT :

L. NAGESWARA RAO, J.

1. The Appellant worked as an officer of Regional Rural Bank Services with the Muzaffarnagar Kshetriya Gramin Bank (hereinafter, ‘the Bank’). On 27.05.2003, he was served with a charge sheet and was asked to submit his reply within a period of fifteen days. The charges that were framed against the Appellant are:

1. You did not comply the directions and regulations of Head Office.

2. You have worked against the interest of Bank/Injurious work, you was unauthorised absent.

3. You are isolated for the interest of Bank and to your duties.

2. Yet another charge sheet was issued on 30.05.2003 in which the following charges were framed:

1. You have violated discipline of bank.

2. You are accused of misconduct.

3. You have made effort to diffuse the Bank image and on the basis of it your worked that injurious to the health of Bank.

3. The Appellant submitted his reply to the said charge sheets dated 27.05.2003 and 30.05.2003. The Appellant was placed under suspension by an order dated 29.07.2003. He challenged the order of suspension by filing a Writ Petition which was disposed of with a direction to the bank to complete the inquiry within four months. The High Court of Judicature at Allahabad refused to grant reinstatement. The Inquiry Officer submitted the inquiry report on 23.12.2003 to the Disciplinary Authority. An opportunity was given to the Appellant to submit his remarks on the inquiry report. Thereafter, a show cause notice was issued to the Appellant to explain as to why he should not be dismissed from service. A reply was submitted by the Appellant on 11.06.2004, which was considered by the Disciplinary Authority. Another reply was submitted by the Appellant on 23.06.2004. By an order dated 05.07.2004, the Appellant was dismissed from service without any benefits under Regulation No.38 (kha) (4) of Muzaffarnagar Kshetriya Gramin Bank (Modified) Officer and Staff Services Regulations, 2010 (hereinafter, ‘the Regulations’).

4. The Appellant filed a Writ Petition challenging the order of dismissal which was not entertained by the High Court. Liberty was given to the Appellant to file an appeal. Pursuant to the liberty granted by the High Court, the Appellant submitted an appeal against the order of the Disciplinary Authority dismissing him from service to the Board of Directors, Muzaffaragar Kshetriya Gramin Bank. The said appeal was dismissed by the Board of Directors by an order dated 24.03.2005. The Appellant was successful in his challenge against the order passed by the Board of Directors dismissing his appeal before the High Court. The High Court set aside the order passed by the Board of Directors on 24.03.2005 and remanded the matter back to the Board of Directors to consider the appeal filed by the Appellant afresh. The Board of Directors dismissed the appeal on reconsideration. A Writ Petition filed against the order of the Board of Directors dismissing the appeal second time was allowed and the Appellate Authority was directed to apply its mind to the quantum of punishment and pass a fresh order. A Sub-Committee was constituted by the Board of Directors and it was held by the Committee that the charges of misconduct against the Appellant did not warrant the penalty of dismissal from service. The Committee further recommended that the penalty of dismissal be reviewed and reduced to that of reduction of 15 stages in payment, lower in time scale of pay for a period of eight years with a further direction that the Appellant shall not earn increment of pay during the period of such reduction and on expiry of such period, the reduction shall have the effect of postponing the future increments of his pay in terms of Regulation 39 (1) (b) (i) of Chapter IV of the Regulations. The recommendation made by the Committee was accepted by the Board of Directors and the punishment suggested by the Committee was imposed by the Board of Directors on 10.09.2012. The Appellant retired on attaining the age of