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TMI Blog2025 (1) TMI 1028X X X X Extracts X X X X X X X X Extracts X X X X ..... ciate the evidence or the nature of punishment. In a disciplinary inquiry, the strict proof of legal evidence and findings on that evidence are not relevant. Adequacy of evidence or reliability of evidence cannot be permitted to be canvassed before the Court/Tribunal. It is well settled that the Bank officers are expected to maintain a higher standard of honesty, integrity, and conduct. In view of the respondent s admissions and the fact that documentary evidence was on record, it cannot be said that it was a case of no evidence. The principles of natural justice were followed during the disciplinary inquiry. The respondent thoroughly cross-examined the officer examined as a witness. The respondent did not apply for leading any evidence. Therefore, the finding that the disciplinary inquiry was not fair or was in breach of the principles of natural justice cannot be accepted as correct. The entire premise on which the High Court had interfered is without basis - It is well settled that the exercise of powers by the disciplinary authority is always subject to principles of proportionality and fair play. In the facts of the case, the financial loss caused to the appellant was reimburs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Non-Performing Asset (in short, 'NPA'), in violation of the guidelines. In collusion with two other persons (Shri A Nagireddy and Shri M Ramakrishna), he fraudulently siphoned off ₹ 70,000/-. He misappropriated a sum of ₹ 9,000/- received by the branch under the debt waiver scheme to the SKCC account of one Shri D. Nagaraju. It was alleged that the respondent had committed many illegalities and irregularities, which tarnished the fair image of the Syndicate Bank. The statement of imputations was also served upon the respondent. 2. A disciplinary inquiry was conducted against the respondent. The inquiry officer submitted a report on 15th March, 2012. He held that the charges against the respondent were proved. After receiving a copy of the inquiry report, the respondent submitted a written response on 18th April, 2012. By order dated 03rd May, 2012, the Disciplinary Authority dismissed the respondent from the service of Syndicate Bank with immediate effect for committing the breach of Regulation 3(1) read with Regulation 24 of Syndicate Bank Officer Employees' (Conduct) Regulations 1976 (for short 'the Regulations'). The respondent preferred an appeal. The Appellate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the disciplinary proceedings. 6. Learned senior counsel submitted that branch managers of banks are expected to have higher standards of honesty and conduct. He relied upon a decision of this court in State Bank of India and Others v. Ramesh Dinkar Punde (2006) 7 SCC 212. He submitted that the acquittal of the respondent in the criminal case was of no relevance to the disciplinary inquiry. He relied upon a decision of this court in the case of Manager, Reserve Bank of India, Bangalore v. S. Mani and Others (2005) 5 SCC 100. 7. He pointed out that 89 documents were produced in the disciplinary inquiry. Moreover, the respondent was granted inspection of the documents pertaining to the vigilance inquiry. The respondent cross-examined the officer who conducted a vigilance investigation. He submitted that out of the 6 transactions in respect of which a chargesheet was issued, in the case of 5 transactions, the amounts were returned to customers after the vigilance investigation. Only to one customer, amount was paid before the vigilance investigation. 8. Learned counsel submitted that the respondent's admission in the written communications and the fact that he returned the money to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t interfere with the concurrent decisions of the learned Single Judge and Division Bench of the High Court. OUR VIEW 12. We must note the respondent's version of the allegations against him, which is reflected in clauses (iii) and (iv) of paragraph 2 of the written submissions filed by the respondent: "(iii) That the Petitioners allege that the Respondent had fraudulently withdrawn and misappropriated an amount of Rs. 1,10,000/- from the following accounts: a. Sri G. Gopal (A/c. No. 454/06) - Rs. 25,000/- (Recovered on 22.02.2011) b. Smt. B. Sakamma (A/c No. 860/07 - Rs. 20,000/- (recovered on 19.02.2011) c. Sri D. Sreedhar (A/c. No. 952/06) - Rs. 35,000/- (Recovered on 19.02.2011) d. D. Sri M. Ramakrishna (A/c No. 1690/07) - Rs. 30,000/- (Recovered on 18.02.2011) (iv) Further, the excess amounts paid to Mr. Nagireddy (Rs. 40,000) and Mr. Narayanappa (Rs. 16,000) were duly recovered on 12.05.2009 which shows that the alleged loss to the Petitioner Bank has already been made good. Further, in the Cross Examination of Mr. R.V. Ramana Sastry dated 02.02.2012, his response to questions 13 and 14 makes it clear that the excess amounts that had been credited to the ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvice. 15. We have carefully perused the findings recorded by the learned Single Judge and Division Bench in the impugned judgments. The High Court considered the following factors: i. Criminal case in the subject matter resulted in acquittal; ii. Inquiry was not fair; iii. There was no documentary evidence to arrive at a correct decision; and iv. The cashier and customers were not examined as witnesses in the departmental inquiry. Therefore, it was a case of no evidence. 16. It is well settled that an acquittal in a criminal case is no ground to exonerate a delinquent in disciplinary proceedings as the standard of proof differs in these proceedings. It is well settled that the adequacy of the evidence adduced during disciplinary inquiry cannot be gone into in writ jurisdiction. In the case of B.C. Chaturvedi v. Union of India and Others1, in paragraphs 12 and 13, this court held thus: "12. Judicial review is not an appeal from a decision but a review of the manner in which the decision is made. Power of judicial review is meant to ensure that the individual receives fair treatment and not to ensure that the conclusion which the authority reaches is necessarily corr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted to maintain a higher standard of honesty, integrity, and conduct. In paragraph 17 of the decision of this court in the case Damoh Panna Sagar Rural Regional Bank & Another v. Munn Lal Jain (2005) 10 SCC 84 , it was held thus: "17. A bank officer is required to exercise higher standards of honesty and integrity. He deals with money of the depositors and the customers. Every officer/employee of the bank is required to take all possible steps to protect the interests of the bank and to discharge his duties with utmost integrity, honesty, devotion and diligence and to do nothing which is unbecoming of a bank officer. Good conduct and discipline are inseparable from the functioning of every officer/employee of the bank. As was observed by this Court in Disciplinary Authority-cum-Regional Manager v. Nikunja Bihari Patnaik [(1996) 9 SCC 69: 1996 SCC (L&S) 1194], there is no defence available to say that there was no loss or profit resulting in case, when the officer/employee acted without authority. The very discipline of an organisation more particularly a bank is dependent upon each of its officers and officers acting and operating within their allotted sphere. Acting beyond one&# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce for Kharif 2006. The excess amount paid was recovered in full. Parties have given a letter to this effect stating that the same was withdrawn by them and repaid the amount. I request you to kindly condone the mistake as a special case as these mistakes have happened due to some pressure of work." ( underline supplied ) As far as allegation in respect of credit of ₹ 35,000/- to SKCC account of Shri Sreedhar is concerned, in paragraph 5 of the said reply, the respondent stated thus: "5. In respect of credit of Rs. 35000/- to SKCC 952/2006 of Sri. Sreedhar slip were prepared by me and sent to the concerned department for entering. Even OG 167 slip was also sent with one slip as enclosure. Missing of voucher was not brought to my notice while writing day book manually by the concerned clerk and supervisor at that time. The excess paid amount was repaid by the party along with a letter in this regard. Hence, I request you to kindly condone the mistake as a special case." ( underline supplied ) 21. The respondent stated that there was a threat to his life, and he worked under pressure. The respondent requested to condone the mistakes on his part as a special case. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tionate to the misconduct established against the respondent and his unblemished career for a long time. However, fact remains that the misconduct alleged and proved against the respondent was of a serious nature considering the fact that a very high standard of conduct is expected from a branch manager of a Bank. Considering the facts of the case, we are of the view that a minor penalty, as provided in Regulation 4(e) of the Disciplinary Regulations, would be appropriate. The penalty will be of reducing the respondent to a lower stage in the time scale of pay for a period of one year, without cumulative effect and not adversely affecting his pension. 25. The present appeal succeeds in part, and we pass the following orders: a) The impugned judgments and orders are quashed and set aside, and the finding recorded in the disciplinary inquiry that the misconduct on the part of the respondent was established is restored; b) However, the order of penalty is modified, and it is directed that the respondent shall be subjected to a minor penalty under Regulation 4(e) of the Disciplinary Regulations by reducing him to a lower stage in the time scale of pay for a period of one year, wit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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