Case: Suresh Pathrella Vs. Oriental Bank Of Commerce

was an employee of insurance company. The disciplinary proceeding was initiated against him on the ground of antedating an insurance cover, which was decided against him. His appeal was dismissed by the appellate authority. The firm whose goods were destroyed in fire filed a suit against the insurance company impleading the appellant as a defendant. The Trial Court decreed the suit holding that there was no antedating of the cover note. The appeal filed by the insurance company was dismissed by the High Court. Thereafter, the matter attained finality, since no further appeal was preferred by the insurance company. It is in that given facts this Court held that the Managing Director when approached by the appellant ought to have applied his mind to the subsequent event namely the decision of the civil court rendered in the suit filed by the firm. It is in these circumstances, this Court was of the view that since the proceedings were initiated as late as in 1976, instead of remitting the matter to the disciplinary authority, the appellant was directed to be reinstated with only 50 per cent of back wages. The facts of that case are distinguishable from the facts of the present case. In the present case there was no such civil suit filed in which the decree was passed in favour of the appellant. This decision, therefore, would be of no help to the appellant.17. The third contention of the appellant is that the charge as framed was for misappropriation of Rs.10 lacs. But during the enquiry misappropriation of Rs.10 lacs was not established and in fact no loss was occasioned to the bank thereby. Therefore, the punishment of removal is disproportionate to the offence charged and proved.18. It will be noticed that the appellant was charged for the alleged violation of Regulation 3 (1) of the Regulations 1982. Regulation 3(1) reads: "Every officer employee shall, at all times take all possible steps to ensure and protect the interests of the bank and discharge his duties with utmost integrity, honesty, devotion and diligence and do nothing which is unbecoming of a bank officer". The Regulation ensures that every officer at all times take all possible steps to protect the interests of the bank and discharge his duties with utmost integrity, honesty, devotion and diligence and do nothing which will be unbecoming of a bank officer. Such regulations are made to instill the public confidence in the bank so that the interests of customers/depositors are well safeguarded. In such a situation the fact that no amount was lost to the bank would be no ground to take a lenient view for the proved misconduct of a bank officer. 19. In Disciplinary Authority-cum-Regional Manager vs. Nikunja Bihari Patnaik, (1996) 9 SCC 69 this Court held that a bank officers acting beyond his authority constituted misconduct and no further proof of loss is necessary. 20. In the case of Regional Manager, U.P.SRTC. vs. Hoti Lal, (2003) 3 SCC 605 , this Court held in paragraph 10 at scc p.614 as under: "If the charged employee holds a position of trust where honesty and integrity are inbuilt requirements of functioning, it would not be proper to deal with the matter leniently. Misconduct in such cases has to be dealt with iron hands. Where the person deals with public money or is engaged in financial transaction or acts in a fiduciary capacity, the highest degree of integrity and trust-worthiness is a must and unexceptionable. Judged in that background, conclusions of the Division Bench of the High Court do not appear to be proper. We set aside the same and restore order of the learned Single Judge upholding order of dismissal". 21. In the case of Chairman and Managing Director, United Commercial Bank vs. P.C.Kakkar, (2003) 4 SCC 364 , this Court said in paragraph 14 at scc p.376 as under: "A Bank officer is required to exercise higher standards of honesty and integrity. He deals with the money of the depositors and the customers. Every officer/employee of the Bank is required to take all possible steps to project 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. It is no defence available to say that there was no loss or profit resulted in case, when the officer/employee acted without authority. The very discipline of an organization more particularly a Bank is dependent upon each of its officers and officers acting and operating within their allotted sphere. Acting beyond ones authority is by itself a breach of discipline and is a misconduct. The charges against the employee were not casual in nature and were serious. These aspects do not appear to have been kept in view by the High Court". 22. In the present case the appellant acted beyond his authority in breach of banks Regulation. Regulation 3(1) of the banks Regulation required that every officer of the bank at all times take all possible steps to protect the interest of the bank and discharge his duties with utmost integrity, honesty, devotion and diligence and do nothing which will be unbecoming of a bank officer. It is a case of loss of confidence in the officer by the bank. In such a situation, it would be a futile exercise of judicial review to embark upon the decision of the disciplinary authority removing the officer from service, preceded by an enquiry, and to direct the bank to take back the officer in whom the bank has lost confidence, unless the decision to remove the officer is tainted with malafide, or in violation of principles of natural justice and prejudice to the officer is made out. No such case is made out in the present case.

Decision (1 = appeal accepted, 0 = rejected): 0

Explanation:
0[ds]11. In our view, the findings recorded by the learned Single Judge are fallacious. This Court has taken the view consistently that acquittal in a criminal case would be no bar for drawing up a disciplinary proceeding against the delinquent officer. It is well settled principle of law that the yardstick and standard of proof in a criminal case is different from the disciplinary proceeding. While the standard of proof in a criminal case is a proof beyond all reasonable doubt, the proof in a departmental proceeding is preponderance of probabilities.12. It is not the case of the appellant that the enquiry has been conducted without affording an opportunity to the appellant or behind the back of the appellant and thereby violated the principle of naturalcontention deserves to be rejected outright. The disciplinary enquiry was completed on 3.2.1998. The appellant was removed from service by an order dated 28.5.1998. In the alleged disclosure statement made on 19.7.2001 under Sections 406/420 IPC Mr.G.C.Luthra is seen to have stated that he got a typed letter issued to the Senior Manager, Oriental Bank of Commerce to open a new saving bank account and credited in that new bank account the amount of Rs.10 lacs.It will be noticed that the appellant was charged for the alleged violation of Regulation 3 (1) of the Regulations 1982. Regulation 3(1)officer employee shall, at all times take all possible steps to ensure and protect the interests of the bank and discharge his duties with utmost integrity, honesty, devotion and diligence and do nothing which is unbecoming of a bankRegulation ensures that every officer at all times take all possible steps to protect the interests of the bank and discharge his duties with utmost integrity, honesty, devotion and diligence and do nothing which will be unbecoming of a bank officer. Such regulations are made to instill the public confidence in the bank so that the interests of customers/depositors are well safeguarded. In such a situation the fact that no amount was lost to the bank would be no ground to take a lenient view for the proved misconduct of a bank officer.In the present case the appellant acted beyond his authority in breach of banks Regulation. Regulation 3(1) of the banks Regulation required that every officer of the bank at all times take all possible steps to protect the interest of the bank and discharge his duties with utmost integrity, honesty, devotion and diligence and do nothing which will be unbecoming of a bank officer. It is a case of loss of confidence in the officer by the bank. In such a situation, it would be a futile exercise of judicial review to embark upon the decision of the disciplinary authority removing the officer from service, preceded by an enquiry, and to direct the bank to take back the officer in whom the bank has lost confidence, unless the decision to remove the officer is tainted with malafide, or in violation of principles of natural justice and prejudice to the officer is made out. No such case is made out in the present case.