G.M.(Operations) S.B.I. & Anr vs R.Periyasamy

4. An enquiry was duly conducted. The charged officer, the respondent, was given an opportunity to defend himself and an Inquiry Report dated 03.11.1986 was submitted to the disciplinary authority. The disciplinary authority considered the entire report and after discussing the same came to the conclusion that there was a preponderance of the probability that the respondent had been surreptitiously removing currency notes from the chest over a period of time, the shortage being Rs. 1,25,000/-. The disciplinary authority also took note of the fact that he was lending money to others, even without a pro-note indicating that he had large amounts of cash. The disciplinary authority, therefore, recommended the dismissal of the respondent from the service of the Bank in terms of Rule 49(h) of the State Bank of India (Supervising Staff) Rules by an order dated 27th July, 1989. Thereafter, the Chief General Manager considered the Inquiry Report and the recommendation of the disciplinary authority and concurred with the views of the disciplinary authority. Against the dismissal, the respondent preferred an appeal under the Service Rules of the Bank. However, the appeal was also turned down by the order dated 14.05.1990. Against the said orders, the respondent preferred a Writ Petition before the Madras High Court. As observed earlier, the learned Single Judge allowed the petition and the Division Bench dismissed the appeal against the petition. Hence, the Bank has preferred this appeal.

5. While the respondent was working as a Cash Officer, at the Dharmapuri Branch with Ganesan, the branch-accountant, as a joint custodian, the Branch inspection took place between 20.02.1986 to 05.04.1986. The respondent had been working as the Cash Officer from 16.11.1985. Certain irregularities were found in the inspection. As a result of the irregularities, instructions were given to follow the dual locking system for the storage bins where cash was stored and for the dividing doors with effect from 05.04.1986. On that very night, the respondent met with an accident. The strong room keys which were supposed to be in the physical possession of the respondent were found in his Cupboard in the Branch. From 07.04.1986 to 09.04.1986, one Swaminathan officiated as the Cash Officer. From 10.04.1986 to 11.04.1986, one N Krishnan officiated as the Cash Officer. From 12.04.1986 to 17.04.1986, again, Shri Swaminathan officiated as the Cash Officer. According to the appellant, there was no transfer of notes from the operative bins of the bank to the storage bins and there was no cash withdrawal from the storage bins between 05.04.1986 to 14.04.1986. On 15.4.1986, a cash shortage of Rs.40,000/- was noticed by the officiating Cash Officer. Therefore, the verification of the entire currency chest was conducted, which showed a total cash shortage of Rs.1,25,000/-. An internal investigation was conducted wherein it was found that the shortage in cash had taken place between 16.11.1985 and 05.04.1986 when the respondent and Ganesan were joint custodians. Show cause notices were issued to the respondent and Ganesan. Apparently, the other joint custodian, Ganesan has also been punished but he has not challenged his punishment. In the reply to the show cause notice, the respondent admitted various lapses on his part regarding the maintenance of the currency chest books. In particular, the respondent stated in his reply that perhaps the shortage of Rs. 1,25,000/- escaped his attention due to various reasons and was thus unfortunate. The respondent sought permission to peruse the relevant books and registers at the Dharmapuri branch and was allowed to do so. The Inquiring Officer eventually submitted a report and held the respondent guilty of charges as stated earlier. The following are the important features of the Inquiry Report:

13. We accordingly set-aside the impugned order and dismiss the writ petition of the respondent.

14. Having regard to the circumstances of the case, we find it appropriate to direct the appellant to pay an adhoc sum of Rs.3,00,000/- to the respondent who has retired long ago and has drawn pension of which he will be deprived hereafter. Appeal disposed off as allowed.