Surjeet Singh Bhamra vs Bank Of India & Ors

2) In order to appreciate the issue involved in this appeal, it is necessary to set out the relevant facts in brief infra.

3) The appellant was an employee of the Bank of India. He was posted as Branch Manager, Panagar Branch, Jabalpur Region from 04.07.1996 to 26.05.1999. According to the appellant, during his tenure, the profits of the said Branch were increased from 2 lakhs to 30 lakhs, deposits were increased from 6 crores to 11 crores and advances were increased from 2 crores to 4 crores. The appellant also claimed that the NPA of the Branch fell down from 57 lakhs to 20 lakhs. The appellant claimed that due to his good performance, his Branch won the award of Best Branch of the Year.

4) On 08.09.2000, a memo was issued by the Chief Regional Manager, Bank of India, Jabalpur to the appellant mentioning therein that during his tenure as Manager of Panagar Branch, certain irregularities/lapses were reported in disbursement of loans. The details of several irregularities alleged to have been committed by the appellant were mentioned in the memo. The appellant was asked to submit his reply. On 18.10.2000, the appellant submitted his reply to the Chief Regional Manager, Jabalpur.

5) On 01.11.2000, the respondent-Bank announced Voluntary Retirement Scheme, 2000 (in short ‘Scheme’) with a view to lay off approx. 6000 extra employees. Accordingly, offers were made to the staff in general for opting voluntary retirement pursuant to the Scheme on or before 31.12.2000.

7) On 02.03.2001, the appellant was served with the charge-sheet. The charges were in relation to the irregularities which were mentioned in the memo dated 08.09.2000.

8) The appellant filed his reply on 13.03.2001 to the charge-sheet and accepted all the charges contained therein unconditionally.

12) Challenging the said order, the appellant preferred writ petition being W.P. No.3842 of 2002 before the High Court. The Single Judge of the High Court by order dated 20.04.2006, dismissed the writ petition.

13) Against the order of the Single Judge, the appellant filed an intra court appeal being W.A. No. 171 of 2006 before the High Court. The Division Bench of the High Court by impugned order dated 09.05.2007 dismissed the appeal and upheld the findings of the Single Judge.

31) At the outset, we may state that the appellant did not challenge the order dated 19.06.2001 passed by the Bank, by which his application for voluntary retirement was accepted but confined his challenge in these proceedings only to the order dated 20.03.2001 by which he was awarded punishment of reduction of his basic salary in five stages in time scale for a period of 3 years and its consequential effect in pay fixation as detailed in the order.

30) In our considered opinion, the fate of the appeal largely depends upon answering three questions, viz., firstly, whether the Scheme in question and, in particular, its relevant clauses are mandatory or directory for ensuring their compliance by the appellant and the Bank; Secondly, what is the effect of the Scheme on the rights of the appellant and the Bank for deciding the legality of the punishment order impugned in these proceedings; and lastly, whether any case is made out to set aside the punishment order.

45) In our considered opinion, the Bank was within its rights to issue a charge-sheet to the appellant on 02.03.2001 because firstly, on 02.03.2001, the appellant was in the employment of the Bank and, therefore, he could be subjected to face disciplinary proceedings as per the Rules. Secondly, since the memo was served on the appellant prior to introduction of the Scheme, the disciplinary proceedings were rightly initiated by serving a charge-sheet on the appellant after coming into force of the Scheme on 01.11.2000. Thirdly, in terms of the Scheme, the appellant's application could be considered only after conclusion of disciplinary proceedings and, therefore, the Bank was right in considering the application and eventually accepting it on 19.06.2001. Fourthly, the relationship of employee and employer between the appellant and the Bank continued till 19.06.2001 and, therefore, the Bank was within its rights to take any action under the service rules against the appellant up to 19.06.2001. It is not in dispute that the Bank took all the disciplinary actions prior to 19.06.2001 and then accepted the application for voluntary retirement on 19.06.2001. Such action, in our view, was just, legal and proper.