VidhiSangh

Supreme Court of India · 20/09/2021

ALLAHABAD BANK & ORS. versus KRISHAN PAL SINGH

[2021] 6 S.C.R. 204 · 2021 INSC 510

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Summary

The Court replaced the High Court’s reinstatement and consequential-benefits order with Rs.15 lakh lump-sum compensation. The bank had no acceptable evidence proving the employee’s suspected involvement in burning its records. However, reinstatement with full back wages was not automatic: his short service, absence from employment since 1991 and intervening superannuation justified monetary relief. Payment was due within eight weeks, with six per cent annual interest in the event of default. The bank’s appeal was partly allowed.

Issues

  1. Whether reinstatement with full consequential benefits should be retained despite long absence from service and intervening retirement.
  2. What monetary relief was appropriate where suspicion did not establish the alleged misconduct.

Held

Result

Appeal partly allowed; reinstatement and consequential relief replaced by Rs.15 lakh compensation within eight weeks, with six per cent annual interest on default until payment.

Judgment PDF: Supreme Court of India, [2021] 6 S.C.R. 204.