Summary
The Supreme Court upheld the quashing of a bank officer’s dismissal because the disciplinary charge-sheet was issued after his superannuation. Earlier show-cause notices and suspension did not satisfy the requirement for continuing disciplinary proceedings under Regulation 20(3)(iii). Binding three-judge precedent foreclosed the Bank’s request for reconsideration. The deceased officer’s legal heirs were awarded outstanding service benefits with interest.
Issues
- Whether show-cause notices and suspension before superannuation permitted disciplinary proceedings based on a charge-sheet issued after retirement.
- Whether the governing interpretation required reference to a larger Bench.
Provisions considered
- Regulation 20(3)(ii) and (iii), UCO Bank (Officers’) Service Regulations, 1979The continuation provision required disciplinary proceedings validly initiated before retirement; the deeming rule concerning pendency did not dispense with a disciplinary charge-sheet for this purpose. (¶¶ 20.1, 21, 22, 23)
Held
- For continuation under Regulation 20(3)(iii), disciplinary proceedings must have been validly initiated under the disciplinary regulations before the officer ceased service. A preliminary inquiry or show-cause notice does not constitute initiation; a charge-sheet is necessary. (¶¶ 20.1, 21, 22)
- The officer retired on 31 July 1991 and the charge-sheet followed on 7 December 1991. The pre-retirement notices and suspension therefore did not sustain the subsequent dismissal. (¶¶ 18, 23)
- Canara Bank had approved the interpretation in Rajender Lal Capoor-II through a three-judge Bench. The observations relied on from Mahanadi Coalfields did not displace that authority; Punjab National Bank was distinguishable because its charge-sheet preceded retirement. (¶¶ 24, 25, 26)
Result
Bank’s appeal dismissed with costs of Rs 25,000. All service benefits due, with 7% annual interest from retirement until payment, directed to be paid to the deceased officer’s legal heirs within three months of receipt of the judgment.