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SARV U.P. GRAMIN BANK versus MANOJ KUMAR SINHA

Citation: [2010] 2 S.C.R. 512 · Decided: 09-02-2010 · Supreme Court of India · Bench: B. SUDERSHAN REDDY · Disposal: Appeal(s) allowed

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Judgment (excerpt)

.. ~A 
B 
[2010] 2 S.C.R. 512 
SARV U.P. GRAMIN BANK 
v. 
MANOJ KUMAR SINHA 
(Civil Appeal No. 1639 of 2010) 
FEBRUARY 09, 2010 
[B. SUDERSHAN REDDY AND SURINDER SINGH 
NIJJAR, JJ.] 
Service Law -
Misconduct -
Punishment -
Bank 
C employee - Found guilty of charges ol misappropriation, fraud 
and financial irregularities - Disciplinary Authority imposed 
punishment of "reduction of pay" - Order upheld by appellate 
authority - High Court allowed the writ petition of employee 
on ground that he had not been served with the enquiry report 
D - Justification of - Held: Not justified - Order: of punishment 
ยท was not vitiated since no prejudice was shown to have been 
caused to respondent-employee by non-supply of the enquiry 
report - In any event, considering the gravity of the charges 
proved, the punishment imposed was lenient finough -
E Administrative Law - Natural justice. 
Respondent, a bank employee, allegedly committed 
various acts of omission and commissions relating to 
financial irregularities, fraud and misappropriation. 
F Departmental enquiry was held whereafter, taking into 
consideration the enquiry report, the Disc.iplinary 
Authority imposed the punishment of "reduction of pay" 
after giving an opportunity of personal hearing to the 
respondent. 
G 
Respondent challenged the order of the Disciplinary 
Authority, but the order was upheld by the appellate 
authority (i.e. the Board of Directors of the Bank). 
Respondent filed writ petition. The High Court held that 
since a copy of the enquiry report had not been served 
H 
512 
SARV U.P. GRAMIN BANK v. MANOJ KUMAR SINHA 513 
on the respondent, the action of the appellant-bank was 
A 
violative of the principles of natural justice, and 
accordingly allowed the writ petition. Hence the present 
appeal. 
Allowing the appeal, the Court 
HELD:1.1. The plea of the respondent before the High 
Court that no proceedings had taken place in the enquiry 
B 
is clearly false and belied by the contents of the enquiry 
report. From the perusal of the enquiry report, it become 
apparent that the respondent has incorrectly stated that C 
no date was fixed by the enquiry officer and straightaway 
the show cause notices were issued. This apart, it is also 
noticed in the enquiry report that for proving the charges ยท 
levelled against the respondent in the charge sheet, the 
presenting officer tendered management exhibits. The 
D 
Branch Manager, appeared as a witness. It is also 
recorded that the respondent himself presented his 
defence and upon completion of the evidence the 
presenting officer and the respondent were granted time 
for giving their respective briefs. Thereafter there is a 
E 
detailed discussion of the evidence given on behalf of the 
Bank as well as the respondent. Respondent did not 
make any protest before the enquiry officer of not being 
permitted to cross examine the witness. Thus the enquiry 
proceedings have been conducted in accordance with 
F 
the principles of natural justice. In case the respondent 
felt genuinely aggrieved he would have raised the issue 
at the earliest possible stage. [Paras 25 and 26] [526-0-
H; 527-A-B-E-F] 
1.2. The charges which have been proved against G 
the respondent are all pertaining to financial irregularities, 
fraud and misappropriation. At the personal hearing, the 
respondent had clearly stated that efforts have been 
made l>y him for effecting recovery. He had also offered 
that the amounts may be adjusted from other loan 
H 
514 
SUPREME COURT REPORTS 
[2010] 2 S.C.R. 
A accounts which were found to be not feasible. The issue 
with regard to the non-supply of the enquiry report is 
raised for the first time in appeal. Even at that stage the 
appellant does not state as to what prejudice was caused 
by the non-supply of the enquiry report. He also did not 
B seek any adjournment of the personal hearing on the 
ground that he be supplied the enquiry report. [Para 25] 
[527~B-D] 
1.3. At the time when the plea was raised before the 
C High Court that the impugned orders are vitiated on 
account of the non-supply of enquiry report, it would 
have been appropriate for the High Court to examine the 
averments made in the writ petition. A perusal of the writ 
petition would show that the petitioner has failed to lay 
any foundation to establish that any prejudice has been 
D caused by the non-supply of the enquiry Mport. No. 
prejudice was actually caused to the respondent. There 
was no failure of justice in 

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