STATE BANK OF INDIA versus NANAK CHAND JAIN

Citation: [1964] 5 S.C.R. 621 · Decided: 02-12-1963 · Supreme Court of India · Bench: P.B. GAJENDRAGADKAR · Disposal: Appeal(s) allowed

Judgment (excerpt)

J 
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5 S.C.R. 
SUPREME COURT REPORTS 
STATE BANK OF INDIA 
v. 
NANAK CHAND JAIN 
621 
(P.B. GAJENDRAGADKAR, K.N. WANCHOO AND K.C.DAS 
GUPTA, JJ.) 
Industrial Dispute-Sastry award-Requirement of payment 
of one month's wages in lieu of notice of termination-Payment of 
three month's wages-Tf sufficient compliance. 
The respondent who was an employee of the appellant Bank 
was acquitted of the charge of misappropriation of the latter's 
money. But on an enquiry by the appellant the respondent was 
found guilty of carelessness and it was decided that his services 
should be terminated. In accordance with this decision he was 
informed of the termination of his services and the appellant tendered 
three months' pay and allowances in lieu of notice. Since an 
industrial dispute was pending between the appellant and its em-
ployees the former made an application to the Tribunal under 
s. 33(2) of the Industrial Disputes Act, 1947 for approval of its 
action. The Tribunal held that the payment of three months' 
pay in lieu of notice in terms o( para 521(2)(c) of the Sastry Award 
did not amount to compliance with the requirement of payment 
of one month's wages under the proviso to s. 33(2) of the Act. 
The Bank filed the present appeal on special leave granted by this 
Court. 
Held: The payment for a longer period should be held to 
include payment for the shorter period and where three months' 
pay and allowances had been paid under the provisions of para 
521(2)(c) of the Sastry Award no further payment of one month's 
wages under the proviso to s. 33(2) is required. 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 
126of1963 . 
Appeal by special leave from the order dated 
April 3, 1962, of the Central Government Labour 
Court at Delhi in O.P. No. 15of1961. 
C.K. Daphtary, Attorney-General, H.N. Sanyal, 
Solicitor-General, S. V. Gupte, Additional Solicitor-
General, K.B. Mehta, H.L. Anand and Vidhya Sagar, for 
the appellant. 
Anand Prakash and S.N. Bhandari, for the res-
pondent. 
December 2, 1963. The Judgment of the Court 
was delivered by 
1963 
December 2 
DAS GUPTA J. The respondent, Nanak Chand Das Gupta J. 
622 
SUPREME COURT REPORTS 
il964] 
1963 
Jain, was a money tester in the cash department of the 
--
Agra Branch of the Imperial Bank of India. On 
State B~nk of December 20, 1952 it was detected that a packet 
India 
containing IO pieces of 100 rupee notes shroffed by 
v. 
another employee of the Bank and handed over by 
NanaJa~hand him to the respondent were missing. In connection 
with this the respondent and four other employees 
Das Gupta J. of the Bank were prosecuted, the trial in the Sessions 
Court ending with their acquittal-the respondent 
having been given the benefit of doubt. 
Thereafter 
on December IO, 1954 the Bank served on the respon-
dent a charge-sheet alleging carelessness and dereliction 
of duty. An enquiry was held and the Enquiry 
Officer found the charge against the respondent 
established. On a consideration of the report of 
the Enquiry Officer the Bank decided to terminate 
his services with effect from May 16, 1955 by paying 
him three months pay and allowances. The respondent 
was given further hearing as regards the nature of the 
proposed punishment and thereafter his services were 
terminated as from the close of business on May 16, 
1955. The validity of the enquiry proceedings was 
challenged by the respondent on the ground that 
he had not been given adequate facility for being 
represented by a Union official of his choice and ulti-
mately after a decision of the Labour Appellate 
Tribunal that the employee had an unqualified option 
in regard to the selection of persons who would 
represent him at the departmental enquiry a fresh 
enquiry was held . after withdrawing the order of 
termination of his services. 
This fresh enquiry 
was held on the 21st and 22nd of November, 1956, 
On this occasion also the enquiry officer found the 
charges against the respondent proved. After consi-
deration of the report and after giving the respondent 
an opportunity to show cause why the proposed punish-
ment of termination of his services on payment of 
three months' salary in lieu of notice should not be 
imposed on him the Bank decided in November 1960 
to terminate his services by giving him three months' 
salary in lieu of notice in terms of Para 521 (2) (c) of 
the Sastry Award. 
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5 S.C.R. 
SUPREME COURT REPORTS 
623 
As an industrial dispute between the Bank and 
1963 

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