LexTHE GENERAL MANAGER (P) CANARA BANK versus GANGANARASIMHAIAH
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[2025] 9 S.C.R. 703 : 2025 INSC 1088 The General Manager (P) Canara Bank v. Ganganarasimhaiah (Civil Appeal No. 11461 of 2025) 09 September 2025 [J.K. Maheshwari and Vijay Bishnoi,* JJ.] Issue for Consideration Issue arose whether the Division Bench of the High Court was justified in affirming the award passed by the Industrial Tribunal by setting aside the punishment of compulsory retirement imposed upon the respondent-workman and directing his reinstatement into the original post with continuity of service without back wages. Headnotes† Industrial Disputes Act, 1947 – s.11A – Powers of the labour court, tribunals – Allegations against the respondent-duftery- cum-cash posted in the Bank that he benefitted on account of misconduct/irregular loan sanction – In the preliminary enquiry respondent admitted that certain loans were availed by coercing the manager and without obtaining any sanction from the Controlling Officer and accepted making unauthorized entries in the bank accounts, thereby tampering with the official records – Charges stood proved in the enquiry, by the Disciplinary Authority and the Appellate authority and punishment of compulsory retirement imposed upon the respondent – Industrial tribunal found that the enquiry was fair, however in the final award directed the appellant to reinstate the respondent without back wages – Final award upheld by the High Court – Sustainability: Held: Order passed by the tribunal as well as the High Court not sustainable – Tribunal as well as the High Court failed to take into consideration the settled principal of law in respect of judicial review in disciplinary matters – High Court while adding its irrelevant reasons, confirmed the order passed by the Tribunal acted in a manner as if it was hearing an appeal against the order passed by the Disciplinary Authority, it failed to take into account * Author 704 [2025] 9 S.C.R. Supreme Court Reports that in the departmental proceedings strict rules of evidence, as applicable in the judicial proceedings, cannot be applied and a charge of misconduct is to be proved only on preponderance of probabilities – Enquiry Officer as well as the Disciplinary Authority took into consideration the evidence available on record and had come to the conclusion that the respondent was found guilty on the charges levelled against him – Appellate Authority had also revisited the evidence and concurred with the Disciplinary Authority – After careful scrutiny of their order, it cannot be said that the orders were based on no evidence or are perverse in the absence of cogent and reliable evidence – Tribunal acted as an Appellate Authority and despite concluding that it is highly possible that the irregularities as alleged in the chargesheet were committed by the manager at the insistence of the Respondent, and he was the direct beneficiary of the irregular loan sanction, had illegally interfered with the punishment order passed by the Disciplinary Authority – Compulsory retirement of an employee from the services does not mean that the employee is not entitled to retirement benefits, which can only be denied in a case of dismissal from service – Impugned order passed by the tribunal as well as the High Court set aside – However, as punishment of compulsory retirement is imposed upon the respondent, he is entitled for gratuity and other pensionary benefits in accordance with law. [Paras 30, 34, 39-41] Case Law Cited Deputy General Manager (Appellate Authority) and Others v. Ajai Kumar Srivastava [2021] 1 SCR 51 : (2021) 2 SCC 612; Standard Chartered Bank v. R.C. Srivastava (2021) 19 SCC 281; Indian Overseas Bank and Others v. Om Prakash Lal Srivastava [2022] 1 SCR 246 : (2022) 3 SCC 803; B.C. Chaturvedi v. Union of India and Others [1995] Supp. 4 SCR 644 : (1995) 6 SCC 749; State of Rajasthan and Others v. Heem Singh [2020] 13 SCR 951 : (2021) 12 SCC 569; State Bank of Bikaner and Jaipur v. Nemi Chand Nalwaya [2011] 3 SCR 589 : (2011) 4 SCC 584 – referred to. List of Acts Industrial Disputes Act, 1947. List of Keywords Compulsory retirement; Reinstatement; Serious irregularities; Unauthorized entries in the bank accounts; Tampering with [2025] 9 S.C.R. 705 The General Manager (P) Canara Bank v. Ganganarasimhaiah the official records; Coercing the manager; Judicial review in disciplinary matters; Disciplinary enquiry; Rule of natural justice; Enquiry held by competent authority; Discipli
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