1996 (4) TMI 525 - SC - Indian Laws

Bank officer's misconduct upheld by Supreme Court, appeal allowed, High Court decision set aside

THE DISCIPLINARY AUTHORITY-CUMREGIONAL MANAGER AND ORS. Versus NIKUNJA BIHARI PATNAIK

THE DISCIPLINARY AUTHORITY-CUMREGIONAL MANAGER AND ORS. Versus NIKUNJA BIHARI PATNAIK - JT 1996 (4) , 457 1996 SCALE (3) 711 Issues:Misconduct in a bank officer's actions leading to suspension and dismissal, interpretation of regulations defining misconduct, violation of bank guidelines and authority limits, failure to follow instructions, disobedience of lawful orders, reinstatement of the officer, appeal against High Court's decision.Analysis:The case involved a bank officer who was suspended and later dismissed for various charges of misconduct while working as a Branch Manager. The Enquiry Officer found several charges established fully or partially against the officer, including unauthorized overdrafts, clean overdrafts, and issuance of bank guarantees without proper procedures. The officer failed to follow bank guidelines and authority limits, leading to potential financial risks for the bank. The High Court, however, held that the charges represented errors of judgment rather than misconduct, as there was no ulterior motive or proven loss to the bank. The High Court allowed the officer's writ petition, setting aside the punishment and directing reinstatement with benefits.The Supreme Court analyzed the regulations defining misconduct for bank officers, emphasizing the duty to protect the bank's interests with integrity, honesty, and diligence. The Court noted that the officer's actions, allowing overdrafts beyond authority limits and failing to follow instructions, constituted a breach of discipline and misconduct under the regulations. The Court highlighted that even if some acts resulted in profit for the bank, the officer's conduct of consistently acting beyond authority over a prolonged period was unacceptable and detrimental to the bank's functioning. The Court rejected the High Court's characterization of the actions as errors of judgment, emphasizing the importance of upholding discipline and prescribed norms in a bank setting.During the appeal, the officer's counsel sought a lesser punishment due to the officer's age and circumstances, but the Court declined the request. The Bank also expressed its inability to reinstate the officer due to his conduct. Consequently, the Supreme Court allowed the appeal, setting aside the High Court's judgment and ruling in favor of the bank. No costs were awarded in the case.