TaxTMI 
TaxTMI 
2016 (9) TMI 1630
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....commission and omission caused loss to the Bank in the sum of Rs. 44,40,819/- by granting credit to one Laxman Parsad Ratre (who was an employee of Bhilai Steel Plant). The Respondent herself introduced Laxman Parsad Ratre to open an account in the Appellant Bank. On 7th November 2006, the Respondent was placed under suspension for indulging in gross irregularities and misconduct including of misplacing the clearing instruments relating to various customers. The Respondent vide letter dated 8th November 2006, not only admitted her misdeeds but assured the Chief Manager of returning the amount commensurate to the financial loss caused to the Bank because of her lapses at the earliest, failing which suitable action can proceed against her. The said communication reads thus: To, Chief Manager State Bank of India Main Branch, Durg (Ch. G.) Sir, Context: Your memo number-Serial number/branch/2006-07/196 dated 30.10.2006. In context of your aforesaid memo I am sorry for the wrong ways adopted by me. I admit that I have done a wrong deed and I am suffering from the feeling of guilt. 1. Whatever amount comes in this....
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....U.T.I. Branch dispatched those cheques to State Bank of India at Durg, Bhilai. The Respondent was posted in that Branch at the relevant time, who in connivance with the co-accused dispatched those cheques to State Bank of India, Malviya Nagar Branch even though Laxman Parsad Ratre did not have account in that Branch. The cheques were returned by that Branch. The Respondent intentionally did not immediately return those cheques to U.T.I. Branch at Bhilai. Resultantly, U.T.I. Branch at Bhilai as per the settled practice assumed that the cheques have been cleared and released the payment to Tanishk Securities, by endorsing payment in the name of State Bank of India. Thereby causing a loss of Rs. 13 lakhs to State Bank of India. That was revealed only on 28.10.2006 during reconciliation of accounts of the two Banks. Further, the Respondent herself had introduced Laxman Parsad Ratre for opening an account in the Appellant-Bank. She has admitted her lapse in the communication sent by her to the Chief Manager of the Appellant-Bank dated 8th November, 2006. In a written admission given on 6th November, 2006 Laxman Parsad Ratre mentioned that he was involved in a criminal activity in conniv....
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....above incident detail (information come in light) on 28.10.2006 held branch clearing of the general account in clearing it make clear that in Udhavi Schedule 07 Rupees 13,00,000 entries which was originate by Malviya Nagar Durg Branch, it was not responded by Durg Branch. v. You had attached with Tanishk Securities commodity trading and you by misusing the amount of Chhattisgarh State Electricity division got deposit in the account of Shri Lachhman Parsad Ratre. You have removed the original slip of deposit of the account of Chhattisgarh State Electricity division and in place of it install the slip of Shri Rate saving bank account therefore the dealing and clearing of the saving bank account which has committed by you, the complete detail is clear and enclosed in Annexure-2. vi. Therefore you with the intention of cheating you have divert the total amount of Rs. 48,0000 of 16 challan of State Govt. on 4.5.2006 (Annexure 2(11)). vii. The Head Branch Bhilai through clearing house has closed to submit due cheque in Durg Branch, there after the cheque of various bank situated at Bhilai which has deposited in Durg Branch should presented for collection, you c....
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....t. Sd/- Disciplinary Officer and Assistant Chief Managing Director Administration) Sd/- Enclosure: above. 57/dpc/staff Signature 20.9.2008 5. The Appellant No. 2 then instituted disciplinary proceedings against the Respondent on 23rd October 2008, which fact was notified to the Respondent on 31st October 2008, by the Appellant No. 3 calling upon her to attend the same. The Respondent did not cooperate and instead protested the initiation of such disciplinary proceedings against her. She was then advised to file a writ petition bearing Writ Petition No. 4629/2009 before the High Court of Chhattisgarh at Bilaspur. The learned Single Judge found merits in the stand taken by the Respondent-that the facts involved in the criminal case registered against the Respondent and initiation of disciplinary proceedings, was based on the same facts. The learned Single Judge also adverted to Clause 4 of the Memorandum of Settlement dated 10th April, 2002 which grants protection to the employees of the Appellant-Bank from facing departmental proceedings until the completion of the trial of the criminal case. On that reasoning, the learned Single Judge allowed the W....
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....fidavit of the Additional Superintendent of Police dated 1st August 2016. From this affidavit, it is noticed that the criminal trial No. 1043/2006 before framing of charge on 12th June 2007, was listed on 13 dates. After framing of charge, the matter has proceeded before the Sessions Court on 133 dates. In paragraph 9 to 11 of the affidavit, the break up has been given as under: 9. It is further respectfully submitted that the perusal of Court proceedings of 133 dates reveal that the delay in completion of trial was due to multiple reasons. It is submitted that on some dates, the case was adjourned due to absence of accused persons. On some dates, the case was adjourned as the prosecutor was absent. The case was also adjourned due to non-availability of files as it was sent to the Sessions Court for deciding the Bail Application Under Section 439 Code of Criminal Procedure. The case was also adjourned on the application made by the accused persons to make available some documents. The case was also adjourned due to Ld. Presiding Officer on leave, the transfer of Presiding Officer, the change of Court. The case was also adjourned due to strike by the Lawyers or due to Court....
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....Settlement and the settled legal position, the disciplinary proceedings must be put on hold at least until the recording and closure of evidence of prosecution witnesses in the criminal case, as directed by the Division Bench. That is essential because the charge framed against the Respondent in the criminal case and the charge-sheet issued by the disciplinary authority against the Respondent is based on the same set of facts. The defence of the Respondent in disciplinary proceedings may cause serious prejudice to the Respondent in the criminal case. According to the Respondent, in view of the complexity of the facts and the evidence necessary to substantiate the same, it is advisable and essential to protect the Respondent from being exposed to disclosure of her defence which may be identical to one to be taken in the criminal case or for that matter compel her to depose against herself on those facts. 8. We have heard the learned Counsel for the parties at some length. The only question that arises for consideration, is no more res-integra. It is well-settled that there is no legal bar to the conduct of the disciplinary proceedings and criminal trial simultaneously. However, n....
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....s is the case at hand and so are the number of witnesses cited by the prosecution. The Court, therefore, has to draw a balance between the need for a fair trial to the accused on the one hand and the competing demand for an expeditious conclusion of the ongoing disciplinary proceedings on the other. An early conclusion of the disciplinary proceedings has itself been seen by this Court to be in the interest of the employees. (Emphasis supplied) 10. The Court then went on to examine the facts of that case and observed in para 18 as follows: 18. ..........The charge-sheet, it is evident from the record, was filed on 20.8.2011. The Charges were framed on 20-12-2011. The trial Court has ever since then examined only three witnesses so far out of a total of 23 witnesses cited in the charge-sheet. Going by the pace at which the trial Court is examining the witnesses, it would take another five years before the trial may be concluded. The High Court has in the judgment under appeal given five months to the trial Court to conclude the trial. More than fifteen months has rolled by ever since that order, without the trial going anywhere near completion. The disciplinary proceed....
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....dent as far back as 12th June, 2007. The trial of that case, however, has not made any effective progress. Only 3 witnesses have been examined by the prosecution, out of 18 witnesses cited in the charge-sheet filed before the criminal Court. Indeed, listing of criminal case on 133 different dates after framing of charges is not solely attributable to the Respondent. From the information made available by the Additional Superintendent of Police on affidavit, it does indicate that at least 26 adjournments are directly attributable to the accused in the criminal case. That is not an insignificant fact. This is inspite of the direction given by the Division Bench on 28th June, 2010, to the concerned criminal Court to proceed with the trial on day-to-day basis. The progress of the criminal case since then, by no means, can be said to be satisfactory. The fact that the prosecution has named 18 witnesses does not mean that all the witnesses are material witness for substantiating the factum of involvement of the Respondent in introducing the co-accused for opening a new bank account, to misplace the clearing instruments relating to various customers or for the payment released to the unde....
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....can be termed as a workman. The Respondent herein was appointed in a clerical cadre of the Appellant-bank; but when the alleged misconduct was committed on 29th May 2006, she was working as Assistant (Clearing). Neither before the learned Single Judge, the Division Bench nor before us any argument has been canvassed on the factum of whether the Respondent can be treated as a workman within the meaning of the Industrial Disputes Act, 1947. Both sides, however, have relied on the said Clause and invited us to spell out its purport. 15. On the plain language of Clause 4, in our opinion, it is not a stipulation to prohibit the institution and continuation of disciplinary proceedings, much less indefinitely merely because of the pendency of criminal case against the delinquent employee. On the other hand, it is an enabling provision permitting the institution or continuation of disciplinary proceedings, if the employee is not put on trial by the prosecution within one year from the commission of the offence or the prosecution fails to proceed against him for want of any material. 16. As can be culled out from the last sentence of Clause 4, which applies to a case where the crimina....
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....ch is already pending for more than 10 years. 20. We make it clear that we may not be understood to have expressed any final view on the scope of Clause 4 of the Settlement. 21. Accordingly, we exercise discretion in favour of the Respondent of staying the ongoing disciplinary proceedings until the closure of recording of evidence of prosecution witnesses cited in the criminal trial, as directed by the Division Bench of the High Court and do not consider it fit to vacate that arrangement straightway. Instead, in our opinion, interests of justice would be sufficiently served by directing the criminal case pending against the Respondent to be decided expeditiously but not later than one year from the date of this order. The Trial Court shall take effective steps to ensure that the witnesses are served, appear and are examined on day-to-day basis. In case any adjournment becomes inevitable, it should not be for more than a fortnight when necessary. 22. We also direct that the Respondent shall extend full cooperation to the Trial Court for an early disposal of the trial, which includes cooperation by the Advocate appointed by her. 23. If the trial is not completed within on....