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Service & Administrative LawSupreme Court of India

Naresh Chandra Bhardwaj v. Bank of India & Ors.

Civil Appeal · 2019 INSC 553Decided 22 Apr 2019
Civil Appeal No. 4037 of 2019
Justice Sanjay Kishan Kaul · Justice Indira Banerjee

Background

The appellant, a Bank of India officer, was removed from service after an inquiry found procedural lapses in loans he sanctioned or recommended, which turned into bad loans causing a likely loss of about Rs. 70 lakh to the bank, all connected to one fraudulent borrower. Two other officers involved with the same fraudulent party, facing similar or even larger losses, were instead given the lesser punishment of compulsory retirement rather than removal. The appellant challenged his harsher punishment on the ground of parity, and his challenge having failed up to the disciplinary appellate stage, he approached the Supreme Court limited to the question of whether his punishment should be reduced to match the other two officers.

Decision Breakdown

The Supreme Court held that while courts have very limited power to interfere with the quantum of departmental punishment, an exception exists where a co-delinquent employee facing identical or more serious charges was given a lesser punishment: the "doctrine of equality" then permits correction, provided there is complete parity in both the charges and the employees' conduct afterward. Examining the record, the Court found no real difference between the appellant's role and that of the two other officers (all three were tied to the same fraudulent borrower, and no dishonest intent was proved against any of them), and found the bank's stated reason for treating him more harshly, his pension option rather than provident fund, made no actual financial difference to the bank. Concluding there was no justifiable basis for the disparity, the Court allowed the appeal and converted the appellant's punishment from "removal from service" to "compulsory retirement," on par with the other two officers.

Lesson Learnt

Courts will not normally second-guess the severity of a departmental punishment, but if an employee can show that colleagues with identical or worse misconduct received a lighter punishment with no real basis for the difference, that disparity can be corrected on the principle of equal treatment.

Naresh Chandra Bhardwaj v. Bank of India & Ors. – Legal Case Shots | LegalAware