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General Manager (Operations), State Bank of India and Another v. R. Periyasamy

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 10942 of 2014)Decided 10 Dec 2014
Civil Appeal No. 10942 of 2014
Justice J. Chelameswar · Justice S.A. Bobde

Background

A bank cash officer was dismissed after a departmental inquiry found him responsible for a ₹1,25,000 currency-chest shortage and other service lapses. The Madras High Court re-examined the evidence and set aside his dismissal. The bank appealed, arguing that the High Court had exceeded the limits of judicial review.

Decision Breakdown

The Court held that disciplinary charges are decided on the balance of probabilities, rather than the criminal standard of proof beyond reasonable doubt. The inquiry had supporting evidence and cogent reasons locating the shortage in the officer's period of custody. The High Court could examine perversity, lack of evidence or unfair procedure, but could not substitute its own assessment of the evidence's adequacy. The Court allowed the bank's appeal, set aside the High Court's order and dismissed the employee's writ petition. It nevertheless directed an ad hoc ₹3 lakh payment given his long-past retirement and consequent loss of pension.

Lesson Learnt

Challenging a departmental dismissal requires a legally recognised defect, such as unfair procedure or an unsupported or perverse finding. A court reviewing the decision does not conduct a fresh evidentiary appeal merely because it might prefer another conclusion.

Official source (sci.gov.in)View Judgment (PDF)

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