Jagdish Lal Gambhir v. Punjab National Bank
Background
Gambhir was an Assistant General Manager at Hindustan Commercial Bank, which merged into Punjab National Bank in 1986 and took him on as a Scale-III officer. PNB later issued him a charge-sheet over alleged improper loans, held an inquiry, and dismissed him in 1989. He challenged the charge-sheet, the inquiry and the dismissal in the Calcutta High Court, which rejected his challenge, and then came to the Supreme Court.
Decision Breakdown
The Court rejected each of his arguments. He had accepted his Scale-III placement without objection, so he could not later argue that the charge-sheet was issued by an officer of the wrong rank, and PNB's own disciplinary regulations applied to him after the merger. The fact that the former bank had looked into some transactions did not stop PNB from inquiring into other alleged irregularities. The Court also held that the inquiry report did not have to be supplied before his dismissal, because that requirement arose later and applies prospectively, and he had never challenged the merits of the findings against him. The appeal was dismissed and the High Court's judgments upheld.
Lesson Learnt
When one organisation takes over another's staff, those employees generally become subject to the new employer's rules, including disciplinary rules. An employee who accepts a new position without objection may find that a later challenge to that position is too late.