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Punjab and Sind Bank & Ors. v. Mrs Durgesh Kuwar

Civil Appeal · 2020 INSC 225Decided 25 Feb 2020
Civil Appeal No. 1809 of 2020
Dr. Justice D.Y. Chandrachud · Justice Ajay Rastogi

Background

Durgesh Kuwar, a senior bank officer at Punjab and Sind Bank, repeatedly reported serious financial irregularities involving liquor-contractor accounts at her Indore branch and separately complained that her Zonal Manager was sexually harassing her. Shortly after these complaints, she was transferred roughly 600 km away to a small rural branch meant for a much junior officer. She challenged the transfer in the Madhya Pradesh High Court, which quashed it as mala fide and retaliatory; a Division Bench affirmed that decision, and the bank then appealed to the Supreme Court.

Decision Breakdown

The Supreme Court agreed that the transfer was a mala fide act of reprisal against a woman employee who had raised legitimate complaints of corruption and sexual harassment. It found a fundamental defect in the bank's Internal Complaints Committee: the member meant to be "independent" under the POSH Act was in fact a panel lawyer regularly engaged by the bank, defeating the purpose of that safeguard. While affirming the High Court's decision, the Court, noting nearly four years had passed, directed that the respondent be reposted to the Indore branch at her proper Scale IV grade for one year, with Rs 50,000 in costs.

Lesson Learnt

Employers cannot use administrative transfers as a tool to punish employees who blow the whistle on corruption or report sexual harassment, and an "independent" member of a workplace Internal Complaints Committee cannot be someone who is effectively on the employer's own payroll.

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

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