R K Nanda vs. Central Bank of India & Ors.
Background
The appellant, a bank Assistant Manager, was removed from service after a departmental inquiry found he had processed a stale customer cheque meant for bank commission by adding his own name to it and crediting the money to his personal account, and had also drawn an unauthorised salary advance. He argued the money was actually a personal loan from the customer (repaid within days) and that his earlier salary advance had initial approval from his branch manager. A Single Judge had already dismissed his challenge to the removal order, and he appealed further.
Decision Breakdown
The Division Bench held that regardless of whether the money was a personal loan, using a cheque held in the bank's custody, altering it, and crediting it to his own account through the bank's internal systems was a clear misuse of his official position that could not be excused by the customer's later "clarification letter." On the salary advance, it found the amount was well beyond his earlier approved figure and wasn't properly reconciled at the time, making it a genuine financial irregularity. Given his position of trust as a bank officer and a prior disciplinary history, the Court held that removal from service (without disqualification from future employment) was a proportionate penalty, and dismissed the appeal.
Lesson Learnt
Bank employees and others in positions of financial trust are held to a high standard of integrity, using one's official access to route money into one's own account, even if the underlying transaction (like a personal loan) was legitimate, can still justify serious disciplinary action.