SUDHIR KUMAR JAIN Vs. UNION OF INDIA

JUDGEMENT

(1.) BY this writ petition filed under Article 226 of the Constitution of India the petitioner, who was the Chairman and Managing Director of the Syndicate Bank, impugns the order dated 22.9.2014 by which the services of the petitioner have been terminated with immediate effect in exercise of powers under sub -clause (1A) of Clause 8 of the Nationalised Banks (Management and Miscellaneous Provisions) Scheme 1970/1980 (hereinafter referred to as 'the 1970 Scheme'). This impugned order reads as under: -

(2.) THE relevant Clause 8 of the 1970 Scheme reads as under: -

(3.) A reading of Clause 8 of the 1970 Scheme with its sub -clauses shows that there are two methods of termination of the employment of a Director including the Managing Director. One method is under sub -clause (1A) of Clause 8 of the 1970 Scheme and the second one is under sub -clause 3 of Clause 8 of the 1970 Scheme. Sub -clause (1A) of Clause 8 of the 1970 Scheme provides an exit route both to the employer and employee by means of a three months' notice. Sub -clause 3 of Clause 8 of the 1970 Scheme is for removal in the interest of the Nationalized Bank (viz Syndicate Bank in this case) and in which case there is a requirement to follow the principles of natural justice.