CANARA BANK AND ORS. Vs. JAGDISH MITTER MAINI

JUDGEMENT

(1.) Working as a Manager with Lakshmi Commercial Bank (a private banking company) the respondent was placed under suspension on February 27, 1984 and was served with a charge memorandum on March 26, 1984. Before the inquiry could proceed Lakshmi Commercial Bank was amalgamated with Canara Bank in terms of a gazette notification dated August 23, 1985. The scheme of merger did not include in the list of employees of Lakshmi Commercial Bank (to be the employees of Canara Bank) who were under suspension and thus an issue arose as to what would happen to such employees.

(2.) In the decision K.I. Shepard & Ors. Vs. UOI,1987 AIR(SC) 686 the Supreme Court held that these employees (suspended) would be deemed to be employees of Canara Bank. Thus, the respondent had to be treated as an employee of Canara Bank.

(3.) Canara Bank proceeded with the inquiry proceedings by appointing an Inquiry Officer and nominated a presenting officer. Inquiry proceedings concluded and resulted in the levy of a penalty of being dismissed from service.