LAWS(DLH)-1977-2-12

A R JOSHI Vs. STATE BANK OF INDIA

Decided On February 18, 1977
A.R.JOSHI Appellant
V/S
STATE BANK OF INDIA Respondents

JUDGEMENT

(1.) On December 24, 1951, the petitioner A. R. Joshi, was employed by the Imperial Bank of India as a cashier and teller. On January 1, 1953, he was confirmed in that post. In 1955 the State Bank of India Act (Act 23 of 1955) (the Act) was passed. The State Bank was constituted to carry on the business of banking and to transfer to it the undertaking of the Imperial Bank of India (Section 3(1) ). The service of existing officers and employees of the Imperial Bank of India was transferred to the State Bank (section 7). The petitioner's services were also transferred.

(2.) On August 27, 1962, the petitioner was promoted to the post of head cashier and was posted at Dalhousic. That very day he executed a contract of service.

(3.) In 1967 the bank found that the petitioner had permitted drawings without adequate stock in cash credit accounts to two firms, namely, M/s. Teja Singh & Sons and Industrial Saw Mills and had valued pledged stocks at rates higher than the market rates. The bank thought that the petitioner had acted beyond the scope of his authority. On March 27, 1967, he was suspended. On June 10, 1967, a charge sheet was served on him. On June 22, 1967. the petitioner sought particulars of the grounds on which the charges were brought against him. He also called for the investigation report. The bank on September 8, 1967 supplied the particulars of the charges' but refused to supply the investigation report on the ground that the same will bo made available to him after the Local Board had considered it to be a fit case for imposing the penalty of "requiring the employees to resign" or "dismissal" as provided in Rule. 39 clauses (e) and (f) of the Service Rules.