UMESH GARG Vs. UNION BANK OF INDIA

JUDGEMENT

(1.) These proceedings, in their essence, emanate from Memorandum dated 13 th March, 2000, issued by the respondentBank to the petitioner, who was, at that time, working as a Head Cashier at the Okhla Branch of the said bank.

(2.) According to the Memorandum, the petitioner was guilty, in connivance with two other officials of the bank, namely Mr. T.D. Makhija and Mr. Sohan Lal, of causing considerable pecuniary loss to the Bank. The Memorandum alleges that a current account, in the name of M/s Mahavir Book Depot, signed by the authorised signatory of the account holder Mr. Awadesh Kumar, who happens to be the son of the petitioner, was opened, and used for transfer of an amount of Rs. 53,000/-, from the account of M/s Jorgy International to the said account. This transfer, which is stated to have taken place on 21st July, 1998, is alleged to have been authorised by T.D. Makhija. Consequent on the said transfer, the Memorandum further alleges that Mr. Sohan Lal withdrew Rs. 53,000/- on 21st July, 1998, by entering a fictitious signature on the reverse of the cheque. Though, in such cases, the cheque was required to be cancelled by two officials, the Memorandum alleges that cancellation of the cheque was effected only by Mr. Makhija and that, despite the non compliance with the requirement of two officials authorising the cancellation, payment, against the cheque, was made by the petitioner. It is further alleged that the balance amount of Rs. 3,000/- was withdrawn, by the petitioner, from the said account of M/s. Mahavir Book Depot on 2 nd November, 1998, and that this transaction, too, was authorised by Mr. Makhija. In order to regularise these transactions, it is alleged that the status of the debit transfer entry of Rs. 53,000/- dated 21st July,1998, was changed after the end of the day by debiting the entry from the account of M/s Jorgy International, thereby ensuring that the balance in the said account remained constant.

(3.) The Memorandum dated 13th March, 2000, further alleged that, on 28th September, 1998, an amount of Rs. 8 lakhs was unauthorisedly transferred from the current account of M/s Computer Force India Pvt. Ltd. to the aforementioned current account of M/s Mahavir Book Depot, of which one transfer debit entry was posted by Mr. Sohan Lal and three transfer debit entries were posted by Mr. Makhija, who authorised all the said transactions. From this, it is alleged that, using a cheque filed by the petitioner, from the account of M/s Mahavir Book Depot, Mr. Sohan Lal withdrew an amount of Rs. 8 lakhs on 28th September, 1998, and that, as in the case of the earlier withdrawal of Rs. 53,000/-, this withdrawal, too, was authorised only by Mr. Makhija, who cancelled, singly, the said cheque. The petitioner is alleged to have made cash payment of cheque to Sohan Lal, despite the fact that the cheque was, contrary to the procedural regulations, cancelled only by Mr. Makhija.