PUNJAB AND SIND BANK Vs. SARABJIT SINGH

JUDGEMENT

(1.) THIS appeal has been filed against the order of the learned Single Judge dated 23rd March, 2009. Briefly stated the facts of the present case are as follows:

(2.) THE respondent (original petitioner in the writ petition) was an employee with the appellant Bank (original respondent No. 1 in the writ petition). An FIR was lodged by the appellant Bank alleging irregularities and commission of offence by the respondent. At the Bank's behest, the respondent deposited with the Bank a total amount of Rs. 3,17,256.82 on different dates between 6th February, 1985 and 4th March, 1985. These sums were kept under lien of the Bank pending criminal proceedings. On 9th March, 2007, the respondent was acquitted by the criminal court. The judgment and acquittal recorded by the court was not carried in appeal and the same, therefore, become final.

(3.) THE learned Single Judge has rightly held that at the stage when the respondent was required to deposit the amount, there was no binding obligation upon him to do so. The learned Single Judge correctly took note of the fact that the appellant Bank having asked the respondent to deposit various sums of amounts, pending the outcome of the criminal proceedings, ought to have taken steps to ensure that they were maintained in interest bearing deposits so that in the event of a favourable decision, the respondent would have enjoyed the benefit of not only the principal amount but the interest accruals that would have naturally arisen. The fact that the Bank chose not to take such steps, which would have ultimately resulted in full restitution, was not a justification for it to deny its liability. The learned Single Judge thus, in our view, correctly held that the Bank was liable to pay higher rate of interest. The learned Single Judge has correctly awarded the different/higher rates of interest for the period 1st April, 1985 to 31st March, 1995 and for the period 1st April, 1995 to 6th November, 2008. The sums of interest have been directed to be paid after adjusting the interest component already paid to the respondent on 6th November, 2008.