V.P.RANJINI Vs. THE STATE OF KERALA

JUDGEMENT

(1.) The question arising in this case is whether disciplinary proceedings can be initiated or continued against an employee of the Co -operative Society after her retirement.

(2.) The petitioner herein was working as Manager in the 3rd respondent Co -operative Bank. She was due to retire from service on 31.05.2009. She was transferred to the Evening branch of the Bank on 18.09.2008. On 23.3.2009, the Bank issued a show cause notice to her proposing disciplinary action on the allegation that she was granting large number of loans on pledging of spurious gold ornaments. Though she submitted an explanation, she was placed under suspension, as per Ext.P1 order dated 30.03.2009. In the order of suspension it was alleged that petitioner while working as Manager of the Evening counter of the Bank granted loans to 12 persons to the tune of Rs.71,61,140/ -, on pledging of spurious gold ornaments and hence petitioner was found to be responsible for causing huge loss to the Bank, apart from causing ill -reputation to the Bank. Petitioner thereupon submitted a representation on 26.05.2009 to the President and Board of Directors requesting for reinstatement. In the meanwhile, she approached this Court challenging the order of suspension filing W.P.(C) No.14593/2009. This Court by Ext.P3 judgment dated 29.05.2009, disposed of the writ petition without interfering with the order of suspension and at the same time directing the Bank to complete the disciplinary action against the petitioner as expeditiously as possible.

(3.) Thereafter Ext.P4 memo of charges was issued to the petitioner on 13.07.2009, i.e., subsequent to her retirement. A series of allegations were raised, all relating to granting of loan on the strength of spurious gold which was found to be in connivance with the Appraiser. In answer to Ext.P4 memo of charges, the petitioner submitted Ext.P5 explanation detailing her innocence in the matter and refuting the charges alleged against her, pointing out that the pledging of major portion of the gold was much before her taking charge in the Evening counter. In the meanwhile, Managing Committee of the Bank passed a resolution, Ext.P7 on 18.06.2009 not to approve the retirement of petitioner who was attaining the age of superannuation on 31.5.2009, as she was continuing under suspension and in view of the disciplinary proceedings pending against her. Accordingly the Bank denied the terminal benefits due to her.