DURGAPRASAD P DASH Vs. STATE BANK OF SAURASHTRA

JUDGEMENT

(1.) This petition is filed by the petitioner for an appropriate writ, direction and/or order quashing and setting aside the resolution of the first respondent-State Bank of Saurashtra dated June 26, 1995 according sanction to prosecute the petitioner being illegal, ultra vires, unconstitutional and violative of his fundamental rights guaranteed under the Constitution of India. Interim relief is also prayed to stay and suspend the operation and implementation of the above resolution and to direct the first respondent to consider the case of the petitioner for promotion.

(2.) It is the case of the petitioner that between June 1990 and May 1992, he was working as Chief Manager of the State Bank of Saurashtra - first respondent herein at Fort Branch, Bombay. Pursuant to the instructions received from the Central Office of the State Bank of India, the transactions dealt with by the Funds Management Cell during 1991-92 headed by one Mr. M. S. Shrinivasan were investigated and records of the Cell were scrutinised. Certain irregularities were observed in transaction of security and issuance of receipts. According to the department, there was pre-planning and connivance between Mr. Shrinivasan and one Mr. Harshad Mehta, who was broker of the Funds Management Cell. During the investigation, in was found that Current Account No. 2230 was opened on June 18, 1991 in the name of M/s. Harshad Mehta (Sole proprietor Mr. Harshad Mehta) with Fort Branch at Bombay on introduction of Mr. Shrinivasan and various transactions put through that account indicated that a number of cheques for large amounts payable to the first respondent bank from various banks/financial institutions were credited to the broker's account. According to the petitioner, allegation against him was that he permitted unauthorised credit in Current Account No. 2230 without instructions by issuing bank/financial institutions and thereby he also participated in conspiracy. A report was prepared to that effect by Central Bureau of Investigation ("C.B.I." in short), pursuant to which a request was made to the respondent bank to accord sanction to prosecute the petitioner under Sec. 19 of the Prevention of Corruption Act, 1988. The report was placed before the Executive Committee of the first respondent Bank. Since the petitioner was neither directly nor indirectly involved in the so-called irregularities, nor was incharge of Funds Management Cell which was independent branch of the first respondent, after careful consideration of the attendant circumstances, the Executive Committee of the first respondent concluded that there was no evidence to show that the petitioner was aware of irregularities or that there was sufficient material to suggest criminal conspiracy with the broker and, hence, by a resolution dated October 27, 1994 ("First Resolution" for short) the Executive Committee declined to accord sanction for prosecution of the petitioner. As per the practice of the Bank, the resolution was then sent to Central Vigilance Commission for intimation. The Vigilance Commission did not agree with the resolution of the Executive Committee of the first respondent Bank declining to accord sanction to prosecute the petitioner and the Commission directed the Bank to accord sanction as requested by C.B.I. A memorandum to that effect was placed before the Executive Committee of the first respondent Bank and the first respondent vide its resolution dated June 26, 1995 ("Second Resolution" for short), without considering earlier resolution, without affording opportunity of hearing to the petitioner and without applying mind, accorded sanction at the dictation and direction of Central Vigilance Commission. It is this second resolution which is challenged by the petitioner in this petition.

(3.) It may be necessary to state that originally the petition was filed only against the State Bank of Saurashtra as sole respondent. It was instituted on July 25, 1995. On August 31, 1995, effective hearing appears to have taken place for the first time and the following order was passed :