R MUTHUKRISHNAN Vs. INDIAN OVERSEAS BANK

JUDGEMENT

(1.) THIS writ petition is filed challenging the order of the Deputy General Manager, Indian Overseas Bank, Vigilance Department, being the disciplinary authority dated 31. 03. 1997, as confirmed by the Appellate Authority, viz. , General Manager, the third respondent by order dated 10. 11. 1997 and by the subsequent order of the second respondent, the Executive Director dated 10. 07. 1998.

(2.) THE short facts leading to the filing of this case are that the petitioner has joined in the services of the respondent Bank in March, 1983 on the basis of selection by the Banking Service Regulation Board, Southern Region, Madras. He was initially appointed as a Probationary Agricultural Officer at Pachamalaikottai near Nilakottai, Madurai District. He has completed his probation as Agricultural Officer in March, 1984 and thereafter, the said post was re-designated as Assistant Manager (Agriculture ). From March, 1984 to November, 1987, the petitioner served in the said capacity in Ayakudi Branch and thereafter, transferred to Tiruppullani Branch, Ramnad District in November, 1987.

(3.) THE respondent Bank has filed a counter affidavit. It is the case of the respondent Bank that as an Agricultural Officer attached to a Branch, the petitioner plays a vital role in various stages of granting loan. It is he, who verifies the genuineness of the borrowers, their addresses and their line of activity and his duty includes documentation, conducting pre-post sanction, etc. It is also made clear in the counter that in the absence of recommendation from the Agricultural Officer, the Branch Manager does not grant any loan. The respondent Bank would submit that in the enquiry held against the petitioner it was proved that the petitioner did not conduct proper pre-post sanction inspection in respect of recommending persons for loans, which resulted in loss to the Bank.