CENTRAL BANK OF INDIA Vs. PRESIDING OFFICER

JUDGEMENT

(1.) The award dated 16.03.2004 passed in I.D.No.2 of 2003 is under challenge in the present writ petition.

(2.) The Writ petitioner is the Central Bank of India. The second respondent was employed as Sub Staff in the writ petitioner's bank. The learned counsel for the writ petitioner submits that the practice in the branch in clearing the cheques/instruments, which are received for collection is that the instrument No. and the drawee bank's name or the drawee's account No. are entered in a register called Clearing Register and the cheques are kept in a bag. Before sending the cheques for clearance, a schedule of cheques sent for clearance is typed and sent to the Non-business Office of the petitioner Bank for clearance. After the instruments are cleared, while returning the cheques to the Branch, the Non-business office will prepare a statement showing the Branch Code No. and the cheques, which have been cleared.

(3.) It is contended that on 08.05.1991, one Prabhuram Trader, which was having a Current Account in the Washermenpet Branch, presented a Demand Draft drawn on Lakshmi Vilas Bank Limited for Rs.9,491.50 for clearing. On 01.04.1991, one Charany Agencies presented a cheque No.949864 drawn on Indian Overseas Bank, Periyar Nagar Branch for Rs.3,104.70 for clearance. After a few days, the representative of Prabhuram Trader reported that no credit was given for the Demand Draft for Rs.9,491.59. Similarly, Charanya Agencies also complained that no credit was given for Rs.3,104.70. When the matter was probed, it was found that the Demand Draft was not at all entered in the Clearing Register. The party was asked to get a duplicate Demand Draft. However, it was found that the Demand Draft was paid on 13.05.1991. Afterwards, when the Washermenpet Branch compared the clearing schedule maintained in the non-business office with the Clearing Register, it was found that the Demand Draft for Rs.9,491.50 was not included in the Clearing Register, but was typed in the clearing schedule. Similarly, it was in the case of Charanya Agencies also. Subsequently, it came to light that on 28.05.1991, a sum of Rs.12,030/- was withdrawn from the HSS Account No.5553 and it was utilized for purchase of a Demand Draft for Rs.12,000/- in favour of one E.Anandan. The 2 nd respondent had encashed the Demand Draft for Rs.12,000/- through Indian Bank, Erukkancheri Branch.