JAGDISH LAL GAMBHIR Vs. PUNJAB NATIONAL BANK

JUDGEMENT

(1.) The controversies being the subject matter of the above two appeals flow from one Apex Court decision in the case of K. I. Shephard & Ors. vs. Union of India, reported in All India Reporter, 1987, Supreme Court Page 686.

(2.) Three private banks were amalgamated with Punjab National Bank (hereinafter referred to as "PNB"), Canara Bank and State Bank of India respectively. One of them Hindustan Commercial Bank was merged with PNB. At the time of merger those three nationalized banks refused to give appointment to some of the officers of those three private banks. 29 officials of Hindustan Commercial Bank were amongst them. According to the nationalized banks as well as Reserve Bank of India they could not be absorbed and given employment in the nationalised bank at the time of amalgamation in view of specific allegations against them. One K. I. Shephard and others being the officers who were not taken in by the nationalised banks approached the Apex Court by filing writ petition under Article 32 of the Constitution of India which was disposed of by the Apex Court, inter alia, observing that the banks were not entitled to refuse employment to the erstwhile employees of the private banks. The Apex Court directed their reinstatement, however gave liberty to the banks to initiate proceedings if they so like. There were connected appeals from the High Court judgments, those were also disposed of by the said common judgment.

(3.) The writ petitioners in both the above two appeals were two officers of Hindustan Commercial Bank. Against both of them there were existing allegations of misconduct. However, the erstwhile bank did not initiate any disciplinary proceeding as against them. After the decision of the Apex Court they were formally given employment and simultaneously put under suspension and disciplinary proceedings were also initiated as against both of them which resulted in-order of dismissal/removal in both the cases.