DEBASHIS KR DUTTA Vs. UNITED BANK OF INDIA

JUDGEMENT

(1.) The petitioner who is a Bank employee has invoked the writ jurisdiction of this court by filing the instant writ petition being apprehensive of placing him under suspension by the respondent Bank. Certain allegations were made against the petitioner by letter dated 9.10.2003 asking him to explain the circumstances leading to the same. The contents of the said letters are reproduced below: "You were attached to bank's Dibrugarh Branch as Clerk during the period from 29.10.85 to 28.9.2002. During is tenure, you were allotted to work in Term Deposit Section as dealing Clerk since 7.9.99 to 20.8.2001 by two Office Order No. 80/99 dated 7.9.99 and office order No. 51/2000 dt. 29.4.2000. Taking advantage of your working in the department, you had committed the following irregularities in manipulation of Bank's record, leading to financial loss cause to the Bank. 1. You were maintaining 14 Nos. of Fixed Deposit A/Cs having an aggregate face value of Rs. 4,60,000/- under monthly interest scheme, with a preferential rate of interest with our Dibrugarh Branch. Investigation has revealed that before the maturity date, when rate of interest has declined, you had fraudulently altered and extended the date of expiry of five fixed deposit A/Cs by extending the duration upto 120 months, which were originally opened for 42 months. Such fraudulent alteration of maturity date in FD a/c opening Form FD Ledger sheet and FD receipts by way of cutting and overwriting remained unauthenticated by any authorized officer of the Bank. Thus, monthly interest on those five fixed deposit A/Cs was perpetually paid at a higher contractual rate, beyond the original date of maturity and the Bank has sustained a finical loss of Rs. 64.726A in these five accounts. Details of the FD a/cs and loss of the Bank has been given in the Annexure-I.

(2.) In seven number of Fixed Deposit A/Cs maintained by you, jointly with Smt. Dolly Datta, original duration of period of 5 years was altered to 10 years by you in the concerned ledger sheets, keeping the FD Receipts and A/C opening forms unchanged. Subsequently, you again restored the periods in the ledger sheets original five years and closed the concerned accounts on 9.8.03 reckoning with original date of maturity. Your malafide intention to defraud the Bank is clearly evident and it was also found that at the time of closing, the excess interest paid on monthly basis has not been recovered and the Bank sustained a financial loss of Rs. 2260/- in aggregate. Details of the FD a/cs and loss of the Bank has been indicated in Annexure-II. your FD a/c No. 382/ 96 dt. 7.10.96 for Rs. 30,000/-and FD a/c No. 158/99 dt. 1.3.99 for Rs. 30,000/- have been kept under lien against Cash Credit a/c No. 230400 of M/s. Dolphin Tea Bag, but monthly interest is being credited to your Savings Account, violating the norms of the Bank. You had fraudulently altered the periodicity of both the a/cs in the concerned FD ledger sheet and changed the date of maturity, extending the duration upto 120 months by cutting and overwriting, which were left unauthenticated by any Officer. Both the FD Receipts, liened with the Bank kept in the security folder of Cash Credit A/ C of M/s. Dolphin Tea Bag remained unaltered, indicating your malafide action in getting unlawful enrichment by way of driving interest beyond maturity date at a contractual higher rate of interest. The details of the FD a/cs and Bank's loss has been indicated in the Annexure-III, please explain under what capacity you had out your above referred FD a/cs under lien and how you are related to M/s. Dolphin Tea Bag. You are also advised to explain whether all the referred 14 Fixed Deposit A/Cs were declared in your Yearly Asset Liability Statement or not. Due to your aforesaid fraudulent manipulation in Bank's record, you have unauthorized enriched yourself and gained extra interest of Rs. 86079/- in aggregate in all the fourteen FD a/cs causing financial loss to the Bank to that extent. For your personal gain, in a fraudulent manner, you had perpetrated the fraud by alteration/manipulation in FD ledger sheet and other documents. You are hereby advised to explain your above noted unlawful activities along with you clarification regarding the source of fund of Rs. 4,60,000/- kept in Fixed Deposit A/Cs, within 15 days from the receipt of this letter, failing which it will be presumed that you have nothing to offer in your defence. In that event, the Bank will proceed against you in terms of rules of the Bank." 2. On receipt of the said letter dated 9.10.2003, the petitioner submitted his explanation by letter dated 23.10.2003. The explanations furnished are as follows: "01. That Sir, information given in annexure-I attached to the above said letter reveals that on 19.09.96 and on 11.10.96,1 have opened 05 numbers of fixed deposit at Dibrugarh Branch for a period of 42 months. However, as far as I remember, immediately thereafter I approached the Bank with the request to extend the period of deposit to 10 years. Accordingly relevant records were modified with the consent of the appropriate authority. It never struck to me to verify whether those were authenticated by Supervisory Officer, as there was no malafide intention on my part. As such I was allowed to receive monthly interest till July 2003 without raising objection or dispute from the end of Branch authorities. There is no truth in assuming that I have made the alterations just before the original maturity date. Records will reveal that during the period in which I was not attached to Term deposits department, as well as, after my transfer form the Branch, I was paid interest at original rate, although the modifications in ledger sheets, as alleged, were not authenticated till then. 02. On 22.07.1998, I have opened 07 numbers of Fixed Deposits accounts jointly with my mother Smt. Dolly Dutta for a period of 05 years particulars which have been listed in annexure-II of the letter under reference. At my production of Deposit Receipt on maturity, I was paid the amount of deposit with up-to-date interest on 09.08.2003. On that date I was not attached to Dibrugarh Branch and hence there was no scope for me to monipulate any records as alleged in your letter. If through error some amount was paid in excess, the Bank could have easily realized the amount from me by debiting my account. I am perturbed to bring it to your kind notice that in ordinary course of business certain alterations are also made in the accounts of customers. If subsequently it is found that some amount have been paid in excess, it is generally realized from customers. If a customer declines to make good the losses, only then the legal measures are adopted to recover the dues. In instant case, the Bank would have been more justified in notifying me about so called excess payment with direction to make good the revenue leakage instead of bringing allegations against me. However, as I have came to know from your letter now that a portion of interest paid on 14 accounts were over payments not permissible as per rule of the Bank. I hereby irrevocably authorize you to recover such excess amount from any of my other fixed deposits maintained with Bank. . 03. That Sir, the Proprietor of M/s. Dolphin Tea Bag, Mr. Ashis Bose is my brother in-law. As additional security to his Cash Credit account I have lienced two of my fixed deposits at his request and on family compulsions. As the deposits receipts were at custody of Bank, those could not be rectified at any point of time. Here also if the Bank feels that any over payment had been made, it may recover that amount from my some other fixed deposits maintained with the Bank. That Sir, the amount of Rs. 4,60,000/- kept in Fixed Deposit were the inheritance received by my mother as her share from sale proceeds of my grant father's property at Shillong. The amounts have been received in installments and were deposited with the Bank accordingly as per instruction of my mother. These are all separate properties not derived out of my salary income and as such were not included in my Asset & Liability statement. Now, In clarifying the facts, I would like to reiterate that all my acts were bonafide actions and there was no element of deceit/fraudulent manipulations on my part, as has been alleged in your letter. I hope you will find my explanation in order and therefore shall drop the allegations so leveled against me in the interest of justice. With kind regards. Debashis Kumar Dutta

(3.) After the aforesaid developments the Bank Authority made certain adjustments in respect of the alleged excess payment made in favour of the petitioner. The petitioner also accepted such adjustment sending due intimation to the Bank Authorities.