SUDHIR KUMAR SRIVASTAVE Vs. ALLAHABAD BANK

JUDGEMENT

(1.) THIS application has been filed for quashing the order dated 12.2.2000 (Annexure -9) whereby the petitioner has been visited with the penalty of reduction in rank to the lowest stage in the immediately lower scale. Further prayer made by the petitioner is to quash the order dated 11.10.2001 (Annexure -12) whereby the appeal preferred against the order of the Disciplinary Authority has been dismissed. Petitioner also prays for quashing of the enquiry report dated 29.7.1999.

(2.) FACTS giving rise to the present writ application are that at the relevant time petitioner was posted as Chief Manager in Scale -IV at Bhadohi Branch of the respondent Allahabad Bank. A show cause notice dated 28.9.1993 (Annexure -1) was issued alleging several irregularities committed by the petitioner in regard to the disbursement of loan beyond the sanctioned limit. Petitioner filed his show cause dated 7.10.1993 (Annexure -2) stating therein that disbursement of loan was done on the basis of the appraisal notes prepared by different officials of the Bank and according to him it was bonafidely done in order to protect the pecuniary interest of the Bank and to meet the genuine needs of the customers of the Bank. However, the explanation submitted by the Petitioner did not satisfy the respondent Bank and a departmental enquiry was initiated against him. He was served with the memo of charges dated 16.9.1996 containing in the following five charges: "Article"Shri S.K.Srivastava, while posted and functioning as Chief Manager at Banks Bhadohi Branch, is alleged to have committed various acts of omission and commission in allowing drawings to various borrowers much in excess of their limits sanctioned by H.O. /Z.O. and also in cases where limits were sanctioned under CMDA without reporting the transactions to higher authorities on daily list. Article:2 Shri S.K.Srivastava sanctioned a Car Loan to Shri B.P.Verma under CMDA although it did not fall under his discretionaly authority. Article:3 The outstanding in m/s Vikash Agencies were adjusted/liquidated by Shri S.K.Srivastava by purchasing foreign bills of M/s Vikas Exports whereby allowing diversions of funds. Article:4 Shri S.K.Srivastava allowed transactions in current account of M/s S.K.International despite a warning note made on the ledger head by the previous Manager to the effect not to allow further drawings. Article:5 Shri S.K.Srivastava allowed drawings much in excess of ZO/ HO sanction to M/s Shanti Sons. Even Ad -hoc limits were sanctioned to the firm without ZO/HO prior approval and committed various irregularities in conduct of the above said borrower account. The aforesaid acts of omission/ commission committed by the said shri Srivastava are quite unbecoming of an officer of the Bank and are in violation of Regulation 3 (1) and 3(3) of Allahabad Bank Officer Employees (Conduct) Regulation, 1976 amounting to misconduct under Regulation 24 of the aforesaid Regulations.

(3.) DR . S.N.Jha appearing on behalf of the petitioner submits that the allegation levelled against the petitioner does not constitute any misconduct. He points out that the allegation levelled against the petitioner is of committing irregularities and allowing unauthorized over drawings in excess of the limits sanctioned. He refers to the circular no. 3219 dated 4.2.1993 (Annexure -8) and submits that under genuine circumstances additional credit need of exporters for implementing export orders may be made in full even if sanction of such additional credit exceeds maximum permissible Bank finance. Mr. Ajay Kumar Sinha appearing on behalf of respondents submits that the aforesaid circular has nothing to do with the act of the petitioner and it does not authorize the petitioner to allow anauthorized drawings in excess of the limits sanctioned by the Bank. He points out that the circular referred to above is in relation to the maximum permissible limit for Bank finance.