Former General Manager (GM) of Punjab National Bank – Bhupinder Singh Passi, was issued chargesheet on day of his retirement and his retirement dues were held.
In or about September 2011, he was posted as Managing Director of Punjab National Bank (International) Limited at London, United Kingdom.
His deputation came to an end in and around May 2015. Then he returned back to India. It was observed in December 2016 that there were unusual large number of Non-performing assets accumulated at Punjab National Bank (International) Limited. It was noticed that they were opened during the tenure of the Petitioner.
As per Staff Accountability Policy issued vide circular dated 29th October 2013, before initiating disciplinary action, certain steps are required to be followed. It was decided to examine staff accountability in those NPA accounts. The Committee of five members was constituted. Report was submitted identifying the irregularities/ lapses in the accounts and officials responsible for the same.
31 such cases were identified. On the basis of report, explanation of the Petitioner was called as per several letters, including 26th December 2016, 7th January 2017, 3rd February 2017.
Bhupinder Singh Passi replied them vide his letters dated 8th February 2017 and 20th February 2017 (ground is taken in the affidavit-in-reply that the Petitioner deliberately delayed in replying those letters because his date of superannuation is on the forthcoming).
The note was submitted to the Inspection and Audit division. Staff accountability of the Petitioner was examined on 22nd February 2017 in isolation, because the Petitioner was about to retire on 28th February 2017.
Involvement of the Petitioner was found in 17 out of 31 cases. The note was placed before disciplinary authority and decision was taken to initiate the major penalty proceedings after seeking 1st stage advice from the vigilance department.
First stage reference was sent to the Vigilance department on 27th February 2017. However, vigilance advice was not received till 28 th February 2017. As petitioner was about to retire on that date, notice was issued to him along with annexures-I giving the necessary details to show cause why disciplinary action should not be initiated against him in terms of Punjab National Bank Officers Employees (Discipline and Appeal) Regulations, 1977.
Retirement order was passed on 28 th February 2017 and it was made clear that disciplinary proceeding will continue as if he was in service until the proceedings are concluded.
He was granted provisional pension as he has opted to be governed by Punjab National Bank (Employees) Pension Regulation 1995. He was disqualified from getting other retirement benefits.
On 1st March 2017, he was served with charge-sheet as per Regulation 6 of Punjab National Bank Officer Employees’ (Discipline and Appeal) Regulations, 1977.
He was also served with statement of Article of Charge and statement of imputation of lapses.
The All India PNB Officers’ Association vide letter dated 28th September 2017 addressed to the Managing director and protested the action of the Bank to invoke the provisions of Regulation 20 (3) (iii) of PNB (Officers’) Service Regulation 1979.
The Petitioner approached court to quash the order of the Bank.
Punjab National Bank replied in Court that:
- Show cause notice cannot be challenged because it does not cause any prejudice to the Petitioner.
- Though the Petitioner claims to have unblemished record, there are two penalties of reduction by one stage for three years and giving a note of caution to the Petitioner.
- As disputed question of facts are involved, it cannot be enquired in a Writ Petition. Though the Show cause notice and charge-sheet were issued on 28th February 2017 and 1st March 2017 respectively, this petition was filed belatedly in November 2017.
- The allegation in the disciplinary enquiry involves misappropriation of money of the public sector bank and hence enquiry is required to be conducted in the interest of the public at large.
The Court said that there is no dispute about the documents which are referred by both the sides. The dispute is whether the provisions of Regulation 20 (3)(iii) of Punjab National Bank (Officers) Service Regulations, 1979 can be invoked after the officer is superannuated.
The aforementioned Regulation, however, could be invoked only when the disciplinary proceedings had clearly been initiated prior to the respondent’s ceasing to be in service.
Thus, the court quashed the chargesheet and ordered Bank to release retirement dues.
Download Court Order Copy (This PDF is available only for Premium Users. Click here to join Premium)
