High Court criticized PNB for unfair inquiry against Staff and Ordered to Pay Compensation
The Bombay High Court recently criticized Punjab National Bank (PNB) for conducting a biased and unfair inquiry against a former employee, ordering the bank to pay ₹5 lakh in compensation for the injustice done. The former employee, Vinayak Balchandra Ghanekar, 63, worked at the bank for over 37 years and was set to retire on June 30, 2018.
The issue began when Ghanekar alleged irregularities in a loan sanctioned to him, which led to his dismissal on the day of his retirement after a departmental inquiry. Ghanekar argued that the inquiry was conducted unfairly, as he was given no time to review the documents related to the case. In his petition, he emphasized that the principles of natural justice were violated, as employees must be given a reasonable opportunity to defend themselves during such inquiries.
Despite his appeal to the appellate authority on November 30, 2018, the rejection of his case led him to approach the court for justice. Ghanekar’s counsel cited various Supreme Court rulings, asserting that an employee should be given a proper chance to respond to the allegations, and any violation of this process could make the inquiry unfair.
In the defense, PNB claimed that Ghanekar was given a chance to respond to the inquiry report, but the court found that the bank failed to provide adequate proof to support their claim. The court criticized the rushed and improper nature of the inquiry, particularly noting that the 169-page report was prepared overnight without properly analyzing the documentary evidence.
The division bench, consisting of Justices Ravindra V. Ghuge and Ashwin D. Bhobhe, strongly condemned the bank’s actions. They pointed out that no reasonable employer would conduct an inquiry in such a way. The court ruled in favor of Ghanekar, quashing the decisions of the appellate and reviewing authorities.
Additionally, the court instructed PNB to conduct a new inquiry under the supervision of an independent advocate, not connected to the bank, and to consider resolving the matter amicably if both parties agree. The court also directed the bank to compensate Ghanekar ₹5 lakh within 30 days.
This case highlights the importance of fair procedures and transparency in departmental inquiries and serves as a reminder for employers to follow due process in handling employee matters.
