SBI Clerk Terminated from Job, Court also ruled in favor of SBI Authority

The Madras High Court recently stressed that public bank employees must maintain high levels of honesty and integrity, especially when handling customer and public money. The court supported the disciplinary action taken against a bank employee, stating that his misconduct damaged public trust, and the punishment given was appropriate. Click here to read more news related to SBI.

Case Background:

The State Bank of India (SBI) appealed against a previous court order from February 7, 2020, which had set aside the removal of an employee, Palaniappan, and directed the bank to reinstate him with full financial benefits until his retirement.

Palaniappan worked as a clerk and assistant at SBI’s Karaikudi branch. He faced disciplinary action after multiple complaints of fraud. Key accusations included:

• Fraudulently encashing a cheque for Rs. 15,000 meant for a customer, B. Ghouse Miyan, and not handing over the money.
• Encashing another cheque for Rs. 4,000 without the payee’s knowledge.
• Holding onto a Rs. 9,000 cheque for over five months without depositing it in the bank.

Disciplinary Action:

After an internal investigation, the bank found Palaniappan guilty of four out of five charges and dismissed him from service. However, on appeal, the bank’s appellate authority reduced the punishment to discharge from service, considering his 14 years of work.

Legal Challenge:

Palaniappan challenged both decisions in court, and the writ court ruled in his favor, stating that there were procedural issues in the disciplinary process. SBI then filed an appeal, arguing that the writ court had overstepped its authority by interfering with the bank’s decision. The bank pointed out that although the original complainant withdrew his complaint after receiving the money, evidence clearly showed Palaniappan’s fraudulent actions.

Court’s Decision:

A division bench, including Justices Dr. Anita Sumanth and G. Arul Murugan, agreed with the bank’s argument. They clarified that in internal bank inquiries, strict legal rules of evidence don’t always apply, and the documents provided enough proof of Palaniappan’s guilt. Evidence such as the cashier’s payment records and the original cheque showed he had misappropriated funds. Despite having opportunities to defend himself, Palaniappan couldn’t offer a valid explanation.

The court highlighted the importance of integrity in the banking sector, where employees handle public money. Given the seriousness of the charges, the court restored the bank’s original decision to discharge Palaniappan from service. Click here to read more news related to SBI.

Conclusion:

The court reaffirmed that honesty and trust are essential qualities for public bank employees. In this case, the bank’s disciplinary action was justified and necessary to maintain public confidence in the institution.