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Landmark Ruling: Supreme Court Clarifies Scope of Judicial Review in Employee Disciplinary Matters

27Oct

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Supreme Court

Landmark Ruling: Supreme Court Clarifies Scope of Judicial Review in Employee Disciplinary Matters

This Supreme Court judgment reiterates the limited scope of judicial review in disciplinary proceedings. Courts cannot act as appellate authorities to re-appreciate evidence. The standard of proof is preponderance of probability, not strict evidence rules. Interference is only permissible if the finding is perverse, based on no evidence, or violates natural justice. The Tribunal exceeded its jurisdiction under Section 11-A of the Industrial Disputes Act by doing so. Facts Of The Case: The respondent, Ganganarasimhaiah, was a Sub-Staff employee at Canara Bank's V.G. Doddi branch. An investigation revealed serious irregularities, including unauthorized loans and tampering with bank records. Specifically, it was alleged that he facilitated loans for his wife and father without the man...

Supreme Court Curbs “Prove Prejudice” Rule: A Landmark Win for Natural Justice

The Supreme Court ruled that violating mandatory procedural safeguards in disciplinary inquiries, like failing to question an employee on adverse evidence, inherently constitutes prejudice. Relying on undisclosed material, such as a vigilance report, to enhance punishment also violates natural justice. No independent proof of prejudice is required for such fundamental breaches. Facts Of The Case: The appellant, K. Prabhakar Hegde, was a senior officer and Zonal Head of Vijaya Bank (which later merged with Bank of Baroda). In 1999, he was served with notices alleging irregularities in sanctioning temporary overdrafts to various parties. Formal disciplinary proceedings were initiated against him in 2001. An inquiry officer was appointed, who submitted a report holding the charges proved. N...

Supreme Court Protects Bank Officer’s Pension Rights: Mandates Board Consultation for Deductions

The Supreme Court held that under Regulation 33 of the Central Bank of India (Employees’) Pension Regulations, 1995, prior consultation with the Board of Directors is mandatory before reducing the pension of a compulsorily retired employee below the full admissible amount. The Court emphasized that pension is a constitutional right under Article 300A and cannot be curtailed without strict adherence to procedural safeguards. The word "may" in Regulation 33(1) does not grant discretion to reduce pension below two-thirds of the full amount but clarifies eligibility. The judgment clarified that clauses (1) and (2) of Regulation 33 must be read harmoniously, and any reduction in pension requires prior Board consultation, rendering post-facto approval insufficient. The High Court's interpretatio...