{"id":176516,"date":"1997-12-11T00:00:00","date_gmt":"1997-12-10T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/the-state-bank-of-india-vs-shri-c-b-dhall-on-11-december-1997"},"modified":"2018-02-09T20:38:56","modified_gmt":"2018-02-09T15:08:56","slug":"the-state-bank-of-india-vs-shri-c-b-dhall-on-11-december-1997","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/the-state-bank-of-india-vs-shri-c-b-dhall-on-11-december-1997","title":{"rendered":"The State Bank Of India vs Shri C.B. Dhall on 11 December, 1997"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">The State Bank Of India vs Shri C.B. Dhall on 11 December, 1997<\/div>\n<div class=\"doc_author\">Author: D Wadhwa<\/div>\n<div class=\"doc_bench\">Bench: Sujata V. Manohar, D.P. Wadhwa<\/div>\n<pre>           PETITIONER:\nTHE STATE BANK OF INDIA\n\n\tVs.\n\nRESPONDENT:\nSHRI C.B. DHALL\n\nDATE OF JUDGMENT:\t11\/12\/1997\n\nBENCH:\nSUJATA V. MANOHAR, D.P. WADHWA\n\n\n\n\nACT:\n\n\n\nHEADNOTE:\n\n\n\nJUDGMENT:\n<\/pre>\n<p>\t\t      J U D G M E N T<br \/>\nD.P. Wadhwa, J.\n<\/p>\n<p>     This appeal  by the State Bank of India (for short, the<br \/>\n&#8216;Bank&#8217; or  &#8216;State Bank&#8217;)  arises out  of the  judgment dated<br \/>\nAugust 22, 1983 of learned single Judge of the High Court of<br \/>\nDelhi. The  reasons for\t the judgment  were given  by  order<br \/>\ndated September 2, 1983. The impugned judgment was delivered<br \/>\non a  writ petition  filed by  the respondent,\tC.B.  Dhall.<br \/>\nDhall had  challenged the  Order of the Central Board of the<br \/>\nState Bank  dated June 4, 1980 by which it was resolved that<br \/>\n&#8220;the sanction  to retire  you be  withheld  and\t the  Bank&#8217;s<br \/>\ncontribution to your provident fund Account amounting to Rs.<br \/>\n24006-49 be  forfeited&#8221; which  decision was  communicated to<br \/>\nDhall by  letter dated\tJuly 16,  1980 of  the Chief General<br \/>\nManager of  the\t Bank.\tThe  High  Court  allowed  the\twrit<br \/>\npetition and  quashed the Resolution of the Central Board as<br \/>\nwell as the Communication by which it was conveyed to Dhall.<br \/>\nThe High  Court further\t ordered that  the  Bank  shall\t pay<br \/>\nwithin six weeks to Dhall the following amounts:\n<\/p>\n<blockquote><p>     &#8220;1. The  entire arrears  of pension<br \/>\n     in\t regard\t  to  the   pension  and<br \/>\n     gratuity fund rules with interest @<br \/>\n     6% per annum.\n<\/p><\/blockquote>\n<blockquote><p>     2. Pension\t will be  paid in future<br \/>\n     in\t accordance   with  the\t  rules.<br \/>\n     Pension will  be  computed\t on  the<br \/>\n     basis of full pay during the period<br \/>\n     of suspension.<\/p><\/blockquote>\n<blockquote><p>     3.\t The   provident  Fund\t (Bank&#8217;s<br \/>\n     contribution   which    has    been<br \/>\n     withheld) with  interest  according<br \/>\n     to the  Rules after  deducting  the<br \/>\n     admitted sum  of Rs.  10,000\/- P.F.<br \/>\n     and  the\tinterest  up-to-date  on<br \/>\n     payment according to the Rules will<br \/>\n     be calculated first. Thereafter the<br \/>\n     admitted  amount  of  Rs.\t10,000\/-<br \/>\n     will  be  deducted\t therefrom.  The<br \/>\n     balance  shall   be  paid\t to  the<br \/>\n     petitioner.\n<\/p><\/blockquote>\n<blockquote><p>     4. The  petitioner\t shall\talso  be<br \/>\n     entitled to  such other  retirement<br \/>\n     benefits as  are admissible  to him<br \/>\n     according\tto  the\t service  rules,<br \/>\n     have already not been given to him.\n<\/p><\/blockquote>\n<blockquote><p>     5. Petitioner will also be entitled<br \/>\n     to\t full  pay  for\t the  period  of<br \/>\n     suspension and  the bank  shall pay<br \/>\n     the sum after deducting such amount<br \/>\n     as has  been paid to him during the<br \/>\n     period  of\t suspension  by\t way  of<br \/>\n     subsistence allowance or otherwise.\n<\/p><\/blockquote>\n<blockquote><p>     6. The petitioner shall be entitled<br \/>\n     to his costs.\n<\/p><\/blockquote>\n<blockquote><p>     Counsel&#8217;s fee for Rs. 50\/-.<\/p><\/blockquote>\n<p>     Dhall was\tappointed as Cashier in the Imperial Bank of<br \/>\nIndia in  July 1939  and was  confirmed to  this post  after<br \/>\ncompletion of  his period  of probation\t of  one  year.\t The<br \/>\nImperial Bank  of India\t was constituted  under the Imperial<br \/>\nBank of India Act, 1920 which was repealed by the State Bank<br \/>\nof India  Act, 1955 by which the State Bank was constituted.<br \/>\nServices of  Dhall were taken over by the State Bank and the<br \/>\nexisting Services  Rules, Pension  Fund Rules  and provident<br \/>\nFund Rules of the Imperial Bank of India were adopted by the<br \/>\nState Bank  in respect\tof these  employees. This  was under<br \/>\nSection 7  of the State Bank of India Act which, in relevant<br \/>\npart, is as under:\n<\/p>\n<blockquote><p>     &#8220;7. Transfer of service of existing<br \/>\n     officers  and   employees\tof   the<br \/>\n     Imperial Bank  to the  State  Bank-<br \/>\n     (1)   &#8220;Every   officer   or   other<br \/>\n     employee  of   the\t Imperial   Bank<br \/>\n     (excepting\t the  managing\tdirector<br \/>\n     the deputy\t managing  director  and<br \/>\n     other directors)  in the employment<br \/>\n     of the  Imperial  bank  immediately<br \/>\n     before the\t appointed day\tshall on<br \/>\n     and from  the appointed day, become<br \/>\n     an officer\t or other  employee,  as<br \/>\n     the case may be, of the state Bank,<br \/>\n     and shall\thold his  tenure, at the<br \/>\n     same remuneration and upon the same<br \/>\n     terms and\tconditions and\twith the<br \/>\n     same rights  and privileges  as  to<br \/>\n     pension, gratuity and other matters<br \/>\n     as he  would have\theld the same on<br \/>\n     the   appointed\tday    if    the<br \/>\n     undertaking of  the  Imperial  Bank<br \/>\n     had not  vested in\t the State Bank,<br \/>\n     and shall\tcontinue to do so unless<br \/>\n     and until\this  employment\t in  the<br \/>\n     State Bank\t is terminated\tor until<br \/>\n     his    remuneration,    terms    or<br \/>\n     conditions are  duly altered by the<br \/>\n     State Bank.\n<\/p><\/blockquote>\n<blockquote><p>     (2)&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..<br \/>\n     &#8230;..\n<\/p><\/blockquote>\n<blockquote><p>     (3)&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..<br \/>\n     &#8230;&#8230;&#8230;&#8230;..\n<\/p><\/blockquote>\n<blockquote><p>     (4)&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..<br \/>\n     &#8230;&#8230;&#8230;&#8230;&#8230;\n<\/p><\/blockquote>\n<blockquote><p>     (5)&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..<br \/>\n     &#8230;&#8230;&#8230;&#8230;&#8230;.\n<\/p><\/blockquote>\n<blockquote><p>     (6)&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;..<br \/>\n     &#8230;&#8230;&#8230;&#8230;&#8230;.&#8221;<\/p><\/blockquote>\n<p>     In July 1956, Dhall was promoted as Head Cashier by the<br \/>\nState Bank of India. The State Bank of India (Sub-Accountant<br \/>\n&amp; Head Cashiers) Service Rules came into force on January 1,<br \/>\n1959. Under these Rules, the age of super annuation for head<br \/>\nCashier was  55 years  but w.e.f.  April 1,  1967, this\t was<br \/>\nincreased to  58 years.\t Dhall was  due to retire on May 28,<br \/>\n1970 after  completing\t30  years  of  pensionable  service.<br \/>\nHowever, the competent authority granted extension to him of<br \/>\nhis service  by seven years up to &amp; including 30th June 1977<br \/>\non which  date Dhall  was to  completed 58 years of his age.<br \/>\nWhile in  he extended period of service, Dhall was suspended<br \/>\non account  of certain\tallegations against him of fraud and<br \/>\ndefalcation of funds while posted at Agra.\n<\/p>\n<p>     On November  24, 1975  Dhall was served with the Charge<br \/>\nSheet. The  charges laid  under this  Charge sheet were many<br \/>\nand some  of these  were (1)  shortage of admitted by Dhall,<br \/>\nthus, admitting\t his negligence\t and responsibility therefor<br \/>\ncollaterally; (2)  shortage in\tcash to\t the tune  of Rs. 1,<br \/>\n000\/- on  September 25, 1972; (3) exchanging mutilated noted<br \/>\nfor he\tdenomination of\t Rs. 5,\t Rs. 20\t and Rs. 100 without<br \/>\napproval of  the joint\tcustodian. The Reserve Bank of India<br \/>\nhad intimated the Bank that mutilated notes to the extent of<br \/>\nRs. 55,000\/-  were irregularly\texchanged and  that this was<br \/>\nborne out by the inspection of the currency at the branch at<br \/>\nAgra held  on August  11, 1976 which pertained to the period<br \/>\nwhen Dhall  was the  head Cashier.  Enquiry proceedings were<br \/>\ninitiated against Dhall. Dhall completed 58 years of his age<br \/>\non June\t 30, 1977.  However, due to the pendency of enquiry,<br \/>\nhe was given two years extension.\n<\/p>\n<p>     Report of the enquiry officer was submitted on June 15,<br \/>\n1979 which  was placed before the disciplinary Authority who<br \/>\nfound Dhall  guilty of\tmost of the charges levelled against<br \/>\nhim. Extended period of Service of Dhall expired on June 17,<br \/>\n1979 on\t his attaining\tthe age of 60 years. On November 22,<br \/>\n1979, he was intimated and given show cause notice as to why<br \/>\nBank&#8217;s contribution  to the  provident fund  should  not  be<br \/>\nforfeited as  he was liable to the Bank to the extent of Rs.<br \/>\n37458\/83 and  further why  sanction to his retirement be not<br \/>\nwithheld under Rule 11 of the Imperial Bank of India Pension<br \/>\nand Guarantee Fund Rules and Regulations. Reply of Dhall was<br \/>\nconsidered and\tthe  Central  Board  of\t the  Bank  directed<br \/>\nforfeiting of  Bank&#8217;s contribution  amounting to Rs.24006\/49<br \/>\nfrom the  provident fund.  Dhall was also told that sanction<br \/>\nto retire  him was  withheld under  Rule 11 of the Rules and<br \/>\nRegulations  of\t the  pension  and  Guarantee  Fund  by\t the<br \/>\ncompetent authority.  The result was that Dhall was deprived<br \/>\nof pension  and Bank&#8217;s\tcontribution to\t his provident fund.<br \/>\nThe show  cause notice\tand the\t decision of  the  Bank\t are<br \/>\nreproduced hereunder as:\n<\/p>\n<blockquote><p>     &#8220;State Bank of India,<br \/>\n     Local Head Office,<br \/>\n     P.O. Box No. 398,<br \/>\n     11, Sansad Marg<br \/>\n     New Delhi.\n<\/p><\/blockquote>\n<blockquote><p>     Disciplinary Action Cell<br \/>\n     No. DAC\/79\/RL\/1336<br \/>\n     Dated 22nd Nov. 1979.<\/p><\/blockquote>\n<pre>\n     Dear Sir,\n     With     reference\t     to\t     the\n<\/pre>\n<blockquote><p>     correspondence  resting  with  your<br \/>\n     letter dated  29th\t June  1976,  in<br \/>\n     reply  to\t the  statement\t of  the<br \/>\n     charges served  on you, in terms of<br \/>\n     out letter\t No.  R.  IV\/8990  dated<br \/>\n     24th November  1975 and  subsequent<br \/>\n     departmental enquiry  held\t against<br \/>\n     you, we  have perused  the findings<br \/>\n     of the  enquiry authority vis-a-vis<br \/>\n     the proceedings  of the enquiry and<br \/>\n     &#8220;held you guilty of charges Nos. 1,<br \/>\n     2, 4,  5,\t6,  7,\t7a,  9,\t 10  and<br \/>\n     partially charge No.3.\n<\/p><\/blockquote>\n<blockquote><p>     2. With  reference to  your  letter<br \/>\n     dated 1st\tAugust, 1979  as charges<br \/>\n     proved against  are grave\tand  you<br \/>\n     attained the age of 60 years on the<br \/>\n     30th June, 1979 and ceased to be in<br \/>\n     the service  of the  Bank from that<br \/>\n     date, you\tare hereby  required  to<br \/>\n     show  cause  &#8211;  why  recommendation<br \/>\n     should not\t be made  to Local Board<br \/>\n     to withhold  the sanction\tof  your<br \/>\n     withhold  the   sanction  of   your<br \/>\n     retirement and  pension in the term<br \/>\n     of Rule  11 of the Imperial Bank of<br \/>\n     India Pension  and\t Guarantee  Fund<br \/>\n     rules. Please also show cause as to<br \/>\n     why the bank&#8217;s contribution towards<br \/>\n     the  provident   Fund  may\t not  be<br \/>\n     forfeited as  you are liable to the<br \/>\n     bank   to\t the   extend\tto   Rs.<br \/>\n     37,458\/83.\n<\/p><\/blockquote>\n<blockquote><p>     3. Your reply in this regard should<br \/>\n     reach the undersigned within 7 days<br \/>\n     of the  receipt of\t this letter  by<br \/>\n     you. Otherwise  it will be presumed<br \/>\n     that you  have nothing to submit in<br \/>\n     this regard  as  we  shall\t proceed<br \/>\n     accordingly.\n<\/p><\/blockquote>\n<blockquote><p>\t       Yours faithfully.&#8221;\n<\/p><\/blockquote>\n<blockquote><p>\t\t    Sd\/-\n<\/p><\/blockquote>\n<blockquote><p>\t       &#8220;State Bank of India,<br \/>\n\t       Local Head Office,<br \/>\n\t       P.O. Box No. 398,<br \/>\n\t       11, Sansad Marg,<br \/>\n\t       New Delhi.\n<\/p><\/blockquote>\n<blockquote><p>     No. DAC<br \/>\n     Disciplinary action Cell<br \/>\n     Agra Branch<br \/>\n\t  Shri C.B. DHALL OFFICER GDE II<br \/>\n\t  H\/Cashier &#8211; Under suspension.<br \/>\n\t  With\tref.   to  your\t written<br \/>\n     statement dated 11.2.80, be advised<br \/>\n     considered\t  by\tthe    Executive<br \/>\n     committee of  the Central\tBoard at<br \/>\n     its meeting  held on  4.6.80 and it<br \/>\n     is resolved  that the  sanction  to<br \/>\n     retire  you  be  withheld\tand  the<br \/>\n     bank&#8217;s contribution  to your P.Fund<br \/>\n     a\/c  amount  to  Rs.  24,006\/49  be<br \/>\n     forfeited.\n<\/p><\/blockquote>\n<blockquote><p>     2. Therefore our tentative decision<br \/>\n     conveyed to  you  vide  letter  No.<br \/>\n     DAC\/79\/R-V\/1336 dated 23rd Nov. &#8217;79<br \/>\n     is confirmed.\n<\/p><\/blockquote>\n<blockquote><p>\t  Sd\/- Chief General Manager&#8221;<\/p><\/blockquote>\n<p>     When the  decision was  communicated to  Dhall,  he  as<br \/>\nnoted  above,\tfiled  the  writ  petition  challenging\t the<br \/>\ndecision of  the Bank.\tThe  High  Court  allowed  the\twrit<br \/>\npetition in  terms mentioned  above. Special  leave petition<br \/>\nfiled  by   the\t Bank  against\tthe  impugned  judgment\t was<br \/>\nadmitted.  On\tOctober\t 28,  1983,  the  Court\t passed\t the<br \/>\nfollowing order:\n<\/p>\n<p>     &#8220;Special\tleave\t granted.    The<br \/>\n     appellant however\tundertakes  that<br \/>\n     even  in\tthe  event   of\t success<br \/>\n     nothing will  be recovered from the<br \/>\n     respondent. The  judgment in appeal<br \/>\n     will not  be treated as a precedent<br \/>\n     for any  other  case.  Four  weeks&#8217;<br \/>\n     time is granted for payment.\n<\/p>\n<p>     Will be  listed for  final\t hearing<br \/>\n     along  with   SLP\tNo.  431\/81  (CA<br \/>\n     9943\/83).&#8221;\n<\/p>\n<p>     It may  be noted  that  SLP  (C)  No.  431\/81  (CA\t No.<br \/>\n2141\/80) entitled  <a href=\"\/doc\/631062\/\">State Bank  of India\t vs. A.N. Gupta<\/a> etc.<br \/>\nhas since  been decided and judgment is reported in 1997 (6)<br \/>\nSCALE 303.\n<\/p>\n<p>     In A.N.  Gupta&#8217;s case,  this court considered the scope<br \/>\nof Rule 11 of the Rules and Regulations of the Imperial Bank<br \/>\nof India  Pension and  Guarantee Fund  and Rule\t 20  of\t the<br \/>\nImperial Bank of India Employees provident Fund Rules. These<br \/>\nRules and  Rule 18  of the  Imperial Bank of India Employees<br \/>\nProvident Fund Rules are as under:\n<\/p>\n<blockquote><p>     (1)  The  Imperial\t Bank  of  India<br \/>\n     Employees\tPension\t  and  Guarantee<br \/>\n     Fund (Rules and Regulations)<br \/>\n     &#8220;The retirement  of all officers of<br \/>\n     the Bank  shall be\t subject to  the<br \/>\n     sanction of the Executive Committee<br \/>\n     of\t  the\t Central   Board.    The<br \/>\n     retirement of  all other  employees<br \/>\n     of the Bank shall be subject to the<br \/>\n     sanction of the Executive Committee<br \/>\n     or the  Local Board  concerned with<br \/>\n     their employment.\tAny  officer  or<br \/>\n     other employee  who shall leave the<br \/>\n     service   without\t  sanction,   as<br \/>\n     required by this rule shall forfeit<br \/>\n     all  claim\t  upon\tthe   fund   for<br \/>\n     pension.&#8221;\n<\/p><\/blockquote>\n<blockquote><p>     (2)  The  Imperial\t Bank  of  India<br \/>\n     Employees Provident Fund Rules<br \/>\n     &#8220;18.  If\tany  member   shall   be<br \/>\n     dismissed from  the service  of the<br \/>\n     Bank for  any fault  or other cause<br \/>\n     justifying dismissal,  he shall not<br \/>\n     be\t entitled   to\treceive,  unless<br \/>\n     permitted to do so by the trustees,<br \/>\n     the sums contributed. Provided that<br \/>\n     when any member is so dismissed any<br \/>\n     amount  due   under   a   liability<br \/>\n     incurred by  the member to the Bank<br \/>\n     (not exceeding in any case the sums<br \/>\n     so\t contributed  by  the  Bank  and<br \/>\n     interest thereon)\tshall be paid by<br \/>\n     the trustees to the Bank out of the<br \/>\n     sum standing  to the  credit of the<br \/>\n     member&#8217;s account.\n<\/p><\/blockquote>\n<blockquote><p>     20.  When\t a  member   resigns  or<br \/>\n     retires from  the\tservice\t of  the<br \/>\n     Bank he shall, if he has served the<br \/>\n     bank for  a period of five years or<br \/>\n     more  (including\tservice\t in  the<br \/>\n     Presidency Banks),\t be entitled  to<br \/>\n     receive the  balance at  his credit<br \/>\n     in the fund. Provided that when any<br \/>\n     member resigning  or retiring  from<br \/>\n     the service  of the Bank is under a<br \/>\n     liability incurred\t by him\t to  the<br \/>\n     Bank,    the     trustees\t  shall,<br \/>\n     irrespective of the duration of his<br \/>\n     service, pay to the Bank out of the<br \/>\n     balance at\t his credit  in the fund<br \/>\n     any amount\t due by\t him to the Bank<br \/>\n     (not exceeding in any case the sums<br \/>\n     contributed  by  the  Bank\t to  his<br \/>\n     account  in   the\tfund   and   any<br \/>\n     interest credited to his account on<br \/>\n     the sums so contributed).&#8221;<\/p><\/blockquote>\n<p>     This Court\t held that Rule 11 had no application in the<br \/>\ncase of the employees governed by the Imperial Bank of India<br \/>\nPension\t and   Guarantee  Fund\tRules  who  had\t retired  on<br \/>\nattaining the age of superannuation. The Court did not agree<br \/>\nwith  the   submission\tof  the\t Bank  that  sanctioning  of<br \/>\nretirement must\t be understood\tas  sanctioning\t of  service<br \/>\nwhich in  term must be understood as approval of service. It<br \/>\nwas observed  that proceedings\tin the\tgarb of disciplinary<br \/>\nproceedings could  not be  permitted after  an employee\t had<br \/>\nceased to  be in  the service  of the  Bank as Service Rules<br \/>\nthen in\t force applicable  to such employees did not provide<br \/>\nfor continuation  of disciplinary proceedings after the date<br \/>\nof superannuation and that sanction of the Bank was required<br \/>\nonly if\t the retirement\t of an\temployee was  by  any  other<br \/>\nmethod except  superannuation. As  regards Rule\t 20  of\t the<br \/>\nImperial bank  of India Employees Provident Fund Rules, this<br \/>\nCourt took  this view that this Rule would become applicable<br \/>\nonly if\t an employee  retiring from  the service of the Bank<br \/>\nwas under  a liability\tincurred by  him to  the Bank and in<br \/>\nthat case,  trustees administering  the provident Fund could<br \/>\npay to\tthe bank  from balance to the credit of the employee<br \/>\nin the\tFund any  amount due  by him  to the bank. The Court<br \/>\nobserved that  there was  nothing on  record to\t show if any<br \/>\nliability was  incurred by  any of the respondents and if so<br \/>\nwhat were the amounts and then said as under:\n<\/p>\n<blockquote><p>     &#8221; In  this view of the matter we do<br \/>\n     not think it is necessary for us to<br \/>\n     go into  the question as to whether<br \/>\n     the  term\t &#8220;liability  incurred  &#8221;<br \/>\n     means only\t such  liability  as  is<br \/>\n     either not\t disputed or established<br \/>\n     by due process. Can it be said that<br \/>\n     this term\twould also  include  any<br \/>\n     liability that  may be  alleged  by<br \/>\n     the bank?\tIn  any\t case  the  bank<br \/>\n     should   at   least   prima   facie<br \/>\n     establish that  any  liability  has<br \/>\n     been incurred  by the  employee for<br \/>\n     which  it\tcan  lay  claim\t to  the<br \/>\n     provident Fund  of the employee. We<br \/>\n     cannot accept  the\t proposition  on<br \/>\n     behalf  of\t  the  Bank   that   the<br \/>\n     trustees  should\tbe  allowed   to<br \/>\n     withhold  the  provident  Fund  due<br \/>\n     till they\thave had  an opportunity<br \/>\n     to have  established and determined<br \/>\n     the amount,  if any,  due from  the<br \/>\n     respondents to  the Bank. We are of<br \/>\n     the view  that the\t respondents are<br \/>\n     entitled to  the Provident Fund due<br \/>\n     to\t them  in  accordance  with  the<br \/>\n     provident Fund  Rules as  it cannot<br \/>\n     be\t said  that  they  incurred  any<br \/>\n     liability.&#8221;<\/p><\/blockquote>\n<p>     This Court\t did not  approve the  view expressed by the<br \/>\nAndhra Pradesh\thigh Court  in T.  Narsiah vs. State Bank of<br \/>\nIndia &amp; Ors. [1978 (2) LLJ 173]\t   wherein  the\t High  Court<br \/>\nwas of\tthe view  that enquiry could also be made against an<br \/>\nemployee after\this  retirement\t on  attaining\tthe  age  of<br \/>\nsuperannuation. This  Court said  that\tby  giving  such  an<br \/>\ninterpretation to Rule 11, the High Court had, in fact, lent<br \/>\nvalidity to disciplinary proceeding against an employee even<br \/>\nafter his  superannuation for  which  no  provision  existed<br \/>\neither in  the relevant\t  Pension  Rules or  in the relevant<br \/>\nService Rules  and when\t the High  Court had itself observed<br \/>\nthat an\t enquiry even if initiated during the service period<br \/>\nof the\temployee could not be continued after his retirement<br \/>\non superannuation.  In coming to the conclusion that Rule 11<br \/>\nwould not  be applicable  when an  employee superannuates on<br \/>\nhis attaining  the age\tof retirement, this Court considered<br \/>\nvarious relevant  pension Rules\t and Service  Rules  of\t the<br \/>\nImperial Bank.\n<\/p>\n<p>     Later on  it would\t appear Rule 228 was inserted in the<br \/>\nImperial Bank  of India\t Pension and  Guarantee\t fund  Rules<br \/>\nwhich postulates  continuance  of  disciplinary\t proceedings<br \/>\neven after  an employee ceases to be in Bank&#8217;s service. This<br \/>\nRule 22B  (to be  read as  Rule 22A  as per  the  additional<br \/>\naffidavit filed\t by the\t bank) came  into force\t with effect<br \/>\nfrom June  25, 1987 and would, therefore, be not relevant in<br \/>\nthe present case.\n<\/p>\n<p>     The question  then arises what are the Rules of service<br \/>\napplicable in  the case of Dhall. Mr. Dogra, learned counsel<br \/>\nfor the\t Bank, submitted  that Rules  20A and 20B which were<br \/>\ninserted in  the State\tBank of\t India\t(Supervising  Staff)<br \/>\nService Rules,\t1975 (for  short &#8220;Service  Rules&#8221;) would  be<br \/>\nanswer to  that. Rules\t20A and\t 20B  were  introduced\twith<br \/>\neffect from April 1,1977 and are as under:\n<\/p>\n<blockquote><p>     &#8220;20A. Notwithstanding  anything  to<br \/>\n     the contrary  in  these  rules,  no<br \/>\n     employee who  has ceased  to be  in<br \/>\n     the Bank&#8217;s service by the operation<br \/>\n     of ,  or by  virtue of,  any  rule,<br \/>\n     shall be  deemed  to  have\t retired<br \/>\n     form the  Bank&#8217;s\tservice for  the<br \/>\n     purpose for  the Imperial\tBank  of<br \/>\n     India   Employees&#8217;\t   Pension   and<br \/>\n     Guarantee Fund  Rules or  the State<br \/>\n     Bank of  India  Employees&#8217;\t Pension<br \/>\n     Fund Rules unless such cessation of<br \/>\n     service  has   been  sanctioned  as<br \/>\n     retirement\t for   the  purpose   of<br \/>\n     either of\tthe  said  pension  fund<br \/>\n     rules as may be applicable to him.\n<\/p><\/blockquote>\n<blockquote><p>     20B.    In\t    Case    disciplinary<br \/>\n     proceedings under\tthese rules have<br \/>\n     been initiated  against an employee<br \/>\n     before  he\t ceases\t to  be\t in  the<br \/>\n     Bank&#8217;s service by the operation of,<br \/>\n     or\t by  virtue  of,  any  of  these<br \/>\n     rules, the disciplinary proceedings<br \/>\n     may,  at\tthe  discretion\t of  the<br \/>\n     Managing Director, be continued and<br \/>\n     concluded by the authority by which<br \/>\n     the proceedings  were initiated  in<br \/>\n     the  manner  provided  for\t the  in<br \/>\n     these  rules  as  if  the\temployee<br \/>\n     continues\tto  be\tin  service,  so<br \/>\n     however, that he shall be deemed to<br \/>\n     be in  service only for the purpose<br \/>\n     of the  continuance and  conclusion<br \/>\n     of such proceedings.&#8221;<\/p><\/blockquote>\n<p>     We asked  Mr. Dogra  if the services of Dhall, the Head<br \/>\nCashier, were  governed by  the State  Bank of\tIndia  (Sub-<br \/>\nAccountants and\t Head Cashiers)\t Service  Rules\t as  Rule  2<br \/>\ntherein provided  that the  Rules shall\t apply to  all\tSub-<br \/>\nAccountants and\t head Cashiers who are in the service of the<br \/>\nBank as\t such on  January 1, 1959 and to all Sub-Accountants<br \/>\nand Head  Cashiers  appointed  thereafter.  Mr.\t Dogra\twith<br \/>\nreference to  the additional  affidavit filed  by  the\tBank<br \/>\nsubmitted that State Bank of India (sub-Accountants and head<br \/>\nCashiers) Service  Rules, 1959\twere no\t longer in  force as<br \/>\nthey were  repealed in\tterms of Rule 2(1) of the State Bank<br \/>\nof India  Supervising Staff  (Service Rules),  of the  State<br \/>\nBank of\t India Supervising Staff (Service Rules), 1975. Said<br \/>\nRule 2(1)  states that\tthe Service  Rules which  came\tinto<br \/>\nforce with  effect from\t July  1,1975  shall  apply  to\t all<br \/>\nofficers\/staff officers\t and senior  staff officers  in\t the<br \/>\nBank other  than persons who were in the service of the Bank<br \/>\non June\t 30,1955 either as officers or as assistants. It was<br \/>\nsubmitted by  Mr. Dogra that Dhall was a Cashier on June 30,<br \/>\n1955 and was not an officer. he was also not an Assistant to<br \/>\nbe  governed   by  the\t Rules\tgoverning  the\tservices  of<br \/>\nAssistants in  the Bank.  Dhall was promoted as head Cashier<br \/>\nin July\t 1956 under  Rule 3(p)\tof the\tService Rules.\thead<br \/>\nCashier is  a person  appointed on  the terms and conditions<br \/>\napplicable to officers Grade ii and as per the definition of<br \/>\nofficer under  Rule 3(j), officer means an officer Grade II.<br \/>\nDhall would,  therefore, be  an officer\t under\tthe  Service<br \/>\nRules,\tState\tbank  of  India\t (Sub-Accountants  and\tHead<br \/>\nCashiers) Service Rules, 1959 would, therefore, be no longer<br \/>\nin force  as these  would deem to have been repealed by Rule<br \/>\n2(1) of\t the Service  Rules which  states that these Service<br \/>\nRules shall apply to all officers, staff officers and Senior<br \/>\nStaff Officers\tin the\tbank other  than persons who were in<br \/>\nthe service  of the  Bank on  the 30th\tJune, 1955 either as<br \/>\nofficers or  as Assistants.  Consequently,  Dhall  would  be<br \/>\ngoverned by  Rules 20A\tand 20B\t of the\t Service Rules which<br \/>\ncame into effect from April 1,1977.\n<\/p>\n<p>     There is  no dispute  that the employees who are in the<br \/>\nservice of  the Bank as on 30th June, 1955 would continue to<br \/>\nbe governed  by the Imperial Bank of India Rules relating to<br \/>\npension and  provident Fund and those joining the Bank after<br \/>\nthis data  by the  Rules of  the State\tbank of India framed<br \/>\nunder Section  50 of  the State\t bank of  India Act. In this<br \/>\nconnection we may also refer to Rule 21 of the Service Rules<br \/>\nof 1975 which is as under:\n<\/p>\n<blockquote><p>     &#8221; 21.  Unless Otherwise directed by<br \/>\n     the  Appointing   Authority,  every<br \/>\n     employee\tshall\t as   from   the<br \/>\n     commencement of  his service  as an<br \/>\n     officer become a member of-\n<\/p><\/blockquote>\n<blockquote><p>     (a)  the\tState  bank   of   India<br \/>\n     Employees Provident  Fund, if he is<br \/>\n     not already  a member  of that Fund<br \/>\n     or\t the   Imperial\t bank  of  India<br \/>\n     Employee&#8217;s Provident Fund:\n<\/p><\/blockquote>\n<blockquote><p>     (b)  the\tState  Bank   Of   India<br \/>\n     Employees&#8217; pension\t Fund, if  he is<br \/>\n     not already  a member  of that Fund<br \/>\n     or\t the   imperial\t bank  of  India<br \/>\n     Employees&#8217;\t Pension  and  Guarantee<br \/>\n     Fund  or\tthe   bank   of\t  Bombay<br \/>\n     Officers&#8217;\tpensions  and  Guarantee<br \/>\n     Fund or  the bank of Madras pension<br \/>\n     and Gratuity Fund:\n<\/p><\/blockquote>\n<blockquote><p>     and shall\tsubscribed and\tagree to<br \/>\n     be bound  by  the\trules  of  those<br \/>\n     Funds.\n<\/p><\/blockquote>\n<blockquote><p>     Provided that  if his  age at   the<br \/>\n     time of commencement of his service<br \/>\n     as Officer\t is below  21  years  he<br \/>\n     shall become  a member of the State<br \/>\n     bank of  India  Employees&#8217;\t Pension<br \/>\n     Fund on  attaining the  age  of  21<br \/>\n     years  and\t on  becoming  a  member<br \/>\n     shall subscribe  and  agree  to  be<br \/>\n     bound by  the rules  of that Fund.&#8221;<\/p><\/blockquote>\n<p>     Rules 20-A\t and 20-B  of the  Service Rules  have\tbeen<br \/>\nframed under Section 43 of the State Bank of India Act. This<br \/>\nsection is as under:\n<\/p>\n<blockquote><p>     &#8220;43.   State   bank   may\t appoint<br \/>\n     officers any  other employees-  (1)<br \/>\n     The State\tbank  may  appoint  such<br \/>\n     number of\tofficers,  advisers  and<br \/>\n     employees as it considers necessary<br \/>\n     or\t desirable   for  the  efficient<br \/>\n     performance of  its functions,  and<br \/>\n     determine the  terms and conditions<br \/>\n     of their appointment and service.<br \/>\n     (2)  The\tofficers,  advisers  and<br \/>\n     employees of  the State  Bank shall<br \/>\n     exercise such  powers  and\t perform<br \/>\n     such duties lies may, by general or<br \/>\n     special  order   be  entrusted   or<br \/>\n     delegated to  them by  the\t Central<br \/>\n     Board.&#8221;<\/p><\/blockquote>\n<p>     Section 43\t empowered the\tState bank  to determine the<br \/>\nterms and  conditions of  the appointment and service of its<br \/>\nofficers  and\temployees.  These   officers  and  employees<br \/>\nexercise such  powers and  perform such\t duties\t as  may  be<br \/>\nentrusted or  delegated to  them by the Central board of the<br \/>\nState Bank.  Section 50\t of the\t State\tBank  of  India\t Act<br \/>\nempowers the  Central Board  to make regulations but Section<br \/>\n43 is  independent of Section 50, we hold that Service Rules<br \/>\nhad been  framed by  the  State\t bank  in  exercise  of\t its<br \/>\nstatutory powers under Section 43 of the State Bank of India<br \/>\nRules.\n<\/p>\n<p>     Rules 20-A and 20-B have now made a material difference<br \/>\nto the\tapplicability of  Rule\t11  of\tthe  pension  Rules.<br \/>\nHowever, the  case of  A.N. Gupta (Supra) is distinguishable<br \/>\nas these  Rules, 20-A  and 20-B,  came into  existence\tonly<br \/>\nw.e.f. March  31, 1977. Under Rule 20-A retirement under the<br \/>\nPension Fund Rules has now to be sanctioned by the competent<br \/>\nauthority. Under this Rule, retirement would mean retirement<br \/>\non superannuation or any other type of retirement.\n<\/p>\n<p>     Under Rule\t 20-B disciplinary  proceedings if initiated<br \/>\nagainst an  employee before he retires from service could be<br \/>\ncontinued and  concluded even  after his  retirement and for<br \/>\nthe purpose  of conclusion  of the disciplinary proceedings,<br \/>\nthe employees is deemed to have continued in service but for<br \/>\nno other  purpose. After  the disciplinary  proceedings, the<br \/>\nemployee is  deemed to have continued  in service but for no<br \/>\nother  purpose.\t After\tthe  disciplinary  proceedings\twere<br \/>\nconcluded, the\tState Bank  directed that  (1)\tsanction  of<br \/>\nDhall to  retire be  withheld and (2) Bank&#8217;s contribution to<br \/>\nhis provident  fund accounts  be forfeited. Under Rule 10 of<br \/>\nthe Pension Fund Rules, and employee dismissed from the Bank<br \/>\nService for  willful neglect  or  fraud\t shall\tforfeit\t all<br \/>\nclaims upon  the  fund\tfor  pension.  Dhall  has  not\tbeen<br \/>\ndismissed from\tservice through\t he was charged with willful<br \/>\nneglect\t and   fraud.\tThe   question\t that\tarises\t for<br \/>\nconsideration is  what is  the effect  of the  direction the<br \/>\nState bank  that sanction  to retire  of Dhall\tbe withheld.<br \/>\nHere cessation\tof service  of Dhall  on retirement  has not<br \/>\nbeen sanctioned\t accordingly as per the last portion of Rule<br \/>\n11 of  the pension Fund he forfeits all claims upon the Fund<br \/>\nfor pension.\n<\/p>\n<p>     But then  applicability  of  his  Rule  11\t has  to  be<br \/>\ncontrasted with\t Rule 10. It is only if an employee has been<br \/>\ndismissed from\tservice that he forfeits all claims upon the<br \/>\nfund for  pension and  so would\t appear to  be the effect of<br \/>\nRule 11.  Under Rule 7, an employee has right of property in<br \/>\nthe pension  fund to  the extent  of his  contribution\tmade<br \/>\nthereof with  interest thereon.\t It would, therefore, appear<br \/>\nto us  that when  the Rules talk of forfeiture of all claims<br \/>\nupon the  fund for  pension that  would only mean the Bank&#8217;s<br \/>\ncontribution and  the interest accruing thereon. These Rules<br \/>\ncannot\tbe   extended  to   forfeit  event   eh\t  employee&#8217;s<br \/>\ncontribution to\t the pension  fund and the interest accruing<br \/>\nthereon. However,  after the introduction of Rule 5-A in the<br \/>\npension Fund  Rules w.e.f. April 1, 1968, there is not to be<br \/>\nany contribution by employee to the pension fund.\n<\/p>\n<p>     Coming to\tthe provident  Fund Rules,  Rule 18  applies<br \/>\nwhen an\t employee is dismissed from service which is not the<br \/>\ncase here.  It is  under Rule  20  that\t an  amount  of\t Rs.<br \/>\n24,006,49  has\t been  forfeited   which   is\tthe   Bank&#8217;s<br \/>\ncontribution to\t the provident\tfund account of Dhall. This,<br \/>\nthe State  Bank is  entitled to\t forfeit under\tRule 20. The<br \/>\namount has  been arrived at after due enquiry and represents<br \/>\nthe liability  incurred by Dhall to the Bank. Accordingly we<br \/>\nhold  that  Dhall  was\trightly\t proceeded  against  in\t the<br \/>\ndisciplinary proceedings  and the  State bank was within its<br \/>\nauthority to  impose the  penalty as  conveyed to  Dhall  by<br \/>\nletter dated  July 16,\t1980 of the Chief General Manager of<br \/>\nthe State Bank.\n<\/p>\n<p>     We, therefore, uphold the impugned judgment of the High<br \/>\nCourt to  the extent  that Dhall  would be  entitled to\t his<br \/>\ncontribution, if  any, to  the pension\tFound along with the<br \/>\ninterest accrued thereon. The impugned judgment in all other<br \/>\nrespects is  set aside.\t However, in  view  of\tthe  interim<br \/>\norders made  on October\t 28, 1983,  no\tfurther\t orders\t are<br \/>\nrequired in this appeal.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India The State Bank Of India vs Shri C.B. Dhall on 11 December, 1997 Author: D Wadhwa Bench: Sujata V. Manohar, D.P. Wadhwa PETITIONER: THE STATE BANK OF INDIA Vs. RESPONDENT: SHRI C.B. DHALL DATE OF JUDGMENT: 11\/12\/1997 BENCH: SUJATA V. MANOHAR, D.P. WADHWA ACT: HEADNOTE: JUDGMENT: J U D G M [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-176516","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The State Bank Of India vs Shri C.B. 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