Legal Question in Banking Law in India

A clerk of a bank had made a false claim for a benefit, before his promotion as officer. Subsequently he was promoted. After his promotion, the bank has found that the claim made by him was false and the bank wants to now proceed against him for the above act. Should be bank proceed against him as per the officers services regulation, which is applicable to officers or should be bank proceed against him as per the provisions regarding disciplinary action contained in bipartite settlements, which is applicable to clerks.


Asked on 10/13/11, 11:30 am

1 Answer from Attorneys
J. Radhakrishnan independent Practice

The Bank can proceed against the promotee officer as per the service rules applicable to him when the misconduct happened. Rulings are not uniform in this aspect. A Madras High court ruling has held that a clerk who has been promoted as officer has been found after promotion to officer grade as having committed a misconduct while he was a clerk has to be proceeded as per bi partite settlement procedure. As long as rules of natural justice are observed and the enquiry conducted as per either procedure, the courts may not void the result of the same, even if the disciplinary proceedings have been conducted as per officers' service regulations.

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Answered on 10/16/11, 9:26 pm


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