High Court Upholds Disciplinary Action Against Bank Officer for Deviations in Banking Practices

The High Court at Calcutta, in a significant judgment, upheld the disciplinary action taken against Nachiketa Sengupta, a former Scale-II officer at Bangiya Gramin Vikash Bank. Justice Partha Sarathi Chatterjee, presiding over the case, dismissed the writ petition filed by Sengupta, challenging the charge-sheet and subsequent disciplinary actions, including his dismissal from service.

In his detailed judgment, Justice Chatterjee observed, “The petitioner had admitted that he could not complete some of the ‘housekeeping works which might cause deviation of some Banking practices’ and apologized for the same.” This acknowledgment by the officer was pivotal in affirming the disciplinary measures taken by the bank.

The case (WPA 24355 of 2015), which was heard on August 28th, 2023, and decided on November 20^th, centered around the legality and propriety of a charge-sheet issued against Sengupta in 2013, following allegations of misconduct in his capacity as Branch Manager. The court meticulously examined the procedures followed by the bank and the responses of the petitioner, who was accused of sanctioning and disbursing loans in violation of established norms and policies.

Justice Chatterjee noted, “It is well-known proposition of law that in case of a disciplinary proceeding, the scope of judicial review shall be restricted to the decision-making process.” The court’s decision hinged on the adherence to procedural norms and the lack of prejudice caused to the petitioner due to any alleged procedural lapses.

Significantly, the judgment also addressed the issue of the ‘Competent Authority’ in initiating disciplinary proceedings. The court clarified that the General Manager of the bank, who issued the charge-sheet, had become the ‘Competent Authority’ for Scale-II officers like the petitioner after an amendment to the service regulations. This legal clarity resolved a crucial aspect of the petitioner’s argument.

The dismissal of the writ petition reaffirms the principles of accountability and integrity in the banking sector. It serves as a precedent in matters of disciplinary proceedings and the adherence to internal regulations and policies within financial institutions.

Date of Decision: 20th November 2023

Nachiketa Sengupta -Vs.- Bangiya Gramin Vikash Bank & Ors.