JAMMU, Aug 18: A Division Bench comprising Justice Sindhu Sharma and Justice Rajesh Sekhri while hearing allowing an appeal filed by J&K Grameen Bank and others against a Single Judge judgment which had quashed disciplinary punishment imposed upon former bank officer Rachhpal Singh has ruled that a Bank Officer cannot escape disciplinary consequences merely because his actions caused no financial loss or even resulted in profit, holding that acting beyond delegated authority itself constitutes serious misconduct in the banking sector.
The Division Bench restored the punishment reducing Singh to the lowest stage of Officer Scale-I carrying basic pay of Rs 48,170, but simultaneously set aside the direction withholding his superannuation benefits and ordered the Bank to release them immediately.
DB held that retirement benefits can be forfeited or withheld only to the extent of quantified loss or damage caused to the Bank, and such action must follow an opportunity of hearing to the employee.
In Officer’s case, neither the disciplinary authority nor the appellate authority had quantified any loss.
The Bench therefore held that his superannuation benefits could not be kept withheld merely until recovery of the loan accounts, particularly when the Bank had an alternative legal remedy to recover outstanding amounts from borrowers.
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