AIBOC CIRCULAR NO. 55 DATED 30.05.11

AIBOC issued its circular No. 55 dated 30.05.11 on issuing charge sheet to an officer after his retirement on superannuation. We are reproducing the same here for our readers.

CIRCULAR NO.55                                  DATE: 30.05.2011

To, All Affiliates /Members

ISSUING CHARGE SHEET TO AN OFFICER AFTER HIS RETIREMENT ON SUPERANNUATION: HELD ILLEGAL BY THE HON’BLE HIGH COURT OF KARNATAKA

The Hon’ble High Court of Karnataka, in a land mark judgment has ordered that issuing charge sheet to an officer after he attains the age of superannuation is illegal.

We have addressed a letter to IBA to take note of the contents of the judgments and instruct the Banks to desist from the practice of issuing charge sheet to an officer after he attains the age of superannuation.

We have annexed a copy of the letter which is self –explicit.

Our affiliates may take note of this development and advise their respective  managements to avoid issuing charge sheets to the officers after they attain the age of superannuation.

Further developments will be informed.

With greetings

Sd/-

(G.D. NADAF)

GENERAL SECRETARY

No.1457/228 /11                                                Date: 30.05.2011

The Chairman

Indian Banks’ Association

World Trade Centre

Centre -1, 6th Floor, Cuffe Parade

Mumbai- 400 005

Dear Sir,

ISSUING CHARGE–SHEET TO AN OFFICER AFTER HIS RETIREMENT FROM SERVICE OF THE BANK ON SUPERANNUATION: HELD ILLEGAL

We draw your kind attention to Regulation 20(3) (b) of Bank Officer Employees’ (Discipline and Appeal) Regulations 1976 /1982 wherein Banks have been initiating disciplinary proceedings against the Officer Employees after their retirement from the service of the Bank on superannuation. This, needless to say has been causing acute mental agony and torture to the concerned officers.

In a landmark judgment in the case of:

Sri. Ratnakar Nath Divan vs Vijaya Bank, W.P. No.23374 (OS-RES) of 2010 filed before the High Court of Karnataka,

and

Sri. K.M. Taranath Rai vs Vijaya Bank, W.P. No.26758/2010 (S-RES),filed before the High Court of Karnataka.

the Hon’ble Court has ordered that,

“-the Bank’s action in issuing charge –sheet to the officer after he had attained the age of superannuation is illegal.”

“-the Bank cannot proceed with the Disciplinary Proceedings even though the Bank had issued a show-cause notice before the officer attained the age of Superannuation,”

The Hon’ble Supreme Court has held in the case of UCO Bank and another vs Rajender Lal Capoor [ (2007) 6: Supreme Court cases 694] that the provision of Regulation 20(3) of Bank Officer Employees’ (Discipline & Appeal Regulations) 1976/1982, held that, disciplinary action should be invoked only in cases where the proceedings are sought to be taken pursuant to resignation or voluntary retirement of an Officer Employee and not in respect of an Officer Employee who attained the age of superannuation.

In view of he foregoing judgments, issuing charge sheet against an officer after attaining the age of superannuation, notwithstanding the fact that a show cause notice was already issued to the  officer Employee prior to his attaining the age of superannuation, is unjustified.

We have enclosed copies of the judgments for your perusal and  request you to advise all the banks of follow the spirit of the judgments and desist from issuing charge –sheets to officers after they attain the age of superannuation.

We wish to remind you that we have been pursuing the matter with you for long and now that the Hon’ble High Court has delivered the judgment which is in conformity with the line of our argument. The Court order should be implemented in letter and sprit.

Please keep us posted of the further developments.

Thanking you,

Yours faithfully

Sd/-

(G.D. NADAF)

GENERAL SECRETARY