Supreme Court Allows Bank's Appeal in Disciplinary Proceedings Over Defence Representative Eligibility. The Court held that service regulations and handbook provisions restricting defence representatives to serving employees must be upheld, and permitting retired employees as representatives is not permissible under the governing rules.

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Case Note & Summary

The dispute arose from a departmental inquiry initiated by Rajasthan Marudhara Gramin Bank against an employee, who was working as Cashier-cum-Clerk and later as Branch Manager, for alleged misconduct involving irregularities in loan disbursements. The Bank issued show-cause notices and a chargesheet under the Rajasthan Marudhara Gramin Bank (Officers and Employees) Service Regulation, 2010. The employee requested to be represented by a legal practitioner or a retired officer of the Bank as his defence representative, but the Bank declined these requests, citing Regulation 44 of the 2010 Regulations and the Handbook of Vigilance Administration & Disciplinary Action, which restrict representation to serving employees. The employee filed a writ petition before the High Court, which was allowed by a Single Judge, directing the Bank to permit representation by a retired officer. The Bank's appeal to the Division Bench was dismissed, leading to the present appeal before the Supreme Court. The core legal issue was whether the High Court erred in permitting a retired employee as a defence representative, contrary to the service regulations and handbook. The Bank argued that the right to representation is governed by specific rules and regulations, which in this case limit it to serving officials, and that allowing retired employees could lead to practical issues like confidentiality breaches and delays. The employee contended for broader representation rights. The Supreme Court analyzed the provisions of the 2010 Regulations and the handbook, emphasizing that the right to representation in departmental proceedings is not absolute but is subject to service rules. It held that the handbook explicitly restricts defence representatives to serving officials, and this must be read harmoniously with the regulations. The Court found that the High Court's order was an unwarranted interference, as it contravened the Bank's regulatory framework. Consequently, the Supreme Court allowed the Bank's appeal, set aside the High Court's judgment, and held that the employee is not entitled to be represented by a retired officer in the disciplinary proceedings.

Headnote

A) Service Law - Disciplinary Proceedings - Defence Representative - Rajasthan Marudhara Gramin Bank (Officers and Employees) Service Regulation, 2010 and Handbook of Vigilance Administration & Disciplinary Action - The Supreme Court considered whether an employee under departmental inquiry has a right to be represented by a retired employee of the Bank - The Court held that the right to representation in departmental proceedings is not an inherent right but is governed by service rules and regulations, which in this case restrict representation to serving officials only - The High Court's order permitting a retired employee as defence representative was set aside as it contravened the Bank's regulations and handbook (Paras 1-27).

B) Administrative Law - Judicial Review - Departmental Inquiries - Rajasthan Marudhara Gramin Bank (Officers and Employees) Service Regulation, 2010 - The Court examined the scope of judicial intervention in disciplinary proceedings governed by specific service regulations - It was held that courts should not ordinarily interfere with the procedural aspects of departmental inquiries unless the regulations are arbitrary or violate natural justice - The High Court's interpretation allowing retired employees as defence representatives was found to be an unwarranted interference with the Bank's regulatory framework (Paras 1-27).

C) Statutory Interpretation - Harmonious Construction - Rajasthan Marudhara Gramin Bank (Officers and Employees) Service Regulation, 2010 and Handbook of Vigilance Administration & Disciplinary Action - The Court addressed the need to read service regulations and handbook provisions harmoniously - It held that Regulation 44, which restricts legal practitioners, does not imply permission for other outsiders like retired employees - The handbook explicitly limits defence representatives to serving officials, and this must be given effect to in conjunction with the regulations (Paras 1-27).

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Issue of Consideration

Whether the High Court erred in directing the appellant Bank to permit the respondent employee to be represented by a retired officer of the Bank in disciplinary proceedings, contrary to the service regulations and handbook provisions

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Final Decision

Supreme Court allowed the appeal, set aside the impugned judgment and order of the High Court, and held that the employee is not entitled to be represented by a retired officer in the disciplinary proceedings

Law Points

  • Right to representation in departmental proceedings is not an absolute right but is governed by service rules and regulations
  • which can restrict representation to serving employees only
  • and courts should not interfere with such regulatory provisions unless they are arbitrary or violate principles of natural justice
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Case Details

2022 Lawtext (SC) (1) 108

CIVIL APPEAL No. 7451 of 2021

2022-01-04

M. R. Shah

Shri Rishabh Sancheti

Rajasthan Marudhara Gramin Bank

Ramesh Chandra Meena & Anr.

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Nature of Litigation

Appeal against High Court order permitting retired employee as defence representative in departmental inquiry

Remedy Sought

Appellant Bank seeks to set aside High Court order and restrict defence representation to serving employees only

Filing Reason

Bank aggrieved by High Court's direction to allow retired officer as defence representative, contrary to service regulations

Previous Decisions

High Court Single Judge allowed writ petition permitting retired employee as defence representative; Division Bench dismissed Bank's appeal

Issues

Whether the High Court erred in directing the Bank to permit the employee to be represented by a retired officer in disciplinary proceedings

Submissions/Arguments

Bank argued that service regulations and handbook restrict defence representatives to serving officials, and allowing retired employees contravenes these rules and may cause practical issues Employee argued for right to representation by retired officer or legal practitioner

Ratio Decidendi

The right to representation in departmental proceedings is not an absolute right but is governed by service rules and regulations, which can restrict representation to serving employees only; courts should not interfere with such regulatory provisions unless they are arbitrary or violate natural justice

Judgment Excerpts

Regulation 44 of the Regulation, 2010 on engagement of legal practitioner during the inquiry Regulation 8.2 of the Handbook Procedure specifically provides that the defence representative should be serving official / employee from the Bank right to representation is available only to the extent specifically provided for in the Rules

Procedural History

Departmental inquiry initiated against employee; show-cause notices issued; chargesheet served; employee's requests for legal practitioner or retired officer as defence representative declined; employee filed writ petition in High Court; Single Judge allowed petition permitting retired officer as defence representative; Bank appealed to Division Bench, which dismissed appeal; Bank appealed to Supreme Court

Acts & Sections

  • Rajasthan Marudhara Gramin Bank (Officers and Employees) Service Regulation, 2010: Regulation 44
  • Handbook of Vigilance Administration & Disciplinary Action: Regulation 8.2
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