Punjab-Haryana High Court
N.K. Swami vs Punjab National Bank And Others on 16 August, 2011
LPA No. 1439 of 2011 (O&M) -1-
IN THE PUNJAB AND HARYANA HIGH COURT AT
CHANDIGARH
LPA No. 1439 of 2011 (O&M)
Date of Decision: August 16, 2011
N.K. Swami ...Appellant
Versus
Punjab National Bank and others ...Respondents
CORAM: HON'BLE MR. JUSTICE M.M. KUMAR
HON'BLE MR. JUSTICE GURDEV SINGH
Present: Mr. Praveen Gupta, Advocate
for the appellant.
1. To be referred to the Reporters or not?
2. Whether the judgment should be reported
in the Digest?
M.M. KUMAR, J.
1. The instant appeal filed under Clause X of the Letters Patent is directed against judgment dated 27.05.2011 rendered by the learned Single Judge holding that the appellant being an employee of the Punjab National Bank (for brevity 'PNB'), could not have become President of the Credit and Thrift Society of the Employees of PNB without seeking prior permission from PNB- respondent. It adversely affected the image and credibility of PNB- respondent. The learned Single Judge has found that the appellant was charged with misconduct on three counts; (a) He had become President of the Credit & Thirft Society under the name and style as 'The PNB Employees Coop Urban (SE) Thirft and Credit Society Ltd., LPA No. 1439 of 2011 (O&M) -2- Ambala City, without permission of the PNB-respondent.; (b) He had indulged in the act of parallel banking, which is against the interest of the PNB-respondent and in violation of service conditions; and (c) He has failed to honour his commitment of payments to depositors of the society resulting in erosion of his credibility which adversely affected the image and credibility of the PNB-respondent.
2. The learned Single Judge has found that in a regular departmental enquiry, all the three charges stood proved and the disciplinary authority imposed a penalty of dismissal from service on 02.04.2009. The the appeal and review against the order of dismissal also failed. The view of the learned Single Judge is evident from the perusal of the following para which reads as under:
"The gravamen of allegations against the petitioner is for managing the affairs of the Society without seeking permission from the Bank. Any employee of the Bank or public service can not arrogate to himself the powers to run any Society or be a part of any Society, which may directly or indirectly interfere with or would effect his functioning as an employee. The Society, which the petitioner was managing, had been accepting deposit from the public and re-paying the same on demand, as was confirmed by the witnesses examined during enquiry. It was accordingly found that the Society was doing a banking business. Finding also is that LPA No. 1439 of 2011 (O&M) -3- for every `100/- earned, 70/- would go to the Members. Atleast 25% was to be kept as reserved fund and not exceeding 5% to cooperative education fund and rest was to be divided amongst the Members etc. A person working in a Bank can not be permitted to indulge in parallel banking, wherein he would be interested in seeking deposit for such Society, rather than looking after the interest of the Bank. One of the witnesses, in fact has deposed before the Enquiry Officer that because of the petitioner, who was personally known to him, he had handed over a sum of `3,00,000/- in personal capacity and he was to return the same personally. This was done on 5 to 6 occasions. There is allegation of non-payment of the deposit amount by the Society, which was certainly a blameworthy misconduct alleged against the petitioner. I am, thus, not inclined to accept the submissions made by the counsel that the act on the part of the petitioner, being the Member of the Society or its President, has got no concern with his responsibility as a banker or his services towards the Bank. Considering the nature of allegations made against the petitioner, it can not be said that the punishment would in any manner be harsh or LPA No. 1439 of 2011 (O&M) -4- disproportionate. Except for so stating, no submission is made by the counsel to show as to how the punishment would operate harshly in such a situation.
The writ petition, therefore, is dismissed in limine."
3. We have heard learned counsel at length. Apart from repeating the argument which he has raised before the learned Single Judge, learned counsel has submitted that Regulations 6(3) of the Punjab National Bank Officer's Employees (Conduct) Regulations, 1977 (for brevity '1977 Regulations), do not in fact bar the appellant to undertake any activity of this society under the Societies Registration Act, 1860 (for brevity 'the Act'). We have thoughtfully considered the aforesaid submission. In order to appreciate the submission it would be necessary to read Regulation 6(3) of 1977 Regulations, which is as under:
"Punjab National Bank Officer Employees (Conduct) Regulations 1977.
6. Taking Up Outside Employment:
1. xx xx xx xx
2. xx xx xx xx
3. No officer employee shall, without the previous sanction of the bank, except in the discharge of his official duties, take part in the registration, promotion or management of any bank or other LPA No. 1439 of 2011 (O&M) -5- company which is required to be registered under the Companies Act, 1956 (1 of 1956) or any other law for the time being in force or any Cooperative Society for commercial purpose.
Provided that an officer employee may take part in registration, promotion or management of a cooperative society registered under the Co-perative Societies Act, 1912 (2 of 1912) or any other law for the time being in force, or of a literary, scientific or charitable society registered under the Societies Registration Act, 1860 (21 of 1860) or any corresponding law in force. (Emphasis added).
4. No Officer employee shall accept any payment, in the form of fee, remuneration, honorarium and the like in cash or kind for any work done by him for any public body or any private person with the sanction of the Competent Authority."
4. A perusal of Regulations 6(3) and (4) of 1977 the Regulations would show that an Officer may take part in registration, promotion or management of a cooperative society registered under the Cooperative Societies Act, 1912 or an officer may also be permitted to take part in a society which has the object of literary, scientific or charitable society registered under the Societies Registration Act, 1860. Regulation 4 of the 1977 Regulations puts all doubts to rest by providing that no officer or employee is to accept LPA No. 1439 of 2011 (O&M) -6- any payment, in the form of fee, remuneration, honorarium and the like in cash or kind for any work done by him for any public body or any private person without the sanction of the competent authority. It is evident that ordinarily under Regulation 6(3) no employee is permitted to take up employment outside the PNB-respondent without the previous sanction of the Bank but non commercial activities involving literary, scientific or charitable object could be pursued by a member without permission. The aforesaid being the correct interpretation, we are of the view that the arguments raised on the basis of Regulation 6(3) is wholly without substance.
5. Accordingly, the appeal fails and the same is dismissed.
(M.M. KUMAR) JUDGE (GURDEV SINGH) JUDGE August 16, 2011 Atul