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J U D G M E N T B.P. JEEVAN REDDY,J.

Leave granted.

The respondent was an officer in Scale-I in the service of the Central Bank of India. While he was working as the Branch Manager, Paradeep Branch, he was suspended pending enquiry on November 21, 1988. On January 16, 1989, ten charges were communicated to him. He denied all of them. An Enquiry Officer was appointed who reported, after holding a due enquiry, that Charges Nos.1, 6, 8 and 9 were established fully while Charges Nos.2,3,5,7 and 10 were established partially. Charge No.4 was held not established. On the basis of the said report, the appropriate authority dismissed the respondent from service. The appeal preferred by the respondent was dismissed whereupon he approached the Orissa High Court by way of a writ petition. The High Court has allowed the writ petition holding that the charges held established against the respondent represent errors of judgment but not "misconduct". The High Court opined that though the respondent was guilty of doing many acts beyond his authority, it was not established that it was done with any ulterior motive or for any extraneous consideration. Since the Enquiry Officer has not found that the Bank has actually incurred any loss on account of the said acts of the respondent, the High Court held, the charge of misconduct is not established. Accordingly, the writ petition was allowed, the order of punishment imposed upon the respondent was set aside and the respondent was directed to be reinstated in service with all consequential benefits. The charges framed against the respondent are the following:

It may be remembered that Charges Nos.1,6,8, and 9 were held to have been established in full while the remaining charges [except charge No.4] were held to be established in part. It is indeed a matter of surprise that inspite of the aforesaid findings, the High Court came to the opinion that it is not a case of misconduct. Regulation 24 of the Central Bank of India Officer Employees' (Displine and Appeal) Regulations, 1976 defines the acts of misconduct in the following words:

"24. Acts of misconduct: A breach of any of the provisions of these regulations shall be deemed to constitute a misconduct punishable under the Central Bank of India Officer Employees'(Discipline and Appeal) Regulations, 1976."

Regulation 3 of the said Regulations may also be noticed:

"3(1). Every officer employee shall, at all times take all possible steps to ensure and protect the interest of the bank and discharge his duties with utmost integrity, honesty, devotion and diligence and do nothing which is uncoming of a bank officer.

It may be mentioned that in the memorandum of charges, the aforesaid two regulations are said to have been violated by the respondent. Regulation 3 requires every officer/employee of the Bank to take all possible steps to protect the interests of the Bank and to discharge his duties with utmost integrity, honesty, devotion and diligence and to do nothing which is unbecoming of a Bank officer. It requires the officer/employee to maintain good conduct and discipline and to act to the best of his judgment in performance of his official duties or in exercise of the powers conferred upon him, Breach of Regulation 3 is "misconduct" within the meaning of Regulation 24. The findings of the Enquiry Officer which have been accepted by the disciplinary authority, and which have not been disturbed by the High Court, clearly show that in number of instances the respondent allowed overdrafts or passed cheques involving substantial amounts beyond his authority. True, it is that in some cases, no loss has resulted from such acts. It is also true that in some other instances such acts have yielded profit to the Bank but it is equally true that in some other instances, the funds of the Bank have been placed in jeopardy; the advances have become sticky and irrecoverable. It is not a single act; it is a course of action spreading over a sufficiently long period and involving a large number of transactions. In the case of a Bank - for that matter, in the case of any other organization - every officer/employee is supposed to act within the limits of his authority. If each officer/ employee is allowed to act beyond his authority, the discipline of the organisation/bank will disappear; the functioning of the Bank would become chaotic and unmanageable. Each officer of the Bank cannot be allowed to carve out his own little empire wherein he dispenses favours and largesse. No organization, more particularly, a Bank can function properly and effectively if its officers and employees do not observe the prescribed norms and discipline. Such indiscipline cannot be condoned on the specious ground that it was not actuated by ulterior motives or by extraneous considerations. The very act of acting beyond authority - that too a course of conduct spread over a sufficiently long period and involving innumerable instances - is by itself a misconduct. Such acts, if permitted, may bring in profit in some cases but they may also lead to huge losses. Such adventures are not given to the employees of Banks which deal with public funds. If what we hear about the reasons for the collapse of Barings Bank is true, it is attributable to the acts of one of its employees, Nick Leeson, a minor officer stationed at Singapore, who was allowed by his superiors to act far beyond his authority. As mentioned hereinbefore, the very discipline of an organization and more particularly, a Bank is dependent upon each of its employees and officers acting and operating within their allotted sphere. Acting beyond one's authority is by itself a breach of discipline and a breach of Regulation 3. It constitutes misconduct within the meaning of Regulation 24. No further proof of loss is really necessary though as a matter of fact, in this case there are findings that several advances and over-drawals allowed by the respondent beyond his authority have become sticky and irrecoverable. Just because, similar acts have fetched some profit - huge profit, as the High Court characterizes it - they are no less blameworthy. It is wrong to characterize them as errors of judgment. It is not suggested that the respondent being a Class-I officer was not aware of the limits of his authority or of his powers. Indeed, Charge No.9, which has been held established in full is to the effect that inspite of instructions by the Regional Office to stop such practice, the respondent continued to indulge in such acts. The Enquiry Officer has recorded a clear finding that the respondent did flout the said instructions and has thereby committed an act of disobedience of lawful orders. Similarly, Charge No.8, which has also been established in full is to the effect that inspite of reminders, the respondent did not submit "Control Returns"