Torrent Power Ltd & vs Chelabhai Nathabhai Luhar & 2 on 10 January, 2017
In Sudhir Vishnu Panvalkar v. Bank of India
(1997) (supra) a Bank employee was allegedly involved in
misappropriation of the funds of a Co-operative Housing
Society and in an inquiry held under the relevant provisions of
the Co-operative Societies Act, liability to refund the
misappropriated amount was fixed upon the employee. He was
also subjected to the prosecution for the said act and was
eventually acquitted by the High Court. Meanwhile, his
services came to be terminated not by way of a penalty but by
order simpliciter. On demand of the reasons, it was disclosed
to the employee that the termination was effected for loss of
confidence. No departmental inquiry was held. In the context
of the above facts, it was ruled in paragraph No. 5 thus: