HC upholds dismissal of SBI manager over lapses

HC upholds dismissal of SBI manager over lapses

New Delhi: The Delhi High Court has upheld the dismissal of a State Bank of India manager who was sacked from his job for showing an undue favour towards a customer exposing the bank to a risk of Rs70 lakh.

Although there was no financial loss caused to the Bank, a bench comprising Justices Sanjay Kishan Kaul and Mool Chand Garg upheld K Raj Arora’s dismissal after noting that the manager repeatedly indulged in irregularities with respect to one group of companies.

“The incidents cannot be said to be trivial merely on account of negligence. They are repeated incidents and by a person like a bank manager who has a capacity and knows the significance of caution in commercial transactions," the court said.

“There is, however, some doubt about the aspect of financial loss as there is no material placed on record before us of such financial loss and at the initial stage only a prospect of loss was discussed," the court said.

The court asked the bank to consider giving pensionary benefits to Arora who was dismissed from his job 14 years ago.

“The Authority may have a relook at the matter limited to the aspect of reduction of sentence to a punishment where the appellant may be entitled to pensionary benefits or part thereof if no excessive financial loss has been caused," the court said.

The Court passed the order on the petition of Arora who had pleaded that he had an unblemished career of 28 years and had nothing to fall back upon on account of the punishment of dismissal from service.

In the case, the Disciplinary Authority of the bank had dismissed Arora from the job on December, 1994 after he was found guilty of favouring one customer.