Legal Reference Library

The Supreme Court in Chief Executive Officer, Krishna District Cooperative Central Bank Ltd. and Another vs. K. Hanumantha Rao and Another, has set aside an impugned judgment of a division bench of the Andhra Pradesh High Court holding that decision qua the nature and quantum is the prerogative of the disciplinary authority and it is not the function of the high court to decide the same. Hanumantha Rao was a supervisor of five Primary Agricultural Cooperative Societies (PACSs). He failed in discharging his duties properly of supervising the same, which led to cheating by members of the Nidamanuru PACS, resulting in misappropriation of the society funds, the amount totalling up to over Rs.47 crore, for which disciplinary action was initiated against him. In the said inquiry, charges were proved and as a result, the disciplinary authority (consisting of the general manager) inflicted the punishment of dismissal from service upon him. This was confirmed by the appellate authority (being t...

The Vacation Bench of the Supreme Court in State of West Bengal vs Aswini Kumar Mahato has held that an order of cut in pension was permissible after a person reached the age of superannuation. The Bench comprising of Justices A.K.Goel and A.M.Khanwilkar has allowed the Appeal filed by State of West Bengal against a Calcutta High Court order in which it was held that once an employee is allowed to retire on attaining the age of superannuation, the concerned authority has no jurisdiction to pass an order in a disciplinary proceeding since the master-servant relationship cannot exist after retirement. It is argued on behalf of the state that under Rule 10(1) of the West Bengal Services (Death-cum-Retirement Benefit) Rules, 1971 pension can be withheld if either any pecuniary loss was caused by the concerned employee or the employee is found to be guilty of misconduct or negligence while in service. This, of course, is subject to the conditions contained in the proviso to Rule 10(1) of th...