In Brief
Allahabad Bank dismissed a clerk-cashier in 1991 based on suspicion of involvement in a bank fire, without proof of misconduct. An Industrial Tribunal found no evidence of guilt but awarded ₹30,000 compensation. The High Court quashed this and directed reinstatement with back wages. The Supreme Court partly allowed the Bank's appeal. Although acknowledging that suspicion alone cannot justify dismissal, the Court modified the relief due to the workman's long service gap and attainment of superannuation age. Instead of reinstatement, the Court awarded ₹15 lakh lump sum compensation, holding that automatic reinstatement is not warranted in every procedural irregularity case.
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