In Brief
An Executive Engineer in Bihar's Irrigation Department released contractor payments after verifying a bank guarantee with the issuing bank's manager. The guarantee later proved fraudulent. After departmental proceedings were quashed by the High Court, fresh enquiry was initiated and the officer's pension and gratuity were withheld by 50%. The Supreme Court allowed the appeal, holding that the officer acted in good faith by verifying the guarantee, no pecuniary loss occurred, and the authorities improperly relied on the earlier discredited enquiry. The withholding orders were quashed.
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