In Brief
The State Bank of India dismissed an employee (Assistant/CAT) after disciplinary proceedings following complaints about missing cash deposits and fake challan documents. The employee challenged the dismissal, arguing that clause 4 of the Memorandum of Settlement required suspending disciplinary proceedings while he faced criminal charges for the same incidents. The High Court agreed and quashed the disciplinary action. The Supreme Court reversed this decision, holding that clause 4 does not automatically stay departmental proceedings during pending criminal trials. The Court clarified that while stay may be desirable in certain circumstances, it is not automatic and must be reasonable in duration. Crucially, acquittal in criminal proceedings does not entitle an employee to benefit in separate disciplinary proceedings, which operate under different legal standards and purposes. The employee's dismissal was restored.
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