The Madras High Court has rejected a petition filed by a candidate whose appointment as a Circle Based Officer (CBO) at the State Bank of India (SBI) was cancelled due to an adverse history in his CIBIL report. The candidate had argued that he had fulfilled all eligibility requirements and had cleared all previous loans, but the court upheld the bank’s decision, stating that the banking sector requires a high standard of financial discipline from its employees. The court observed that a person who has shown poor financial discipline cannot be relied upon to handle public money responsibly.
The candidate had applied for the post of CBO and had cleared the exam, interview, medical test, and document verification, including the CIBIL check. However, his appointment was cancelled after the bank discovered that his CIBIL report indicated a negative credit history, including defaults in loan and credit card repayments. The candidate claimed that he had cleared all previous loans and had no outstanding dues or adverse credit remarks as of the date of the job notification.
The candidate also alleged that the bank’s selection process was discriminatory, as some other candidates who had defaulted on their loans at the time of notification were still appointed. However, the court dismissed this allegation, stating that appointments were made strictly for those who met all eligibility requirements. The court also noted that the petitioner’s case involved multiple defaults, which set it apart from other candidates.
The court examined the credit records of the candidate and found that he had multiple defaults, including nine irregular credit facilities and more than ten credit enquiries. The court also observed that the candidate had himself admitted to having defaulted on loan repayments. The court held that the bank’s decision to cancel the appointment was prudent, as it was necessary to maintain financial discipline in the banking sector.
The court’s judgment highlights the importance of maintaining a clean credit record for those who work in the banking sector, particularly those who handle public money. The court’s decision also suggests that banks have the right to set eligibility criteria for their employees, including requirements for a clean credit record. The case also underscores the need for transparency and fairness in the selection process, and the importance of ensuring that all candidates are treated equally and without discrimination. Overall, the court’s decision upholds the principle that those who work in the banking sector must maintain high standards of financial discipline and integrity.