In a significant judgment, the Supreme Court of India has quashed the disciplinary action taken against an employee of the Union Bank of India, A.M. Kulshrestha, on the grounds that the charge sheet issued against him was arbitrary and violative of the principles of natural justice. The court held that the charge sheet was issued without the advice of the Central Vigilance Commission (CVC), which is mandatory in cases where disciplinary action is contemplated against a government servant.
The case involved A.M. Kulshrestha, a General Manager with the Union Bank of India, who was issued a charge sheet in 2014 alleging irregularities in the sanction and disbursement of loans. The charge sheet was issued by the bank’s disciplinary authority without obtaining the advice of the CVC, as required under the Central Civil Services (Classification, Control, and Appeal) Rules, 1965.
Kulshrestha challenged the charge sheet and the subsequent disciplinary action before the Central Administrative Tribunal (CAT), which upheld the bank’s decision. However, the Supreme Court, hearing Kulshrestha’s appeal, set aside the CAT’s order and quashed the disciplinary action.
The apex court held that the charge sheet issued without the CVC’s advice was arbitrary and violative of the principles of natural justice. The court observed that the CVC’s advice is mandatory in cases where disciplinary action is contemplated against a government servant, and its absence renders the charge sheet invalid.
The court clarified that the CVC’s role is not limited to advising on the nature of the penalty but also extends to advising on whether the charges are prima facie established and whether the evidence collected is sufficient to initiate disciplinary proceedings. The court noted that the CVC’s advice is essential to ensure that the disciplinary action is fair, transparent, and reasonable.
The judgment has significant implications for government servants and public sector employees, emphasizing the importance of following due process and adhering to established procedures in disciplinary matters. The court’s ruling underscores the need for adherence to the principles of natural justice and the importance of the CVC’s role in ensuring fairness and transparency in disciplinary proceedings. By quashing the disciplinary action against Kulshrestha, the Supreme Court has sent a clear message that arbitrary and unjust actions will not be tolerated, and that the rights of government servants will be protected.