SYNDICATE BANK Vs. VENKATESH GURURAO KURATI
LAWS(SC)-2006-1-65
SUPREME COURT OF INDIA
Decided on January 31,2006

SYNDICATE BANK Appellant
VERSUS
VENKATESH GURURAO KURATI Respondents


Referred Judgements :-

CHANDRAMA TEWARI V. UNION OF INDIA [REFERRED TO]
KRISHNA CHANDRA TANDON VS. UNION OF INDIA [REFERRED TO]
COMMITTEE OF MANAGEMENT KISAN DEGREE COLLEGE VS. SHAMBHUSARANPANDEY [REFERRED TO]
STATE OF UTTAR PRADESH VS. SHATRUGHAN LAL [REFERRED TO]
GANESH SANTA RAM SIRUR VS. STATE BANK OF INDIA [REFERRED TO]



Cited Judgements :-

SHALINI STEELS PVT. LTD VS. COMMR. OF CUS. AND C. EX. [LAWS(APH)-2011-2-97] [REFERRED TO]
RAJ KAPOOR VS. ALLAHABAD BANK KOLKATA THROU ITS CHAIRMAN AND M.D. [LAWS(ALL)-2017-9-30] [REFERRED TO]
K R SHESHUPRASAD VS. PUNJAB NATIONAL BANK [LAWS(KAR)-2019-11-106] [REFERRED TO]
S.S. TYAGI VS. PUNJAB NATIONAL BANK [LAWS(DLH)-2011-1-493] [REFERRED TO]
YOGIRAJ SHARMA VS. STATE OF M P [LAWS(MPH)-2015-4-228] [REFERRED TO]
NARAYANAN V VS. DEPUTY GM DISCIPLINARY AUTHORITY INDIAN OVER SEAS BANK CENTRAL OFFICE CHENNAI [LAWS(MAD)-2008-11-1] [REFERRED TO]
FRANCIS DSOUZA VS. SYNDICATE BANK [LAWS(KAR)-2015-3-371] [REFERRED TO]
UNION OF INDIA VS. BISHAMBER DAS [LAWS(SC)-2009-5-188] [REFERRED TO]
KANWAR AMNINDER SINGH VS. HONBLE HIGH COURT OF UTTARAKHAND AND OTHERS [LAWS(UTN)-2019-9-31] [REFERRED TO]
ANIL KUMAR GARG VS. STATE OF U.P. [LAWS(ALL)-2016-8-51] [REFERRED TO]
SRI LAL SINGH VS. THE STATE OF U.P. AND OTHERS [LAWS(ALL)-2012-3-318] [REFERRED TO]
VIRENDRA BAHADUR JOHRI VS. REGISTRAR GENERAL HIGH COURT ALLAHABAD [LAWS(ALL)-2007-5-133] [REFERRED TO]
RAJYA KRISHI UTPADAN MANDI PARISHAD VS. PUBLIC SERVICES TRIBUNAL U P [LAWS(ALL)-2008-1-190] [REFERRED TO]
RAM DULARE GIRI VS. S D M BANSI DISTRICT SIDHARTH NAGAR [LAWS(ALL)-2009-11-61] [REFERRED TO]
LAKSHMINARAYANA I BHAT VS. ASSISTANT GENERAL MANGER PERSONNEL AND THE DISCIPLINARY AUTHORITY INDUSTRIAL RELATION DIVISION SYNDICATE BANK HEAD OFFICE MANIPAL [LAWS(KAR)-2011-8-17] [REFERRED TO]
KANWAR JAGAT SINGH VS. DIRECTORATE OF ENFORCEMENT [LAWS(DLH)-2007-7-201] [REFERRED TO]
B.D. LUTHRA VS. CHAIRMAN & MANAGING DIRECTOR, PUNJAB NATIONAL BANK [LAWS(DLH)-2010-3-319] [REFERRED TO]
R K SAVJANI VS. K R SHANKARAN GENERAL MANAGER & 2 [LAWS(GJH)-2013-9-282] [REFERRED TO]
AMRATBHAI SHAMALBHAI PATEL VS. BANK OF BARODA [LAWS(GJH)-2022-3-1076] [REFERRED TO]
MUKESH KUMAR JHA VS. UNION BANK OF INDIA [LAWS(MPH)-2020-5-662] [REFERRED TO]
SHRI NGAMKHOSEI KUKI VS. THE STATE OF MANIPUR [LAWS(MANIP)-2016-6-12] [REFERRED TO]
A SUDHAKAR VS. POST MASTER GENERAL HYDRABAD [LAWS(SC)-2006-3-88] [REFERRED TO]
SRI H Y NARASIMHA PRASAD S/O LATE H R Y MURTHY VS. GENERAL MANAGER, SYNDICATE BANK [LAWS(KAR)-2015-10-5] [REFERRED TO]
K P SINGH VS. THE HIGH COURT OF HIMACHAL PRADESH AND ORS [LAWS(HPH)-2009-9-58] [REFERRED]
VED PRAKASH MISHRA VS. STATE OF U P [LAWS(ALL)-2012-11-73] [REFERRED TO]
BODOLAND TERRITORIAL COUNCIL REPRESENTED BY THE SECRETARY BTC KOKRAJHAR ASSAM VS. KRISHNA HALOI S/O HARKANTA HALOI [LAWS(GAU)-2012-1-65] [REFERRED TO]
S B BHARGAVA VS. STATE OF M P [LAWS(MPH)-2011-8-75] [REFERRED TO]
ROSILY L VS. MANAGER, FATHIMA MATHA NATIONAL COLLEGE, KOLLAM [LAWS(KER)-2018-5-77] [REFERRED TO]
NARAYAN CH. DEY VS. UNION OF INDIA [LAWS(GAU)-2012-11-32] [REFERRED TO]
B VISHWANATHA REDDY VS. ANDHRA PRAGATHI GRAMEENA BANK [LAWS(APH)-2010-1-6] [REFERRED TO]
SAVITHRI SATEESH VS. CANARA BANK [LAWS(KAR)-2023-1-489] [REFERRED TO]
SAVITHRI SATEESH VS. CANARA BANK [LAWS(KAR)-2023-1-489] [REFERRED TO]
JAIPAL SINGH VS. D T C [LAWS(DLH)-2007-9-174] [REFERRED TO]
MANAGEMENT OF M S CHIDAMBARAM SHIPCARE PVT LTD VS. PRESIDING OFFICER [LAWS(MAD)-2011-4-176] [REFERRED TO]
GANPATI BAI VS. STATE OF RAJASTHAN [LAWS(RAJ)-2012-8-230] [REFERRED TO]
SIBA PRASAD PATTNAIK VS. STATE OF ORISSA AND ORS. [LAWS(ORI)-2015-5-12] [REFERRED TO]
STATE OF UTTARANCHAL VS. KHARAK SINGH [LAWS(SC)-2008-8-134] [REFERRED TO]
YOGENDRA KUMAR TIWARI VS. STATE OF U.P. [LAWS(ALL)-2017-5-143] [REFERRED TO]
STATE OF U P THRU PRIN SECY DEPTT OF IRRIGATION & VS. SHIV DAS AND ANOTHER [LAWS(ALL)-2018-3-247] [REFERRED TO]
ARVIND KUMAR OJHA VS. EASTERN COALFIELDS LTD. AND ORS. [LAWS(CAL)-2009-9-105] [REFERRED TO]
STATE BANK OF INDIA VS. SHYAMAL KUMAR MUKHERJEE [LAWS(CAL)-2009-2-96] [REFERRED TO]
RAM PAL SINGH VS. STATE OF U P [LAWS(ALL)-2006-3-44] [REFERRED TO]
SHAH ID VS. STATE OF U P [LAWS(ALL)-2007-12-176] [REFERRED TO]
GUDIMETLA VENKAT REDDY REP. BY ITS PROPRIETOR SRI G. VENKAT REDDY VS. STATE OF A.P. [LAWS(APH)-2009-4-108] [REFERRED TO]
KANWAR NATWAR SINGH VS. DIRECTOR OF ENFORCEMENT [LAWS(DLH)-2008-3-61] [REFERRED TO]
SYNDICATE BANK VS. S R PADIYAR [LAWS(KAR)-2012-11-74] [REFERRED TO]
K S KARDAM VS. UNION OF INDIA [LAWS(DLH)-2011-9-107] [REFERRED TO]
S C DHANDAPANI VS. DISTRICT REVENUE OFFICER [LAWS(MAD)-2008-8-269] [REFERRED TO]
UNION OF INDIA (UOI) AND ORS. VS. MANDAL VYAS AND ORS. [LAWS(RAJ)-2010-3-129] [REFERRED TO]
G LEELA KUMARI VS. GOVERNMENT OF TAMIL NADU [LAWS(MAD)-2010-10-215] [REFERRED TO]
LAKSHMINARAYANA I BHAT VS. ASSISTANT GENERAL MANAGER [LAWS(KAR)-2011-9-37] [REFERRED TO]
LAKHMIR SINGH VS. THE PRESIDING OFFICER, LABOUR COURT AND ORS. [LAWS(P&H)-2009-11-165] [REFERRED TO]
G KARUNANIDHI VS. INDIAN BANK [LAWS(MAD)-2007-12-498] [REFERRED TO]
GOUTAM DEBNATH VS. HONOURABLE HIGH COURT OF TRIPURA [LAWS(TRIP)-2019-9-76] [REFERRED TO]
KALINGA MINING CORPORATION VS. UNION OF INDIA (UOI) AND 9 ORS. [LAWS(ORI)-2008-11-67] [REFERRED TO]
CHAMOLI DISTRICT CO-OPERATIVE BANK LTD. THROUGH ITS SECRETARY/MAHAPRANDHAK & ANR. VS. RAGHUNATH SINGH RANA & ORS. [LAWS(SC)-2016-5-72] [REFERRED TO]
S.G.DESAI VS. G.S.DHOTRE [LAWS(GJH)-2016-11-2] [REFERRED TO]
AWADHESH BAHADUR SINGH VS. STATE OF U.P. [LAWS(ALL)-2023-1-187] [REFERRED TO]
UNION OF INDIA THROUGH SECRETARY, MINISTRY OF HOME AFFAIRS, NORTH BLOCK, JAISALMER HOUSE, LOK NAYAK BHAWAN, NEW DELHI VS. HARENDRA SINGH SON OF LATE RAMPUKAR SINGH, CISF UNIT, 4TH RESERVE BN, P.O. AND P.S. [LAWS(JHAR)-2016-4-137] [REFERRED TO]
NEM SINGH VS. STATE OF U.P. AND ANR. [LAWS(ALL)-2011-5-498] [REFERRED TO]
RADHEY SHYAM SINGH VS. STATE OF U P THRU PRIN SECY DEPTT OF REVENUE LUKCN [LAWS(ALL)-2018-5-230] [REFERRED TO]
RELIANCE INDUSTRIES LIMITED VS. SECURITIES AND EXCHANGE BOARD OF INDIA [LAWS(SB)-2014-6-1] [REFERRED TO]
VISHWANATH VERMA VS. STATE OF MADHYA PRADESH [LAWS(MPH)-2017-7-42] [REFERRED TO]
Syndicate Bank A Body Constituted Under The Banking Companies (Acquisition and Undertakings) Act, 1970 rep. by Sri. B. Pramod General Manager (Personnel) Syndicate Bank Industrial Relation Division VS. Sri B. Ganesh Pai S/o Late Sri Sridhar Pai@ [LAWS(KAR)-2010-12-78] [REFERRED TO]
T NARAYANAN VS. OFFICIAL LIQUIDATOR HIGH COURT MADRAS AS THE LIQUIDATOR OF SRI VISALAKSHI MILLS PRIVATE LIMITED [LAWS(MAD)-2011-10-53] [REFERRED TO]
YOGIRAJ SHARMA VS. STATE OF M.P. AND ORS. [LAWS(MPH)-2015-10-84] [REFERRED TO]
REGIONAL MANAGER VS. RAM PRASAD MANDAL [LAWS(MPH)-2008-2-118] [REFERRED TO]
AKHILESH KUMAR MISHRA VS. THE PRINCIPAL SECRETARY, DEPARTMENT OF REVENUE, U.P. SECRETARIAT GOVERNMENT AND ORS. [LAWS(ALL)-2011-5-501] [REFERRED TO]
G N SHUKLA VS. S D O [LAWS(ALL)-2012-7-33] [REFERRED TO]
CHHOTE LAL VS. STATE OF U.P. AND ORS. [LAWS(ALL)-2014-12-150] [REFERRED TO]
K.S. KARDAM VS. UNION OF INDIA & ORS. [LAWS(DLH)-2016-11-106] [REFERRED TO]
HEERANGAR WALFARE ASSOCIATION VS. GOVERNMENT OF ANDHRA PRADESH [LAWS(APH)-2009-2-33] [REFERRED TO]
STAN POWER VS. GREATER HYDERABAD MUNICIPAL CORPORATION [LAWS(APH)-2010-6-47] [REFERRED TO]
VIJAY B. BRAHMBHATT VS. STATE OF GUJARAT [LAWS(GJH)-2020-1-144] [REFERRED TO]
JSW STEEL LTD VS. AI GHURIAR IRON & STEEL LLC [LAWS(BOM)-2014-8-87] [REFERRED TO]
RAM PYAREY SINGH VS. STATE OF U.P. [LAWS(ALL)-2022-9-225] [REFERRED TO]
ALIMIYA GULAMRASUL SHAIKH VS. STATE OF GUJARAT [LAWS(GJH)-2017-4-289] [REFERRED TO]
DELHI DEVELOPMENT AUTHORITY VS. DHARAM SINGH [LAWS(DLH)-2010-2-54] [REFERRED TO]
STATE OF ORISSA VS. SOMANATH DAS AND ORS. [LAWS(ORI)-2015-8-34] [REFERRED TO]
S MARIA SEBASTIAN VS. DISTRICT EDUCATIONAL OFFICER [LAWS(MAD)-2009-10-39] [FOLLOWED ON]
RAM RATAN SANKHWAR VS. STATE OF U.P. AND OTHERS [LAWS(ALL)-2011-12-398] [REFERRED TO]
LEELA DHAR SAGAR VS. STATE OF U.P. & OTHERS [LAWS(ALL)-2011-12-370] [REFERRED TO]
MOHD UNIS KHAN QUADARI VS. UNION OF INDIA [LAWS(ALL)-2012-2-42] [REFERRED TO]
RAJIV KUMAR GUPTA VS. STATE OF U P AND OTHERS [LAWS(ALL)-2018-10-230] [REFERRED TO]
STATE BANK OF INDIA MUMBAI VS. ARJUN DEVI ANAND [LAWS(ALL)-2007-9-14] [REFERRED TO]
KRIPA SHANKER SINGH VS. DEPUTY GENERAL MANAGER, U.P.S.R.T.C., VARNASI [LAWS(ALL)-2006-8-393] [REFERRED TO]
P P SHARMA VS. HONBLE CHIEF JUSTICE OF DELHI [LAWS(DLH)-2018-3-354] [REFERRED TO]
S R MITTAL VS. SYNDICATE BANK & ANR [LAWS(DLH)-2018-7-709] [REFERRED TO]
DEEPAK JOSHI VS. ASSTT. GENERAL MANAGER CENTRAL BANK OF INDIA [LAWS(ALL)-2023-7-28] [REFERRED TO]
M.R. NAGARAJAN VS. SYNDICATE BANK [LAWS(KAR)-2015-3-179] [REFERRED TO]
RAJENDRA I. THAKKAR VS. BANK OF BARODA [LAWS(GJH)-2020-1-121] [REFERRED TO]
C.D. SIVANNA VS. SYNDICATE BANK [LAWS(KAR)-2015-3-384] [REFERRED TO]
BHOLA SINGH VS. STATE OF M.P. [LAWS(CHH)-2006-8-16] [REFERRED TO]


JUDGEMENT

H. K. Sema, J. - (1.)This appeal, preferred by Syndicate Bank is directed against the Judgment and Order dated 16th April, 2004 passed by the Division Bench in Writ Appeal No.7997 of 1999 affirming the order dated 14th June, 1999 of the learned Single Judge passed in Writ Petition No. 12594 of 1991 allowing the Writ Petition filed by the respondent herein.
(2.)Briefly stated the facts are as follows:- The respondent was working as Manager of the appellants bank at Horti Branch (Karnataka) between 30-12-1976 and 22-7-1981. It is alleged that during the said period the respondent in collusion with certain staff members got necessary documents signed and arranged loans in the name of poor illiterate villagers under the Integrated Rural Development Program and misappropriated the proceeds of such loans. The allegations are :-
"a) On 20-6-1979 he obtained loan application and other documents from one Sri. S. M. Desai with Sr. N. C. Yelasangi as the proposed surety/co-obligant without informing them the purpose for which the same was obtained. A loan of Rs.6000/- for working capital needs of Sri. S. M. Desais Boosari business was sanctioned and arranged by the respondent though the said Sri. S. M. Desai was not doing such business. Thereafter, the loan proceeds was withdrawn and received by the respondent by using a withdrawal slip issued in the name of the said Sri. S.M. Desai 15 days prior to the arranging the loan.

b) Between January 1981 and March 1981, the respondent in connivance with Sri. K.B.Bhaskaraiah, the then Farm Representative of banks Horti branch, Sri. H.K. Hegdeyal, the Pigmy collection agent Sri Mareppa P. Talakeri, the then Attender of the banks Horti branch and Sri. Parasappa Siddappa Talakeri, father of the said Sri. Mareppa P. Talakeri sanctioned and arranged 12 sheep loans of Rs. 4000/- each aggregating to Rs. 48,000/- under the DRI Scheme and received the amount of the said loans either directly or through the accounts of the said Sr. Parasappa Siddappa Talakeri. This was done as detailed below :-

i) Sri. Parasappa Siddappa Talakeri obtained loan application for sheep loans in the names of either his family members who were not eligible for such loans or other poor uneducated people of the village.

ii) Necessary Farm Representatives Reports were obtained from Sri. K.B. Bhaskaraiah, the Farm Representative.

iii) Though the amount of loans were to be released to the suppliers directly the same were credited to the Savings Bank Accounts of the borrowers. To show that the transactions were genuine, Stamped Receipts for purchase of sheep were obtained and put on record.

c) Out of the 12 sheep loans arranged as aforesaid :

i) Sri. Eswarappa Bhimappa Harijan who had received only Rs.300/- from the amount of loan of Rs.4000/- arranged in his name as above said, sought the intervention of Sri. S.S. Shivar, the village Panchayat President and thereupon, the respondent paid the said Sri. Eswarappa Bhimappa Harijan a sum of Rs.3,500/-.

ii) Sri. S.R.Harijan another such villager in whose name such loan was arranged who did not receive the loan proceeds, took up the matter directly with the respondent and thereupon the respondent paid him a sum of Rs.3000/-.

iii) Smt. Girijava Omnna Harijan, Smt. K.R.Harijan and Sri. S.D. Harijan denied having received the loan amount.

d) On 22-7-1981, the date of relief of the respondent from the banks Horti branch, he sanctioned a loan of Rs.10,000/- to Sri. Parasappa Siddappa Talakeri. On 24-7-1981 Sri. Mareppa P. Talakeri, credited a sum of Rs.120/- each to 72 loan accounts including the said 12 sheep loan accounts from the proceeds of the loan of Rs.10,000/- sanctioned by the respondent to the said Sri. Parasappa Siddappa Talakeri."

(3.)On the basis of the aforesaid allegations, the following charges were framed against the respondent on 5th August, 1985 with the statement of imputations of misconduct : CHARGE SHEET UNDER REGULATION NO.6 OF SYNDICATE BANK OFFICER EMPLOYEES (DISCIPLINE and APPEAL) REGULATIONS, 1976. WHEREAS it is proposed to hold an enquiry against you in accordance with the procedure laid down in Regulation No. 6 of Syndicate Bank Officer Employees (Discipline and Appeal) Regulations, 1976. AND WHEREAS the Articles of Charges and Statement of Imputations of misconduct in respect of which the enquiry is proposed to be held are mentioned here below : NOW THEREFORE, you are hereby directed to submit within 15 days from the date of receipt of this Charge Sheet, your written statement of defence, if any, showing cause as to why departmental proceedings should not be initiated against you and appropriate action should not be taken against you. ARTICLES OF CHARGES ARTICLE No.1 : That during the period between 30-12-1976 and 22-7-1981, you were functioning as manager of our Horti Branch and that while functioning in your position as such, on 20-6-1979, you obtained loan applications and other documents in the name of Shri Shankarappa Malakappa Desai with Sri N.C. Yelasangi as the proposed co-obligant/surety without informing them the purpose for which, they were obtained : AND Then sanctioned and arranged in their names, a secured Loan of Rs.6,000/- for the ostensible purpose of working capital requirements of Boosari business, knowingly or having reasons to believe that the said Sri Shankarappa Malakappa Desai was not doing such business; AND Got the loan proceeds withdrawn and received the same through a withdrawal slip issued in the name of the said Sri Desai, 15 days prior to the arranging of the loan. By your above acts, you failed to discharge your duties with utmost integrity, honesty, devotion and diligence and exhibited conduct unbecoming of a Bank Officer and thereby violated Regulation No.3(1) of the Syndicate Bank Officer Employees (Conduct) Regulations, 1976. ARTICLE No. II That during the period between January 1981 and March 1981, you, in connivance with Sri K.B.Bhaskaraiah, the then Farm representative of our Horti Branch, Sri H.K. Hegdeyal, the pigmy collection Agent of the branch, Sri Mareppa P.Talakeri, the then Attendar of the Branch and Sri Parasappa Siddappa Talakeri, father of the said Sri Mareppa P.Talakeri, obtained application forms for sheep loans through the said Sri Mareppa P. Talakeri, in the names of either his family members of other poor uneducated people of the village; AND Secured Farm Representative Reports from Sri. K.B.Bhaskaraiah, the Farm representative; AND Sanctioned 12 loans for a total sum of Rs.48,000/- under the IRDP Scheme; AND Got the loan proceeds withdrawn from the accounts of the borrowers concerned and received the amount either directly or through the accounts of the said Sri Parasappa Siddappa Talakeri, Sri H.K. Hegdeyal and others known to you; AND In the process, committed various irregularities as more fully described in the statement of imputations of misconduct mentioned herein below : By your above acts, you failed to discharge your duties with utmost integrity, honesty, devotion and diligence and exhibited conduct unbecoming of a Bank Officer and thereby violated Regulation No.3(1) of the Syndicate Bank Officer Employees (Conduct) Regulations, 1976.


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