MR.NARENDRA NATH TIWARI, J. - (1.) IN these appeals, the order of the learned Single Judge has been assailed mainly on the ground of non- consideration of a vital legal point raised by the appellants in their writ petitions that the order of punishment has not been passed by the competent authority and the same is wholly illegal.
(2.) THE writ petitioners-appellants were appointed as Officers in the Bihar State Financial Corporation (for short 'the Corporation') and at the relevant time they were holding the post of Manager and Deputy Manager, respectively, in Plamau Branch of the Corporation. A newly constituted Company, namely, M/s. Shri Katha and Chemicals negotiated with the top brass of the Corporation at its head office for grant of loan of a huge sum of Rs.46.5 lacs for taking over an ailing unit, M/s. Chandwa Wood Products at Chandwa in Plamau district. M/s. Chandwa Wood Products had taken Cash Credit facility to a limit from the State Bank of India. The outstanding due in the said account at that time was Rs.3.50 lacs, which was to be repaid by the newly constituted company out of the loan amount sanctioned to it. The negotiation for the above said loan, the terms and conditions and the arrangements and sanction were finalised by the head office of the Corporation. At that time, the appellants were kept in dark about the same.
(3.) AFTER the settlement of the terms of the said agreement at the head office, a brief letter dated 23rd October, 1987 was sent to the appellants along with two bank drafts. The said bank drafts were payable in favour of the State Bank of India to the Account of Shri Katha and Chemicals. The said party approached the appellants for taking the drafts to be deposited in the account. Since the drafts were payable in favour of the State Bank of India Account, the same has to be deposited in the said account for encashment regardless of whether the appellants themselves deposit or the same is deposited by the party concerned. The appellants, therefore, handed over the said bank drafts to M/s. Shri Katha and Chemicals, to be deposited in the account, as specified in the bank drafts and the same was accordingly deposited.;