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Bombay High Court Upholds RBI's Decision to Compulsorily Retire Employee for Unauthorized Absence

LAW FINDER NEWS NETWORK | June 15, 2026 at 12:14 PM
Bombay High Court Upholds RBI's Decision to Compulsorily Retire Employee for Unauthorized Absence

Court Dismisses Petition Challenging Compulsory Retirement, Emphasizes Limited Scope of Judicial Review in Disciplinary Matters


In a significant judgment, the Bombay High Court has upheld the Reserve Bank of India's (RBI) decision to impose compulsory retirement on Animesh Bakuli, an employee who faced disciplinary proceedings for unauthorized absence. The court dismissed Bakuli's writ petition challenging the RBI's order, emphasizing the limited scope of judicial review in disciplinary matters.


The petitioner, Animesh Bakuli, was employed as a Senior Assistant with the RBI and was absent from duty without authorization starting March 19, 2020. Despite multiple notices from the RBI to report back to duty or submit a leave application with a medical certificate, Bakuli failed to comply. Consequently, the RBI initiated disciplinary proceedings, resulting in his compulsory retirement as per Regulation 47(1)(e) of the RBI (Staff) Regulations, 1948.


Bakuli contended that the disciplinary proceedings were conducted in violation of the principles of natural justice, alleging non-receipt of all charge sheets and procedural impropriety. He argued that his absence was due to the COVID-19 pandemic and his parents' ill health, and he sought quashing of the retirement order while demanding the release of blocked payments and allowances.


Representing the RBI, Senior Counsel Mr. S.U. Kamdar argued that Bakuli's unauthorized absence warranted disciplinary action. The court was informed that multiple attempts were made to contact Bakuli and provide him with opportunities to participate in the inquiry, which he repeatedly ignored.


The court, in its judgment, noted that Bakuli was sent the charge sheet and notices to multiple addresses and had been given ample opportunity to present his case. The court emphasized that judicial review in disciplinary matters is limited to examining procedural impropriety, arbitrariness, or malafides. It cannot act as an appellate authority to re-evaluate the evidence or the disciplinary authority's findings.


The judgment referenced several Supreme Court decisions that underscored the employer's discretion in disciplinary actions for unauthorized absence, stating that courts should not interfere with the quantum of punishment unless it is illogical or shocks the conscience of the court.


The bench concluded that the RBI's decision to compulsorily retire Bakuli was justified and proportionate, given his prolonged unauthorized absence and failure to respond to the bank's directives. The court dismissed the petition, finding no merit in Bakuli's claims, and upheld the RBI's actions as compliant with regulatory provisions.


This ruling reinforces the principle that disciplinary authorities have wide discretion in handling employee misconduct, and judicial intervention is limited to instances of clear procedural violations or arbitrary actions.


Bottom Line:

Disciplinary proceedings - Unauthorized absence from duty - Penalty of compulsory retirement imposed under Regulation 47(1)(e) of the RBI (Staff) Regulations, 1948 - Judicial review of disciplinary authority's decision is limited to procedural impropriety, arbitrariness, or malafides - Principles of natural justice do not apply in cases of compulsory retirement.


Statutory provision(s): Regulation 47(1)(e) of the RBI (Staff) Regulations, 1948, Regulation 39(1), Regulation 39(2), Regulation 47(4), Regulation 26(2A)


Animesh Bakuli v. Reserve Bank of India, (Bombay)(DB) : Law Finder Doc id # 2920542

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