Court finds no merit in appeal against disciplinary action, confirming removal for Rs. 40 lakh fraud.
The Calcutta High Court, presided over by Justice Md. Shabbar Rashidi, has upheld the dismissal of Sudip Mandal, a former employee of Bangiya Gramin Vikas Bank, in a case involving embezzlement of Rs. 40 lakh. The judgment, delivered on September 28, 2026, rejected the petitioner’s claims of wrongful dismissal and violation of constitutional protections under Article 311.
The petitioner, Sudip Mandal, was removed from his position following a disciplinary proceeding initiated by the bank, which accused him of enhancing a cash credit limit unauthorizedly and transferring a substantial sum to another account. Mandal's appeal against the disciplinary authority’s decision was dismissed, prompting him to challenge the removal through a writ petition.
The court examined several key points raised by Mandal, including the applicability of Article 311 of the Constitution of India, which provides protection to government employees from dismissal by an authority subordinate to the appointing authority. The court clarified that Article 311 does not apply to employees of Regional Rural Banks, as these institutions are not considered government entities or civil posts under the Union or State. Therefore, Mandal, as an employee of Bangiya Gramin Vikas Bank, was not entitled to such protection.
Additionally, the court assessed the procedural conduct of the disciplinary proceedings. The petitioner argued that the proceedings continued without court permission, violating a previous interim order. However, the court found that the petitioner had sufficient opportunity to defend himself and that the disciplinary authority had acted within its designated powers according to the bank's service regulations. The court also noted that the petitioner failed to pursue earlier legal avenues diligently, including a significant delay in filing a statutory appeal.
Justice Rashidi emphasized that judicial interference in disciplinary actions is unwarranted unless findings are perverse or violate natural justice principles. The court found the disciplinary action justified, noting the seriousness of the misconduct and the bank’s right to enforce high standards of honesty and integrity among its employees.
The judgment reaffirms the independent regulatory framework governing Regional Rural Banks and underscores the judiciary's limited role in intervening in administrative disciplinary matters unless procedural improprieties are evident.
Bottom Line :
Article 311 of the Constitution of India does not apply to employees of Regional Rural Banks, as such banks are not considered a government entity or a "civil post" under the Union or State.
Statutory provision(s):
Article 311 of the Constitution of India, Regional Rural Banks Act, 1976, Bangiya Gramin Vikas Bank (Officers and Employees) Service Regulations, 2010.
Sudip Mandal v. Bangiya Gramin Vikas Bank, (Calcutta) : Law Finder Doc id # 2987393
