Bank clerk service not to be reinstated in the event of loss of confidence: High Court
The Delhi High Court has declared that bank employees have the greatest responsibility to ensure the integrity of the banking system as well as to maintain the trust of customers and therefore their reinstatement should not be allowed in the event of loss. of trust due to fault.
Judge Prathiba M Singh, while overturning a labor court order dismissing the dismissal of a bank employee who allegedly transferred funds to his personal accounts, said customers trust the bank agents who speak with them a fiduciary relationship and even a suspicion of professional misconduct on the basis of certain evidence is sufficient to confirm their dismissal.
“Once there is a loss of trust, this too by a bank as one of its officials, the standard against which such loss of trust / trust has to be tested cannot be a very high standard. Even a suspicion or doubt, with some credibility or some evidence, would be sufficient to objectively justify the termination of service.
âThe Court cannot lose sight of the fact that customers who visit banks develop friendly relations with officials, however, these officials then have a greater duty and responsibility to protect their clients, as well as the interests of the bank, rather than abuse their trust and faith in the banking system, âthe court said in its Dec. 17 order.
âThe banking system is the backbone of the economy of any country. Employees and officials working in banks clearly have a greater responsibility to ensure the integrity of the banking system and to maintain the trust of millions of customers. , who trust them, “he added. .
Here, the respondent employee – a one-stop shop working with the Senior Citizens Saving Scheme – was terminated by the State Bank of India in 2010 for allegedly seizing customers in his personal accounts.
The labor court overturned the termination on the grounds that the bank had failed to meet its obligation to prove the Respondent’s misconduct by means of the required evidence and the State Bank of India asked the High Court to challenge decision.
The court observed that the present case came from a time when the use of computers in banks and online banking was in its infancy and when it was quite customary for customers and depositors to visit. daily in banks to deposit and withdraw funds.
She noted that there had been incidents to show that the Respondent had abused his status for his own personal benefit and that a substantial sum of over Rs 500,000 was deposited into the Respondent’s account although ‘it was returned later with interest.
“There can be no explanation as to how such amounts belonging to the bank’s customers could even be deposited, and this too while said amounts were reflected in said customers’ passbooks,” the court said.
“Such incidents at any branch of a bank would result in loss of trust and confidence in the bank, especially in the case of local customers as they can spread such incidents by word of mouth. The loss is not to be judged only monetarily but also in terms of the goodwill / faith of the customers in the bank, and the resulting loss of confidence for a bank. That in itself is sufficient. This is the clear conclusion of this Court that when there is loss of confidence, restoration should not be allowed, “he added.
Confirming the termination, the court ordered the bank to release a lump sum of Rs 20 lakh in favor of the respondent along with all statutory contributions, such as contingency fund and bonus, without making any deductions, until on the date of termination, in case the same has not already been published.
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