Gujarat High Court
Employment and Labour LawAdministrative and Public Law

Criminal acquittal does not automatically exonerate an employee in departmental proceedings.

KARMARSINH LAKHABHAI DESAI vs STATE BANK OF INDIA (SBI)

Gujarat High CourtJUDGMENT: September 25, 20262 MIN READSOURCE JUDGMENT
Criminal acquittal does not automatically exonerate an employee in departmental proceedings.. KARMARSINH LAKHABHAI DESAI vs STATE BANK OF INDIA (SBI). Gujarat High Court. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

In 1993, the appellant received a penalty of censure for negligence concerning missing OL-series draft forms at the Bansda branch, which he accepted.

Source reference: p.1

In 1994, the Bank initiated a separate disciplinary proceeding alleging that he had fraudulently used a missing draft for ₹30,000.

Source reference: pp.2–4, 8–10

The inquiry officer found the charge proved, relying in part on handwriting-expert evidence connecting the appellant to the draft and to an account-introduction form associated with the transaction.

Source reference: pp.2–4, 8–10

The disciplinary authority dismissed him in 1998; the appellate authority upheld the dismissal, and the Single Judge dismissed his writ petition.

Source reference: pp.4–6

In the Letters Patent Appeal, the appellant relied, among other things, on his acquittal in the criminal case and challenged the sufficiency and credibility of the departmental evidence.

Source reference: pp.6–7
02

Issues

Whether the appellant’s acquittal in the criminal proceedings required his exoneration in the departmental inquiry concerning the same transaction.

Source reference: pp.6–8

Whether the departmental finding of guilt was supported by sufficient evidence, including the handwriting-expert opinion, notwithstanding the dispute over whether the draft forms had been received at the Bansda branch.

Source reference: pp.8–11

Whether the disciplinary findings warranted interference in writ or Letters Patent Appeal jurisdiction.

Source reference: pp.7–8, 11–12
03

Law Applied

A criminal acquittal does not automatically exonerate an employee in departmental proceedings: criminal guilt must be proved beyond reasonable doubt, whereas departmental charges are determined on the balance of probabilities.

Source reference: p.8

In judicial review of disciplinary proceedings, interference is limited; where adequate evidence supports the disciplinary finding, the reviewing court does not reappreciate that evidence as an appellate fact-finder.

Source reference: pp.7–8, 11–12

The judgment cites no specific statute or precedent.

Source reference: no citation
04

Reasoning

The Court rejected the argument that the criminal acquittal controlled the departmental outcome because the two proceedings apply different standards of proof.

Source reference: p.8

It found that the draft resurfaced and was encashed while the appellant was posted at the Prabhat Society branch, and that the purported signature of V.B. Barot on the draft was attributed by the handwriting expert to the appellant; the Court also relied on the appellant’s handwriting on the account-introduction form connected with the account receiving the proceeds.

Source reference: pp.8–11

Those circumstances, in the Court’s view, sufficiently connected the appellant to the fraudulent encashment.

Source reference: pp.8–11

Even assuming the Bank had not established receipt of the draft forms at Bansda, the evidence concerning the forged signature and account-introduction form supported the finding of involvement.

Source reference: p.11

The Court therefore found no basis for appellate interference with the concurrent disciplinary findings.

Source reference: pp.11–12
05

Holding

The Court held that the criminal acquittal did not automatically invalidate the departmental finding and that the record contained sufficient evidence to sustain the finding of misconduct.

It dismissed the Letters Patent Appeal.

Source reference: p.12
Gujarat High Court

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KARMARSINH LAKHABHAI DESAIvsSTATE BANK OF INDIA (SBI)

Gujarat High Court · September 25, 2026

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