Facts
The respondent joined Punjab & Sind Bank (P&SB) as a Clerk/Cashier in 1987 and was a Senior Manager (MMGS-III Scale) when he was suspended in 2011
Source reference: para. 2aFollowing a disciplinary inquiry, he was dismissed from service in 2024 for conniving with an officer and a gunman to misappropriate customer funds and steal bank records
Source reference: para. 2a, 2bWhile the respondent was dismissed, the co-delinquent gunman was awarded compulsory retirement and the officer received a reduction in pay
Source reference: para. 2bThe respondent challenged the quantum of punishment before the High Court of Delhi, seeking parity with his co-delinquents
Source reference: para. 2eA Single Judge modified the dismissal to ‘compulsory retirement’ on the grounds of Article 14 discrimination, finding no substantial difference in the roles of the three employees
Source reference: para. 1, 2eA Division Bench of the High Court affirmed this decision
Source reference: para. 2fP&SB appealed to the Supreme Court.
Source reference: no citationIssues
1. Whether the High Court was justified in interfering with the disciplinary authority's choice of punishment on the grounds of parity under Article 14
Source reference: para. 6, 112. Whether the higher rank and accountability of an employee constitute a valid ground for imposing a more stringent punishment than that awarded to lower-ranking co-delinquents
Source reference: para. 13Law Applied
The Court reaffirmed that judicial review is directed against the "decision-making process" rather than the decision itself, and courts should not substitute their own conclusion on penalty unless the punishment is "shockingly disproportionate" or "shocks the conscience"
Source reference: para. 8b, 8c, 9It relied on B.C. Chaturvedi v. Union of India, which restricts judicial interference to rare cases where the punishment is an outrageous defiance of logic
Source reference: para. 8cThe court applied the principle that "authority carries accountability," meaning higher-ranking officials are held to a stricter standard of integrity and responsibility than subordinates
Source reference: para. 13It distinguished the present case from Sengara Singh v. State of Punjab, noting that parity is not applicable when there is a convincing reason for differential treatment, such as a difference in rank
Source reference: para. 15Reasoning
The Court observed that the respondent held a position of significant trust as a Senior Manager, which distinguishes him from the co-delinquents (a gunman and a subordinate officer)
Source reference: para. 13The Court critiqued the High Court's application of the parity principle, stating that equating a branch manager with a gunman is in "outrageous defiance of logic and reason"
Source reference: para. 15The Court reasoned that the respondent’s rank necessitated not only personal obedience but also the supervision of subordinates, justifying a harsher penalty for his breach of trust
Source reference: para. 13The Court held that the disciplinary authority is the best judge of maintaining workplace discipline and that the imposition of a more stringent punishment on a higher-ranking official is neither irrational nor disproportionate
Source reference: para. 9, 14Since the respondent's role involved an increased degree of responsibility, the differentiation in punishment did not constitute invidious discrimination under Article 14
Source reference: para. 13, 14Holding
The Supreme Court allowed the appeal and set aside the judgments of both the Single Judge and the Division Bench
The Court held that the High Court erred in interfering with the quantum of punishment as the respondent’s seniority and supervisory role provided a compelling basis for a harsher penalty than his co-delinquents
Source reference: para. 13, 17The Court restored the disciplinary authority’s original order of ‘dismissal from service’ against the respondent
Source reference: para. 18Original Court PDF
Punjab And Sind BankvsRaj Kumar
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