Supreme CourtEmployment and Labour LawAdministrative and Public Law

Termination of probationer on grounds of alleged misconduct without departmental enquiry is punitive and legally unsustainable.

General Manager, Bank Of Barodav.Ashok Kumar Singh .

Termination of probationer on grounds of alleged misconduct without departmental enquiry is punitive and legally unsustainable.. General Manager, Bank Of Baroda vs Ashok Kumar Singh .. Supreme Court. LawLens
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In brief

The question

1. Whether the termination of a probationer’s service, ostensibly for "unsatisfactory performance" under Regulation 16(3)(a), was a termination simpliciter or a punitive action founded on alleged misconduct

The court held

The Court held that an employer cannot use "unsatisfactory performance" as a disguise to bypass disciplinary proceedings when the real foundation of the termination is alleged misconduct

It also directed

The Court dismissed the Bank's appeal and upheld the High Court's decision to quash the termination; ordered that Respondent No. 1 is entitled to 50% backwages from the date of termination until his date of superannuation, including all consequential benefits notionally, to be settled by Bank of Baroda within three months

01Facts

Respondent No. 1 was appointed as Assistant General Manager (Networking) on probation at Vijaya Bank (now Bank of Baroda) on 05.01.2004

¶ 2-3

During probation, he was suspended on 15.01.2005 for allegedly attempting to unauthorizedly remove confidential tender documents

¶ 3

His probation was extended twice due to "unsatisfactory performance"

¶ 3-4

On 12.04.2005, the Bank revoked the suspension but reserved the right to initiate disciplinary proceedings, which were never actually commenced

¶ 4

On 05.11.2005, the Bank terminated his services under Regulation 16(3)(a) of the Vijaya Bank (Officers’) Regulations, 1982, citing unsatisfactory performance

¶ 5

The High Court of Calcutta quashed the termination, holding it was based on irrelevant considerations

¶ 1, 6

02Issues

i.1. Whether the termination of a probationer’s service, ostensibly for "unsatisfactory performance" under Regulation 16(3)(a), was a termination simpliciter or a punitive action founded on alleged misconduct

¶ 19, 41

ii.2. Whether the Bank's reliance on uncommunicated memos and inconsistent performance reports to terminate a probationer violates the principles of administrative law and natural justice

¶ 11, 36, 44

03Law Applied

The Court applied Regulation 16(3)(a) of the Vijaya Bank (Officers’) Regulations, 1982, regarding the termination of direct appointees on probation

¶ 19

It relied on the doctrine established in Dipti Prakash Banerjee v. Satyendra Nath Bose National Centre for Basic Sciences, which distinguishes between "motive" and "foundation" for terminating a probationer, holding that if a simple order of termination is founded on findings of misconduct without a regular enquiry, it is bad in law

¶ 15, 37

The Court also applied principles from Sarita Choudhary v. High Court of M.P. and Mathew P. Thomas v. Kerala State Civil Supply Corpn. Ltd., stating that courts must look behind the "facade" of a termination simpliciter to determine if misconduct was the real basis for the order.

¶ 24, 42

Provisions in the judgment · 1

Vijaya Bank (Officers) Service Regulations, 1982 Section 16

04Reasoning

The Court observed that while the Bank claimed "unsatisfactory performance," the internal office note dated 05.11.2005 revealed that the Bank initially intended to initiate major penalty proceedings for misconduct (theft of files) but chose the "easier" path of termination under Regulation 16(3)(a) to bypass a formal enquiry

¶ 39-40, 45

The Court scrutinized the three memos used to justify the termination: the first (23.07.2005) was contradicted by a high-praise letter from the Central Board of Direct Taxes; the second (14.09.2005) attributed delays to the employee that were actually caused by SBI’s technical faults; and the third (31.10.2005) was never communicated to the respondent, violating natural justice

¶ 32, 34, 36

Consequently, the Court found the alleged misconduct was the "foundation," not just the motive, making the termination punitive rather than a routine discharge

¶ 41, 43

05Holding

The Court held that an employer cannot use "unsatisfactory performance" as a disguise to bypass disciplinary proceedings when the real foundation of the termination is alleged misconduct

¶ 45

The Court dismissed the Bank's appeal and upheld the High Court's decision to quash the termination; ordered that Respondent No. 1 is entitled to 50% backwages from the date of termination until his date of superannuation, including all consequential benefits notionally, to be settled by Bank of Baroda within three months

¶ 46, 47, 48
Supreme Court

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General Manager, Bank Of BarodavsAshok Kumar Singh .

Supreme Court · May 29, 2026

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