An employee of a bank was placed under suspension in contemplation of a disciplinary enquiry that was initiated against him with the service of a charge sheet. The employee pleaded not guilty. However, disciplinary authority concluded the proceedings rather quickly within a span of just 45 (forty-five) days and submitted a report holding that the employee was guilty on all counts except 2 (two) which were held proved but only partially.
The bank (which is the employer here) accepted the findings and passed an order imposing upon the employee the major penalty of removal from the service. The High Court came to the conclusion that the disciplinary proceedings were not held in an appropriate manner and hence, directed the bank to pay the employee service benefits to the employee. The Supreme Court upheld the decision of the High Court, modifying the amount of compensation to be paid to the employee in this regard.