CHENNAI: The Madras High Court has held that disciplinary action against an employee cannot be taken beyond the limitation period of four years as per the policy of the Indian Overseas Bank (IOB).
The ruling was given by Justice T Vinod Kumar on the petitions filed by an assistant general manager who was handed three charge memos and given punishment of reduction in scale and grade just before he was to retire. The petitions were filed b y N Sai Prasad seeking to set aside the charge memos served on him by the authorities concerned and confirmed by the appellate authorities.
Advocate Bala Haridas, representing the petitioner, submitted that Prasad had worked in different branches of IOB in Hyderabad and Mumbai cities from 2007 to 2012. During his service in the aforesaid branches, he did not face any charges. However, charge memos were served on him before his retirement.On the eve of his retirement on January 31, 2020, he was handed the punishments and penalties on charges of recommending granting of loans to two firms without doing proper verification that resulted in the accounts turning into non-performing assets.
The judge, in a recent order, held the entire action and awarding of the punishment “are contrary to regulations and policy of the respondents and thus cannot be sustained”.
He said the embargo, on initiating disciplinary proceedings beyond the four-year limitation period, would stand attracted since the charge memos were issued to the lapses which did not occur within the four-year period.“… since ‘lapse’ for which the petitioner is issued with charge sheet/charge memos resulting in passing the impugned orders by which, he is visited with separate penalties relate to the period, the same are beyond the period of four years and is hit by the restriction imposed in clause 14 of the policy.”