Disciplinary Proceedings Cannot Be Initiated Post-Retirement or After Extended Service: Supreme Court
The Supreme Court, in State Bank of India & Ors. v. Navin Kumar Sinha, invalidated disciplinary proceedings initiated against an SBI employee after his extended service period. The Court held that disciplinary proceedings must be initiated within the employee’s service tenure, including any extended period, to be legally valid. Proceedings commenced post-retirement or post-extension are non-est in law.
The employee, who joined SBI in 1973, was due for superannuation on 26.12.2003 but served until 01.10.2010 due to an extension. Although a show-cause notice was issued on 18.08.2009, the disciplinary proceedings formally began only on 18.03.2011, after his superannuation. SBI argued that the show-cause notice initiated the proceedings, but the employee countered that Rule 19(3) of SBI Officers' Service Rules permits continuation, not initiation, of proceedings post-retirement.
Citing Union of India v. K.V. Jankiraman (1991), the Court clarified that disciplinary proceedings begin with the filing of the charge sheet, not earlier notices. Since the charge sheet was issued after the extended term, the proceedings were void. The Court reiterated that proceedings initiated before retirement could continue post-retirement under a legal fiction of service continuity but cannot commence afterward.
Dismissing SBI’s appeal, the Court directed the bank to release the respondent's pending dues within six weeks.