Employee committing fraud termination procedure
Mahesh
(Querist) 16 May 2009
This query is : Resolved
Sir,
An employee (peon) in a co operative bank is found to commit the fraud by obtaining signatures of depositors on blank withdrawal slips and withdrawing the money. He has admitted the mistake. The bank's chief executive officer has terminated his services without any further enquiry. The question is whether the officer concerned right in his swift action? Should the bank follow the complete enquiry procedure & Board of Directors issue the termination order? Can our bank succeed in the court if the employee (Scheduled Caste)file the suit against the bank.?
Thanks in advance
CA Mahesh
A V Vishal
(Expert) 16 May 2009
Dear Mahesh,
The CEO of the bank cannot terminate the services merely because the accused has admitted his crime, there is a due procedure to be followed in such cases, at the most he can suspend the employee pending enquiry. The question of caste is unnecassarily raised here, I don't believe why do you think the bank may not succeed if the employee files a suit against the bank.
Further, according to the evidence act, S 24:
"Confession by inducement, threat or promise when irrelevant in criminal proceeding - A confession made by an accused person is irrelevant in a criminal proceeding, if the making of the confession appears to the Court to have been caused by any inducement, threat or promise, having reference to the charge against the accused person, proceeding from a person in authority and sufficient, in the opinion of the Court, to give the accused person grounds, which would appear to him reasonable, for supposing that by making it he would gain any advantage or avoid any evil of a temporal nature in reference to the proceeding against him.".
Any hasty steps without proper legal advise by the bank, will only make the case more weak. Hence advise to consult a good local lawyer to proceed.
Uma parameswaran
(Expert) 17 May 2009
The offence or the allegation wants to prove beyond doubt.The hasty steps taken by CEO is against existing procedure.So the employee have the right to question the action commited by CEO.After commiting an offence trying to take caste as a shield to escape from the same could not survive.
Swami Sadashiva Brahmendra Sar
(Expert) 17 May 2009
