IDD. RRB. NO. C-174/367/86-87

20 June 1987

Secret/Confidential

The Chairman,

(All Regional Rural Banks)

Dear Sir-,

Guidelines for the procedure to be adopted for disciplinary action in RRBs.

We have been receiving a number of references from Chairman of RRBs requesting us for guidance disciplinary procedure to be adopted by RRBs for· disciplinary action against their staff. In order to meet the demands of the Chairman of RRBs, we have prepared a set of guidelines on the above subject with help of our Legal Department and representatives of some sponsor banks/ RRBs. A copy of the manual is enclosed for your guidance.

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GUIDELINES FOR THE PROCEDURE TO BE ADOPYED FOR DISCIPLINARY ACTION IN REGIONAL RURAL BANKS

1. GENERAL

Regulation 30 of the (Staff) Service Regulations, which deals with disciplinary proceedings, provides for the penalties that may be imposed on an officer or employee of the bank guilty of misconduct. The Regulation, which is reproduced below lays down the procedure which should be adopted before penalty can be imposed on an official.

PENALTIES

( i ) Without prejudice to the provisions of other regulations, an Officer or employee who commits a breach of these regulations or who displays negligence, inefficiency or indolence or who knowingly does anything detrimental to the interests of the bank, or in conflict with its instructions or who commits a breach oi' discipline or is guilty of any other act of misconduct, shall be liable to the following penalties:

(a) reprimand;

(b) delay or stoppage of increments or promotion;

(c) degradation to a lower post or grade or to a lower stage in his incremental Scale.

(d) recovery from pay of the whole or part of any pecuniary loss caused to the Bank by the Officer or employee;

(e) Removal from serving which shall not be a disqualification for  future employment;

(f) Dismissal

(ii) No officer or employee shall be subjected  to the penalties referred to in Clause (c), (d), or (f) of sub-regulation (1) except by an order in writing signed by the Chairman and no such order shall be passed without the charge being formulated in writing and given to the said officer or employee so that he shall have reasonable opportunity to answer them in writing and or in person as he prefers and in the latter case his defence shall be taken down in writing and record to him.

Provided that the requirements of this sub-regulation may be waived, if the facts on the basis of which action is to be taken have been established in a Court of Law or Court of Martial, or where the officer or employee has absconded or where it is for any other reason impracticable to communicate with him or there is difficulty in observing them and the requirements can be waved without injustice to him. In every case where all or any of the requirements of this sub-regulation are waived, the reason for so doing shall be recorded in writing.

(iii) The inquiry under this regulation and the procedure with the exception of the final order,  may be delegated, in case the person against whom proceedings, are taken is an officer, and in the case of an employee to any officer. For purposes of the inquiry, the officer or employee may not engage a legal practitioner.

(iv An officer or employee may be placed under suspension by the officer empowered to pass the final order under this regulation. During such suspension, the officer or employee shall receive subsistence allowance equal to one-third of the basic pay the officer or employee was receiving on the day he is put under suspension plus dearness allowances and other allowances excluding conveyance allowance, entertainment allowance and special allowances calculated on the reduced pay for the first three months of suspension. For the subsequent period after three months he shall be entitled to draw 1/2 of the basic pay plus the dearness allowances and other allowances specified above calculated on the reduced pay.

Provided that if no penalty under clause (b), (c), (d), (e) or (f) of sub-regulation imposed, the officer or employee shall be refunded the difference between the subsistence allowance and the emoluments which he would have received but for such suspension, for the period he was under

Suspension, and that, if a penalty is imposed on him under all or any of the said clauses, no order sha11 be passed which shall have the effect of compelling him to refund such subsistence allowance. The period during which an officer or employee is under suspension shall, if he is not dismissed from the service, be treated as period spent on duty, leave, or period not spent on duty as the officer who passes the final order may direct.

The penalty prescribed in sub-regulation (1) can be imposed only after following the procedure as laid down in the regulation strictly in accordance with the principles of natural justice. Broadly stated, in a case of disciplinary action, those principles require that :

i) there is good and sufficient reason for formulating the charges;

ii) the charge-sheeted official knows precisely what the charges are against him and the grounds on which these have been based;

iii) the employee is given reasonable opportunity to show cause against the penalty proposed to be imposed on him.

2. CATEGORY OF EMPLOYEES

The term 'Officer and 'employee' for the purpose of disciplinary proceedings under Regulation 30 relate to persons appointed to any of the posts specified in sub-regulation (2) and (3) respectively pf regulation 3 and governed by the provisions of  the (Staff) Service Regulations. Temporary staff appointed in terms of Regulation 4 also will be covered by the word “employee” if their appointment order provides for application of Chapter· IV of the Regulation to them. In this note whenever a reference is in respect of both ‘Officer’ and 'employee' the term 'Official' has been used.

3.         DISCIPLINARY AUTHORITY

The authority competent to institute disciplinary proceedings (here in after referred to as “thedisciplinary authority'' against an official of the bank under the (Staff) Service Regulations, is its Chairman. The power to hold enquiry can however be delegated by the disciplinary authority. Regulation 30(3) provides that the enquiry and the procedure may be delegated in case the person against whom proceeding are taken is an officer, to any officer who is senior to such officer and in case of an employee, to any officer. However, the final order on the basis of the enquiry can be issued only by the Chairman under his signature. In every case of delegation of powers to hold an ‘enquiry', a formal memorandum of delegation has to be issued under the signature of the Chairman authorising the Enquiry Officer to hold the oral enquiry.

4 . ACT OF MISCONDUCT

The various types of misconduct which would render an official liable to disciplinary action have been mentioned in Regulation 30(f) of the (Staff) Service Regulations which also provides for dealing with officials guilty of “any other misconduct; not included therein. It may be added that the act of which would warrant disciplinary action against an official need not necessarily be one that is committed during office hours and within the bank’s premises only. Any misconduct committed within the bank's premises (even if not directly connected with the official's official duties), or outside the bank if  the act can be considered as detrimental to the interest of the bank or is inconsistent with the discharge of official’s duties, come within the purview of Regulation 30.

5 PRELIMINARY PLAN

As soon as an act of misconduct 1s brought to the bank's notice an officer who is a superior of the official and who is administratively authorised in this behalf should conduct a preliminary investigation and on the basis of the results of such investigation, issue to the delinquent official a memorandum/letter stating therein in a clear and precise manner the facts and circumstances of the incident and advising the official to submit his explanation in regard to the alleged misconduct by a specified date (normally a week's time may be allowed; but extension of the period may be granted bn request at the discretion of the official issuing the letter/memo depending on the genuineness of the request). It may be that some other officers/employees were involved in the incident and it would be necessary to call for an explanation from each one of them also. The intention is that as exhaustive and factual account of the incident as can be obtained should be kept on record in the interest of natural justice and fair play. The purpose of the preliminary investigation is to arrive at a decision as to whether or not disciplinary proceedings should be instituted against the delinquent official and this being so, it is desirable, that the investigation/examination of other officials connected with the incident is not.made in his presence.

6. EMPLOYEE’S EXPLANATION

When the explanation is received, a detailed report should be forwarded to the Disciplinary Authority with the comments of the superior who had issued the memorandum letter as to whether the explanation is acceptable to him with due regard to the evidence available in support of the charges.

If the explanation is not submitted, a further extension of time may be given in writing to the official and if, even then, no explanation is forthcoming the Disciplinary Authority should be advised to that effect and he shall, without waiting any further, take suitable decision for initiating disciplinary action.

The explanation submitted by the official in response to the memorandum/letter issued to him as also the detailed report should be considered by the Disciplinary Authority and on an assessment of the contentions made therein, he' may decide (a) to accept the explanation and close the case or (b) to start disciplinary proceedings against the official. In the latter case, a formal charge-sheet should be drawn up and served on the official. The decision whether to initiate disciplinary action or not against the concerned official should be taken by the Disciplinary Authority preferably within a fortnight of the receipt of the detailed report.

7. WHEN ENQUIRY CAN BE DlSPENSED WITH

(a) Where the Disciplinary Authority considers the explanation submitted by the official as satisfactory be may drop action against the official concerned. The Disciplinary Authority has,  however, no discretion to compromise a misconduct and decide not to take disciplinary action.

(b) If, on perusal of Show-cause notice and the explanation submitted by the official the Disciplinary Authority considers that the act of misconduct committed by the official, is such that the penalty of reprimand would meet the ends of justice,no formal enquiry need be held Regulation 30(2) ibid).

(c) It the charge-sheeted official has unconditionally confessed to his guilt and does not plead any extenuating circumstances as. an excuse to the misconduct, the formal enquiry may be dispensed with and the Diciplnary Authority may proceed to issue show~cause notice on penalty (see paras 10 and 19 below).

8. CHARGE SHEET

Where it is proposed to hold an enquiry the Disciplinary Authority shall frame definite and

distinct charges on the basis of the allegations against the official and the articles of charge, together with a statement of the allegations on which they are based shall be communicated in writing to the official and he shall be required to submit within a specified time (not exceeding 15 days) his defence in writing. In case he chooses to submit his defence orally, the same shall be noted by the disciplinary authority in the presence of the delinquent and get the same signed by the delinquent. On specific request from the charge-sheeted official, extension of time may be granted by Disciplinary Authority at his discretion after an assessment of the merits and ensuring that it is not on frivolous grounds or with the intention of adopting delaying tactics.

The essential characteristics of a charge sheet are:

a) , The charge/s should be clearly and precisely set out in simple language with correct account of facts including the date, time and place of the occurrence of the incident.

b) It should be strictly confined to the act/acts of misconduct alleged and in regard to which explanation was obtained.

c) In case there are more than one charge, each charge should be set out separately and should contain reference to relevant standing orders or regulations. If the type of alleged lapse or offence is not specified on the standing orders or regulations, the act of misconduct should be mentioned in detail.

d) It must state the regulation under which it is being issued (viz~ Regulation 30 of the (Staff) Service Regulation).

e) It should be issued under the signature of the Disciplinary Authority.

A. Charge-Sheet should not

i) contain vague charge/s;

ii ) be so worded so as to give the impression that Disciplinary Authority is prejudiced in the matter;

iii) refer to the Past record or acts of the official.

iv) contain expression of opinion as to the guilt of the official.

9. SERVICE OF CHARGE-SHEET

It is necessary that the charge sheet is served on the official as early as possible. The common method of serving a charge-sheet is by personal service when the official’s signature is obtained on the duplicate copy of the charge-sheet. If the official refuses to accept the charge-sheet, note to this effect should be made in the duplicate copy of the charge-sheet by the person entrusted with the duty of serving the charge-sheet and this could be countersigned by another person witnessing such service. Where, however; .the charge-sheet cannot be served in person, it is advisable to send it under registered post with acknowledgement due to the latest available address of the official in the official records or to his latest known address. Where the registered cover is returned with the endorsement ‘refused’ the presumption is that the cover was presented to the addressee but was not accepted; hence in effect it becomes a valid service.

Simultaneously with or immediately after the issue of charge-sheet, the official should be furnished with a list of witnesses who would be examined on behalf of the bank. Similarly, the charge sheeted official should be advised in the charge-sheet itself to submit a list of witnesses he would wish to produce in his defence. It should however, be noted that non-submission of such a list by the charge-sheeted official does not entitle the bank to deny him production of witnesses at the time of enquiry.

10 PROCEDURE FOR ENQUIRY

RIDER -I

(A)      GENERAL :

In every case of disciplinary action, where a Charge Sheet has been issued, it is necessary to have a formal enquiry. There may be Cases where the official who is issued Shah sheet may confess his guilt and seek pardon. In these cases where the disciplinary authority is not inclined to grant a pardon as requested, a question arises whether a forma1 enquiry should be held. If discipline authority is satisfied that the admission of the charges on the part of the employee is unconditional and does not plead any extenuating circumstances that discipline authority may decide to dispense with a formal enquiry and proceeded to record his findings and propose such penalty or penalties, as he may consider fit and proper and issue notice of the proposed penalties to the delinquent official and call upon him why such penalties should not be imposed (see para 19 below). If the admission of the charges by the official is subject to conditions or subject to certain extenuating circumstances mentioned in the admission or the charges involve a major misconduct, then it may be necessary and advisable to hold a formal enquiry.

Whenever the disciplinary authority decided upon holding of formal enquiry, he should intimate the official to whom the charge sheet has been issued of the holding of the departmental enquiry. In cases where it is decided to hold  formal enquiry instead of the admission by the official charges made against him or where the official admits the charges after the enquiry has commenced, it would be necessary to read out the charges to him, explain them whenever record the evidence in support of the charges and obtain the officials admission in writing. In case the official refuses to give in writing admission of the charges read out to be recorded by the Enquiry Officer in the proceedings of the day and got it signed by the representatives for both the sides. Where the official does not accept the charges, a more elaborate oral enquiry should be held. While the oral enquiry is not a judicial enquiry, it is absolutely essential that in conducting such an emquiry, principles of  natural justice are observed and adequate opportunity is given to the charge sheeted official to enable him to put up a proper defence.

(B) ENQUIRY OFFICER

Enquiry may be held either by the Disciplin ary Authority himself or the power to hold the enquiry may be delegated es provided for in Sub-Regulation (3) of Regulation 30 of the (Staff) Service Regulations, In the latter case a formal order appointing an Enquiry Officer should be issued. The essential qualifications of a person chosen as an Enquiry Officer are his competence, confidence and open mindedness. Broadly speaking rules of natural justice require that the person holding the enquiry:

i) should not himself be personally interested in the alleged misconduct;

ii) should not be biased in favour of or against either of the parties; to ensure impartiality and objectivity; and

iii) should not be an eye-witness or a victim of the incident relating to the alleged misconduct.

As soon as an Enquiry Officer is appointed the official concerned should be advised in this regard.

(C) CHANGE OF ENQUIRY OFFICER

(i) Enquiry Officer should not be changed till the enquiry for which he is appointed comes to an end. If owing to circumstances beyond the control of the Management an Enquiry Authority has to be changed then it is within the discretion of the new Enquiry Officer to hear the case de novo or from the stage where it has reached, keeping in mind the fact that the official must receive fair and just treatment consistent with the principles of natural justice.

RIDER - II

(ii) if the charge sheeted official makes a representation either before, or after commencement of the enquiry proceedings, that the enquiry officer biased or prejudiced against him for reasons, indicated in his representation, the discipline authority may consider the objection, and if he is satisfied that there is substance in the objections raised by the official, pass orders, finding a new enquiry officer.

RIDER - III

(D) PRESENTING OFFICER

The bank may appoint an officer to present the Bank's case before the Enquiry Officer. It shall be the endeavour of this officer to establish or prove the charges to the satisfaction of the Enquiry Officer by producing witnesses and other documentary and other evidence in support of the charges. He will act as the representative of the Management in the enquiry proceedings. He will examine the Management’s witnesses and cross-examine the witnesses produced by the delinquent official.

(D) SUPPLY OF COPIES OF RELEVANT DOCUMENTS :

On request, the charge-sheeted official shall be supplied with a copy of the original report on the basis of which the charge/s has/have been framed aga~nst him as well as copies of such other reports or statements which have been relied upon for the facts of the case that have been included in the charge-sheet. If the charge-sheeted official expresses his desire to examine/pursue the office records which form material evidence in regard to the charges, his request has to acceded to. Whether a certain report or statement or register is relevant for the purpose of the charge-sheeted officer/employee's defence or not, is normally decided by the Disciplinary Authority; but it is desirable in the interest of natural justice to allow the employee access to material even though seemingly insignificant to his defence provided the request is otherwise considered reasonable. Denial of such material very often results in avoidable delay and is likely to prompt the official to adopt dilatory tactics. It is not necessary that the charge-sheeted employee should be supplied with copies of report, statements, etc. only after he has replied to the charges. If reasonable, request for supply of copies of relevant documents may be considered even before he submits his reply to the charges, but it is absolutely essential that the disciplinary authority uses his discretion in this regard prudently. Care should ·be taken to supply the charge-sheeted official with copies of only such of the comments as are to be relied upon by the Bank to be brought in evidence during the oral enquiry or such other as may be considered necessary for the proper defence of the employee keeping in view the principles of natural justice.

(F) DEFENCE REPRESENTATIVE :

RIDER IV

A charge-sheeted official has every right to represent his own case. At this option, he may be allowed to be represented by any other employee of the bank or an officer bearer of the trade union of which he is a member. In such cases, the charge sheeted employee should address letter to the bank or if an Enquiry Officer is already appointed to the Enquiry Officer concerned, proposing such representative as his nominee and declare that he (the charge sheeted official) will be bound by all that the nominee does, says or signs. Wherever an Officer bearer or other number of the trade Union is deputed by the Union to def'end the charge sheeted employee, a formal letter should be addressed by the Trade Union stating that the nominee of the charge sheeted employee has been deputed as its representative to defend the charge sheeted employee. It is not necessary that the Union should have been recognised by the Bank. lt.is sufficient if the Union of the Bank emloyees is a registered Union.

Generally, the charge-sheeted, official is not entitled to be represented by a legal practioner or. an outsider who is not connected with the Bank. However, if the presenting officer is a legally trained man including a Law Officer or a Legal Adviser of the Bank, the delinquent employee will have a right to be defended by a Lawyer notwithstanding the prohibition contained in Sub Reg (3) of Reg 30 of the Staff Service Regulations. (Board of Trustees of the Port of Bombay Vs. Dr. Nadkarni - AIR 1983 - Supreme Court Page 109)

If an employee is charged for a cross misconduct involving criminal offences like fraud , mis-appropriation, embezzlement of accounts, ·forgery, theft, etc. and if he so indicates to be represented by a lawyer in the enquiry, the Enquiry Officer/Disciplinary Authority may notwithstanding the prohibition contained in Sub-Reg. (3) of Reg. 30 of the Staff Service Regulations, consider such requests in the light of the facts and circumstances of the case and consider allowing the delinquent official to be represented by a legal practitioner or any other outsider of the choice of the delinquent. In such cases, the Bank also may consider getting its case represented by a legally trained person or a legal practioner or a Law Officer of the Bank.

As to the question whether in a given case the charges are of a serious and of a complex nature involving criminal offences or not has to be decided by the Enquiry Officer/ Disciplinary Authority on the basis of the facts and circumstances of the case and if necessary the Legal Advisor of the Bank may be consulted.

The role of the defence representative is to present the charge sheeted employee's case, examine and cross examine witnesses, raise objections to procedural lacunas, if any, and sum up the case on behalf of the employee. The representative should not be allowed to give oral evidence on behalf of charge-sheeted employee nor should he be permitted to answer questions put by the Enquiry Officer to the charge-sheeted employees. In the case of any enquiry against ah officer, the Disciplinary Authority may at his discretion allow the officer to be defended by another officer of the bank.

11  CONDUCT OF ENQUIRY

(A) GENERAL

RIDER - V

The Enquiry Officer shall fix the date, time and venue for oral enquiry and thereafter give notice to both the parties in this regard. If the official does not attend on the appointed date and the case is adjourned then a fresh notice should be sent. Where the employee refuses to accept the notice, the fact should be officially recorded by the official serving the notice and counter signed by another person in whose presence such notice is sought to be served. ln such cases it is also desirable to send the notice to the employee's address by registered post with acknowledgement due and to preserve the postal documents. While issuing the notice it should be seen that the charge-sheeted employee gets adequate notice. If the official does not present himself at the enquiry or after presenting himself walks away or fails to attend subsequent adjournments without sufficient cause, the Enquiry Officer may record an order declaring him ex-parte and proceed ahead with the enquiry in the absence of the delinquent.

Where there is no strict rule for selecting the place of inquiry, as far as possible, it should be arranged at a place where the charge-sheeted employee is employed. If for any administrative or other special reasons it becomes necessary to hold the enquiry at a place away from the place of work, it should be seen that the employee, is not put to undue hardship.

The enquiry into the charges against an official should be conducted in his presence and in the presence of his representative, if any. It is only where he refuses to participate, the enquiry can be held ex-parte. Arrangements should be made for a stenographer/typist being present to record the proceedings. Apart from the Enquiry Officer and his Stenographer/typist, the following persons may be present during the proceedings in the room where the enquiry is conducted ;

i) the charge-sheeted official;

ii) the charge-sheeted official’s representative if any.

iii) the Presenting Officer;

iv) any person chosen by the Enquiry Officer to provide him with necessary secretarial assistance.

The witnesses should be called in one by one for examination as and when considered necessary and at the time evidence of a particular witness is being taken, the other witnesses should not be permitted to be present in the room where the enquiry is being conducted.

(B)       READING OUT THE CHARGES

When the enquiry commences, the Enquiry Officer should record the date and time of the enquiry and the names of the persons present. He should also formally ask the charge-sheeted official his name, designation and the office/department to which he belongs, to established his identify. Then the Enquiry Officer should take on record both the charge-sheet and the employee's written reply, if any. The Enquiry Officer should himself read out the charged to the charge-sheeted employee. In case the charge-sheeted employee is not familiar with English language, the charges should be explained to him in the local language with which he is familiar. He should ask the official understands the meaning of the charges and whether he admits the charges; the eployee's reply (not from his representative) should be recorded. Then the Enquiry Officer should explain to all present, the procedure he would be adopting for the enquiry and record this.