M.P. STATE COOP. BANK LTD., BHOPAL versus NANURAM YADAV AND ORS.

M.P. STATE COOP. BANK LTD., BHOPAL versus NANURAM YADAV AND ORS.

Termination of employees by the Bank, based solely on the report of the Lokayukt and without following the prescribed service rules or affording notice/opportunity to employees, is not sustainable; elaborate procedures under the M.P. Cooperative Societies Act and service rules are mandatory before termination.

Parties
Appellant: M.P. State Coop. Bank Ltd., Bhopal; Respondents: Nanuram Yadav and Ors.
Jurisdiction
India
Judgment Date
25 September 2007
Procedural Posture
Civil Appeal / Final (supreme Court Judgment)
Outcome
Appeals of employees allowed, appeal of Bank disposed of.
Legal Topics
Public Appointments, Termination of Employment, Principles of Natural Justice, Jurisdiction of Lokayukt, Regularization of Employment
Service Law Administrative Law Public Appointments Termination of Employment Principles of Natural Justice Jurisdiction of Lokayukt Regularization of Employment

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Parties

M.P. State Coop. Bank Ltd., Bhopal

Appellant

Nanuram Yadav and Ors.

Respondents

Procedural Posture

Civil Appeal / Final (supreme Court Judgment)

Legal Issues

  1. 1 Whether the appointment and regularization of 58 clerks-cum-typists was illegal
  2. 2 Whether termination was valid without affording opportunity to employees
  3. 3 Jurisdiction and procedure of Lokayukt under statutory provisions

Ratio Decidendi

Termination of employees by the Bank, based solely on the report of the Lokayukt and without following the prescribed service rules or affording notice/opportunity to employees, is not sustainable; elaborate procedures under the M.P. Cooperative Societies Act and service rules are mandatory before termination.

Court Disposition

Appeals of employees allowed, appeal of Bank disposed of.

Orders

  • Decision and direction of Bank and Registrar terminating services are set aside.
  • No need to remand the matter to Registrar or other authority for adjudication of status of employees.