In a significant ruling, the Bombay High Court has ordered Punjab National Bank (PNB) to pay ₹5 lakh as compensation to a former employee, Vinayak Balchandra Ghanekar, citing a “manipulated” inquiry process. The court criticized the bank for its handling of the departmental inquiry, which it termed as one of the “worst kinds” of procedural misconduct.
Vinayak Balchandra Ghanekar, aged 63, who was dismissed from service on the day of his retirement on June 30, 2018, had filed a petition against PNB alleging unfair practices in the inquiry conducted over irregularities in a loan amount sanctioned to him. According to Ghanekar, the inquiry was rushed and completed in just one day, preventing him from adequately reviewing the documents or preparing his defense.
The division bench of Justices Ravindra V. Ghuge and Ashwin D. Bhobhe noted that the bank failed to provide a reasonable opportunity for Ghanekar to defend himself, as mandated by the principles of natural justice. The bench was particularly critical of how swiftly the inquiry was conducted, pointing out that the 169-page inquiry report was inexplicably prepared overnight without proper analysis of the documentary evidence.
The court’s judgment highlighted that not only was the inquiry conducted improperly, but also that the appellate and reviewing authorities upheld the decision without just cause. “This could be one of the worst kinds of any departmental enquiry. No prudent employer would have conducted an enquiry in such a manner,” the bench stated in its scathing remarks.
In its ruling, the court quashed the orders of the appellate and reviewing authorities and directed the bank to conduct a fresh inquiry by a practicing advocate who is not associated with the bank. Additionally, the bench suggested that the bank and Ghanekar might consider resolving the matter amicably, perhaps through a settlement that might include a “golden handshake.”
