HC sets aside dismissal of SBI officer, defamation proceedings

The Madras High Court has set aside the dismissal of a State Bank of India officer and defamation proceedings against two other employees, for pasting posters seeking action against top officials for their failure to take action on missing bundles of currency.
The Division Bench, comprising justices V Ramasubramanian and K Ravichandra Baabu stated this while passing orders on petitions by three staff - M V Thangaswamy, president; S Gunasekar, general secretary; and G Arasukumar, treasurer of SBI Ambedkar Trade Union.
"It is unfortunate that a public sector bank like SBI should file a (defamation) suit not only claiming damages for loss of reputation, but also seeking for a prior restraint on the trade union in publishing hand bills, posters and putting up placards," the bench said.

It said the image of the bank cannot be confused with officers at lower level committing fraud, misconduct and embezzlement. When a trade union finds no action is being taken, they can take the issue to the public and the grievance projected in no way amounts to defaming the bank.
"An employee working in a public sector bank also owes a public duty when public funds were frittered away or misappropriated," the bench said.
In May 2006, a sum of Rs 30 lakh - six bundles of Rs 500 denomination - went missing from currency stored in the strong strongroom of Avinashi branch of Coimbatore module in SBI's Chennai circle.

Holding that Chief General Manager Pradip Chaudhary cannot be spared for the loss caused to SBI, the three persons complained to RBI and pasted posters seeking action. They said that cash bundles worth Rs five lakh had gone missing from the Salem branch, Rs six lakh from Rasipuram, Rs 5.5 lakh from Aminjikarai, Rs five lakh from Kulithalai, Rs six lakh from Avinasi, another Rs one lakh from the same branch. The latest was missing of Rs 30 lakh from the branch.

SBI issued them show-cause notices, memos, defamation suits and dismissed one officer on the ground that they pasted posters without verifying the truth and with a view to defame the bank and cause damage to their business and reputation.

Setting aside the dismissal and other proceedings, the court said merely because it has exposed some irregularities, the poster would not affect SBI's commercial interests.The posters had only urged the bank to take action. Specific instances were pointed out to the CGM to take appropriate action. Instead of doing, so the bank had filed the suit.
The bench said exposing inaction of the bank in the light of a series of cash shortages can only be in public interest and making such statements cannot be detrimental to its interest.