SC upholds removal of post office staffer from service for misappropriating funds

New Delhi, Nov 13 (PTI) The Supreme Court on Thursday upheld the removal of a post office employee from service for misappropriating funds received from account holders, saying the relationship of a customer with a banker is of mutual trust.

The apex court was dealing with an appeal challenging a September 2024 order of the Rajasthan High Court which had set aside the penalty of removal imposed upon a 'gramin dak sevak'/ branch post master.

The top court noted that certain irregularities were found during inspection in June 2011 regarding misappropriation of public funds where the employee, despite receiving amounts from the account holders, had not entered the same in the books of accounts.

A bench of Justices Rajesh Bindal and Manmohan said the high court had opined that mere suspicion was not enough to punish him, not realising the fact that it was not a case of mere suspicion.

"The documents clearly established the factum of embezzlement. The passbooks of the account holders were stamped with the receipt of the amount with no corresponding entries in the books of accounts maintained in the post office," the bench said in its judgment.

The bench said it was a matter of chance that the embezzlement came to the notice of the authorities and action could be taken against him.

"However, the fact remains that mere deposit of the embezzled amount will not absolve an employee of the misconduct. Relationship of a customer with a banker is of mutual trust," it said.

The top court said an account holder may not be privy to the manner in which the accounts were maintained by the post office and also whether the corresponding entries were made or not in the books of accounts maintained there.

It said the employee tried to explain the embezzlement by stating that on account of ignorance of the rules, the passbooks of account holders were stamped.

"Such an explanation cannot be accepted being farfetched. He had been in service for about 12 years. Ignorance of rules of the procedure with so much experience cannot be accepted," it said.

While allowing the appeal filed by the Centre and others, the bench set aside the high court's order and upheld the punishment imposed upon him.

The bench noted that a chargesheet was served upon him in December 2013 and an inquiry officer was appointed, who submitted his report finding that the charges against him stood proved.

It said that after giving due opportunity of hearing to the employee and considering his reply, an order was passed by the disciplinary authority in December 2014 and he was removed from service. PTI ABA ABA KSS KSS