In a significant ruling, the Gujarat High Court has quashed the dismissal of a bank employee more than three decades after the penalty was imposed, calling it “disproportionate” and “stigmatic.” The court observed that such a punishment amounted to an “economic and social death” for the individual.

The case involved N. G. Kotecha, a former employee of the Central Bank of India, who had been dismissed from service in May 1994 after completing 41 years of service. The dismissal followed a departmental inquiry into six allegations, which, according to the petition, did not result in any financial loss to the bank.

A Division Bench comprising Justices B. D. Karia and L. S. Pirzada set aside the dismissal order and directed the bank to substitute the penalty. Instead of dismissal, the court instructed that Kotecha’s basic pay be reduced, ensuring no financial liability falls on the bank.

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During the prolonged legal proceedings, Kotecha passed away, and the case was continued by his legal heirs. The petition challenged an earlier 2024 judgment of the High Court, which had dismissed Kotecha’s plea against his termination.

The court’s latest ruling emphasizes the principle of proportionality in disciplinary actions, highlighting that penalties must align with the gravity of misconduct. By replacing dismissal with a lesser punishment, the High Court reinforced the need for fairness and balance in employer decisions, especially in cases involving long-serving employees.

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