HC quashes J&K Bank officer's dismissal over ‘anti-national activities’

The Jammu and Kashmir and Ladakh High Court has quashed the dismissal of a Jammu and Kashmir Bank officer who was removed from service without a departmental inquiry over alleged involvement in terrorist/anti-national activities.

Saadut Hussain Pampori, who was serving as a Deputy General Manager with J&K Bank, was initially placed under suspension in April 2024 pending an investigation into alleged misconduct.

A few months later, the bank invoked Clause 12.29 of its Officers Service Manual (OSM) and dismissed Pampori from service without holding an inquiry. The dismissal order stated that he was involved in “terrorist/anti-national activities”.

Challenging the order before the High Court, Pampori contended that no FIR had been registered against him and that no investigation had been conducted by any State, UT or Central investigating agency into the allegations of his involvement in terrorist or anti-national activities. He argued that, in the absence of such an investigation, the power under Clause 12.29 of the OSM could not have been invoked.

In its reply, the bank submitted that under Clause 12.29 of the OSM, “once advice is received by the respondent-Bank from the competent authority of the Government regarding dismissal or removal of an employee, such employee has to be terminated or removed from the services of the Bank.”

In an order issued by Justice Sanjay Dhar, the High Court observed that “dismissal of an employee from service without holding an inquiry is a drastic step, which has to be taken only in rare and appropriate cases.”

The court held that, in the present case, “in the absence of any investigation with a finding about involvement of the petitioner in anti-national activities, etc., it was not open to the Managing Director and CEO of the respondent-Bank to issue the impugned order dismissing the petitioner from service.”

“It is, thus, clear that the respondents have passed the impugned order without satisfying themselves about fulfilment of the requirements contemplated under Clause 12.29 of the OSM. The impugned order, being not sustainable in law, is liable to be quashed,” the court said.

The High Court, however, clarified that the bank could follow the procedure prescribed under Clause 12.29 of the OSM and pass a fresh order against the petitioner.

“Alternatively, it shall also be open to the respondent-Bank to proceed ahead with the departmental inquiry against the petitioner,” the court said, noting that such an inquiry had been contemplated following the suspension order.

The court further observed that the suspension order had not been challenged by the petitioner and would therefore stand revived once the dismissal order was set aside.

The order was passed on August 29.

The ruling comes against the backdrop of the J&K administration’s action against government employees over alleged links to terror activities. In several cases, employees have been dismissed under Article 311(2)(c) of the Constitution, which permits dismissal without a regular inquiry where the President or Governor is satisfied that holding such an inquiry is not expedient in the interest of national security.