NEW BANK,OF INDIA vs N.P. SEHGAL AND ANR.

The Supreme Court held that disciplinary proceedings against an employee do not preclude consideration for promotion if the employee is otherwise fit for it, as per Clause 9 of the Promotion Policy. The Court found that the lower courts erred in concluding that the promotion constituted condonation of prior misconduct. The appeal was allowed, and the order of the High Court was set aside, affirming that the respondent's promotion from Scale III to Scale IV could proceed if deemed fit by the departmental committee, without prejudice to ongoing disciplinary actions.