State Bank Of India & Ors vs S.N. Goyal

The Supreme Court upheld the decision of the Punjab & Haryana High Court, affirming that the removal of the respondent from service by the State Bank of India was arbitrary and illegal under Rule 68(3) of the State Bank of India Officers Service Rules. The Court found that the Appointing Authority had initially recommended a lesser penalty but later imposed a harsher penalty based on extraneous considerations, violating principles of natural justice. Consequently, the Court directed the reinstatement of the respondent with all consequential benefits.