DIWAN SINGH vs L.I.C. .

The Supreme Court examined the case of Diwan Singh, who was removed from service by the Life Insurance Corporation of India for temporary embezzlement and forgery. The Court held that the punishment of compulsory retirement substituted by the High Court was disproportionate and unreasonable, emphasizing that the misconduct involved a small amount and could have warranted a lesser penalty. The Court ultimately set aside the High Court's order and reinstated the appellant with appropriate compensation, citing Rule 23 of the Life Insurance Corporation (Employees) Pension Rules, 1995 regarding forfeiture of service.