PAWAN KUMAR AGARWALA vs GENERAL MANAGER-II AND APPOINTING AUTHORITY .

The Supreme Court upheld the decision of the Gauhati High Court which modified the penalty imposed on the appellant from dismissal to a reduction of one increment for one year, while reinstating him without back wages. The Court found that the High Court correctly assessed the negligence in the loan disbursement process, emphasizing that the appellant had taken appropriate steps. The ruling clarified that the period of dismissal would count as continuity of service for pension purposes, thus affirming the High Court's order under the principles of service law and administrative justice.