CEO, KRISHNA DISTRICT COOP. CENTRAL BANK LTD vs K HANUMANTHA RAO

The Supreme Court addressed the legality of the High Court's decision to reduce the penalty imposed on an employee of the Krishna District Cooperative Central Bank Ltd. from dismissal to stoppage of increments. The Court held that the High Court exceeded its jurisdiction by altering the penalty without sufficient justification, as the employee had admitted to dereliction of duty leading to significant financial misappropriation. The Court reinstated the dismissal order, affirming the disciplinary authority's decision under the principles of natural justice and the gravity of misconduct involved.