Supreme Court set aside High Court order that had nullified Canara Bank's 2006 disciplinary downgrade of employee Prem Latha Uppal.
Court held Regulation 10 of 1976 Discipline Rules uses “may” directory, not mandatory, preserving management discretion for joint proceedings.
Supreme Court found the disciplinary enquiry relied on unexamined statements, violating natural justice, and thus vitiated the findings against the respondent.
Court directed Canara Bank to settle the respondent’s account within six weeks, concluding the civil appeal and disposing of pending applications.