• Dismissal from PSU service with no benefits

Dear Sir,

1. My  father served in UBK Gramin Bank,WB  for almost 30 years till he was dismissed from service on Dec 20,2013, after a long enquiry procedure. He was found guilty of wrongly sanctioning a lot of loans, thus  causing massive damage to bank’s funds.

2.	He has suffered from extremely bad health since 2010, which got worse and was eventually unable to attend office from mid 2013. He did not receive any salary or medical benefits from the bank since that time.Also he never received subsistence allowance or any other allowance upto his dismissal. 

3.	He appealed on January 2014, but it was rejected. So, he had decided to go to court, challenging the bank’s decision and he asked the bank not to issue Termination Settlement statement.  But somehow we did not start court case, due to his extreme poor health, blindness due to diabetes and our money problems. We finally decided to initiate high court case against bank decision on July 2015. But case did not start on time, and unfortunately he died on November, 2015. Now our lawyer tells that there is no scope for filing any case against bank's decision of dismissal.

4.	Now the bank is not giving anything to us (legal heirs) except  EPF own Contribution, and at the same time they are refusing to issue a formal statement denying the other benefits ie, gratuity, insurance.  They have verbally refused to release our property deed on which equitable mortgage was done for his house building loan. Till now they have ignored our letters, requests and communication.

5.	My father had loans about  Rs.11.5 Lakhs, bank officials are verbally asking me to liquidate the loans.  My father has about Rs 5.5 Lakh own EPF which the bank will simply deduct, leaving about 6 lakhs unpaid loan.

6.	Can a case against my dad's dismissal still be filed against the bank ie, after his death? Should I go on to pay off the Rs 6 Lakh loan simply based on hearsay and small-talk with the bank officials? What is the most logical thing to do? 
We want to file a case against bank. Please help.

Manojit
Asked 8 months ago in Labour from Cooch Behar, West Bengal
1. The bank has the right to refuse to release the title deed of the property if the loan is not repaid. The contractual liability to repay the loan has now fastened to the legal heirs of your father. On the demise of the borrower his debts can be enforced against his legal heirs if there is succession of property in their favour.

2. Legally speaking, the dismissal of your father can be challenged by his legal heirs but the case will be very weak as your father who had personal knowledge of the circumstances in which he was dismissed will not be there to lead evidence in the court.

Ashish Davessar
Advocate, Jaipur
18057 Answers
445 Consultations
5.0 on 5.0
The loan taken by your father was unsecured loan meaning thereby that he did not give any security of property while acquiring the loan.
If that is so then the unsecured loan extinguish with the death of the borrower and the son has no liability to pay off the debt of his deceased father.
So the bank at the most the adjust his retiral benefits and forget the balance amount.
So keep silent and sit tight on this.
Devajyoti Barman
Advocate, Kolkata
5154 Answers
54 Consultations
4.9 on 5.0
1) section 306 of the Indian Succession Act, 1925, which provides as follows:
 
          "306. Demands and rights of action of or against deceased survive to and against executor or administrator - All demands whatsoever and all rights to prosecute or defend any action or special processing existing in favour of or against a person at the time of his decease, survive to and against his executors or administrators; except causes of action for defamation, assault as defined in the Indian Penal Code, or other personal injuries not causing the death of the party; and except also cases where, after the death of the party, the relief sought could not be enjoyed or granting it would be nugatory.

2) you cannot challenge father dismissal as even if such relief is granted your father would not be able to enjoy the reinstatement . 

3) you can move court for recovery of provident fund , gratuity , insurance and other dues 
Ajay Sethi
Advocate, Mumbai
23116 Answers
1214 Consultations
5.0 on 5.0
Your father's dismissal can be challenged only by him and not by his legal heirs. 
As he stands dismissed from service without any benefits, the scope for claiming his terminal benefits also have very dim chance.
You can approach civil court for recovery of his terminal benefits including return of the property title documents held in their custody, though the winning chances are not so bright.
Labor law cannot be enforced in this matter. 
T Kalaiselvan
Advocate, Vellore
13932 Answers
127 Consultations
5.0 on 5.0
1. if your father was terminated on the findings of departmental inquiry you can challenge it even after your father's death because your as a legal heir has interest in the facts in issue. 

2. only criminal proceeding is terminated after the death of accused. Civil proceeding can be initiated or carried on by the legal heir of deceased. 

3. if your mother is alive you can file case on her name (wife has interest in post retirement benefits).  
Shivendra Pratap Singh
Advocate, Lucknow
2729 Answers
41 Consultations
4.9 on 5.0
1) it is duty of bank to inform EPF department about father dismissal from service 

2) you can if you so desire inform PF dept about father dismissal from service in December 2013 
Ajay Sethi
Advocate, Mumbai
23116 Answers
1214 Consultations
5.0 on 5.0
From your own contents it can be seen that your father was not dismissed from service by the authorities as wrongly guessed by him.
The bank has not served the termination letter on him whereas anticipating one he decided to approach court to restrain the employer from terminating him from service.
Therefore it can be said that he died while on service in the month of November 2015 and that whatever terminal benefits including pension that he would be entitled shall be reckoned  from the date of his death.  I dont find any legal infirmity in it.  Let it go on in the same way and you wait for the outcome to decide about next course of action to be taken in this regard.
T Kalaiselvan
Advocate, Vellore
13932 Answers
127 Consultations
5.0 on 5.0
Your father was dismissed from the bank but the bank has accepted that he was in service at the time of his death. While the PF of an employee including the employer's contribution cannot be forfeited even in the event of a dismissal, the pension payable to an employee can be withheld in the event of his dismissal. Accept the pension that comes your way as the bank has accepted the death in service. 
Ashish Davessar
Advocate, Jaipur
18057 Answers
445 Consultations
5.0 on 5.0

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