IZZAT BAIG AWAN vs HABIB BANK LIMITED
The petitioner, a former Cashier of Habib Bank Limited, challenged the dismissal of his appeal by the Federal Service Tribunal, which had upheld his removal from service due to indiscipline and unauthorized absence. The petitioner's absence stemmed from his involvement in a criminal case involving charges under the Pakistan Penal Code. The core legal question was whether the bank was justified in removing an employee for prolonged absence caused by their involvement in criminal proceedings and subsequent abscondence. The Supreme Court held that the bank, as an institution of public trust, cannot be compelled to retain an employee whose absence, regardless of whether it was avoidable or unavoidable, disrupts operations and risks the bank's goodwill. The Court affirmed that the bank acted within its rights to remove the employee, as his continued retention was not in the interest of the institution. The key principle established is that an employer, particularly a financial institution, is entitled to terminate the services of an employee whose absence from duty, even if necessitated by criminal involvement, renders them unable to perform their duties and compromises the institution's interests.
- Can a bank employee be removed from service for absence caused by involvement in criminal proceedings?
- Is an employer entitled to terminate an employee whose absence, regardless of cause, negatively impacts the institution's operations?
- Does the involvement of a bank employee in a criminal case justify their removal on the grounds of indiscipline?
- Article 212(3), Constitution of Pakistan 1973
- Section 302, Pakistan Penal Code 1860
- Section 324, Pakistan Penal Code 1860
- Section 337, Pakistan Penal Code 1860
- Section 427, Pakistan Penal Code 1860
- Section 147, Pakistan Penal Code 1860
- Section 149, Pakistan Penal Code 1860
' SARDAR MUHAMMAD RAZA, J.---Izzat Baig Awan, former Cashier of Habib Bank Limited, has filed this petition for leave to appeal under Article 212(3) of the Constitution against the judgment, dated 10-5-2001 passed in Appeal No,98(R)CE of 2000 by Federal Service Tribunal, Islamabad, whereby the appeal of the petitioner was dismissed in limine by a two-member Bench of the Tribunal headed by the Chairman.
2. Izzat Baig Awan being a Cashier of Habib Bank Limited at Kharian Branch was removed from service on 27-1-2000 on charges of indiscipline and absence from duty. The reason for absence was his involvement in a case of F.I.R. No,233, dated 19-9-1998 under sections 302/324/337/427/147/ 149, P.P.C.
3. A proper show-cause notice had duly been issued to the petitioner which he had the opportunity to meet with. His absence was not only absolutely clear but besides that he had also gone into abscondence which happened to enhance his absence. The institution of bank is one of trust resposed by the public at large and they, in the peculiar nature of the duties of their employees, cannot afford the breach of trust by retaining in service people who are involved in criminal cases and whose absence therefrom, as it was in the instant case, was not only obvious but unavoidable on the part of the official concerned. The absence whether avoidable or unavoidable is the sole headache of the official but so far as the bank is concerned, it cannot afford the luxury of the absence as well as the loss of goodwill.
4. The case of laxity on part of the petitioner was proved and hence his retention in service being not in the interest of the bank, he was rightly removed. There being no merit in the petition, it is