SC Restores Dismissal of Postal Employee for Embezzlement, Says HC ‘Exceeded Judicial Review’

The Supreme Court has on November 13, 2025 allowed an appeal filed by the Union government against the Rajasthan High Court's judgment which set aside dismissal of a postal department employee for failing to maintain integrity and devotion to duty.

The employee was accused of not entering, despite having received the amount from the account holders, in the books of accounts though the passbook of the account holders had been stamped.

A bench of Justices Rajesh Bindal and Manmohan set aside the High Court's order to reinstate respondent Indraj, saying it had travelled beyond its jurisdiction in trying to explain his admission, which was nothing else but an afterthought.

"It is a matter of chance that the embezzlement made by the respondent came to the notice of the authorities that action could be taken against him while restoring the amount to the post office. However, the fact remains that mere deposit of the embezzled amount will not absolve an employee of the misconduct. Relationship of a customer with a banker is of mutual trust,'' the bench said.  

As per facts of the matter, the respondent was appointed as Gramin Dak Sevak/ Branch Post Master on January 12, 1998. His services were governed by Gramin Dak Sevak (Conduct and Engagement) Rules, 2011. During annual inspection, on June 16, 2011, certain irregularities were found and he was issued a chargesheet for misappropriation of public funds on December 17, 2013.

During the inquiry, he, while trying to explain the discrepancies, admitted the guilt. The amount embezzled by him had already been deposited in the accounts of the account holders. He prayed for forgiveness while reassuring that no such mistake would occur inthe  future.

He admitted that the money received by him from the account holders was spent by him for his household purposes. The Disciplinary Authority awarded him punishment of removal from service.

In the case, the bench opined, the High Court had misdirected itself while extending the scope of jurisdiction which could be exercised in matter of judicial review.   

"The merits of controversy were gone into. Even the admission made by the respondent and voluntary deposit of the amount misappropriated by him were dealt with and finally the punishment imposed on the respondent was set aside. He was directed to be reinstated back in service,'' the bench said.   

Court noted, the High Court opined that mere suspicion was not enough to punish him, not realizing the fact that it was not a case of mere suspicion. 

The documents clearly established the factum of embezzlement. The passbooks of the account holders were stamped with the receipt of the amount with no corresponding entries in the books of accounts maintained in the post office, the Supreme Court pointed out.  

The bench felt, any account holder will be satisfied once an entry is made in his passbook of any amount by deposited by him in the post office where he has maintained the account. An account holder may not be privy to the manner in which the accounts are maintained by the post office and also whether the corresponding entries are made or not in the books of accounts maintained there.

Court noted the respondent tried to explain the embezzlement by stating that on account of ignorance of the Rules, the passbooks of the account holders were stamped. "Such an explanation cannot be accepted being farfetched. He had been in service for about 12 years. Ignorance of rules of the procedure with so much experience cannot be accepted. There was no defect or error pointed out in the course of inquiry,'' the bench said, upholding the punishment.   

Case Title: Union of India And Ors Vs Indraj

Judgment Date: November 13, 2025

Bench: Justices Rajesh Bindal and Manmohan