Supreme Court Stays Karnataka High Court Relief in Canara Bank Employee Termination Case

The Supreme Court has stayed a Karnataka High Court order that granted partial relief to a former Canara Bank probationary officer, restoring the bank’s termination decision pending further judicial examination.

New Delhi | June 13, 2026

The Supreme Court of India has stayed the operation of a Karnataka High Court Division Bench judgment that had granted partial relief to a former Canara Bank probationary officer whose services were terminated over allegations of misconduct during his probationary tenure.

The case concerns Avipsit Rath, a former Probationary Officer who challenged his termination after Canara Bank discharged him from service while he was posted at the bank’s Chembur Camp Branch in Mumbai. Following his dismissal, Rath approached the Karnataka High Court seeking relief against the bank’s decision.

Earlier, a Single Judge Bench of the Karnataka High Court had dismissed his petition, upholding the disciplinary action taken by the bank. The court observed that the bank had followed the prescribed procedures under its service regulations and found no legal infirmity in the decision to terminate his services.

Court records referred to allegations that Rath engaged in conduct deemed inappropriate for a probationary officer, including alleged insubordination, confrontational communication with senior officials, and behaviour that adversely affected the workplace environment. The bank had initiated disciplinary proceedings after concluding that his responses to a show-cause notice were unsatisfactory.

The Single Judge also took note of the employee’s performance appraisal and ruled that the bank’s decision to discharge him from service was consistent with applicable regulations and administrative procedures.

However, the matter took a different turn when a Division Bench of the Karnataka High Court later intervened and granted partial relief to the former employee. Canara Bank subsequently challenged that ruling before the Supreme Court.

In its order dated April 24, 2026, the apex court stayed the operation and effect of the Division Bench judgment. As a result, the reliefs granted by the High Court will remain suspended until the matter is finally adjudicated by the Supreme Court.

The case is now set to undergo further judicial scrutiny, with the Supreme Court expected to examine the legality of the High Court’s intervention and the disciplinary action taken by the public sector lender.

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