Case Note & Summary
The dispute involved an employee appointed as a Clerk in the State Transport Department in 1979, who faced criminal cases leading to suspension and removal. An FIR in 1986 for embezzlement resulted in suspension from 1986, and he was acquitted in 2006. Another FIR in 1995 under IPC sections 307 and 506 led to conviction under sections 324 and 506 in 1996, with the High Court reducing the sentence in 2008. Based on this conviction, a show cause notice was issued in 2002 under the Punjab Civil Services (Punishment and Appeal) Rules, 1970, and he was removed in 2003. The appellate authority set aside the removal in 2009 but denied salary for the suspension period and treated it as dies non. The employee filed a civil suit in 2010, which was decreed in his favor, directing payment of salary except for the imprisonment period. The State's appeal was dismissed, but the High Court allowed the second appeal, relying on Rule 7.3 of the Punjab Civil Service Rules. In review, the High Court corrected itself, noting Rule 7.3 was inapplicable, but upheld the denial of salary. The core legal issues were whether the appellate authority could deny salary after setting aside removal and whether such denial was permissible under the 1970 Rules. The appellant argued that once removal was set aside, full salary was due, and the appellate authority exceeded its powers. The State contended that the conviction justified the denial. The Supreme Court analyzed the 1970 Rules, particularly Rules 5, 13, and 15, finding that the penalties under Rule 5 did not include denial of salary or dies non. The court held that the appellate authority, having found the removal illegal, could not impose additional conditions like denying salary, as this was not a statutory penalty. The decision favored the employee, directing that he is entitled to salary for the suspension period except for the time spent in imprisonment, as per the civil court's decree. The court emphasized that reinstatement after setting aside removal necessitates full back wages unless statutorily authorized otherwise.
Headnote
A) Service Law - Disciplinary Proceedings - Suspension Period and Dies Non - Punjab Civil Services (Punishment and Appeal) Rules, 1970, Rules 5, 13, 15 - Employee was removed based on conviction under IPC sections 324 and 506, but appellate authority set aside removal and reinstated him while denying salary for suspension period and treating it as dies non - Court held that once removal is set aside, employee is entitled to full salary for suspension period except for imprisonment period, as denial of salary beyond penalties under Rule 5 is impermissible (Paras 7-9). B) Service Law - Disciplinary Proceedings - Appellate Authority's Powers - Punjab Civil Services (Punishment and Appeal) Rules, 1970, Rule 15 - Appellate authority, after finding removal illegal, directed reinstatement but denied salary for suspension period - Court held that appellate authority exceeded its authority by imposing such condition, as it is not a penalty under Rule 5 and lacks statutory basis (Paras 7-9). C) Service Law - Criminal Conviction and Disciplinary Action - Moral Turpitude - Indian Penal Code, 1860, Sections 324, 506 - Employee was convicted under IPC sections 324 and 506, leading to removal under Rule 13(i) of 1970 Rules - Appellate authority noted offences did not involve moral turpitude and reduced sentence, but High Court erred in relying on Rule 7.3 of Punjab Civil Service Rules - Court found removal based on conviction was set aside, entitling employee to back wages (Paras 2-3, 7).
Issue of Consideration
Whether the appellate authority, after setting aside the removal order, could deny salary for the suspension period and treat it as dies non under the Punjab Civil Services (Punishment and Appeal) Rules, 1970.
Final Decision
Supreme Court allowed the appeals, holding that the employee is entitled to salary for the suspension period except for the imprisonment period, as the appellate authority exceeded its authority in denying salary and treating it as dies non
Law Points
- Service law
- disciplinary proceedings
- suspension period
- dies non
- reinstatement
- back wages
- Punjab Civil Services (Punishment and Appeal) Rules
- 1970
- Indian Penal Code
- 1860





