Case Note & Summary
The appellant, Raj Narain, was a Sorting Assistant in Railway Mail Service placed under suspension on 23.10.1979 following allegations of forged payments of high value money orders. An FIR was registered under Sections 409/420 IPC. The suspension was revoked on 21.10.1987, and he joined duty. However, on 28.02.1997, he was dismissed from service after being convicted under Sections 409, 467, and 420 IPC and sentenced to three years imprisonment. His criminal appeal was allowed, and he was acquitted on 31.08.2001. His request for reinstatement was refused on 13.06.2002, prompting him to approach the Central Administrative Tribunal. The Tribunal ordered reinstatement with seniority and notional fixation of pay but denied back wages. The High Court partly allowed his writ petition, granting full back wages from the date of acquittal (31.08.2001) to reinstatement (20.01.2003). The appellant appealed to the Supreme Court seeking back wages for the suspension period (1979-1987) and full back wages from dismissal to reinstatement. The Supreme Court held that an employee acquitted in criminal proceedings is not entitled to back wages for the period of dismissal unless the prosecution was malicious or initiated at the behest of the employer with mala fide intent, following Ranchhodji Chaturji Thakore and Jaipal Singh. However, the Court found that disciplinary proceedings were dropped on 21.03.1983, and the suspension should have ended then. Since no fresh suspension order was passed, the appellant was entitled to full wages from 23.10.1979 to 21.10.1987 after adjusting subsistence allowance. The Court approved the High Court's grant of back wages from acquittal to reinstatement. The appeal was disposed of accordingly.
Headnote
A) Service Law - Back Wages - Acquittal in Criminal Case - Employee acquitted of criminal charges is not entitled to full back wages for the period of dismissal unless prosecution was malicious or initiated at the behest of the employer with mala fide intent - Ranchhodji Chaturji Thakore v. Superintendent Engineer followed - Held that subsequent acquittal does not automatically entitle back wages (Paras 5-6). B) Service Law - Suspension - Full Wages - Where disciplinary proceedings are dropped, suspension ends and employee is entitled to full wages for the suspension period - In this case, disciplinary proceedings dropped on 21.03.1983, suspension revoked on 21.10.1987 - Held that appellant entitled to full wages from 23.10.1979 to 21.10.1987 after adjusting subsistence allowance (Para 7). C) Service Law - Back Wages - Period from Acquittal to Reinstatement - High Court granted back wages from acquittal (31.08.2001) to reinstatement (20.01.2003) - Supreme Court approved this part of the judgment - Held that appellant entitled to back wages for that period (Para 8).
Issue of Consideration
Whether an employee acquitted in criminal proceedings is entitled to full back wages for the period of suspension and from dismissal to reinstatement.
Final Decision
The Supreme Court disposed of the appeal by holding that the appellant is entitled to full wages from 23.10.1979 to 21.10.1987 after adjusting subsistence allowance, and approved the High Court's grant of back wages from 31.08.2001 to 20.01.2003.
Law Points
- Back wages on acquittal
- Suspension period wages
- Distinction between departmental inquiry and criminal proceedings
- Malicious prosecution
- Reinstatement after acquittal
