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Supreme Court of India

Mahender Singh vs Union Of India And Anr on 2 August, 1991

Equivalent citations: 1991 SCR (3) 330, 1991 SCC SUPL. (2) 127, AIRONLINE 1991 SC 127, (1991) 17 ATC 358, (1991) 2 CURLR 669, (1991) 2 UPLBEC 1084, (1991) 3 JT 462 (SC), (1991) 3 SCR 330 (SC), (1991) 5 SERVLR 69, (1991) 63 FACLR 505, 1991 SCC (L&S) 1170, 1991 SCC (SUPP) 2 127, 1991 UJ(SC) 2 598, (1992) 1 LABLJ 869, (1992) 1 LAB LN 20

Author: K.J. Shetty

Bench: K.J. Shetty, Yogeshwar Dayal

           PETITIONER:
MAHENDER SINGH

	Vs.

RESPONDENT:
UNION OF INDIA AND ANR

DATE OF JUDGMENT02/08/1991

BENCH:
SHETTY, K.J. (J)
BENCH:
SHETTY, K.J. (J)
RAMASWAMI, V. (J) II
YOGESHWAR DAYAL (J)

CITATION:
 1991 SCR  (3) 330	  1991 SCC  Supl.  (2) 127
 JT 1991 (3)   462	  1991 SCALE  (2)292


ACT:
    Service  Law:  Central Civil  Services  (Classification,
Control	  and	Appeal)	 Rules,	 1965	 Rule	10(4)--Scope
of--Services of employee terminated by a simple	 termination
order under Rule 5(1) of the CCS (Temporary Service)  Rules,
1965---Termination  order set aside by	Tribunal--Retrospec-
tive suspension from the date of original order of  termina-
tion--Whether justified.



HEADNOTE:
    The	 appellant,  a cash clerk in  the  establishment  of
Delhi  Milk Scheme, was placed under suspension	 under	Rule
10(2) of the Central Civil Service (Classification,  Control
and Appeal) Rules, 1965, pending investigation into a crimi-
nal  case, connected with the forgery of a cheque, in  which
he  was	 arrayed as an accused. Subsequently,  his  services
were  terminated under Rule 5(1) of the Central Civil  Serv-
ices (Temporary Service) Rules, 1965. Though he was  acquit-
ted  in the criminal case, he was not re-instated.  However,
the  Central Administrative Tribunal set aside the  termina-
tion order and directed that the appellant would continue to
be under suspension from the original date of termination of
service, and that it would be open to the competent authori-
ty,  to revoke his suspension and re-instate him in  service
or continue him under suspension, if it decided to  initiate
disciplinary proceedings against him.
    Pursuant to the decision of the Tribunal, the Management
passed	an order under Rule 10(4) of the Rules	placing	 the
appellant  under suspension from the date of original  order
of  termination and also directed that there should be	fur-
ther enquiry against the appellant.
    Allowing  the  appeal  preferred by	 the  appellant	 and
modifying the Tribunal's order,
    HELD: 1.1 There are three requirements for the  applica-
tion of Rule 10(4) of the Central Civil Services  (Classifi-
cation,	 Control and Appeal) Rules, 1965. These are (i)	 the
Government  servant  is dismissed, removed  or	compulsorily
retired as a measure of penalty; (ii) the said
 331
penalty	 is  set  aside or declared or rendered	 void  by  a
decision  of  a	 Court of Law; and  (iii)  the	disciplinary
authority  decides  to hold a further  inquiry	against	 the
Government servant on the allegations on which the  original
order of penalty was imposed. [334F-G]
    1.2 In the instant case, the original order of  termina-
tion  was not passed against the appellant as a	 measure  of
punishment.  It was a 'simpliciter termination'	 under	Rule
5(1) of the CCS (Temporary Service) Rules, 1965. The  Tribu-
nal  has set aside that order on the ground that it  amounts
to  punishment	and the order of punishment could  not	have
been  made without holding an inquiry. But that is  not	 the
same thing to state that the Management made an order termi-
nating	the services by way of penalty. It treated the	said
order  as a simpliciter discharge. Hence Rule 10(4)  has  no
application.  Besides, there was no question of the  Manage-
ment deciding to hold a further inquiry, since there was  no
earlier inquiry against the appellant and it would be misno-
mer to call it a further enquiry as contemplated under	Rule
10(4). [335B-C]
    1.3 Thus, the power to place a delinquent officer  under
suspension from the date of the original order of dismissal,
removal	 or  compulsory	 retirement from  service  would  be
available  provided  the original order was made by  way  of
penalty and that order has been set aside by a Court of Law.
Since  there  was no inquiry leading to the removal  of	 the
appellant in the first instance, the decision to hold  fresh
inquiry	 does  not  attract Rule  10(4).  The  retrospective
suspension  of the appellant is, therefore, unjustified	 and
without	 authority of law. However the order  of  suspension
would  operate	prospectively  and the	appellant  would  be
entitled to re-instatement with all back wages till that day
since  the original order of termination has been set  aside
by the Tribunal. The Tribunal's order is modified according-
ly. [335D-G]



JUDGMENT:

CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1821 of 1991.

From the Judgment and Order dated 17 4. 1990 of the Central Administrative Tribunal, Delhi in R.A. No. 117/88 in T.A. No. 351 of 1986.

O.P. Saxena and Mukul Gupta for the Appellant. J.D. Jain, Kailash Vasudev, Ms. Sushma Suri and S.N. Terdal for the Respondents.

332

The Judgment of the Court was delivered by K. JAGANNATHA SHETTY, J. This appeal is from an order of the Central Administrative Tribunal, New Delhi and concerns with the scope of Rule 10(4) of the Central Civil Service (CCA) Rules, 1965 ('the Rules') The facts leading to the appeal are these: The appellant was a cash clerk in the establishment of Delhi Milk Scheme, New Delhi. There was some criminal case connected with the forgery of a cheque in which the appellant was arrayed as an accused. Pending investigation of the criminal case, he was placed under suspension. The order of suspension was made on March 27, 1976 under Rule 10(2) of the Rules. On January 10, 1976 his services were terminated under Rule 5(1) of the Central Civil Services (Temporary Service) Rules, 1965. On March 7, 1980, the appellant was acquitted in the criminal case. On January 5, 1981 the appellant filed a civil suit in the District Court, New Delhi, challenging the order of termination of his services. The suit was transferred to the Central Administrative Tribunal for disposal. The Tribunal has, by its judgment dated September 5, 1988 set aside the termination order with the following conditions:

"(i) The impugned order of termination dated 10.1.1978 is quashed. Consequently, status quo ante as in regard to applicant being under suspension will continue from 10.1.1978.
(ii) It will be open to the competent authori-

ty to take a final decision on the continuance or otherwise of the suspension in the light of the judgment of Chief Judicial Magistrate dated 7.3.80 in case No. 57/2. It will be open to the competent authority to revoke the order of suspension and reinstate the plaintiff into service as cash clerk. In that event, the pay and allowances of the plaintiff during the period of his actual suspension from 27.3. 1976 to 10.1.78 and deemed suspension thereaf- ter shall be regulated in accordance with the provisions of F.R. 54-B. Necessary adjust- ments, if any, should be made or in regard to the subsistence allowance already paid to him. The defendants shall also consider and decide whether the period of actual and deemed sus- pension shall be treated as a period spent on duty or not.

333

(iii) It will also be open to the competent authority, if so advised, to continue the plaintiff on suspension if it is decided to initiate disciplinary proceedings against him based on his conduct which led to his prosecu- tion before the criminal court. The discipli- nary proceedings if initiated should be com- pleted within a period of six months from the date of communication of this order.

(iv) The competent authority shall take appro- priate decision as regards (ii) and (iii) above within a period of two months from the date of communication of this order."

Pursuant to the decision of the Tribunal management made an order dated November 10, 1988 under Rule 10(4) of the Rules placing the petitioner under suspension w.e.f. January 10, 1978. The appellant shall be deemed to have been sus- pended from the date of the original order of termination. The management also directed that there should be further enquiry' against the appellant. The relevant portion of the order dated November 10, 1988 reads:

"AND whereas the undersigned on a considera- tion of the circumstances of the case, has also decided that a further enquiry should be held under the provision of CCS(CCA) Rules, 1965 against the said Shri Mohinder Singh, Ex. Cash Clerk on the allegation which led to his termination of service.
NOW THEREFORE the undersigned hereby:-
(i) set aside the order of termination of services of Shri Mohinder Singh, Ex. Cash Clerk
(ii) directs that further enquiry should be held under the provisions of CCS(CCA) Rules, 1965 against Shri Mohinder Singh on the alle-

gations of misappropriation of Govt. Money which led to the termination of service.

(iii) directs that the said Shri Mohinder Singh, Ex. Cash Clerk shall under sub-rule 4 of Rule 10 of the CCS(CCA) Rules, 1965 be deemed to have been placed under suspension w.e.f. 10.1. 1978 and shall continue to remain under suspension until further orders. (Baldev Chand) Disciplinary Authority Dy. General Manager (A)"

334
After holding the enquiry the appellant was again dis- missed from service. That order was made on December 1, 1989. It is said that the dismissal has been challenged by the appellant before the Tribunal.
From the above narration of facts it will be seen that the Tribunal while setting aside the termination order has directed that the appellant shall continue in suspension from January 10, 1978. The management while deciding to hold further enquiry has also directed that the appellant shall be deemed to have been placed under suspension w.e.f. Janu- ary 10, 1978. The management made this order under Rule 10(4) which reads as follows:
"Where a penalty of dismissal, removal or compulsory retirement from service imposed upon a Government servant is set aside or declared or rendered void in consequence of or by a decision of a court of law and the disci- plinary authority on a consideration of the circumstances of the case, decides to hold a further inquiry against him on the allegations on which the penalty of dismissal, removal or compulsory retirement was originally imposed, the Government servant shall be deemed to have been placed under suspension by the Appointing Authority from the date of the original order of dismissal, removal or compulsory retirement and shall continue to remain under suspension until further orders:
Provided that no such further inquiry shall be ordered unless it is intended to meet a situation where the Court has passed an order purely on technical grounds without going into the merits of the case."

There are three requirements for the application of Rule 10(4); (i) The Government servant is dismissed, removed or compulsorily retired as a measure of penalty; (ii) the penalty of dismissal, removal or compulsory retirement is set aside or declared or rendered void by a decision of a Court of Law; (iii) The disciplinary authority decides to hold a further inquiry against the Government servant on the allegations on which the original order of penalty was imposed. If these three requirements are satisfied then the Government servant ,shall be deemed to have been placed under suspension by the appointing authority from the date of original order of penalty of dismissal, removal or com- pulsory retirements and he shall continue to remain under suspension until further orders.

335

The order of the Tribunal and the management as to the retrospective suspension of the appellant cannot be sus- tained under Rule 10(4) of the Rules. It may be relevant to remember that the original order of termination was not passed against the appellant as a measure of punishment. It was a 'simpliciter termination' of the appellants' service under Rule 5(1) of the CCS (Temporary Service) Rules 1965. The Tribunal has set aside that order on the ground that it amounts to punishment and the order of punishment could not have been made without holding an inquiry against the appel- lant. But that is not the same thing to state that the management made an order terminating the services of the appellant by way of penalty. The management treated the said order as a simpliciter discharge. Rule 10(4) therefore, has no application to the case of the appellant. Secondly, it would be misnomer to call it a further inquiry as contemplated under Rule 10(4). There was no question of the management deciding to hold a further in- quiry since there was no earlier inquiry against the appel- lant.

The power to place delinquent officer under suspension from the date of the original order of dismissal, removal or compulsory retirement from service would be available pro- vided if the original order of dismissal, removal or compul- sory retirement from service was made by way of penalty and that order has been set aside by a Court of law. Since there was no inquiry leading to the removal of the appellant in the first instance, the decision to hold fresh inquiry does not attract Rule 10(4). The retrospective suspension of the appellant is therefore, unjustified and without authority of law.

However, it may be stated that the order of suspension dated November 10, 1988 would operate prospectively and the appellant would be entitled to reinstatement with all back wages till that day since the original order of termination has been set aside by the Tribunal.

The appeal is accordingly allowed modifying the impugned order. In the circumstances of the case, however, we make no order as to costs.

N.P.V.					  Appeal allowed.
336