Document Fragment View
Fragment Information
Showing contexts for: subsistence allowance in Pankajbhai Natwarlal Oza vs Indian Oil Corporation Ltd Gujarat ... on 6 February, 2014Matching Fragments
(d) An employee under suspension shall be entitled to subsistence allowance equal to half his basic wages plus dearness allowance for the period of his suspension. If, however, the period of his suspension exceeds 3 months for reasons to be recorded in writing, for which the employee is not responsible subsistence allowance will be at the rate of 3/4th of his basic wages plus dearness allowance for the period beyond 3 months. Where, however the employee is responsible for extension of the suspension period beyond 3 months, the amount of his subsistence allowance may be 1/4 of his basic wages plus dearness allowance for the period beyond 3 months. The payment of subsistence allowance will be subject to a written declaration by the employee that he is not engaged in any other employment business, profession or vocation."
5. In view of the discussion, the fourth aspect of grant of 25% subsistence allowance at the time of order of suspension as also the enhanced order of 75% subsistence allowance of the pay and other allowances as permitted by the Court from the date of suspension, requires consideration. 5.1 Clause 23 (IV) of the Standing Order (AnnexureE to the petition) referred to hereinabove, in subclause (d) enumerates that an employee under suspension shall be entitled to subsistence allowance equal to half of his basic wages plus dearness allowance for the period of his suspension. If such period of suspension exceeds three months, for reasons to be recorded in writing and for such delay if the employee is not responsible, subsistence allowance would be paid at the rate of 3/4th of C/LPA/1013/2012 JUDGMENT his basic wages plus dearness allowance for the period beyond three months of suspension. And, if the employee is responsible for extension of such period of suspension beyond the period of three months of suspension, such amount to be reduced to 1/4th of his basic wages plus dearness allowance for the period beyond three months.
5.2 In the case of B.D. Shetty v. M/s. Ceat Ltd., reported in AIR 2001 SC 2953, the Supreme Court was considering section 10A(1)
(b) of the Industrial Employment (Standing Orders) Act and held that the employer is required to pay subsistence allowance to a workman suspending pending inquiry at the rate of 50% of wages for first 90 days and at the rate of 75 for the remaining period of suspension. If the delay has occurred in completion of departmental proceedings, which is not directly attributable with the workman concerned, the workman cannot be denied subsistence allowance at the rate of 75%. The Apex Court has also given instance when the C/LPA/1013/2012 JUDGMENT conduct can be said to be directly attributed to the delay in conducting the inquiry, as also the importance of subsistence allowance during the pendency of such proceedings. 5.3 The Supreme Court in the case of Principal J.D. Patil Sangludkar v. Ganesh, reported in (2003) 9 SCC 164, dealt with the payment of subsistence allowance during the suspension pending criminal proceedings. The Court held that the provision to increase the rate of subsistence allowance pending suspension after a certain stipulated period is normally envisaged to ensure that the employer or the management concerned does not indefinitely keep an employee under the pretext of suspension out of his office without completing the inquiry and take advantage of its own lapse or delay in completing the disciplinary proceedings. 5.4 In the case of Union of India v. R.K. Chopra, reported in 2010 (2) SCC 763, the Apex Court was dealing with a case where a suspended employee had demanded the revision of C/LPA/1013/2012 JUDGMENT subsistence allowance based on the pay revision coming into effect during the suspension period. The Apex Court denied such plea by holding that if the revision of pay takes effect from a date prior to the date of suspension of a Government servant then he would be entitled to benefit of increment in pay and in the subsistence allowance for the period of suspension, but if the revision scale of pay takes effect from a date falling within the period of suspension then the benefit of revision of pay and the subsistence allowances will accrue to him, only after reinstatement depending on the fact whether the period of suspension is treated as duty or not. 5.5 In the present case, admittedly the appellant was being paid the subsistence allowance at the rate of 25% of basic pay plus dearness allowance during the suspension period, which the respondent had continued even beyond the period of three months. Admittedly, the employee was not engaged in any employment or business or profession or vocation. However, C/LPA/1013/2012 JUDGMENT on the ground that the criminal prosecution lodged against the appellant was pending and since he was released after about a period of one year and five months, the respondent Corporation held the employee responsible for continuation of the suspension and, therefore, justified continuation of subsistence allowance at the rate of 1/4th of basic wages plus dearness allowance.
5.8 We notice that no charge sheet has been given to the appellant as mentioned hereinabove in the departmental proceedings till the date and, therefore, the inquiry proceedings have not been initiated yet. The respondent Corporation, therefore, was not correct in interpreting that the order of suspension for a period beyond three months was extended on account of conduct of the appellant and, therefore, it was consequently not justified in denying the amount of subsistence allowance to be raised to 3/4th of his basic wages plus dearness allowance as provided under the Standing Order. Appellant's having faced the criminal proceedings is the very basis for his suspension and, therefore, for continuation of his suspension beyond the period of three months, the very ground cannot be put forth to suspend the continuation of such order of suspension. There is nothing on record to indicate that the appellant has in any manner C/LPA/1013/2012 JUDGMENT contributed in the respondent not proceeding with its departmental inquiry or acted in the fashion whereby the suspension needed to be continued. Therefore, the learned Single Judge was, in our opinion, wholly justified in not upholding the version of the respondent in denying higher amount of subsistence allowance beyond the period of three months. However, while endorsing such views of the learned Single Judge, we notice that in the operative portion of the order, the learned Single Judge has granted subsistence allowance at the rate of 75% of basic wages plus dearness allowance for the entire period of suspension, subject to his fulfilling the condition of written declaration that the appellant was not engaged in any other employment or profession. As the Standing Order required grant of such period beyond the period of three months, when no cause could be attributed to the appellant for the period of suspension to exceed beyond three months, the grant of 75% of subsistence allowance shall have to be on completion of the C/LPA/1013/2012 JUDGMENT period of three months and not from the date of suspension and to that limited extent, the prayer sought for by the respondentCorporation in respect of enhanced subsistence allowance requires to be upheld.