Union Of India And Ors vs Jaipal Singh on 3 November, 2003
The
observation made in the judgment in Union of India v. Jaipal
Singh [Union of India v. Jaipal Singh, (2004) 1 SCC 121 : 2004 SCC
(L&S) 12] has to be understood in a manner in which the department
would become liable for back wages in the event of a finding that the
initiation of the criminal proceedings was mala fide or with vexatious
intent. In all other cases, we do not see any difference between
initiation of the criminal proceedings by the department vis-à-vis a
criminal case lodged by the police. For example, if an employee is
involved in embezzlement of funds or is found indulging in demand
and acceptance of illegal gratification, the employer cannot be
mulcted with full back wages on the acquittal of the person by a
criminal court, unless it is found that the prosecution is malicious."