Case: OM PAL SINGH Vs. DISCIPLINARY AUTHORITY

31.12.2012. 5. The penalty of reduction of pay of 15 stages was challenged by the Appellant by filing a Writ Petition. The High Court allowed the Writ Petition and directed the Respondent-Disciplinary Authority to re-examine the matter afresh. The Disciplinary Authority, in compliance with the order of the High Court, reconsidered the matter and reiterated the penalty of reduction of 15 stages lower in time scale of pay for a period of eight years. Later, the Disciplinary Authority modified the punishment of reduction to 10 stages (increments) lower in time scale of pay for a period of six years with further direction that the officer shall not earn the increments of pay during the period of said reduction and on expiry of such period, the reduction shall have the effect of postponing the future increments on his pay. Thereafter, the Appellant filed an appeal which was dismissed by the Appellate Authority. The High Court upheld the order passed by the Appellate Authority by dismissing the Writ Petition filed by the Appellant. 6. The High Court was of the opinion that the charges framed against the Appellant were fully proved and the imposition of penalty by the order dated 29.10.2015 was commensurate with the delinquency of the Appellant as the penalty imposed on the Appellant was not shockingly disproportionate. The High Court felt that the order dated 29.10.2015 did not warrant any interference. 7. Notice was issued to the Respondent by this Court to show cause as to why the Appellant shall not be entitled for salary for the period of suspension from 29.07.2003 to 10.09.2012. 8. Mr. M. Karpaga Vinayagam, learned Senior Counsel appearing for the Appellant submitted that the Appellant shall be entitled for payment of the salary during the period of his suspension as the order of dismissal was set aside and substituted by a lesser punishment. According to him, the principle of no work no pay shall not apply to the instant case. He relied upon several judgments of this Court in Bank of India v. T. S. Kelawala (1990) 4 SCC 744 , Syndicate Bank v. K. Umesh Nayak (1994) 5 SCC 572 , Ranchhodji Chaturji Thakore v. Superintendent Engineer, Gujarat Electricity Board (1996) 11 SCC 603 and Commissioner, Karnataka Housing Board v. Muddaiah (2007) 7 SCC 689 in support of his submission. 9. Mr. Rajesh Kumar-I, learned counsel appearing for the Bank submitted that the Appellant was not exonerated on the charge. The Disciplinary Authority merely reduced the penalty from dismissal to reduction in time scale of pay which does not entitle the Appellant to claim full salary for the period of suspension. A charged employee shall be entitled to claim full salary for the period of suspension only in case the order of penalty is set aside and he is held not guilty of any of the charges. He relied upon the judgment of this Court in Managing Director, ECIL, Hyderabad And Others v. B. Karunakar and Others (1993) 4 SCC 727. 10. The only question that arises for our consideration in the present appeal is whether the Appellant is entitled to payment of salary for the period of suspension i.e. from 29.07.2003 to 10.09.2012. There is no need to reiterate that the order of dismissal was set aside and the punishment of reduction in time scale of pay was imposed on the Appellant. It is clear that the findings of the Inquiry Officer that the charges against the Appellant were proved and have not been disturbed. Reduction of the penalty from dismissal to that of reduction in time scale of pay does not result in exoneration of the Appellant of the charges framed against him. However, it is for the Disciplinary Authority to take a decision as to how the period of suspension shall be treated. While passing the impugned order dated 29.10.2015, the Disciplinary Authority held that the Appellant shall not be entitled for any payment from 06.07.2004 to 29.08.2012. 11. In J.K. Synthetics Ltd. v. K.P . Agrawal & Anr. (2007) 2 SCC 433 , this Court dealt with the issue regarding the entitlement of a delinquent to claim continuity of service and consequential benefits in all cases of reinstatement as follows: 17. There is also a misconception that whenever reinstatement is directed, continuity of service and consequential benefits should follow, as a matter of course. The disastrous effect of granting several promotions as a consequential benefit to a person who has not worked for 10 to 15 years and who does not have the benefit of necessary experience for discharging the higher duties and functions of promotional posts, is seldom visualized while granting consequential benefits automatically. Whenever courts or Tribunals direct reinstatement, they should apply their judicial mind to the facts and circumstances to decide whether continuity of service and/or consequential benefits should also be directed. We may in this behalf refer to the decisions of this Court in A.P.S.R.T.C. v. S. Narasa Goud [2003 (2) SCC 212 ], A.P.S.R.T.C. v. Abdul Kareem [2005 (6) SCC 36 ] and R.S.R.T.C. v. Shyam Bihari Lal Gupta [2005 (7) SCC 406 ]. 12. It was further held in the said judgment that if reinstatement is a consequence of imposition of a lesser punishment, neither back-wages nor continuity of service nor consequential benefits follow as a natural or necessary consequence of such reinstatement. This Court went on to hold that where the misconduct was held to be proved, reinstatement by itself is a consequential benefit arising from imposition of a lesser punishment. However, this Court was of the opinion that award of back wages for the period when the employee has not worked may amount to rewarding the delinquent employee and punishing the employer for taking action against the misconduct committed by the employee, which should be avoided. 13. Following the aforementioned judgment, we are of the opinion that the decision of the Disciplinary Authority in not paying the salary for the period of suspension cannot be said to be contrary to law.

Decision (1 = appeal accepted, 0 = rejected): 0

Explanation:
0[ds]There is no need to reiterate that the order of dismissal was set aside and the punishment of reduction in time scale of pay was imposed on the Appellant. It is clear that the findings of the Inquiry Officer that the charges against the Appellant were proved and have not been disturbed. Reduction of the penalty from dismissal to that of reduction in time scale of pay does not result in exoneration of the Appellant of the charges framed against him. However, it is for the Disciplinary Authority to take a decision as to how the period of suspension shall be treated. While passing the impugned order dated 29.10.2015, the Disciplinary Authority held that the Appellant shall not be entitled for any payment from 06.07.2004 to 29.08.201211. In J.K. Synthetics Ltd. v. K.P . Agrawal & Anr. (2007) 2 SCC 433 , this Court dealt with the issue regarding the entitlement of a delinquent to claim continuity of service and consequential benefits in all cases of reinstatement as follows:17. There is also a misconception that whenever reinstatement is directed, continuity of service and consequential benefits should follow, as a matter of course. The disastrous effect of granting several promotions as a consequential benefit to a person who has not worked for 10 to 15 years and who does not have the benefit of necessary experience for discharging the higher duties and functions of promotional posts, is seldom visualized while granting consequential benefits automatically. Whenever courts or Tribunals direct reinstatement, they should apply their judicial mind to the facts and circumstances to decide whether continuity of service and/or consequential benefits should also be directed. We may in this behalf refer to the decisions of this Court in A.P.S.R.T.C. v. S. Narasa Goud [2003 (2) SCC 212 ], A.P.S.R.T.C. v. Abdul Kareem [2005 (6) SCC 36 ] and R.S.R.T.C. v. Shyam Bihari Lal Gupta [2005 (7) SCC 406 ]12. It was further held in the said judgment that if reinstatement is a consequence of imposition of a lesser punishment, neither back-wages nor continuity of service nor consequential benefits follow as a natural or necessary consequence of such reinstatement. This Court went on to hold that where the misconduct was held to be proved, reinstatement by itself is a consequential benefit arising from imposition of a lesser punishment. However, this Court was of the opinion that award of back wages for the period when the employee has not worked may amount to rewarding the delinquent employee and punishing the employer for taking action against the misconduct committed by the employee, which should be avoided13. Following the aforementioned judgment, we are of the opinion that the decision of the Disciplinary Authority in not paying the salary for the period of suspension cannot be said to be contrary to law.