Case: Gurdeep Singh Vs. Union of India

The appellant was serving as an upper division clerk in the Directorate General of Resettlement and Employment Ministry of Labour and Employment, a Department of the Government of India, when on 21st September, 1956 he was suspended for refusing to comply with an order transferring him to Ferozepur. On the next day he was served with aHowever, before this a notice dated 27th July, 1956 had already been issued by the Government of India stating that it had been decided to transfer theadministration of the Employment Exchanges and Training Centres to State Governments and that in consequence all the posts under the Government of India in the Employment Exchanges Training Centres stood abolished. These posts include that of the appellant who was informed by the said notice that he was one of the officers whose service would be dispensed with on the abolition of the said Department and his services would not be required with effect from 1st November, 1956. It appears that the disciplinary proceedings initiated against the appellant did not proceed further. In the meanwhile, the appellant continued to make representations to the Government of India for the grant of relief. On 26th August, 1958 the Government of India, made an order on the several representations from the appellant and recorded that the disciplinary action against him would be treated as closed The order runs as follows :(1) "In view of the fact that all the posts under the Central Government including that held by Shri Gurdip Singh were abolished and the appointment of Shri Gurdip Singh under the Central Government also terminated with effect from(A.M.), the disciplinary action taken against him has not been proceeded with and is treated as having been closed. In view of this Shri Gurdip Singh will be entitled to the followingPay and allowances, if any, due to him prior to the date of the orders placing him under suspension, i.e.,Subsistence allowance from56 (A.M)(iii) Gratuity and other terminal benefits including payment of leave salary due to him according to the rules and regulations of Government on formal application from him.(iv) He will be treated as Central Government discharged Employee with effect from 1st November, 1956"

Court's reasoning:
We are of opinion that the claim is without substance. The appellant was employed in a Department of the Government of India, which has since been abolished and with the abolition of the Department his claim to hold any post in that Department must fail. However, having regard to the circumstance that the disciplinary proceedings have been dropped we think that the order dated 26th Aug. 1958 mentioned above must be modified. We are of opinion that in the interest of justice the appellant should be held entitled not only to the arrears of pay and allowances before the date of suspension but also to pay and allowances and other benefits in accordance with the rules for the period from 21st Sept., 1956 to 31st Oct., 1956 on the basis that no disciplinary proceedings had been taken against him. Any payment to be made in pursuance of this order shall be made after adjusting the amount found due from him.