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2007 Supreme(SC) 1485

2007(8) Supreme 164
Supreme Court of india
Arijit Pasayat & P. Sathasivam, JJ.
(From Andhra Pradesh High Court)
I. Laxma Reddy — Appellant
versus
A.P.S.R.T.C. and Ors. — Respondents
Civil Appeal No. 4511 of 2005
Decided on : 22-11-2007

Counsel for the Parties :
For the Appellant :V. Sridhar Reddy and Abhijit Sengupta, Advocates.
For the Respondent:D. Mahesh Babu, Advocate.

Important Point
An employee after having been held guilty of unauthorized absence from duty cannot claim benefit of increment notionally earned during period of unauthorized absence merely because he had been directed to be reinstated.

Headnote:Service Law — Award passed by labour Court directing re-instatement of appellant — Writ petition filed by appellant claiming that since labour Court directed reinstatement, his pay had to be fixed after taking into consideration notional increments — Allowed by single judge relying on decision in APSRTC Khammjam region and Anr. v. P. Nageswara Rao — Writ appeal there against by Respondents — Allowed by High court directing dismissal of Writ petition — Appeal there against — Relying upon decisions in case of APSRTC V.S. Narsagoud held that employee after having been held guilty of unauthorized absence from duty cannot claim benefit of increment notionally earned during period of unauthorized absence in absence of a specific direction in that regard and merely because he had been directed to be reinstated with benefit of continuity in service — Appeal having no merit dismissed. (Paras 6, 7)

       Facts of the case :

       An Award was passed by labour court herein in the instant case directing reinstatement of appellant. Writ petition filed by appellant claiming that since labour Court directed reinstatement, his pay had to be fixed after taking into consideration notional increments was allowed by single judge relying on decision in APSRTC Khammam region and Anr. V. P. Nageswara Rao. Writ Appeal there against by Respondents was allowed by High Court directing dismissal of Writ petition.

       Present Appeal has been filed against said order of High Court.

       Findings of the Court :

       The Court relying upon decisions in case of APSRTC V.S. Narsagoud held that employee after having been held guilty of unauthorized absence from duty cannot claim benefit of increment notionally earned during period of unauthorized absence in absence of a specific direction in that regard and merely because he had been directed to be reinstated with benefit of continuity in service. Appeal having no merit was dismissed.

       Result : Appeal dismissed.

Judgment

Dr. Arijit Pasayat, J.—

1.Challenge in this appeal is to the order passed bya Division Bench of the Andhra Pradesh High Court allowing the writ appeal filed by the respondent — Andhra Pradesh State Road Transport Corporation (in short the ‘Corporation’) and its functionaries.

2.A writ petition was filed by the appellant claiming that since an award passed by the Labour court directing his re—instatement, his pay has to be fixed after taking into consideration the notional increments. Learned Single Judge relied on a Division Bench’s decision in APSRTC Khammam Region and Anr. V. P. Nageswara Rao1, (2001 (4) ALD 568 (DB) and allowed the writ petition.

3.Present respondents filed a writ appeal before the High Court questioning correctness of the judgment. The High Court noticed that the view expressed by the Division Bench in P. Nageswara Rao’s case (supra) was dis—approved by this Court in A.P.S.R.T.C. v. S. Narsagoud2, (2003 (2) SCC 212) and therefore, allowed the writ appeal directing dismissal of the writ petition.

4.In support of the appeal, learned counsel for the appellant submitted that when an order of re—instatement is passed for all practical purposes there will be continuity in service and, when the re—instatement is done the pay has to be fixed after taking into consideration the notional increments which would have otherwise accrued.

5.Learned counsel for the respondents on the other hand supported the order passed by the High Court.

6.The principles of law on the point are no more res integra. This court in S. Narsagoud’s case (supra) succinctly crystallized principle of law in para 9 of the judgment :

“we find merit in the submission so made. There is a difference between an order of reinstatement accompanied by a simple direction for continuity of service and a direction where reinstatement is accompanied by a specific direction that the employee shall be entitled to all the consequential benefits, which necessarily flow from reinstatement or accompanied by a specific direction that the employee shall be entitled to the benefit of the increments earned during the period of absence. In our opinion, the employee after having been held guilty of unauthorized absence from duty cannot claim the benefit of increments notionally earned during the period of unauthorized absence in the absence of a specific direction in that regard and merely because he has been directed to be reinstated with the benefit of continuity in service.”

7.The position was re — iterated in A.P. State Road Transport Corporation and Ors. v. Abdul Kareem3, (2005 (6) SCC 36). In view of what has been stated by this Court in S. Narasagoud and Abdul Kareem cases (supra), there is no merit in this appeal which is accordingly dismissed. There will be no order as to cost.

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