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SUPREME COURT OF INDIA
ASHOK BHUSHAN, NAVIN SINHA, JJ.
Chief Regional Manager, United India Insurance Company Limited – Appellant
Versus
Siraj Uddin Khan – Respondent
Civil Appeal No.5390 of 2019 (arising out of SLP (C) No. 174 of 2019)
Decided On : 11-07-2019
(a) Service law - Disciplinary proceeding - Punishment - Respondent terminated form service on the day of his retirement - Single Judge of High court setting aside order of termination but without any order for back wages or consequential benefits although required to adjudicate the same - Contempt Court also observing the same - In case of dismissal setting aside of the order of dismissal automatically entitles the employee to back wages - Instantly respondent was terminated and had superannuated - Single Judge ought to have adjudicated as to whether respondent would be entitled to salary etc for the period 15.05.2009 to 20.06.2012 - In the second writ petition Division Bench setting aside order of termination and allowing all consequential benefits - Needs modification - Respondent directed to file detailed representation to appellant - Appellant directed to consider the same and pass orders giving reasons. (Para 11, 12, 15, 23)
(b) Service law - Respondent terminated on the day of retirement - Rightly held to be ineffective by High Court. (Para 17)
Facts of the case:
This appeal has been filed challenging the judgment dated 03.07.2018 of Allahabad High Court, partly allowing the writ petition of the respondent, wherein direction has been issued by the High Court for payment of arrears of salary and other benefits.
The respondent was appointed by the appellant company on the post of assistant/typist. The respondent was transferred from Allahabad branch of the company to Jaunpur branch in pursuance of which he was relieved on 01.02.2007 from Allahabad to join at Branch Office, Jaunpur. The respondent did not join and was unauthorizedly absent from 02.02.2007. A charge sheet dated 07.06.2007 was issued with regard to his unauthorised absence from 02.02.2007 to 07.06.2007, for which disciplinary proceedings were initiated, and the respondent was awarded punishment of “reduction of basic pay by two steps”
A second charge sheet was issued alleging unauthorised absence of 663 days. Charge sheet was sent to the respondent but he did not receive the same. The inquiry was conducted ex-parte. The respondent, in the meantime, attained the age of superannuation on 20.06.2012. An order dated 26.06.2012 was passed by the disciplinary authority terminating his services.
A Writ petition was filed by the respondent praying for quashing the orders dated 14.05.2009, 26.06.2012 and 18.07.2014. The order dated 26.06.2012 terminating his services was set aside. Insofar as the challenge to order dated 14.05.2009 was concerned, awarding punishment of reduction of basic pay by two steps, writ petition was dismissed on the ground that the same is barred by laches and the relief to that extent was denied.
The respondent, aggrieved by order of learned Single Judge insofar as it has dismissed the writ petition challenging the order dated 14.05.2009, filed a special appeal before Division Bench of the High Court which allowed the special appeal setting aside the order rejecting the challenge to the order dated 14.05.2009. The order dated 14.05.2009 was quashed and it was held that appellant shall be entitled to all consequential benefits. The order dated 15.02.2016 passed by the Division Bench in the special appeal was not challenged and has become final.
A contempt application was filed by the respondent alleging disobedience of judgment of learned Single Judge dated 29.05.2015 as well as contempt of the Division Bench order dated 15.02.2016.
The respondent filed another writ petition praying for salary for the period from January, 2007 to June, 2012 with interest and all consequential benefits, such as, promotion arrears, medical bills, lump sum medical reimbursement and re-fixation of pension. The said writ petition has been partly allowed.
Finding of the Court:
Single ought to have adjudicated on respondent’s entitlement to back wages.
Result : Appeal partly allowed.
JUDGMENT :
Leave granted.
2. This appeal has been filed challenging the judgment dated 03.07.2018 of Allahabad High Court, partly allowing the writ petition of the respondent, wherein direction has been issued by the High Court for payment of arrears of salary and other benefits.
3. By our order dated 02.01.2019, limited notice was issued to the question as to whether the respondent was entitled for payment of salary after 14.05.2009 to 20.06.2012. The respondent has filed a counter affidavit and appeared in person when the matter was heard on 01.07.2019.
4. We have heard Mr. P.P. Malhotra, learned senior counsel for the appellant and the respondent appearing in-person.
5. The brief facts of the case necessary to be noticed for deciding the limited issue as entertained by this Court in this appeal are: -
5.1 The respondent was appointed by the appellant company on the post of assistant/typist. The respondent was transferred by order dated 18.08.2006 from Allahabad branch of the company to Jaunpur branch in pursuance of which he was relieved on 01.02.2007 from Allahabad to join at Branch Office, Jaunpur. The respondent did not join and was unauthorizedly absent from 02.02.2007. A charge sheet dated 07.06.2007 was issued with regard to his unauthorised absence from 02.02.2007 to 07.06.2007, for which disciplinary proceedings were initiated, Writ petition No.11840 of 2008 was filed by the respondent praying for expeditious disposal of the departmental inquiry and further direction to the appellant for payment of salary w.e.f. 23.07.2007.
5.2 Learned Single Judge of the High Court vide its order dated 05.03.2008 disposed of the writ petition directing for expeditious disposal of the proceedings and with regard to claim of the salary of the respondent, direction was issued to consider and decide the representation of the respondent dated 11.11.2007. The disciplinary proceedings with regard to unauthorised absence resulted in order dated 14.05.2009 of the disciplinary authority holding the respondent guilty of charge of unauthorised absence and awarding punishment of “reduction of basic pay by two steps” under Rule 23(a) of the General Insurance (Conduct, Discipline & Appeal) Rules, 1975. The respondent filed an appeal, which too was rejected.
5.3 A second charge sheet was issued alleging unauthorised absence of 663 days. Charge sheet was sent to the respondent but he did not receive the same. The inquiry was conducted ex-parte. The respondent, in the meantime, attained the age of superannuation on 20.06.2012. An order dated 26.06.2012 was passed by the disciplinary authority terminating his services. A departmental appeal against the order dated 26.06.2012 was also dismissed on 18.07.2014. A Writ petition No. 59041 of 2014 was filed by the respondent praying for quashing the orders dated 14.05.2009, 26.06.2012 and 18.07.2014. The learned Single Judge decided the writ petition filed by the respondent vide its judgment dated 29.05.2015. The order dated 26.06.2012 terminating his services was set aside on two grounds, firstly, the inquiry proceedings are vitiated since the charge sheet was never served upon the respondent and secondly, the respondent having already retired on 20.06.2012, he could not have been terminated on 26.06.2012. Insofar as the challenge to order dated 14.05.2009 was concerned, awarding punishment of reduction of basic pay by two steps, writ petition was dismissed on the ground that the same is barred by laches and the relief to that extent was denied.
5.4 The appellant aggrieved by the order of the learned Single Judge dated 29.05.2015 had filed a Special Leave Petition (C) No.26395 of 2015, which was dismissed by this Court on 18.09.2015. The respondent, aggrieved by order of learned Single Judge insofar as it has dismissed the writ petition challenging the order dated 14.05.2009, filed a special appeal before Division Bench of the High Court. The Division Bench proceeded to consider the challenge to the order dated 14
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