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2025 Supreme(Kar) 330

IN THE HIGH COURT OF KARNATAKA AT BENGALURU 
V Kameswar Rao, A.C.J., C M Joshi, J.
The National Insurance Company Ltd. and ors. - Appellants
Versus
Sri. T. Mahendran, S/o Late Sri. C. Tangavelu - Respondent
Writ Appeal No. 240 of 2024 (S-PRO), Civil Contempt Petition No. 362 of 2024
Decided On : 26-06-2025

Advocates:
Advocate Appeared:
For the Appellant :Mrs. Manjula Nemichandra Tejaswi, Advocate, Mr. M. Subramanya Bhat, Advocate
For the Respondent:Mr. M. Subramanya Bhat, Advocate, Mr. Sridhara K., Advocate

An employee reinstated after wrongful dismissal is entitled to notional promotion based on seniority despite gaps in service due to legal proceedings.

Headnote:(A) Karnataka High Court Rules - Promotion and Employment - Consequential benefits for reinstated employees - The court held that the respondent, despite a gap in service due to legal proceedings, is entitled to notional promotion retroactively due to seniority. (Paras 7-10)

(B) Judicial review - The necessity for evaluating factors like seniority and compliance with promotion criteria was emphasized, citing where judicial mind must be applied. (Paras 5-8)

Facts of the case:
The respondent was convicted under the Prevention of Corruption Act, reinstated with back wages, and sought promotion claims which were interlinked with his prior service's assessment.

Findings of Court:
While reinstated, the absence of performance reviews during the absence from service did not preclude the consideration for promotion based on seniority.

Issues: The main issues involved whether the respondent was entitled to promotion post-reinstatement notwithstanding the gap in service due to earlier conviction.

Ratio Decidendi: The court determined promotional entitlements should consider all rules but stressed the necessity for implementation within a justified timeframe without any adversarial implications from the past absence of service records.

Result: Appeal dismissed; directions to implement promotion and pay fixation awarded.

Table of Content
1. factual background of the case. (Para 1 , 2 , 3 , 4)
2. arguments presented by both parties. (Para 5 , 6)
3. court's analysis and reasoning. (Para 7 , 8 , 9)
4. decision on appeal. (Para 10)
5. conclusion and order enforcement. (Para 11 , 12)

JUDGMENT :

V KAMESWAR RAO, ACJ.

IN WA No.240/2024:

This appeal has been filed challenging the order dated 21.09.2023 passed by the learned Single Judge in WP No.4283/2012, whereby the learned Single Judge has allowed the writ petition filed by the respondent herein by directing in paragraphs No.24 and 25 as under:

“24. The respondents are, therefore, directed to promote the petitioner notionally from the post of Administrative Officer to the post of Assistant Manager from 2003, and more specifically, from the date on which the batch of officers belonging to the petitioner's batch were promoted.

25. Since the petitioner has attained the age of superannuation, necessary benefits in terms of re- fixation of pay and pension shall be completed and made over to the petitioner within a period of three months from the date of receipt of a copy of this order.

26. The writ petition is accordingly disposed of.”

2. The facts as contended by learned counsel for the appellants are, the respondent while working as Assistant Administrative Officer in the appellant-Company was caught red handed by the Central bureau of Investigation (‘CBI’ for short) while demanding and accepting an amount of Rs.1,000/- from insured. The CBI registered a criminal case and prosecution was initiated against him under the provisions of the Prevention of Corruption Act. The respondent was suspended on 20.11.1998. The Special Court has convicted the respondent with a direction that the respondent should undergo imprisonment with fine. Against the said order, the respondent filed a criminal appeal before this Court challenging the conviction. In the meantime on 13.09.2002, following the conviction order, the respondent was dismissed from service, which order was confirmed by the Appellate Authority. This Court had allowed the appeal filed by the respondent. The State represented by the CBI filed an SLP before the Hon’ble Supreme Court, which was dismissed.

3. The respondent filed a writ petition being WP No.31174/2003 before this Court challenging his dismissal order. This Court by order dated 10.11.2008, allowed the writ petition and directed the appellant- Company to reinstate the respondent retrospectively from the date of dismissal with full backwages as well as consequential benefits. Against the said order, the appellant-Company filed a writ appeal being WA No.1904/2008 before the Division Bench of this Court challenging the order of reinstatement retrospectively with full backwages and consequential benefits. This Court vide order dated 19.02.2009, dismissed the said appeal. Against the said order, the appellant-Company preferred an SLP before the Hon’ble Supreme Court being SLP No.998/2010. The said SLP was remanded back by the Hon’ble Supreme Court for fresh consideration on the question of backwages and other consequential benefits consequent upon reinstatement including promotion. This Court on the remand, had allowed WA No.1904/2008, whereby it reduced the backwages to 35% and further directed for the re-fixation of the salary of the respondent as well as the consequential benefits. Consequent to the disposal of WA No.1904/2008, the respondent made representations to the appellant-Company for the release of financial benefits and consequential benefits.

4. The appellant-Company’s case was, it had paid all the arrears and consequential benefits for which the respondent is entitled to. The respondent being aggrieved by the non-consideration of promotion from the Post of Administrative Officer to the Post of Assistant Manager and Assistant Manager to Deputy Manager, filed a writ petition being WP No.4283/2012 with a prayer to quash the endorsement dated 10.12.2010. It was this writ petition which was allowed b

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