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2026 Supreme(Bom) 536

IN THE HIGH COURT OF JUDICATURE AT BOMBAY NAGPUR BENCH
M.S. JAWALKAR, NANDESH S. DESHPANDE, JJ.
Nilkanth S/o Baliram Bhusari – Appellant
Versus
The Joint Director of Higher Education, Amravati Region – Respondent
Writ Petition No. 3423 of 2020
Decided On : 05-02-2026

Advocates Appeared:
For the Appellant : Y.D. Nagpure
For the Respondents: S.V. Narale, S.S. Ghate, Abhay Sambre

Post-superannuation fresh departmental enquiry invalid under Pension Rules 1982 Rule 27 after two service-period exonerations; no de novo without reasons/opportunity; mandates release of salary, pension, retiral benefits.

Headnote:(A) Maharashtra Civil Services (Pension) Rules, 1982 - Rule 27 - Departmental proceedings - Fresh/de novo enquiry initiated post-superannuation on 07/10/2020, after retirement on 31/12/2019 and after two prior exoneration reports dated 30/04/2019 and 28/11/2019, held illegal, void ab initio and contrary to Rule 27(2)(b) requiring sanction of appointing authority for post-retirement proceedings not instituted during service - No opportunity granted nor reasons supplied to scrap earlier exonerating reports - Provisional pension granted but regular pension, salary from reinstatement to retirement, back wages for suspension period (treated as duty), and retiral benefits directed to be released. (Paras 17, 18, 20)

(B) Service law - Suspension and reinstatement - Prior writ petition disposed per settlement treating suspension as duty period, reinstatement without stigma, no claim for back wages post-reinstatement from society but entitlement from relevant authority; liberty to challenge penalty imposition separately - Subsequent denial of benefits despite exonerations held unjustified. (Paras 15, 16)

Facts of the case:
Petitioner, former principal with unblemished record, faced anomalies in examination fees submission due to fraud by subordinates (fabricated challans, misappropriation); FIR lodged against subordinates; suspended post-management change; university fined management which sought recovery from petitioner; prior writ withdrawn per settlement; reinstated but unpaid salary till retirement; exonerated in two departmental enquiries holding subordinates guilty; post-retirement third enquiry initiated leading to punishment, denial of pension/salary.

Findings of Court:
Third enquiry report dated 19/02/2022 and punishment order dated 15/06/2022 quashed; directions issued for release of regular pension difference till death, salary from reinstatement to retirement, back wages for suspension period, pensionary benefits; society to submit pay bills.

Issues: Legality of initiating fresh departmental enquiry post-retirement after prior exonerations; entitlement to salary, pension, retiral benefits despite settlement terms and "no work, no pay" principle; violation of pension rules.

Ratio Decidendi: Under Rule 27, departmental proceedings post-retirement deemed instituted on date of charge-sheet issuance; fresh proceedings without prior institution during service require appointing authority sanction, limited to events within four years; impermissible here after two exonerations; no authority to continue or start de novo post-superannuation without compliance, entitling to full benefits. Result : Writ petition allowed; reliefs granted as specified in para 20.

Table of Content
1. writ challenges benefit denial and post-retirement enquiry (Para 1 , 2 , 3 , 4)
2. staff fraud leads to exoneration via two enquiries (Para 5 , 6 , 7 , 8 , 9)
3. debate on principal's vicarious liability for subordinates (Para 10 , 11 , 12 , 13)
4. court recounts settlement and repeated exonerations (Para 14 , 15 , 16)
5. rule 27 bars new post-retirement departmental enquiry (Para 17 , 18)
6. quash illegal enquiry; direct salary and pension payment (Para 19 , 20 , 21)

JUDGMENT :

M.S. JAWALKAR, J.

1. Heard.

2. Rule. Rule is made returnable forthwith. Heard finally with the consent of the learned counsel for the parties.

3. The petitioner challenges the decision dated 15/06/2020, whereby the respondent No.1-Joint Director of Higher Education, Amravati illegally denied payment of salary, pension, and retiral benefits, unlawfully scrapped the enquiry reports of Divisional Enquiry Officer and initiated a third enquiry. By amending the petition, the petitioner further seeks to quash and set aside the report of third enquiry and also to quash and set aside the resolution dated 11/08/2020 by which the decision to hold de novo enquiry was taken and consequentially afresh enquiry report dated 19/02/2022 as well as order dated 15/06/2022 came to be passed thereby punishment was imposed.

4. During pendency of the present petition, petitioner Dr. Nilkanth Bhusari reported to be dead and his legal heirs were brought on record vide order dated 11/01/2024.

5. It is submitted that the petitioner was a highly qualified academician with over 40 years of service, holding Ph.D. in Zoology, nationally recognised researcher, and former Principal of Shri Shivaji Science and Arts College, Chikhli, with an unblemished academic record. The respondent No.2-University on 15/02/2018 informed the petitioner about anomalies in the submission of examination fees for the Winter session of 2017. On enquiry, it was discovered that staff members Shri V.B. Chavhan and Shri R.T. Shinde had committed fraud by fabricating challans and misappropriating the amount of examination fees. The petitioner on 20/02/2018 requested the respondent No.4 - Secretary of Society, to initiate a departmental enquiry against Shri V.B. Chavhan, which confirmed a fraud. Thereafter, with the permission dated 13/03/2018, a First Information Report (FIR) was lodged on 03/04/2018 against the Shri V.B. Chavhan and offences under Sections 408 and 420 of the Indian Penal Code (IPC) were registered. In the meantime, the Management got changed and new Management took the charge. Despite acting lawfully, the petitioner was illegally suspended on 23/04/2018 without granting an opportunity of hearing. During suspension, he continued to serve at the assigned institution.

6. The respondent No.2-University imposed a fine of Rs.54,00,260/- on the Management, but the new Management illegally sought recovery of fine from the petitioner. The petitioner received a notice from the respondent No.4-Secretary to deposit an amount of Rs.54,00,260/- within 15 days on account of late fees on individual level, the petitioner however, consistently denied liability, since both the enquiries had exonerated the petitioner and Shri V.B.Chavan was held guilty for the irregularities.

7. The petitioner challenged the suspension and recovery notice in Writ Petition No.8377/2018, which was disposed of as withdrawn on 20/08/2019, on the basis of the terms and conditions stated in the joint pursis dated 19/07/2019, recognizing the suspension as duty period and reinstatement without stigma. It is also pointed out that during the pendency of the petition, the petitioner was invited by the respondent Nos.3 and 4 for mutual settlement and did arrive at one, with certain terms and conditions.

8. The petitioner was reinstated on 26/08/2019 in Gopalrao Khedkar Mahavidyalaya, but was not paid salary till his retirement on 31/12/2019, nor paid any suspension wages or pension, despite multiple follow-ups. The petitioner pointed out

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