An employee fully exonerated of criminal charges is entitled to full salary and annual increment during suspension, and interest on delayed gratuity payment.

Arijit Banerjee, J.

1. In this proceeding the writ petitioner prays for a writ of mandamus commanding the respondents to disburse the petitioner’s differential salary along with interest for the period during which he was placed under suspension, annual increment for ten months along with interest thereon and interest on delayed payment of gratuity. The undisputed facts of this case forming the background of this writ petition are briefly as follows.

2. The petitioner joined the respondent Bank as a clerk in the year 1972. Ultimately he was promoted to the Officer Cadre. In the year 1994, the CBI initiated a case against the petitioner and some other officers of the Bank under Secs. 420, 466, 467, 468 and 471 of the IPC and Secs. 13(1)(d) and 13(2) of the Corruption of Prevention Act, 1988. The petitioner was placed under suspension by the then General Manager under Regulation 12(1)(b) of the Indian Overseas Bank Officer Employees’ Discipline and Appeal Regulations, 1976 (in short the ‘1976 Regulations’). The petitioner filed CO No. 6205(W) of 1995 in this Court challenging the order of suspension. By an order dated 6 June, 1995, this Court remanded the matter back to the concerned authority for considering the same afresh. By a departmental order dated 21 October, 1995, the suspension order was revoked. However, it was stated in the said revocation order that the period of the petitioner’s suspension from the Bank’s service will not be treated as being spent on duty for all purposes. The petitioner joined service immediately. By a representation dated 13 May, 1996, the petitioner requested the respondent Bank to release the full wages for the period of suspension. By a letter dated 13 July, 1996 the Bank declined to do so pending outcome of the criminal prosecution. The petitioner retired from service in due course on 31 May, 2009. By an order dated 27 September, 2010 the Special CBI Court acquitted the petitioner of the charges levelled against him. The gratuity amount was paid to the petitioner on 3 August, 2011. In the meantime, the petitioner had made several representations for release of the differential wage for the period of suspension as also increments. Alleging non-consideration of such representations the petitioner approached this Court by filing WP 24309(W) of 2012. By an order dated 14 July 2014, this Court directed the Chief Regional Manager of the Bank to dispose of the petitioner’s representation within eight weeks. Pursuant to such direction the Chief Regional Manager, Regional Office, Calcutta passed a reasoned order dated 26 November, 2014 rejecting the demands of the petitioner. This order is under challenge in the present writ petition.

3. I have heard the learned Counsel for the parties at length. Three issues arise for determination in the present proceeding which are as follows:-

(a) Is the petitioner entitled to differential salary for the period of suspension, with or without interest?

(b) Is the petitioner entitled to annual increment for the ten months suspension period with or without interest thereon?

(c) Is the petitioner entitled to interest on delayed payment of gratuity?

4. Regarding the first two issues, learned Counsel for the respondent Bank relied on Regulations 12(1) and 15 of the 1976 Regulations. Regulation 12(1) inter alia provides that an Officer employee may be placed under suspension by the competent authority where a case against him in respect of any criminal offence is under investigation, enquiry or trial. Regulation 15 reads as follows:-

“R. 15. Pay, Allowance and Treatment of Service on Termination of Suspension:

(1) Where the competent authority holds that the officer employee has been fully exonerated or that the suspension was unjustifiable, the officer employee concerned shall be granted the full pay to which he would have been entitled to had he not been suspended together with any allowance of which he was in receipt immediately prior to his suspension, or may have b