An employee acquitted of criminal charges is not automatically entitled to salary or benefits for the suspension period unless explicitly provided by the reinstatement terms. (Sections 10(1)(b)(i) and relevant service rules apply)

JUDGMENT :

DEVENDRA KUMAR UPADHYAYA, C.J.

1. Heard the learned counsel for the parties and perused the records available before us on this intra-court appeal.

2. The instant appeal challenges the judgment and order dated 30.10.2023 passed by the learned Single Judge in W.P.(C) 4762/2012, in so far as it directs the appellant to count the period from 21.09.2002 to 24.03.2011 as period having been spent on duty by the respondent for the purposes of his pensionary and retiral benefits, with a further direction to the appellant to re-fix his pensionary and retirement benefits accordingly.

3. Before adverting to the respective submissions made by learned counsel for the parties, we may state the facts relevant for the purposes of resolving the issue involved herein.

4. A complaint by one Mr.Gurcharan Singh was filed containing certain allegations of demand for bribery by the respondent while he was posted as Branch Manager (Scale-III) at the Laxmi Nagar Branch of the appellant in the year 2002. An FIR on the basis of the said complaint was registered by the Central Bureau of Investigation, in connection therewith the respondent was arrested on 02.09.2002, where after, he was released on bail.

5. On 24.09.2002, the respondent was suspended with effect from 21.09.2002 on account of his involvement in the criminal case, which led to lodging of the FIR and his arrest.

6. On 08.06.2002, a certain charge sheet was issued to the respondent containing certain charges relating to various misconducts and irregularities said to have been committed by him in discharge of his official duties as a bank employee.

7. Vide judgment dated 08.07.2005, the respondent was convicted of the offences under Sections 7 , 13(2) and 13(1)(d) of the Prevention of Corruption Act, 1988 (hereinafter referred to as the ‘Act, 1988’) and accordingly, vide order dated 11.07.2005 he was sentenced to undergo rigorous imprisonment for a period of two years with a fine of Rs.10,000/-, in default whereof he was further ordered to undergo imprisonment of three months for the offence under Section 7of the Act, 1988. The respondent was also sentenced to undergo three years rigorous imprisonment with a fine of Rs.10,000/- with a default clause of undergoing three months imprisonment for the offence under Section 13 (2) read with (1)(d) of the Act, 1988.

8. In terms of Rule 67(j) read with Rule 68(7)(ii) of the SBI Officers Service Rules, 1992 (hereinafter referred to as the ‘Service Rules’) as also in terms of Section 10(1)(b)(i) of the BANKING REGULATIONS ACT , 1949, (hereinafter referred to as the ‘Act 1949’), the respondent was dismissed from service vide order dated 14.10.2005. The order of dismissal dated 14.10.2005 further provided that the period of suspension of the respondent will be treated as such and that he shall not be paid any salary or allowances except the subsistence allowance, for this period, already paid to him. It also provided that gratuity payable to the respondent shall stand forfeited in terms of Section 6 (b)(ii) of the Payment of Gratuity Act, 1972.

9. The order dated 14.10.2005, whereby the respondent was dismissed from service on account of his conviction in the criminal case, also provided that disciplinary action initiated against the respondent vide charge sheet dated 08.06.2004 shall be kept in abeyance, which may be revived if the order of dismissal from service is altered by order of any Court. The appeal filed by the respondent against this dismissal order was also dismissed. Thereafter, the