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2025 Supreme(HP) 1468

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
Ranjan Sharma, J.
Man Singh - Appellant
Versus
State of Himachal Pradesh and another - Respondent
CWPOA No. 915 of 2020
Decided On : 13-10-2025

Advocates:
Advocate Appeared:
For the Appellant :Mr. Raju Ram Rahi, Advocate
For the Respondents:Mr. Hemant K. Verma, Deputy Advocate General

Post exoneration in disciplinary/criminal proceedings, employee entitled to retrospective promotion with actual monetary benefits from due date, not notional, absent recorded reasons for denial; 'no work no pay' inapplicable if no employee fault.

Headnote:(A) Service Law - Promotions - Exoneration in disciplinary and criminal proceedings - Employee appointed as Class-IV post in 1991, disciplinary proceedings initiated 2010 leading to penalty imposed 01.04.2014 set aside 28.08.2014; criminal proceedings culminating in acquittal 01.06.2015 - Consideration for promotion to next Class-IV post kept in sealed cover, juniors promoted w.e.f. 04.03.2014 - Post exoneration, promoted w.e.f. 04.03.2014 on notional basis vide order 18.05.2016 denying actual monetary benefits without reasons or opportunity of hearing - Held, unsustainable; entitled to actual benefits from due date as no fault attributable to employee and delay not at his instance - Condition of notional promotion quashed being arbitrary, contrary to Fundamental Rule 54-B(ii)(iii)(vi) and principles in Union of India versus K.V. Jankiraman (1991) 4 SCC 109 requiring reasons for denial of arrears - 'No work no pay' inapplicable where employee deprived of right to work without fault. (Paras 7(i), 7(ii), 7(iii), 7(vi))

(B) Constitutional Law - Article 300A - Retrospective promotion creates vested right to pay and allowances as property; deprivation without authority of law, reasons or hearing impermissible, visits with civil consequences. (Para 7(v))

(C) Service Law - Sealed cover procedure - Post full exoneration/acquittal, opening sealed cover entitles to promotion with full benefits from date juniors promoted; notional promotion penalizes without fault, validates departmental delay/wrong. (Paras 7(i), 7(v))

Facts of the case:
Petitioner due for promotion 04.03.2014 but case kept in sealed cover due to pending disciplinary/criminal proceedings; penalty set aside and acquitted, yet promoted on notional basis w.e.f. 04.03.2014 denying arrears till actual joining 18.05.2016; reliefs confined to actual monetary benefits post order.

Findings of Court:
Impugned order's notional condition interdicted; respondents to issue fresh orders per Jankiraman or release actual benefits by 31.12.2025 with 6% interest on default; no ACP/other reliefs pressed.

Issues: Validity of notional promotion denying actual benefits post exoneration; applicability of 'no work no pay'; compliance with sealed cover procedure and principles requiring reasoned denial.

Ratio Decidendi: Full exoneration mandates retrospective promotion with actual monetary benefits unless reasons recorded for denial considering all circumstances; arbitrary deprivation without hearing violates rules and Article 300A; employee not to suffer for departmental fault/delay.

Result: Petition allowed.

Table of Content
1. petition seeks actual promotion benefits from 2014. (Para 1 , 2)
2. disciplinary penalty set aside; acquittal; notional promotion. (Para 3 , 4 , 5 , 8)
3. exoneration requires full monetary benefits. (Para 6)
4. state justifies notional basis, denies acp. (Para 7)

JUDGMENT :
Ranjan Sharma, Judge

Petitioner, Man Singh, initially filed an OA No 6884 of 2016 and upon abolition of State Administrative Tribunal, the matter stands transferred to this Court as CWPOA No 915 of 2020, seeking the following reliefs:-

“7(i) That the impugned office order dated 18-5-2016 (Annexure-A/22) may kindly modified to the extent that the applicant may kindly be ordered to be promoted from the day his immediate junior has been promoted i.e. since the year 2012 on actual basis with all consequential benefits in the interest of law and justice.

7(ii) That the respondents may kindly be directed to promote the applicant from due date or from the day his juniors have been promoted i.e. w.e.f. year 2012 and to grant ACP (4-9-2014) from the day his juniors and similarly situated person have been granted.

(iii) That the respondents may kindly be granted the Pay and Grade Pay to the applicant equivalent to the junior i.e. Khem Chand from due date and also consequently grant arrears, fixation, revision etc.”

2. At the very outset, Learned Counsel for the petitioner, On Instructions, states that he does not press Reliefs (ii) and (iii). He confines his prayer for actual monetary benefits after the issuance of Office Order dated 18.05.2016 [Annexure A/22], by promoting him as Daftri [Class-IV], ‘on notional basis’, w.e.f. 04.03.2014 [Statement Taken on Record].

FACTUAL MATRIX:

3. Grievance of the petitioner is that he was appointed as Peon in Himachal Pradesh Secretariat in the year 1991. It is averred that the disciplinary proceedings were initiated against the petitioner on 03.12.2010 [Annexure A/1] and he was placed under suspension on 04.11.2010 [Annexure A/2] and pursuant to Disciplinary Proceedings, an Order was passed on 01.04.2014 [Annexure A/8], imposing the penalty of withholding of two increments with cumulative effect. The Order of penalty dated 01.04.2014 stated that suspension period from 04.11.2010 to 31.12.2010 was treated as duty period and remaining period of suspension was to be finally determined after conclusion of departmental proceedings.

3(i). Feeling aggrieved against the Order dated 01.04.2014 [Annexure A/8], imposing penalty, the petitioner submitted an Appeal under Rule 23 CCS (CCA) Rules, 1965 and the Chief Secretary, being the Appellate Authority passed an Order on 28.08.2014 [Annexure A/10], setting aside the penalty order dated 01.04.2014.

3(ii). In addition to the Disciplinary Proceedings, the State Authorities registered an FIR under Sections 465, 468, 471, 120-B of the Indian Penal Code and Section 13 (2) of the Prevention of Corruption Act, 1988, against five employees, including the petitioner-Man Singh and Kishori Lal also. The criminal proceedings resulted in acquittal of the petitioner by Learned Special Judge [Forests], Shimla, on 01.06.2015 [Annexure A-11]. After setting aside of the penalty dated 01.04.2014 [Annexure A-8] on 28.08.2014 [Annexure A-10], and upon acquittal in the criminal proceedings on 01.06.2015 [Annexure A-11], the State Authorities convened a Departmental Promotion Committee for considering the petitioner for promotion from Peon to post of Daftri [Class-IV] and based on recommendations of the Departmental Promotion Committee, the State Authorities issued an Order on 18.05.2016 [Annexure A-22], promoting the petitioner as Daftri [Class-IV] w.e.f. 04.03.2014 ‘on notional basis’.

In the above backdrop, the case set up by Learned Counsel for the petitioner is that once in the Disciplinary Proceedings, no penalty exists against the petitioner and in the Judicial Proceeding, the petitioner stands acquitted, therefore, Order dated 18.05.2016 [Annexure A-22] promoting the petitioner as Daftri [Class-IV

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