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2014 Supreme(Mad) 2947

Before the Madurai Bench of Madras High Court
K.K. SASIDHARAN, J.
A. Senthilkumaran -Appellant
Versus
The Managing Director, Tamil Nadu State Marketing Corporation Ltd. & Others- Respondent
W.P.(MD)No.7351 of 2014 & M.P.(MD)No.1 of 2014
Decided on : 03-09-2014

Advocates Appeared:
For the Petitioner:K. Dinesh Babu, Advocate.
For the Respondents:Muniyasamy, Advocate.

The employer has the right to suspend an employee pending enquiry and the employee is entitled to payment during suspension, as established by the precedents of R.P.Kapur v. Union of India and B.R.Patel v. State of Maharashtra.

Headnote:

Suspension - Employment - R.P.Kapur v. Union of India [AIR 1964 SC 787], B.R.Patel v. State of Maharashtra [AIR 1968 SC 800]

Fact of the Case:

The petitioner, a salesman, was suspended by the TASMAC for selling liquor at a higher price following a surprise inspection.

Finding of the Court:

The court directed the TASMAC to conduct an expeditious enquiry and conclude the disciplinary proceedings within two months, with provision for subsistence allowance in case of delay.

Issues: Challenge to suspension order, applicability of precedent, and direction for enquiry proceedings.

Ratio Decidendi: The court relied on the precedents of R.P.Kapur v. Union of India and B.R.Patel v. State of Maharashtra to establish the employer's right to suspend an employee pending enquiry and the entitlement to payment during suspension.

Final Decision: The Writ Petition was disposed of with a direction for expeditious enquiry proceedings and provision for subsistence allowance in case of delay.

Judgment :

1. The petitioner was appointed as Salesman by the Tamil Nadu State Marketing Corporation Limited (hereinafter referred to as 'the TASMAC), in respect of Shop No.5302 at Maduri South, Madurai District. While so, the District Manager conducted a surprise inspection on 21 March, 2014 and found that Gold Strong Beer 650 ML Rum was sold at Rs.110 in stead of Rs.100 and that the liquor was sold at a higher price of Rs.10/-. The respondent, vide his proceedings dated 22 March, 2014, suspended the petitioner from service. The said order is challenged in this Writ Petition.

SUBMISSIONS:

2. The learned counsel for the petitioner, by placing reliance on the order dated 04.08.2014, in W.P.(MD)Nos.12465, 12466, 12467, 12491, 12492, 12493, 12494, 12495, 1340, 1670, 1672, 1673, 1674 and 1675 of 2014, submitted that similar Writ Petitions were disposed of by this Court with a direction to the TASMAC to conduct enquiry and pass final orders.

DISCUSSION:

3. The impugned order was passed on the basis of surprise inspection conducted by the District Manager of TASMAC. The respondent has now made it clear that the impugned order is nothing but suspension order, whereby and whereunder, the petitioner was suspended pending enquiry. The respondent proposes to conduct an enquiry in the matter.

THE PRECEDENT:

4. The Constitutional Bench of the Supreme Court in R.P.Kapur v. Union of India [AIR 1964 SC 787] made it very clear that the appointing authority is entitled to suspend the employee pending departmental enquiry. The observation reads thus:

"11. The general principle therefore is that an employer can suspend an employee pending an enquiry into his conduct and the only question that can arise on such suspension will relate to the payment during the period of such suspension. If there is no express term in the contract relating to suspension and payment during such suspension or if there is no statutory provision in any law or rule, the employee is entitled to his full remuneration for the period of his interim suspension; on the other hand if there is a term in this respect in the contract or there is a provision in the statute or the rules framed thereunder providing for the scale of payment during suspension, the payment would be in accordance therewith. These general principles in our opinion apply with equal force in a case where the government is the employer and a public servant is the employee with this modification that in view of the peculiar structural hierarchy of Government, the employer in the case of government, must be held to be the authority which has the power to appoint a public servant. On general principles therefore the authority entitled to appoint a public servant would be entitled to suspend him pending a departmental enquiry into his conduct or pending a criminal proceeding, which may eventually result in a departmental enquiry against him. This general principle is illustrated by the provision in Section 16 of the General Clauses Act, No.X of 1897, which lays down that where any Central Act or Regulation gives power of appointment that includes the power to suspend or dismiss unless a different intention appears. Though this provision does not directly apply in the present case, it is in consonance with the general law of master and servant. But what amount should be paid to the public servant during such suspension will depend upon the provisions of the statute or rule in that connection. If there is such a provision the payment during suspension will be in accordance therewith. But if there is no such provision, the public servant will be entitled to his full emoluments during the period of suspension. This suspension must be distinguished from suspension as a punishment which is a different matter altogether depending upon the rules in that behalf. On general principles therefore the Government, like any other employer, would have a right to suspend a public servant in one of two ways. It may suspend an






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