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2025 Supreme(P&H) 1564

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Harpreet Singh Brar, J.
Rajwinder Kaur and another - Petitioners
Versus
Punjab State Civil Supplies Corporation and another - Respondents
CWP-16093-2023
Decided On :  21-11-2025

Advocates Appeared:
For the Petitioner:Mr. Maninder Arora, Advocate
For the Respondent:Mr. Manbir Singh Batth, Advocate

Conviction under Section 138 NI Act does not constitute moral turpitude relating to employment if it arises from personal debts; wrongful termination necessitates reinstatement and benefits.

Headnote:(A) Constitution of India - Article 226 - Mandamus for compassionate appointment and release of service benefits - Husband of petitioner was wrongfully dismissed from service due to a conviction which was later overturned; the validity of the dismissal order was challenged through a civil suit - Petition allowed, and the court quashed the dismissal order, directing the release of all service benefits. (Paras 1, 2, 12)

(B) Moral Turpitude - Conviction under Section 138 of the Negotiable Instruments Act, 1881 does not automatically involve moral turpitude if arising from personal debts, not related to employment duties. (Paras 10, 11)

Facts of the case:
Petitioners sought the appointment of the second petitioner on compassionate grounds after the death of the deceased employee, whose service was wrongfully terminated. The dismissal order was based on a prior conviction that was later overturned.

Findings of Court:
The court found that the dismissal was unjust, the employee was deemed in service till death, and service benefits were to be released.

Issues: Whether the dismissal was warranted due to moral turpitude and the entitlement for compassionate appointment.

Ratio Decidendi: The court established that a personal conviction under the NI Act does not equate to moral turpitude in relation to employment, necessitating reinstatement and benefits.

Result: Petition allowed.

Table of Content
1. petition for compassionate appointment post-dismissal (Para 1 , 2)
2. argument for exoneration and hardship from non-payment (Para 3)
3. respondents’ defense on concealment and penalties (Para 4)
4. analysis of moral turpitude in context of conviction (Para 5 , 6)
5. clarifications on moral turpitude implications (Para 7 , 8)
6. disciplinary action not automatically following conviction (Para 9)
7. gratuity denial not justified under current facts (Para 10 , 11)
8. conclusion to quash orders and grant benefits (Para 12)

JUDGMENT :

HARPREET SINGH BRAR, J.

1. The present petition has been preferred under Article 226 of the Constitution of India seeking issuance of a writ in the nature of mandamus directing the respondents to appoint petitioner No.2 on compassionate basis in lieu of death of his father who worked as a Chowkidar with the respondent- Corporation. Further, a prayer has been made for quashing of order dated 06.10.2020 (Annexure P-9) whereby the deceased employee was dismissed from service as well as order dated 16.09.2022 (Annexure P-10) vide which the representation submitted by the petitioners for release of service benefits and compassionate appointment for petitioner No.2 was rejected. Additionally, it is prayed that the retiral benefits of the deceased be released to petitioner No.1 at an interest of 12% p.a.

FACTUAL BACKGROUND

2. The husband of petitioner No.1 namely Dharampal Singh (hereinafter ‘deceased’) was a regular employee of the respondent-Corporation, working at the post of a Chowkidar. The services of the deceased were dispensed with vide order dated 15.04.2015 on account of conviction under Section 138 of the Negotiable Instruments Act, 1881 (hereinafter ‘NI Act’). Aggrieved by the same, the deceased filed an appeal which was allowed by the learned Additional Sessions Judge, Ferozepur vide judgment dated 19.01.2016 (Annexure P-3), resulting in his acquittal. The deceased also filed a civil suit seeking declaration of order dated 15.04.2015 to be illegal. As an upshot of the same, the deceased was ordered to be reinstated vide judgment dated 19.07.2017 (Annexure P-4) which was also upheld by the appellate Court (Annexure P-5). The respondent-Corporation moved RSA-4209-2019 before this Court, challenging the same. Unfortunately, the deceased passed away on 15.06.2022. However, neither retiral benefits have been released to the petitioners nor has petitioner No.2 been considered for compassionate appointment. Hence, the present writ petition.

CONTENTIONS

3. Learned counsel for the petitioners contended that the deceased has been duly exonerated in the criminal case and, his termination orders have been set aside by the Civil Court. However, certain benefits like gratuity and leave encashment have not been released to the petitioners till date, which has caused great financial hardship on the family. Petitioner No.2, son of the deceased, approached the respondent-Corporation for release of said benefits and considering him for compassionate appointment, but no action was taken. This Court while dismissing judgment dated 23.08.2023 in RSA-4209-2019 preferred by the respondent-Corporation specifically stated that conviction in a private complaint would not automatically lead to termination. Learned counsel also places reliance on the judgments rendered by Coordinate benches of this Court in Tarsem Singh vs. State of Punjab and another 2020(3) PLR 26. Further, the deceased was involved in criminal complaints under Section 138 of the Negotiable Instruments Act, 1881 (hereinafter ‘NI Act’), however they emanate from money borrowed by him for survival since he was unjustly dismissed from service vide order dated 15.04.2015 (Annexure P-2) and had no source of livelihood. Moreover, this Court in Jagroop Singh vs. The Punjab State Power Corporation Limited and others 2017(2) LAR 251 and Om Pal vs. State of Haryana and others 2015(26) SCT 231 has held dispute qua dishonour of a cheque issued for personal

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