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2026 Supreme(Telangana) 169

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
APARESH KUMAR SINGH, CJ., G.M.MOHIUDDIN, J.
Adilabad Municipality - Appellant
Vs.
Hari And Others - Respondents
Writ Appeal No.83 of 2026
Decided On : 22-01-2026

Advocates:
Advocate Appeared:
For the Appellant : RAMESH CHILLA (SC FOR SERVICE MATTERS OF ALL MUNICIPALITIES TELANGANA)
For the Respondent: K RAMA SUBBA RAO

Prolonged unauthorized absence from service results in salary forfeiture beyond three years prior to filing a writ petition, while pensionary rights are preserved post-superannuation.

Headnote:(A) Service Jurisprudence - Principle of ‘No Work, No Pay’ - The appellant Municipality's appeal against the order directing payment of retirement benefits and salary to the writ petitioner was partially upheld, affirming the entitlement to pensionary benefits post-superannuation but limiting salary claims to a three-year period before the writ petition. (Paras 13, 17, 20)

(B) Disciplinary Proceedings - Delay and Inaction - The failure to conclude disciplinary proceedings for an extended period was attributable to the Municipality, which undermined their position regarding the writ petitioner's absence. (Paras 11, 19)

(C) Interest on Benefits - Award of interest at 12% was deemed excessive and modified to 9% to align with the nature of the dispute. (Paras 18, 20)

Facts of the case:
The writ petitioner was appointed as a Public Health Worker in 1977 and remained absent from duty without leave from July 2004 until approached the court in 2016. The learned Single Judge ordered full salary and benefits until superannuation.

Findings of Court:
The Court determined that the writ petitioner was not entitled to full salary for his entire absence but could receive payments for the three years preceding the writ petition, awarding 9% interest on benefits due.

Issues: The key issues included the implications of prolonged unauthorized absence, the entitlement to salary and retirement benefits, and the reasonableness of interest on awards.

Ratio Decidendi: The court maintained that while the lack of suspension does not assure continuity of service during absence, a second charge memo indicated the continuity of employment, thus justifying a limited award of benefits.

Result: Writ appeal partly allowed; order modified regarding salary claims and interest.

Table of Content
1. overview of the case and factual background. (Para 1 , 2 , 3 , 4 , 5)
2. arguments presented by both parties. (Para 6 , 7)
3. analysis of absences and principles of service law. (Para 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18)
4. ruling on salary and benefits confinement. (Para 19 , 20)
5. final order and modification of the judgment. (Para 21 , 22)

JUDGMENT :

This Writ Appeal is directed against the order dated 10.07.2025 passed by the learned Single Judge in W.P.No.43517 of 2016, whereby the writ petition filed by respondent No. 1 (hereinafter referred to as ‘writ petitioner’) was allowed and the appellant-Municipality was directed to pay all retirement benefits along with salary from 28.04.2006 till the date of superannuation, with interest at 12% per annum.

2. Heard Sri Ramesh Chilla, learned counsel for the appellant and Sri K.Rama Subba Rao, learned counsel for respondent No.1 and perused the material on record.

Factual background (in brief)

3. The writ petitioner was appointed as a Public Health Worker (originally appointed as Scavenger) in the Adilabad Municipality on 01.08.1977. It is the case of the appellant- Municipality that the writ petitioner remained unauthorisedly absent from duty with effect from 29.07.2004. In that regard, a charge memo dated 28.04.2006 was issued initiating disciplinary proceedings. Though the writ petitioner was permitted to rejoin duty on humanitarian grounds on 26.05.2006, pending conclusion of the disciplinary proceedings, the writ petitioner failed to report for duty. It is noted that a second charge Memo was issued on 10.11.2016, which is of significance. The disciplinary proceedings, however, remained inconclusive for several years.

4. In the year 2016, after the issuance of the second charge Memo, the writ petitioner approached this Court by filing the underlying writ petition seeking payment of retirement benefits and salary for the period during which he remained absent from duty.

5. The learned Single Judge, by the impugned order, held that inasmuch as the writ petitioner was not suspended and was permitted to resume duties, the writ petitioner must be deemed to have continued in service till the date of superannuation and was, therefore, entitled to full salary for the said period as well as retiral benefits.

6. The appellant-Municipality, in this writ appeal, has raised several grounds and contended as hereunder:

(i) That the writ petitioner remained unauthorisedly absent from 29.07.2004 to 31.07.2017 without sanctioned leave, which amounts to voluntary abandonment of service. Reliance was placed on Vijay S.Sathaye v. Indian Airlines Limited, (2013) 10 SCC 253 wherein prolonged unauthorised absence was held to result in automatic severance of the employer–employee relationship.

(ii) That the doctrine of “no work, no pay”, as reiterated in Sukhdeo Pandey v. Union of India, (2007) 7 SCC 455 applies squarely, disentitling the petitioner from salary or monetary benefits for the period which he admittedly did not render service.

(iii) That the writ petition was premature and not maintainable, having been filed in 2016, prior to the petitioner’s superannuation on 31.07.2017, when no enforceable right to retirement benefits (cause of action) had accrued.

(iv) That the claims for arrears of salary must be restricted only to three years preceding the filing of the writ petition in the absence of exceptional circumstances; hence, the direction of the learned Single Judge to pay salary from 2006 is legally unsustainable.

(v) That the award of interest at 12% per annum was arbitrary and excessive, lacking any statutory or contractual basis, particularly in a matter involving disputed service matter.

(vi) That the learned Single Judge failed to consider G.O.Ms.No.129 dated 01.06.2007, which introduced Rule 5-B into the Andhra Pradesh Leave Rules, 1933, whereby a government servant is deemed to have resigned if absent without authorisation for over one year subject to reasonable op

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