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2020 Supreme(Online)(P&H) 961

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Sandeep Moudgil, J
Rajbir Singh – Appellant
Versus
National Fertilizer Ltd. – Respondent
CWP-11173-2020



Advocates:
For the Appellants/Petitioners: Sandeep S Majithia
For the Respondents: Ashwani Talwar, Pratiksha Sharma, Nikhil Sherawat, Siddeshwar Hans, Deepak Goyat

Reinstatement after acquittal does not automatically entitle an employee to back wages; the principle of 'no work no pay' is applicable where the absence from duty was a direct consequence of the employee's own criminal conviction for which the employer was not responsible.

Headnote:(A) Constitution of India - Article 226 - Back wages - Principle of 'no work no pay' - Convicted employee reinstated after acquittal - Claim for back wages for the period of absence due to incarceration - Held, reinstatement and continuity of service do not confer an automatic right to back wages - Grant of back wages is discretionary and depends on the facts of each case - Where loss of service results from employee's own involvement in criminal case, employer cannot be saddled with financial burden. (Paras 13, 14, 15)

Facts of the case:
The petitioner, while serving as an Accounts Officer, was convicted in a criminal case and sentenced to life imprisonment, leading to his suspension and subsequent dismissal. Upon his acquittal by the High Court in appeal, he was reinstated in service with continuity, but the respondent treated the period of his absence as dies non and denied back wages. The petitioner challenged this action, seeking arrears and compensation.

Findings of Court:
The court upheld the action of the employer, noting that the petitioner was disabled from discharging duties due to his own conviction in proceedings where the employer had no role. The court found that the employer acted reasonably by reinstating the petitioner upon acquittal and that the denial of back wages for the period of non-service was neither arbitrary nor illegal.

Issues: Whether an employee, upon being acquitted in a criminal case, is automatically entitled to back wages for the period he remained out of service due to his prior conviction; and whether the employer's decision to treat such period as 'dies non' is legally sustainable.

Ratio Decidendi: Reinstatement following acquittal of a criminal charge does not entitle an employee to back wages as a matter of right. The principle of 'no work no pay' applies when the period of absence is caused by an employee's own actions leading to conviction, and the employer is not privy to the initiation of the criminal proceedings.

Result: Writ petition dismissed.

Table of Content
1. summary of facts and the nature of the employment dispute. (Para 1 , 2 , 3)
2. petitioner's contentions regarding the entitlement to back wages after acquittal. (Para 4 , 5 , 6 , 7 , 8)
3. respondents' arguments regarding no work no pay principle. (Para 9 , 10 , 11 , 12)
4. court's reasoning on the discretionary nature of back wages post-acquittal. (Para 13 , 14 , 15 , 16)
5. final outcome and disposal of the petition. (Para 17 , 18)
Prayer

(1). The jurisdiction of this Court has been invoked under Article 226 of the Constitution of India, inter alia, for issuing a writ of certiorari quashing the order dated 07.03.2020 (Annexure P34) whereby for the period from 15.03.2016 to 18.12.2019 has been treated as dies non and the benefit of payment of backwages/arrears, other perks and allowances, promotional benefits etc. have been denied to him. A further direction is sought to the respondents to release the payment to the petitioner as claimed vide representation dated 27.01.2020 (Annexure P33) beside payment of compensation of Rs.2 crores to the petitioner towards emotional trauma meted out to him by the respondents.

Facts.

(2). The petitioner joined the respondent as Accounts Clerk on 14.09.1990 and earned promotion as Accounts Officer on 01.07.2015. An FIR No.266/2011 under Sections 302/201/452/323 IPC was registered at Police Station Indri, Distt. Karnal wherein it was alleged that the petitioner being member of the Panchayat, on the next day of the murder i.e. on 23.07.2011, tried to get effect a compromise between the complainant party and his co-accused. The petitioner was ultimately convicted vide judgment dated 15.03.2016 passed by Addl. Sessions Judge, Karnal wherein he was sentenced to undergo RI for life with fine of Rs.7000/-. The CRA-D-309-DB-2016 preferred by the petitioner before this Court has been admitted and the sentence has been suspended by this Court vide order dated 31.05.2016 (Annexure P1). After the judgment of conviction, the respondents placed the petitioner in suspension vide order dated 05/06.04.2016 (Annexure P2), however, without payment of any subsistence allowance, to which he was held entitled subsequently on 07.07.2016. Eventually, the petitioner was acquitted by a Division Bench of this Court vide judgment dated 24.09.2016 (Annexure P19) and pursuant to the filing of the representation dated 22.10.2019 (Annexure P20), the petitioner was allowed to join the services of the respondents w.e.f. 15.03.2016. However, the respondents decided that the period from 15.03.2016 to 18.12.2019 be considered as dies non, no work no pay of the petitioner and identically placed persons have been treated partially.

(3). Hence this writ petition.

Contentions.

(4). Learned counsel for the petitioner submits the that the reliance placed by the respondents on Regulation 29 read with Rule 37 of the National Fertilizers Ltd. Employees (Conduct, Discipline and Appeal) Rules, to justify dismissal merely on the ground of conviction, is itself constitutionally untenable, as these provisions, to the extent they permit automatic or mechanical dismissal merely because there is a conviction, without any independent consideration of the underlying conduct and surrounding circumstances, are hit by Article 311(2) of the Constitution of India which mandates that a person shall not be dismissed, removed or reduced in rank except after being informed of the charges and given a reasonable opportunity of being heard, subject only to the limited exceptions carved out in the proviso.

(5). He submits that the settled legal position, reflected also in the scheme of Rule 19(1) of the Central Civil Services (Classification, Control and Appeal) Rules, 1965, is that even in cases where clause (a) of second proviso to Article 311(2) is invoked, the disciplinary authority must apply its mind to the nature of the conduct which led to conviction and decide whether the extreme penalty is warranted and convict

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