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Service & Administrative LawSupreme Court of India

Raj Narain v. Union of India

Civil Appeal · 2019 INSC 442Decided 1 Apr 2019
Civil Appeal No. 3339 of 2019
Justice L. Nageswara Rao · Justice M.R. Shah

Background

The appellant, a Sorting Assistant in the Railway Mail Service, was suspended in 1979 after an FIR was registered against him for alleged forged money-order payments. His suspension was revoked in 1987 and he resumed duty, but he was later dismissed in 1997 following a criminal conviction. He was acquitted on appeal and sought reinstatement, which was initially refused and later granted in 2003 after the Tribunal intervened, but without back wages. The High Court partly allowed his claim, granting him back wages only from the date of his acquittal (2001) to his reinstatement (2003), and he challenged this before the Supreme Court, seeking wages for the entire period going back to 1979.

Decision Breakdown

Relying on its earlier rulings in Ranchhodji Chaturji Thakore and Union of India v. Jaipal Singh, the Court held that an employee facing criminal prosecution is in a different position from one facing a departmental inquiry, and a later acquittal does not automatically entitle him to back wages for the period he was out of service due to the criminal case, unless the prosecution was shown to be malicious. However, the Court found that the disciplinary proceedings against the appellant had actually been dropped back in 1983, meaning there was no continuing basis for his suspension after that date; the department simply delayed reinstating him for four more years. The Court therefore held he was separately entitled to full wages for the entire suspension period from 1979 to 1987 (adjusted for subsistence allowance already paid), in addition to the back wages already granted by the High Court for 2001-2003.

Lesson Learnt

An employee is not automatically entitled to back wages merely because he is later acquitted in a criminal case, but if the department itself drops or ends the underlying disciplinary proceedings, it cannot continue to withhold wages for the extra time it takes to formally reinstate the employee thereafter.

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