Sukhdarshan Singh vs The State of Punjab & Ors.
Background
The appellant, a government clerk, was suspended in 1986 over an embezzlement FIR (in which he was later acquitted) and, while still under suspension, was convicted in a separate 1995 case under Sections 324/506 IPC (causing hurt and criminal intimidation), with the High Court later reducing his sentence to time served. He was removed from service in 2003 based on this conviction. On appeal, the departmental appellate authority set aside the removal but, taking a sympathetic view, ordered that he get no salary for the suspension/removal period, treating it as "dies non" (a period not counted as service or paid). He then sued in civil court, which decreed that he was entitled to full salary for the period, and this was upheld in first appeal, but the High Court, in a second appeal, reversed this and held he was entitled to no back-pay at all, a decision that was partly revisited (but not overturned) at the review stage.
Decision Breakdown
The Supreme Court found that the appellate authority had exceeded its powers in imposing "dies non" (no pay, no service credit) as it did: this was not a recognized penalty under the applicable 1970 disciplinary Rules, so that part of the order could not stand. However, it also disagreed with the civil courts' opposite extreme conclusion that once a removal is set aside, an employee automatically gets full back-pay for the entire period with no further inquiry, holding that Rule 15(v)(f) of the Rules requires the competent authority to specifically determine whether the intervening period should be treated as duty for pay purposes, and this determination does not follow automatically from a reinstatement order. Since neither the departmental appellate authority nor the High Court had properly undertaken this specific exercise, the Court set aside both the High Court's judgment (which denied all back-pay) and the trial court's decree (which granted full back-pay), and instead directed the State authority to specifically decide, within three months, how the period from the 2003 removal to the 2009 reinstatement should be treated.
Lesson Learnt
When a wrongful dismissal is set aside, back-pay for the intervening period is not automatic: service rules typically require the competent authority to make a specific, reasoned determination on whether that period counts as duty and how much (if any) pay is due, especially where the employee was also separately convicted of an offence during that period.