Case Note & Summary
The dispute arose from the termination of a Lower Division Clerk in the Public Works Department, who was suspended and subsequently faced departmental proceedings. The respondent was appointed on 25.9.1971 and promoted on 1.1.1979. Following his suspension on 4.9.1982, he did not join his new posting and failed to participate adequately in the departmental inquiry, leading to his removal on 28.5.1985. He raised issues regarding the non-payment of subsistence allowance, which was delayed significantly. The State Administrative Tribunal dismissed his application, attributing the delay to the respondent's own actions. However, the High Court found that the prolonged non-payment of subsistence allowance violated principles of natural justice, leading to the respondent's reinstatement without back wages. The State appealed, arguing that the respondent did not demonstrate any prejudice from the non-payment. The respondent contended that the non-payment violated his right to life under Article 21 of the Constitution. The Supreme Court noted that subsistence allowance is a right and not a bounty, emphasizing that its non-payment hindered the respondent's defense. The court found that the High Court misinterpreted the facts and directed the matter to be reconsidered, while also awarding litigation costs to the respondent. The appeal was allowed with specific directions for the High Court to reassess the case (Paras 1-21).
Headnote
A) Employment Law - Subsistence Allowance - Right to Payment - Madhya Pradesh Fundamental Rules, 1959, Rule 53 - The court held that subsistence allowance is a right of an employee under suspension and its non-payment constitutes a breach of natural justice, impacting the employee's ability to defend himself in departmental proceedings. The court directed the matter to be reconsidered by the High Court regarding the prejudice caused by non-payment (Paras 13-20).
Issue of Consideration
Whether the non-payment of subsistence allowance violated the principles of natural justice and affected the respondent's ability to defend himself in departmental proceedings.
Final Decision
The Supreme Court allowed the appeal, set aside the High Court's judgment, and remitted the matter for fresh consideration regarding the impact of non-payment of subsistence allowance. The court directed the State to pay Rs.50,000 as litigation costs to the respondent.
Law Points
- subsistence allowance
- departmental proceedings
- principles of natural justice
- right to life
- judicial review


