Case Note & Summary
The case involved an appeal by the General Manager of UCO Bank against a judgment of the Andhra Pradesh High Court that allowed a writ appeal filed by the respondent, M. Venuranganath, a former Branch Manager of the bank. The respondent had been acquitted of criminal charges under the Indian Penal Code and the Prevention of Corruption Act but faced departmental proceedings that concluded with a finding of guilt. The respondent was suspended from 15.06.1988 until reinstatement on 04.05.1993, during which he claimed entitlement to salary and allowances for the suspension period. The initial writ petition for these benefits was dismissed, but the Division Bench later ruled in favor of the respondent, stating that Clause 22 of the applicable Manual governed the case, not the statutory Regulation 15(2). The appellants argued that the Manual was merely executive instructions and that acquittal in a criminal case does not affect departmental proceedings. The court recognized that while criminal and departmental proceedings are distinct, the specific provisions of the Manual and Regulations were crucial in determining the respondent's entitlements. Ultimately, the court upheld the High Court's decision, affirming the respondent's right to benefits during the suspension period based on the Manual's provisions. The appeal was dismissed without costs.
Headnote
A) Employment Law - Disciplinary Proceedings - Entitlement to Salary During Suspension - Indian Penal Code, 1860, Prevention of Corruption Act, 1947 - The court examined the applicability of Clause 22(8) of the Manual versus Regulation 15(2) regarding salary and allowances during suspension. It held that the respondent was entitled to benefits as per Clause 22(8) due to acquittal, justifying the High Court's decision (Paras 13-14).
Issue of Consideration
Whether the respondent was entitled to salary and allowances during the period of suspension after acquittal in a criminal case.
Final Decision
The Supreme Court dismissed the appeal, affirming the High Court's decision that the respondent was entitled to salary and allowances during the suspension period based on Clause 22(8) of the Manual.
Law Points
- Disciplinary proceedings
- departmental inquiry
- acquittal
- suspension
- pay and allowances
- executive instructions
- statutory regulations


