Supreme Court Upholds Departmental Action Against Government Servant in Corruption Case. Conviction Under Section 420 IPC and Section 5 of PCA Remains Operative for Dismissal Under Article 311(2) Second Proviso Even When Appellate Court Suspends Sentence.

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Case Note & Summary

The Supreme Court dealt with an appeal by the Deputy Director of Collegiate Education against an order of the Tamil Nadu Administrative Tribunal which had quashed a show cause notice issued to a government servant for dismissal based on criminal conviction. The respondent was working as Superintendent in the office of the Regional Deputy Director Collegiate Education, Madurai in 1986. Complaints of corruption were received against him. An enquiry by the Vigilance and Anti-Corruption Department opined that the charge was true. The respondent was prosecuted before the Chief Judicial Magistrate, Madurai, who convicted him under Section 420 of the Indian Penal Code and Section 5 of the Prevention of Corruption Act. The charge was that he received Rs.10,000 from one Vijay Kumar promising to secure a job. He was sentenced to rigorous imprisonment for one year and a fine of Rs.1,000. The respondent appealed to the High Court. On 14.2.1991, the High Court suspended the sentence and released him on bail. On 27.10.1993, the Deputy Director issued a show cause notice stating that because the High Court had only suspended the sentence, the conviction was still in force, and therefore he should show cause why he should not be dismissed from service. The respondent challenged this notice before the Tamil Nadu Administrative Tribunal. The Tribunal quashed the notice on the grounds that once the sentence had been suspended by the appellate court, criminal proceedings continued and departmental action could not be taken until disposal of the appeal. The Tribunal also held that there was an unexplained delay of two years eight months in issuing the notice. The main legal issue before the Supreme Court was whether clause (a) of the second proviso to Article 311(2) of the Constitution permits departmental action when the sentence is suspended and the accused is on bail, and whether delay vitiates the action. The court examined Article 311(2) and noted that clause (a) speaks of conduct which has led to conviction on a criminal charge, not sentence or punishment. The court referred to Section 389 of the Code of Criminal Procedure, 1973 and held that it empowers the appellate court to suspend execution of sentence or order, not conviction. Relying on Rama Narang v. Ramesh Narang and Shankardass v. Union of India, the court held that conviction remains operative despite suspension of sentence or bail, and departmental action can be taken immediately upon conviction. The court also found that the delay was explained by the need for legal advice and was not fatal. Accordingly, the Supreme Court allowed the appeal, set aside the Tribunal order, and gave the respondent four weeks to submit his explanation to the show cause notice, after which the appellant could pass appropriate orders.

Headnote

A) Constitutional Law - Dismissal of Government Servant - Conviction as Ground for Dismissal - Constitution of India, Article 311(2), second proviso clause (a) - Clause (a) provides that a government servant may be dismissed on the ground of conduct which has led to his conviction on a criminal charge; the provision refers to conduct leading to conviction, not sentence or punishment; suspension of sentence by appellate court does not affect the conviction or the power to take departmental action - Held that departmental action under clause (a) can be taken even when sentence is suspended and accused released on bail (Paras 6-8).

B) Criminal Procedure - Suspension of Sentence - Effect on Conviction - Code of Criminal Procedure, 1973, Section 389 - Section 389 empowers the appellate court to suspend execution of sentence or order, not conviction; conviction remains operative unless specifically suspended - Held that suspension of sentence or grant of bail does not erase conviction (Paras 7-8).

C) Service Law - Departmental Proceedings - Timing of Action - Constitution of India, Article 311(2), second proviso clause (a) - The appropriate course is to take departmental action immediately upon conviction of a government servant, without waiting for appeal or revision; if the employee is later acquitted, he can be reinstated with full benefits - Held that waiting for appeal is not advisable as it would mean continuing in service a person convicted of serious offence (Para 9).

D) Service Law - Delay in Departmental Action - Explanation of Delay - Constitution of India, Article 311(2), second proviso clause (a) - Delay of two years eight months in issuing show cause notice was explained by need for legal advice regarding suspension of sentence; delay found not vitiating - Held that delay not fatal when properly explained (Para 11).

E) Administrative Law - Exercise of Power - Fairness and Reasonableness - Constitution of India, Article 311(2), second proviso clause (a) - Power under clause (a) must be exercised fairly, justly and reasonably; not every conviction would justify dismissal - Held that the right to impose penalty carries duty to act justly (Para 10).

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Issue of Consideration

Whether departmental proceedings under clause (a) of the second proviso to Article 311(2) of the Constitution can be taken when the appellate court has suspended the sentence and granted bail to the convicted government servant, and whether delay in issuing show cause notice vitiates such action.

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Final Decision

Appeal allowed; order of Tamil Nadu Administrative Tribunal set aside; respondent given four weeks from date of judgment to submit explanation to show cause notice; appellant (Deputy Director) permitted to pass appropriate orders thereafter; no costs.

Law Points

  • Conviction remains operative despite suspension of sentence
  • Clause (a) of second proviso to Article 311(2) deals with conduct leading to conviction not sentence
  • Section 389 CrPC suspends execution of sentence not conviction
  • Departmental action can be taken immediately after conviction without waiting for appeal
  • Delay in issuing show cause notice not fatal if explained
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Case Details

1995 LawText (SC) (02) 25

1995-02-24

B.P. Jeevan Reddy, K.S. Paripoornan

1995 AIR 1364, 1995 SCC (3) 377, JT 1995 (3) 32, 1995 SCALE (2)1

The Deputy Director of Collegiate Education

S. Nagoor Meera

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Nature of Litigation

Departmental action for dismissal of a government servant convicted of corruption, challenged before administrative tribunal and appealed to Supreme Court.

Remedy Sought

Appellant (Deputy Director) sought to set aside the Tribunal's order quashing the show cause notice and to permit departmental proceedings for dismissal.

Filing Reason

Respondent was convicted under Section 420 IPC and Section 5 PCA; show cause notice issued under Article 311(2) second proviso clause (a); Tribunal quashed it citing suspension of sentence and delay.

Previous Decisions

Chief Judicial Magistrate, Madurai convicted respondent on 4.2.1991; High Court suspended sentence on 14.2.1991; Tamil Nadu Administrative Tribunal quashed show cause notice on grounds of suspension and delay.

Issues

Whether departmental proceedings under clause (a) of second proviso to Article 311(2) can be initiated when the sentence imposed by criminal court has been suspended by appellate court and accused released on bail Whether delay of two years eight months in issuing show cause notice vitiates the departmental action

Submissions/Arguments

Respondent contended that since the High Court suspended the sentence, criminal proceedings were continuing and departmental action under clause (a) of second proviso to Article 311(2) could not be taken until appellate court disposed of the appeal. Respondent also contended that the show cause notice suffered from inordinate unexplained delay of two years eight months. Appellant contended that conviction remained in force despite suspension of sentence and bail, and clause (a) applies on the basis of conduct leading to conviction, not sentence. Appellant explained that delay was due to obtaining legal advice regarding the effect of suspension of sentence, which was a genuine explanation and not fatal.

Ratio Decidendi

Clause (a) of the second proviso to Article 311(2) of the Constitution uses the expression 'conduct which has led to his conviction on a criminal charge' and not sentence or punishment. Suspension of sentence or grant of bail by appellate court does not suspend conviction; conviction remains operative. Departmental authority can take action immediately upon conviction without waiting for appeal; if the employee is later acquitted, he can be reinstated with full benefits. Delay in issuing show cause notice can be condoned if properly explained.

Judgment Excerpts

Merely because the sentence is suspended and/or the accused is released on bail, the conviction does not cease to be operative. Clause (a) of the second proviso to Article 311(2) confers on the government the power to dismiss a person from services 'on the ground of conduct which has led to his conviction on a criminal charge.' The more appropriate course in all such cases is to take action under clause (a) of the second proviso to Article 311(2) once a government servant is convicted of a criminal charge and not to wait for the appeal or revision, as the case may be.

Procedural History

Respondent worked as Superintendent in 1986; complaints of corruption led to vigilance enquiry; respondent prosecuted before Chief Judicial Magistrate, Madurai; convicted on 4.2.1991 under Section 420 IPC and Section 5 PCA; sentenced to one year RI and fine; respondent appealed to High Court; High Court suspended sentence and granted bail on 14.2.1991; Deputy Director issued show cause notice dated 27.10.1993 for dismissal; respondent filed Original Application No. 6851 of 1993 before Tamil Nadu Administrative Tribunal; Tribunal quashed notice by order; Deputy Director appealed to Supreme Court; Supreme Court allowed appeal and set aside Tribunal order.

Acts & Sections

  • Constitution of India: Article 311(2)
  • Code of Criminal Procedure, 1973: Section 389
  • Indian Penal Code: Section 420
  • Prevention of Corruption Act, 1947: Section 5
  • Companies Act, 1956: Section 267
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