Supreme Court Allows State Appeal in Suspension Pay Case — Full Pay and Allowances Not Automatic Upon Revocation of Suspension Under Rule 97 of Jharkhand Service Code, 2001. The Court held that the High Court misconstrued Rule 97, which requires a specific order by the competent authority after conclusion of disciplinary proceedings, and full pay is allowed only if suspension is found wholly unjustified.

  • 12
Judgement Image
Font size:
Print

Case Note & Summary

The Supreme Court allowed the appeal filed by the State of Jharkhand against the judgment of the Division Bench of the High Court of Jharkhand dated 12 April 2017. The respondent, Amresh Narayan Sinha, was a Veterinary Officer whose services were allotted to Jharkhand after the reorganisation of Bihar. Sanction for his prosecution under various sections of the Penal Code and the Prevention of Corruption Act, 1988 was issued on 17 February 2006. He was placed under suspension on 14 March 2012 in contemplation of disciplinary proceedings. The departmental proceedings were held in abeyance pending the criminal trial. On 6 July 2015, the State revoked his suspension. The respondent filed a writ petition seeking full pay and allowances for the suspension period. The learned Single Judge directed the State to take a decision on payment of full salary irrespective of the pending criminal case, which was affirmed by the Division Bench. The High Court relied on Rule 97 of the Jharkhand Service Code, 2001 to hold that upon revocation of suspension, the respondent was entitled to full pay and allowances even though disciplinary proceedings were pending. The Supreme Court held that the High Court misconstrued Rule 97. Sub-rule (1) requires the competent authority to make a specific order regarding pay and allowances upon reinstatement. Sub-rule (2) provides that full pay and allowances are to be given only if the authority concludes that the suspension was wholly unjustified. Since the disciplinary proceedings were pending, the decision on pay and allowances must await the conclusion of the departmental inquiry. The Court noted that under threat of contempt, the State had already paid the entire pay and allowances. The Court directed that such payment shall be subject to the ultimate decision of the competent authority under Rule 97(1) after the disciplinary proceedings conclude. The appeal was allowed, the impugned judgment set aside, and no order as to costs.

Headnote

A) Service Law - Suspension - Reinstatement - Pay and Allowances - Rule 97 of Jharkhand Service Code, 2001 - The High Court misconstrued Rule 97 to hold that full pay and allowances must necessarily follow upon revocation of suspension. The Supreme Court held that the plain language of Rule 97 requires the competent authority to make a specific order regarding pay and allowances only after conclusion of disciplinary proceedings, and full pay is allowed only if suspension is found to be wholly unjustified. (Paras 3-4)

B) Service Law - Disciplinary Proceedings - Abeyance Pending Criminal Trial - Rule 97 of Jharkhand Service Code, 2001 - Where disciplinary proceedings are held in abeyance pending criminal trial, the decision on pay and allowances for the suspension period must await the conclusion of the departmental inquiry. The court directed that payments already made shall be subject to the ultimate decision of the competent authority under Rule 97(1). (Paras 4-5)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether upon revocation of suspension, a government servant is entitled to full pay and allowances for the suspension period even if disciplinary proceedings are pending and not concluded.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The Supreme Court allowed the appeal, set aside the impugned judgment of the High Court dated 12 April 2017, and directed that the payment already made to the respondent shall be subject to the ultimate decision of the competent authority in terms of Rule 97(1) after the conclusion of the disciplinary proceedings. No order as to costs.

Law Points

  • Rule 97 of Jharkhand Service Code
  • 2001
  • Suspension
  • Reinstatement
  • Pay and Allowances
  • Disciplinary Proceedings
  • Criminal Trial
Subscribe to unlock Law Points Subscribe Now

Case Details

2019 lawtext (SC) (7) 126

Civil Appeal No. 5737 of 2019 (@ SLP(C) No. 16928/2018)

2019-07-22

Dr Dhananjaya Y Chandrachud, Indira Banerjee

Mr. Dilip Kumar Dubey, Mr. Jayesh Gaurav, Mr. Vishal Arun (for Petitioner); Mr. Gopal Prasad (for Respondent)

State of Jharkhand & Anr

Amresh Narayan Sinha

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Civil appeal against High Court judgment directing full pay and allowances upon revocation of suspension despite pending disciplinary proceedings.

Remedy Sought

State of Jharkhand sought to set aside the High Court's direction to pay full salary for suspension period.

Filing Reason

The High Court directed full pay and allowances upon revocation of suspension, which the State contended was contrary to Rule 97 of the Jharkhand Service Code.

Previous Decisions

Single Judge directed State to take decision on full salary; Division Bench affirmed. State appealed to Supreme Court.

Issues

Whether upon revocation of suspension, a government servant is entitled to full pay and allowances for the suspension period even if disciplinary proceedings are pending and not concluded.

Submissions/Arguments

State argued that Rule 97 requires a specific order after conclusion of disciplinary proceedings, and full pay is allowed only if suspension is found wholly unjustified. Respondent argued that revocation of suspension entitles him to full pay and allowances under Rule 97.

Ratio Decidendi

Under Rule 97 of the Jharkhand Service Code, 2001, upon revocation of suspension, the competent authority must make a specific order regarding pay and allowances only after conclusion of disciplinary proceedings. Full pay and allowances are granted only if the suspension is found to be wholly unjustified. The High Court erred in directing full pay and allowances at the stage of revocation without awaiting the outcome of disciplinary proceedings.

Judgment Excerpts

The High Court misconstrued the provisions of Rule 97 in coming to the conclusion that full pay and allowances must necessarily follow as a consequence of the suspension being revoked. It is only after the conclusion of the departmental inquiry that the competent authority will have to decide, in terms of Rule 97, how the period of suspension should be treated and whether it is liable to be treated as a period spent on duty.

Procedural History

The respondent was suspended on 14 March 2012. On 28 February 2013, High Court directed State to consider representation for revocation; representation rejected. On 6 July 2015, suspension revoked. Respondent filed writ petition; Single Judge on 18 July 2016 directed State to take decision on full salary. Division Bench affirmed on 12 April 2017. State appealed to Supreme Court by special leave. Supreme Court granted leave and allowed appeal on 22 July 2019.

Acts & Sections

  • Indian Penal Code, 1860: 120B, 201, 420, 467, 468, 471
  • Prevention of Corruption Act, 1988: 13(2), 13(1)(d)
  • Jharkhand Service Code, 2001: 97
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
Supreme Court Supreme Court Allows State Appeal in Suspension Pay Case — Full Pay and Allowances Not Automatic Upon Revocation of Suspension Under Rule 97 of Jharkhand Service Code, 2001. The Court held that the High Court misconstrued Rule 97, which requires a ...
Related Judgement
Supreme Court Supreme Court Allows State's Appeal in Contempt Case Over Road Construction Location - Court Holds That Substantial Compliance With PIL Direction Suffices When Alternative Road Constructed for Public Benefit