High Court Dismisses State's Challenge to Tribunal Order Quashing Employee's Termination in Service Misconduct Case. Termination Vitiated Due to Violation of Natural Justice and Lack of Evidence Under Gujarat State Service Rules, with Employee Granted Pensionary Benefits but Denied Full Back Wages.

High Court: Gujarat High Court Bench: AHEMDABAD
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Case Note & Summary

The dispute arose from the termination of a state government employee, who served as a Senior Clerk, on charges of corruption related to underpayment of TA bills to four employees in 2004. After a departmental inquiry, his services were terminated on July 20, 2005. The employee challenged this before the Gujarat Civil Services Tribunal, which initially dismissed his appeal in 2006. However, upon remand by the High Court in 2020, the Tribunal quashed the termination order on October 1, 2020, citing procedural flaws and lack of evidence. The State Government then filed Special Civil Application No. 7803 of 2022 to challenge the Tribunal's order, while the employee filed Special Civil Application No. 13179 of 2022 seeking full back wages and benefits under the 6th and 7th Pay Commissions. The core legal issues involved whether the Tribunal erred in interfering with the inquiry findings and whether the employee was entitled to full monetary benefits. The State argued that the Tribunal should not have overturned the inquiry's evidence-based findings and that punishment was not disproportionate. The employee contended that the inquiry violated natural justice, as the written complaint was not supplied, the complainant was not examined, and oral evidence contradicted documentary proof like signed vouchers. The High Court, after hearing both sides, analyzed the record and upheld the Tribunal's decision. It found that the departmental inquiry was vitiated due to non-supply of the complaint, non-examination of the complainant, contradictions between oral and documentary evidence, and reliance on assumptions rather than concrete proof of corruption. Regarding back wages, the Court denied full payment, directing that pensionary benefits be paid and the intervening period be governed by applicable Government Resolutions, as the Tribunal had already provided adequate relief. Thus, the High Court dismissed the State's petition and partly allowed the employee's petition only to the extent of implementing the Tribunal's directions.

Headnote

A) Service Law - Departmental Inquiry - Violation of Natural Justice - Gujarat State Service (Conduct) Rules, 1971, Rule 3(1) and Gujarat State Service (Discipline and Appeal) Rules, 1971, Rule 6 - Employee terminated for alleged corruption involving underpayment of TA bills - Tribunal quashed termination citing non-supply of written complaint, non-examination of complainant, contradictions between oral and documentary evidence, and reliance on assumptions - High Court upheld Tribunal's decision, finding inquiry vitiated due to procedural flaws and lack of concrete evidence of corruption (Paras 12, 17).

B) Service Law - Disciplinary Proceedings - Evidentiary Standards - Gujarat State Service (Conduct) Rules, 1971, Rule 3(1) and Gujarat State Service (Discipline and Appeal) Rules, 1971, Rule 6 - Inquiry Officer held employee guilty based on oral evidence ignoring documentary evidence like signed vouchers showing full payment - Tribunal and High Court found this approach flawed, as documentary evidence contradicted oral complaints made after 43 days, constituting a case of no evidence (Paras 12, 14, 17).

C) Service Law - Back Wages and Retiral Benefits - Entitlement - Not mentioned - Employee sought full back wages from termination date to superannuation and benefits under 6th and 7th Pay Commissions - High Court denied full back wages, directing payment of pensionary benefits and treating intervening period as per applicable Government Resolutions, as Tribunal had already provided relief (Paras 8, 15, 16, 18).

Issue of Consideration: Whether the Tribunal erred in quashing the termination order and whether the employee is entitled to full back wages and benefits under the 6th and 7th Pay Commissions

Final Decision

High Court dismissed Special Civil Application No.7803 of 2022 filed by State Government and partly allowed Special Civil Application No.13179 of 2022 filed by employee, directing payment of pensionary benefits and treating intervening period as per Government Resolutions, but denying full back wages

2026 LawText (GUJ) (01) 554

R/Special Civil Application No.7803 of 2022 with R/Special Civil Application No.13179 of 2022

2026-01-12

Nirzar S. Desai J.

2026:GUJHC:3538

Ms Kinjal Vyas, AGP, Mr Hasit H Joshi

State of Gujarat & Ors., Chimanlal Hiralal Rajyaguru

Chimanlal Hiralal Rajyaguru, State of Gujarat & Ors.

Nature of Litigation: Cross petitions challenging and seeking enforcement of Tribunal order in service termination case

Remedy Sought

State Government sought quashing of Tribunal order; employee sought full back wages and Pay Commission benefits

Filing Reason

State challenged Tribunal's quashing of termination; employee sought monetary benefits for intervening period

Previous Decisions

Termination order dated 20.7.2005; Tribunal initially dismissed appeal on 13.3.2006; High Court remanded matter on 16.1.2020; Tribunal quashed termination on 1.10.2020

Issues

Whether the Tribunal erred in quashing the termination order Whether the employee is entitled to full back wages and benefits under 6th and 7th Pay Commissions

Submissions/Arguments

State argued Tribunal interfered with evidence-based inquiry findings and punishment was not disproportionate Employee argued inquiry violated natural justice, lacked evidence, and was based on contradictions

Ratio Decidendi

Departmental inquiry vitiated due to violation of natural justice (non-supply of complaint, non-examination of complainant) and lack of concrete evidence, as oral evidence contradicted documentary proof; full back wages not warranted as Tribunal already provided relief

Judgment Excerpts

the Tribunal has considered peculiar facts and circumstances of the case and has observed that the departmental inquiry had many flows the departmental inquiry was held to be vitiated as the same was not done in accordance with the procedure prescribed including violation of the principles of natural justice

Procedural History

Employee terminated on 20.7.2005; appealed to Tribunal (Appeal No.208/2005) dismissed on 13.3.2006; High Court remanded on 16.1.2020; Tribunal quashed termination on 1.10.2020; State filed SCA No.7803/2022; employee filed SCA No.13179/2022; High Court heard cross petitions on 12.1.2026

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