Employee Entitled To Annual Grade Increments, Arrears Of Last Drawn Salary During Suspension Period: Rajasthan High Court

Background Facts

The petitioner was holding the post of Stenographer Grade-I in the Rajasthan Financial Corporation (RFC). He was arrested and criminal prosecuted in a criminal case registered by the SOG, Jaipur for offences under Sections 420, 406, 120-B IPC and Section 10/24 of the Immigration Act, 1983 and Section 12-B of the Indian Passport Act, 1967. Due to which the petitioner was placed under suspension by RFC w.e.f. 22.08.2011. But neither any charge-sheet was issued to the petitioner nor any departmental inquiry was proceeded against the petitioner by the RFC.

Later on, petitioner was acquitted in criminal proceedings vide judgment dated 12.03.2015 passed by the Court of Additional Chief Judicial Magistrate, Metropolitan Magistrate, Jaipur Metropolitan. Hence, the suspension of petitioner was revoked by the RFC vide order dated 15.06.2015.

As per the order of revocation of suspension, petitioner was held entitled for the last salary drawn by him for the suspension period. But later on RFC issued a separate order dated 28.08.2015 denying the payment of annual grade increments as well as arrears of last drawn salary during suspension period to the petitioner.

Aggrieved by the same, the petitioner filed the writ petition.

It was contended by the petitioner that his annual grade increments and arrears of last drawn salary were wrongfully denied by the respondents even when the petitioner was acquitted in the criminal case by the Additional Chief Judicial Magistrate. It was further contended that earlier similarly placed employee were granted the entire monetary benefits and difference of pay during the period of suspension.

On the other hand it was contended by the respondent that since the criminal case was not related to the RFC therefore, no charge-sheet was issued by the RFC to the petitioner nor any departmental inquiry was initiated. Further it was contended that the petitioner was not entitled for payment of annual grade increments as well as arrears of last drawn salary during suspension period.

Findings of the Court

It was observed by the court that as per the order of revocation of suspension dated 15.06.2015, petitioner has been held entitled for the last salary drawn during the suspension period but the other monetary benefits like grant of annual grade increments have been withheld. It was observed that the petitioner has retired from service after attaining the age of superannuation and drawing pension.

The case of Rajendra Singh Gehlot Vs. Rajasthan Financial Corporation was relied upon by the court wherein the Coordinate Bench of the Rajasthan High Court held that the petitioner was entitled to the entire monetary benefits and difference of pay during the period of suspension. Further the order has been affirmed by the Division Bench in D.B. Special Appeal Writ No. 626/2018 vide order dated 16.07.2018.

The case of Prem Shankar Verma Vs. Rajasthan Finance Corporation was also relied upon by the court wherein the Rajasthan High Court granted the due financial benefits to the petitioner during the suspension period.

It was found by the court that the provision of Rule 37-A of the Rajasthan Service Rules and Rajasthan Financial Corporation (Staff Regulations), 1958 deals with the issue of suspension but do not suggest withholding of annual grade increments of the employee during his suspension period.

It was held by the court that the order issued by the RFC, withholding of the annual grade increments of the petitioner during suspension period was not supported by any rule or regulations of RFC. Therefore the order dated 28.08.2015 was quashed by the court.

It was directed by the court to respondent, to pay the arrears of last drawn salary to the petitioner during suspension period from 22.08.2011 to 15.06.2015, for which the petitioner was held entitled under the revocation of suspension order dated 15.06.2015, within a period of six weeks along with interest @ 6% per annum.

It was further directed by the court that the petitioner shall be given notional benefits of annual grade increments during the period of suspension i.e. from 22.08.2011 to 15.06.2015 but his pension shall be revised accordingly with payment of actual benefits.

With the aforesaid observations, the writ petition was partly allowed.

Case No. : S.B. Civil Writ Petition No. 18159/2019

Counsel for the Petitioner : Jitendra Sharma

Counsel for the Respondents : Manjeet Kaur