Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Service Law |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | Service Law: Disciplinary proceeding – Superannuation –Payment of gratuity/Dismissal from service – Whether it ispermissible for the employer to withhold the payment of gratuity ofthe employee even after his superannuation from service becauseof the pendency of the disciplinary proceedings against him andwhere departmental enquiry had been instituted against an employeewhile he was in service and continued after he attained the age ofsuperannuation whether the punishment of dismissal can be imposedon being found guilty of misconduct in view of the provisions inr.34.2 of the Conduct, Discipline & Appeal Rules of 1978 made bythe employer – Held: Per M.R.Shah, J. (for himself and ArunMishra, J.) – An employer has a right to withhold the gratuity duringthe pendency of the disciplinary proceedings, and the disciplinaryauthority has powers to impose the penalty of dismissal/major penaltyupon the employee even after his attaining the age ofsuperannuation, as the disciplinary proceedings were initiated whilethe employee was in service – The Payment of Gratuity Act, 1972govern the conditions concerning payment of gratuity – It cannotcontrol and provide with respect to an employer’s right to hold adepartmental inquiry after retirement, and there is no provisionprescribing what kind of punishment can be imposed in thedepartmental inquiry if it is continued after attaining the age ofsuperannuation – The relevant rules would govern such matters –Since no statutory provisions of the Payment of Gratuity Act, 1972come in the way of the CDA Rules to continue the inquiry aftersuperannuation of the employee in case it was instituted while hewas in service and his deemed continuance in service; thus, nofetter is caused upon operation of Rule 34.2 providing for acontinuation of the inquiry and deemed continuation of the employeein service after the age of superannuation – At the conclusion ofsuch disciplinary proceedings any of the penalty provided underRule 27 of the CDA Rules can be imposed by the authority includingthe order of dismissal and apart from that in case pecuniary losshad been caused that can be recovered –Per Ajay Rastogi, J. (Partlydissenting): After conclusion of the disciplinary inquiry, if anemployee/delinquent is held guilty, indeed a penalty can be inflictedupon him who stood retired from service and what should be thenature of penalty would always depend on the relevant scheme ofRules and on the facts and circumstances of each case, but eitherof the substantive penalties specified under Rule 27 of the Rules,1978 including dismissal from service are not open to be inflictedon conclusion of the disciplinary proceedings and the punishmentof forfeiture of gratuity commensurate with the nature of guilt maybe inflicted upon a delinquent employee provided under Rule 34.3of Rules, 1978 read with sub-section (6) of s.4 of the Act, 1972 –Payment of Gratuity Act, 1972. |
Judge | Hon'ble Mr. Justice Ajay Rastogi Hon'ble Mr. Justice M.R. Shah |
Neutral Citation | 2020 INSC 407 |
Petitioner | Chairman-cum-managing Director, Mahanadi Coalfields Limited |
Respondent | Sri Rabindranath Choubey |
SCR | [2020] 8 S.C.R. 1 |
Judgement Date | 2020-05-27 |
Case Number | 9693 |
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