ANDHRA BANK versus W.T. SESHACHALAM

ANDHRA BANK versus W.T. SESHACHALAM

An employee suspended pending departmental action and prosecuted for a criminal offence, who is acquitted, is entitled to full salary as subsistence allowance from the date of acquittal till the date of dismissal, provided the employee was not responsible for any delay in the enquiry, under para 5(a)(iii) of the Third Bipartite Settlement.

Parties
Appellant: Andhra Bank; Respondent: W.T. Seshachalam
Jurisdiction
India
Judgment Date
05 January 2004
Procedural Posture
Civil Appeal / Final Judgment on Appeal From High Court
Outcome
Appeal dismissed
Legal Topics
Subsistence Allowance, Bipartite Settlements, Suspension of Employees, Departmental Enquiry, Criminal Prosecution and Acquittal, Industrial Disputes Act, S.18
Service Law Labour Law Subsistence Allowance Bipartite Settlements Suspension of Employees Departmental Enquiry Criminal Prosecution and Acquittal Industrial Disputes Act, S.18

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Parties

Andhra Bank

Appellant

W.T. Seshachalam

Respondent

Procedural Posture

Civil Appeal / Final Judgment on Appeal From High Court

Legal Issues

  1. 1 Whether a bank employee suspended pending departmental action and prosecuted criminally, but subsequently acquitted and later dismissed from service, is entitled to full salary as subsistence allowance under the Third Bipartite Settlement from the date of acquittal till dismissal, especially where the employee was not responsible for the delay in enquiry.

Ratio Decidendi

An employee suspended pending departmental action and prosecuted for a criminal offence, who is acquitted, is entitled to full salary as subsistence allowance from the date of acquittal till the date of dismissal, provided the employee was not responsible for any delay in the enquiry, under para 5(a)(iii) of the Third Bipartite Settlement.

Court Disposition

Appeal dismissed

Orders

  • Respondent entitled to full salary as subsistence allowance from 10.3.1994 (date of acquittal) to 14.7.2001 (date of dismissal) as already directed by High Court.
  • Costs easy (no order as to costs).