Patna High Court Clarifies Rights of Dismissed Employee Acquitted After Retirement

Patna High Court Clarifies Rights of Dismissed Employee Acquitted After Retirement

Simplified Explanation of the Judgment

In a significant decision, the Patna High Court has clarified the legal position regarding an employee who was dismissed from service following a criminal conviction but was later acquitted after reaching the age of retirement.

The petitioner in this case was employed as a Peon in Uttar Bihar Gramin Bank. In 2006, an FIR was registered against him and some of his family members under Section 304B and Section 34 of the Indian Penal Code, which deals with dowry death and common intention respectively. The case led to his conviction in 2015.

Following his conviction, the petitioner was dismissed from service by the Bank in November 2015 under Regulations 39 and 40 of the Uttar Bihar Gramin Bank (Officers and Employees) Service Rules, 2010. These regulations allow the Bank to dismiss an employee solely based on criminal conviction, without requiring a departmental inquiry or adherence to principles of natural justice.

However, the petitioner later succeeded in appealing his conviction. The High Court acquitted him in January 2019. By this time, the petitioner had already crossed the age of retirement.

The petitioner approached the Court seeking two key reliefs:

  1. Quashing of the dismissal order dated 27.11.2015.
  2. Payment of salary from the date he reported for joining (i.e., 09.09.2015), after his release on bail.

The Court clarified that while a criminal conviction is indeed a ground for dismissal under the service rules, such disqualification stands removed once the conviction is overturned. However, the Court also emphasized that the entitlement to salary arises only when the employee offers to rejoin after acquittal—not merely upon being released on bail. Since the petitioner submitted his joining while he was still a convict (albeit on bail), he could not claim salary for that period.

Importantly, the Court noted that post-retirement benefits such as pension and other dues cannot be denied once the conviction has been set aside. It directed the Bank to process the petitioner’s claim for such dues within three months of receiving the application.

Significance or Implication of the Judgment

This judgment reinforces the legal principle that dismissal based on criminal conviction is valid even without a domestic inquiry, provided the conviction stands. However, once an acquittal is secured, the stigma of conviction is removed, thereby restoring the person’s eligibility for retirement-related benefits.

The case serves as an important precedent for public sector employees and banks alike, underlining the distinction between reinstatement rights and monetary entitlements post-acquittal, especially when retirement occurs during the litigation process.

For government institutions, this ruling provides guidance on handling cases involving employees dismissed due to criminal conviction, particularly in ensuring timely processing of post-retirement benefits once acquittal occurs.

Legal Issue(s) Decided and the Court’s Decision

  • Whether a dismissed employee can claim salary for the period after offering to join while still a convict?
    • Court’s Decision: No. The right to salary only arises after acquittal, not upon release on bail.
  • Whether the acquitted employee is entitled to post-retirement benefits?
    • Court’s Decision: Yes. Since the conviction was set aside, there is no legal disqualification to deny such benefits.

Judgments Referred by Parties (with citations)

  • Raj Narayan Vs. Union of India, Civil Appeal No. 3339 of 2019
  • Ranchhorji Chaturji Thakore Vs. Superintending Engineer, Gujarat Electricity Board, Himmatnagar & Ors., (1996)

Case Title

Tarkeshwa Pandey Vs. Uttar Bihar Gramin Bank & Ors.

Case Number

Civil Writ Jurisdiction Case No. 17545 of 2015

Citation(s)

2020 (1) PLJR 214

Coram and Names of Judges

Hon’ble Mr. Justice Madhuresh Prasad

Names of Advocates and who they appeared for

  • Mr. Shashi Bhushan Kumar -Manglam (for the petitioner)
  • Mr. Prabhakar Jha and Mr. Mukund Mohan Jha (for the respondents)

Link to Judgment

https://patnahighcourt.gov.in/viewjudgment/MTUjMTc1NDUjMjAxNSMxI04=-LJW–am1–mSpGyc4=

If you found this explanation helpful and wish to stay informed about how legal developments may affect your rights in Bihar, you may consider following Samvida Law Associates for more updates.

Aditya Kumar

Aditya Kumar is a dedicated and detail-oriented legal intern with a strong academic foundation in law and a growing interest in legal research and writing. He is currently pursuing his legal education with a focus on litigation, policy, and public law. Aditya has interned with reputed law offices and assisted in drafting legal documents, conducting research, and understanding court procedures, particularly in the High Court of Patna. Known for his clarity of thought and commitment to learning, Aditya contributes to Samvida Law Associates by simplifying complex legal topics for public understanding through well-researched blog posts.

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