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CASE NO.: Appeal (civil)  1340 of 2008

PETITIONER: M.D., U.P. Shram Evam Nirman Sahkari S. Ltd.

RESPONDENT: Dev Prakash Tewari & Ors.

DATE OF JUDGMENT: 15/02/2008

BENCH: H.K. SEMA & MARKANDEY KATJU

JUDGMENT: JUDGMENT O R D E R (Arising out of SLP(C) NO. 5205/2006)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Leave granted.

       Aggrieved by the judgment and order dated 10th January, 2006 passed by the High  Court, this appeal is preferred by the Employer.  The respondent was dismissed from  service by an order dated 27th April, 1988 preceded by an inquiry.  His writ petition  was allowed by the High Court mainly on the ground of violation of the  principle of  natural justice as no proper opportunity had been afforded to the respondent.   

       The High Court, however, after setting aside the order of dismissal, gave the appell ant  liberty to initiate a fresh inquiry but directed the payment of full back wages and  reinstatement.

       The order of the High Court, in our view, is not in accordance with law settled by a   Constitution Bench of this Court in the case of  Managing Director, ECIL, Hyderabad  and Ors. vs. B Karunakar and Ors.  reported in 1993 (4) SCC 727.  The Constitution  Bench of this Court considered a similar question in that case and held that the  reinstatement of Government servants in such cases is for the purpose of making fresh  inquiry.  While  inquiry is in progress,  he can  ..2/-

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be placed under suspension.  This Court also held that in such a situation the employee  can only get subsistence allowance in accordance with law.  This Court further held  that with regard to payment of back wages, it is subject to the result of the fresh  inquiry, and therefore, no back wages can be directed to be paid at that stage.   

       In view of the principle of law settled by this  Court  in the aforementioned case,  the  order of the High Court directing payment of back wages is not tenable in law and the  same is set aside.   

       The appeal is, accordingly, allowed.

       We, however, observe that the inquiry may be expedited.