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Issues: (i) whether disciplinary proceedings could continue despite the appellant's acquittal in the criminal case; (ii) whether Rule 10(4) of the Central Civil Services (Classification, Control and Appeal) Rules, 1965 was to be read down or struck down as unconstitutional under Articles 14 and 16 of the Constitution of India; and (iii) whether the appellant was entitled to salary for the period during which he worked after being permitted to join duty.
Issue (i): whether disciplinary proceedings could continue despite the appellant's acquittal in the criminal case.
Analysis: The nature and scope of criminal prosecution are distinct from departmental disciplinary proceedings. An acquittal in a criminal case does not, by itself, conclude departmental action, particularly where the acts forming the basis of the departmental charges are not exactly identical to those involved in the criminal case.
Conclusion: The continuation of the disciplinary proceeding was upheld and this contention failed.
Issue (ii): whether Rule 10(4) of the Central Civil Services (Classification, Control and Appeal) Rules, 1965 was to be read down or struck down as unconstitutional under Articles 14 and 16 of the Constitution of India.
Analysis: The language of Rule 10(4) was held to be clear and unambiguous. The omission of the words referring to a servant already under suspension, when compared with Rule 10(3), was treated as deliberate. The rule therefore operated according to its plain meaning and covered cases where a penalty of dismissal, removal or compulsory retirement was set aside by a court on technical grounds and a further inquiry was ordered. The distinction between Rule 10(3) and Rule 10(4) was found to rest on an intelligible differentia linked to the object of the provision, because Rule 10(3) dealt with setting aside of punishment in departmental or appellate/revisional review on merits, whereas Rule 10(4) dealt with judicial interference on technical grounds without going into merits. This classification was held to be rational and the proviso narrowed the scope of automatic suspension.
Conclusion: Rule 10(4) was held to be constitutionally valid and applicable even where the employee had not been under suspension earlier.
Issue (iii): whether the appellant was entitled to salary for the period during which he worked after being permitted to join duty.
Analysis: The appellant had in fact been allowed to discharge duties during the specified period, and for that period salary could not be denied.
Conclusion: The appellant was held entitled to payment for that period with consequential interest in case of delayed payment.
Final Conclusion: The appeal failed on the substantive challenges to the continuation of disciplinary proceedings and the validity of Rule 10(4), but the appellant obtained limited monetary relief for the period he actually worked after rejoining duty.
Ratio Decidendi: Where the statutory language is clear, it must be given its plain meaning; and a classification under service rules will be valid if it is based on an intelligible differentia having a rational relation to the object of the rule, including a distinction between merits-based departmental interference and technical judicial interference.